• Resources
  • Blog
  • Journalists
  • Log In
  • Sign Up
  • Data Privacy
  • Send a Release
Cision PR Newswire: news distribution, targeting and monitoring home
  • News
  • Products
  • Contact

 

When typing in this field, a list of search results will appear and be automatically updated as you type.

Searching for your content...

No results found. Please change your search terms and try again.
  • News in Focus
      • Browse News Releases

      • All News Releases
      • All Public Company
      • English-only
      • News Releases Overview

      • Multimedia Gallery

      • All Multimedia
      • All Photos
      • All Videos
      • Multimedia Gallery Overview

      • Trending Topics

      • All Trending Topics
  • Business & Money
      • Auto & Transportation

      • All Automotive & Transportation
      • Aerospace, Defense
      • Air Freight
      • Airlines & Aviation
      • Automotive
      • Maritime & Shipbuilding
      • Railroads and Intermodal Transportation
      • Supply Chain/Logistics
      • Transportation, Trucking & Railroad
      • Travel
      • Trucking and Road Transportation
      • Auto & Transportation Overview

      • View All Auto & Transportation

      • Business Technology

      • All Business Technology
      • Blockchain
      • Broadcast Tech
      • Computer & Electronics
      • Computer Hardware
      • Computer Software
      • Data Analytics
      • Electronic Commerce
      • Electronic Components
      • Electronic Design Automation
      • Financial Technology
      • High Tech Security
      • Internet Technology
      • Nanotechnology
      • Networks
      • Peripherals
      • Semiconductors
      • Business Technology Overview

      • View All Business Technology

      • Entertain­ment & Media

      • All Entertain­ment & Media
      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • Entertain­ment & Media Overview

      • View All Entertain­ment & Media

      • Financial Services & Investing

      • All Financial Services & Investing
      • Accounting News & Issues
      • Acquisitions, Mergers and Takeovers
      • Banking & Financial Services
      • Bankruptcy
      • Bond & Stock Ratings
      • Conference Call Announcements
      • Contracts
      • Cryptocurrency
      • Dividends
      • Earnings
      • Earnings Forecasts & Projections
      • Financing Agreements
      • Insurance
      • Investments Opinions
      • Joint Ventures
      • Mutual Funds
      • Private Placement
      • Real Estate
      • Restructuring & Recapitalization
      • Sales Reports
      • Shareholder Activism
      • Shareholder Meetings
      • Stock Offering
      • Stock Split
      • Venture Capital
      • Financial Services & Investing Overview

      • View All Financial Services & Investing

      • General Business

      • All General Business
      • Awards
      • Commercial Real Estate
      • Corporate Expansion
      • Earnings
      • Environmental, Social and Governance (ESG)
      • Human Resource & Workforce Management
      • Licensing
      • New Products & Services
      • Obituaries
      • Outsourcing Businesses
      • Overseas Real Estate (non-US)
      • Personnel Announcements
      • Real Estate Transactions
      • Residential Real Estate
      • Small Business Services
      • Socially Responsible Investing
      • Surveys, Polls and Research
      • Trade Show News
      • General Business Overview

      • View All General Business

  • Science & Tech
      • Consumer Technology

      • All Consumer Technology
      • Artificial Intelligence
      • Blockchain
      • Cloud Computing/Internet of Things
      • Computer Electronics
      • Computer Hardware
      • Computer Software
      • Consumer Electronics
      • Cryptocurrency
      • Data Analytics
      • Electronic Commerce
      • Electronic Gaming
      • Financial Technology
      • Mobile Entertainment
      • Multimedia & Internet
      • Peripherals
      • Social Media
      • STEM (Science, Tech, Engineering, Math)
      • Supply Chain/Logistics
      • Wireless Communications
      • Consumer Technology Overview

      • View All Consumer Technology

      • Energy & Natural Resources

      • All Energy
      • Alternative Energies
      • Chemical
      • Electrical Utilities
      • Gas
      • General Manufacturing
      • Mining
      • Mining & Metals
      • Oil & Energy
      • Oil and Gas Discoveries
      • Utilities
      • Water Utilities
      • Energy & Natural Resources Overview

      • View All Energy & Natural Resources

      • Environ­ment

      • All Environ­ment
      • Conservation & Recycling
      • Environmental Issues
      • Environmental Policy
      • Environmental Products & Services
      • Green Technology
      • Natural Disasters
      • Environ­ment Overview

      • View All Environ­ment

      • Heavy Industry & Manufacturing

      • All Heavy Industry & Manufacturing
      • Aerospace & Defense
      • Agriculture
      • Chemical
      • Construction & Building
      • General Manufacturing
      • HVAC (Heating, Ventilation and Air-Conditioning)
      • Machinery
      • Machine Tools, Metalworking and Metallurgy
      • Mining
      • Mining & Metals
      • Paper, Forest Products & Containers
      • Precious Metals
      • Textiles
      • Tobacco
      • Heavy Industry & Manufacturing Overview

      • View All Heavy Industry & Manufacturing

      • Telecomm­unications

      • All Telecomm­unications
      • Carriers and Services
      • Mobile Entertainment
      • Networks
      • Peripherals
      • Telecommunications Equipment
      • Telecommunications Industry
      • VoIP (Voice over Internet Protocol)
      • Wireless Communications
      • Telecomm­unications Overview

      • View All Telecomm­unications

  • Lifestyle & Health
      • Consumer Products & Retail

      • All Consumer Products & Retail
      • Animals & Pets
      • Beers, Wines and Spirits
      • Beverages
      • Bridal Services
      • Cannabis
      • Cosmetics and Personal Care
      • Fashion
      • Food & Beverages
      • Furniture and Furnishings
      • Home Improvement
      • Household, Consumer & Cosmetics
      • Household Products
      • Jewelry
      • Non-Alcoholic Beverages
      • Office Products
      • Organic Food
      • Product Recalls
      • Restaurants
      • Retail
      • Supermarkets
      • Toys
      • Consumer Products & Retail Overview

      • View All Consumer Products & Retail

      • Entertain­ment & Media

      • All Entertain­ment & Media
      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • Entertain­ment & Media Overview

      • View All Entertain­ment & Media

      • Health

      • All Health
      • Biometrics
      • Biotechnology
      • Clinical Trials & Medical Discoveries
      • Dentistry
      • FDA Approval
      • Fitness/Wellness
      • Health Care & Hospitals
      • Health Insurance
      • Infection Control
      • International Medical Approval
      • Medical Equipment
      • Medical Pharmaceuticals
      • Mental Health
      • Pharmaceuticals
      • Supplementary Medicine
      • Health Overview

      • View All Health

      • Sports

      • All Sports
      • General Sports
      • Outdoors, Camping & Hiking
      • Sporting Events
      • Sports Equipment & Accessories
      • Sports Overview

      • View All Sports

      • Travel

      • All Travel
      • Amusement Parks and Tourist Attractions
      • Gambling & Casinos
      • Hotels and Resorts
      • Leisure & Tourism
      • Outdoors, Camping & Hiking
      • Passenger Aviation
      • Travel Industry
      • Travel Overview

      • View All Travel

  • Policy & Public Interest
      • Policy & Public Interest

      • All Policy & Public Interest
      • Advocacy Group Opinion
      • Animal Welfare
      • Congressional & Presidential Campaigns
      • Corporate Social Responsibility
      • Domestic Policy
      • Economic News, Trends, Analysis
      • Education
      • Environmental
      • European Government
      • FDA Approval
      • Federal and State Legislation
      • Federal Executive Branch & Agency
      • Foreign Policy & International Affairs
      • Homeland Security
      • Labor & Union
      • Legal Issues
      • Natural Disasters
      • Not For Profit
      • Patent Law
      • Public Safety
      • Trade Policy
      • U.S. State Policy
      • Policy & Public Interest Overview

      • View All Policy & Public Interest

  • People & Culture
      • People & Culture

      • All People & Culture
      • Aboriginal, First Nations & Native American
      • African American
      • Asian American
      • Children
      • Diversity, Equity & Inclusion
      • Hispanic
      • Lesbian, Gay & Bisexual
      • Men's Interest
      • People with Disabilities
      • Religion
      • Senior Citizens
      • Veterans
      • Women
      • People & Culture Overview

      • View All People & Culture

      • In-Language News

      • Arabic
      • español
      • português
      • Česko
      • Danmark
      • Deutschland
      • España
      • France
      • Italia
      • Nederland
      • Norge
      • Polska
      • Portugal
      • Россия
      • Slovensko
      • Suomi
      • Sverige
  • Overview
  • Distribution by PR Newswire
  • Cision Communications Cloud®
  • Cision IR
  • Sponsored Placement
  • All Products
  • General Inquiries
  • Request a Demo
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices
  • PR Newswire: news distribution, targeting and monitoring
  • Send a Release
    • ALL CONTACT INFO
    • Contact Us

      888-776-0942
      from 8 AM - 10 PM ET

  • Send a Release
  • Sign Up
  • Log In
  • Resources
  • Blog
  • Journalists
  • RSS
  • GDPR
  • News in Focus
    • Browse All News
    • Multimedia Gallery
    • Trending Topics
  • Business & Money
    • Auto & Transportation
    • Business Technology
    • Entertain­ment & Media
    • Financial Services & Investing
    • General Business
  • Science & Tech
    • Consumer Technology
    • Energy & Natural Resources
    • Environ­ment
    • Heavy Industry & Manufacturing
    • Telecomm­unications
  • Lifestyle & Health
    • Consumer Products & Retail
    • Entertain­ment & Media
    • Health
    • Sports
    • Travel
  • Policy & Public Interest
  • People & Culture
    • People & Culture
  • Send a Release
  • Sign Up
  • Log In
  • Resources
  • Blog
  • Journalists
  • RSS
  • GDPR
  • Overview
  • Distribution by PR Newswire
  • Cision Communications Cloud®
  • Cision IR
  • All Products
  • Send a Release
  • Sign Up
  • Log In
  • Resources
  • Blog
  • Journalists
  • RSS
  • GDPR
  • General Inquiries
  • Request a Demo
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices
  • Send a Release
  • Sign Up
  • Log In
  • Resources
  • Blog
  • Journalists
  • RSS
  • GDPR

Sanmina-SCI Reports Results for the Second Quarter Fiscal 2011


News provided by

Sanmina-SCI Corporation

Apr 25, 2011, 04:05 ET

Share this article

Share this article


SAN JOSE, Calif., April 25, 2011 /PRNewswire/ -- Sanmina-SCI Corporation ("Sanmina-SCI" or the "Company") (NASDAQ GS: SANM) a leading global Electronics Manufacturing Services (EMS) company, today reported financial results for the second quarter ended April 2, 2011.

Second Quarter Fiscal 2011 Highlights

  • Revenue of $1.57 billion
  • GAAP operating margin of 2.8 percent
  • GAAP diluted earnings per share of $0.16
  • Non-GAAP(1) operating margin of 3.4 percent
  • Non-GAAP diluted earnings per share of $0.30

Revenue for the second quarter was up 2.7 percent to $1.57 billion, compared to $1.53 billion for the same period of fiscal 2010.

GAAP operating income in the second quarter was $45 million or 2.8 percent of revenue, compared to $45 million or 3.0 percent in the second quarter fiscal 2010.  GAAP net income in the second quarter was $13 million, a diluted earnings per share of $0.16, compared to $10 million, a diluted earnings per share of $0.12 for the same period of fiscal 2010.  

Non-GAAP operating income in the second quarter was $53 million or 3.4 percent of revenue, compared to $56 million or 3.7 percent in the second quarter fiscal 2010.  Non-GAAP net income in the second quarter was $25 million, a diluted earnings per share of $0.30, compared to $24 million, a diluted earnings per share of $0.29 for the same period a year ago.

Cash and cash equivalents increased $106 million over the prior quarter to $655 million.  The Company reduced inventory for the third quarter in a row.  Cash cycle days were 55 days.  

"We are disappointed in our revenue and margin performance for the second quarter fiscal year 2011.  Softness was broad based, with a significant impact coming from weakness in the communications market and the delay in defense spending.  We believe demand is improving and the second half of fiscal 2011 will be stronger than the first half," stated Jure Sola, Chairman and Chief Executive Officer.  

"We are confident we have the right strategy in place and that our focus on market diversification, operational excellence and investments in technology and services will drive growth and margin expansion," concluded Sola.

Third Quarter Fiscal 2011 Outlook

The following forecast is for the third fiscal quarter ending July 2, 2011.  These statements are forward-looking and actual results may differ materially.  

  • Revenue between $1.6 billion to $1.7 billion
  • Non-GAAP diluted earnings per share between $0.33 to $0.37

(1) In the commentary set forth above and/or in the financial statements included in this earnings release, we present the following non-GAAP financial measures:  gross profit, gross margin, operating income, operating margin, net income and earnings per share.  In computing each of these non-GAAP financial measures, we exclude charges or gains relating to: stock-based compensation expenses, restructuring costs (including employee severance and benefits costs and charges related to excess facilities and assets), acquisition and integration costs (consisting of costs associated with the acquisition and integration of acquired businesses into our operations), impairment charges for goodwill and other assets, amortization expense and other infrequent or unusual items (including charges for customer bankruptcy reorganizations, litigation settlements and discrete tax events), to the extent material or which we consider to be of a non-operational nature in the applicable period.  See Schedule 1 below for more information regarding our use of non-GAAP financial measures, including the economic substance behind each exclusion, the manner in which management uses non-GAAP measures to conduct and evaluate the business, the material limitations associated with using such measures and the manner in which management compensates for such limitations. A reconciliation from GAAP to non-GAAP results is included in the financial statements contained in this release and is also available on the Investor Relations section of our website at www.sanmina-sci.com.  Sanmina-SCI provides third quarter outlook information only on a non-GAAP basis due to the inherent uncertainties associated with forecasting the timing and amount of acquisitions, restructuring, impairment and other unusual and infrequent items.

Company Conference Call Information

Sanmina-SCI will hold a conference call regarding this announcement on Monday, April 25, 2011 at 5:00 p.m. ET (2:00 p.m. PT). The access numbers are: domestic 877-273-6760 and international 706-634-6605.  The conference will also be broadcast live over the Internet.  You can log on to the live webcast at www.sanmina-sci.com.  Additional information in the form of a slide presentation is available by logging onto Sanmina-SCI's website at www.sanmina-sci.com.  A replay of today's conference call will be available for 48-hours.  The access numbers are: domestic 800-642-1687 and international 706-645-9291, access code is 59596729.

About Sanmina-SCI

Sanmina-SCI Corporation is a leading electronics contract manufacturer serving the fastest-growing segments of the global Electronics Manufacturing Services (EMS) market. Recognized as a technology leader, Sanmina-SCI provides end-to-end manufacturing solutions and delivers superior quality and support to OEMs primarily in the communications, defense and aerospace, industrial and medical instrumentation, multimedia, enterprise computing and storage, clean-tech and automotive technology sectors. Sanmina-SCI has facilities strategically located in key regions throughout the world. More information regarding the company is available at http://www.sanmina-sci.com.

Sanmina-SCI Safe Harbor Statement

Certain statements contained in this press release, including the Company's expectations for future demand and growth and the Company's outlook for future revenue and earnings per share, constitute forward-looking statements within the meaning of the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934. Actual results could differ materially from those projected in these statements as a result of a number of factors, including a deterioration in the markets for the Company's customers' products and a resulting decrease in the Company's customers' ability to pay for the Company's products and which therefore could reduce the Company's revenue; customer bankruptcy filings, which could cause the Company to record charges to its earnings; the sufficiency of the Company's cash position and other sources of liquidity to operate and expand its business; component shortages, including those arising from the natural disaster in Japan; impact of the restrictions contained in the Company's credit agreements and indentures upon the Company's ability to operate and expand its business; competition negatively impacting the Company's revenues and margins; any failure of the Company to effectively assimilate acquired businesses and achieve the anticipated benefits of its acquisitions; the need to adopt future restructuring plans as a result of changes in the Company's business, which would increase the Company's costs and decrease its net income; and the other factors set forth in the Company's annual and quarterly reports filed with the Securities Exchange Commission ("SEC").

The Company is under no obligation to (and expressly disclaims any such obligation to) update or alter any of the forward-looking statements made in this earnings release, the conference call or the Investor Relations section of our website whether as a result of new information, future events or otherwise, unless otherwise required by law.

SANMF

Sanmina-SCI Corporation

Condensed Consolidated Balance Sheets

(In thousands)

(GAAP)




April 2,


October 2,




2011


2010










(Unaudited)



ASSETS












Current assets:






Cash and cash equivalents

$    654,745


$    592,812


Accounts receivable, net

965,216


1,018,612


Inventories


820,117


844,347


Prepaid expenses and other current assets

75,700


81,191


Assets held for sale

60,238


53,047



Total current assets

2,576,016


2,590,009







Property, plant and equipment, net

561,249


570,258

Other non-current assets


125,484


141,529



Total assets

$ 3,262,749


$ 3,301,796







LIABILITIES AND STOCKHOLDERS' EQUITY










Current liabilities:






Accounts payable

$    854,364


$    923,038


Accrued liabilities

125,260


140,371


Accrued payroll and related benefits

108,418


122,934


Short-term debt

61,900


65,000



Total current liabilities

1,149,942


1,251,343







Long-term liabilities:






Long-term debt

1,239,993


1,240,666


Other


141,618


148,186



Total long-term liabilities

1,381,611


1,388,852







Total stockholders' equity


731,196


661,601



Total liabilities and stockholders' equity

$ 3,262,749


$ 3,301,796

Sanmina-SCI Corporation

Condensed Consolidated Statements of Operations

(In thousands, except per share amounts)

(GAAP)

(Unaudited)












Three Months Ended


Six Months Ended












April 2,


April 3,


April 2,


April 3,



2011


2010


2011


2010










Net sales


$ 1,569,058


$ 1,527,451


$ 3,231,509


$ 3,005,753

Cost of sales


1,452,227


1,409,974


2,986,631


2,778,589


Gross profit

116,831


117,477


244,878


227,164










Operating expenses:









Selling, general and administrative

62,212


63,557


120,683


125,972


Research and development

4,914


3,252


9,080


6,350


Amortization of intangible assets

959


1,059


1,917


2,237


Restructuring and integration costs

4,510


3,871


9,549


7,209


Asset impairment

-


500


85


500


Gain on sales of long-lived assets

(398)


-


(2,025)


-


    Total operating expenses

72,197


72,239


139,289


142,268










Operating income

44,634


45,238


105,589


84,896











Interest income

562


597


1,134


978


Interest expense

(26,269)


(26,580)


(52,930)


(53,357)


Other income, net

2,061


120


3,278


39,775

Interest and other, net

(23,646)


(25,863)


(48,518)


(12,604)










Income before income taxes

20,988


19,375


57,071


72,292










Provision for income taxes

7,923


9,284


15,647


2,819










Net income


$      13,065


$      10,091


$      41,424


$      69,473




















Basic income per share

$          0.16


$          0.13


$          0.52


$          0.88


Diluted income per share

$          0.16


$          0.12


$          0.50


$          0.85











Weighted-average shares used in computing









per share amounts:









 Basic

80,242


79,001


80,044


78,808


 Diluted

83,940


82,782


83,338


81,773

Sanmina-SCI Corporation

Reconciliation of GAAP to Non-GAAP Measures

(in thousands, except per share amounts)

(Unaudited)














Three Months Ended


Six Months Ended



April 2,


January 1,


April 3,


April 2,


April 3,



2011


2011


2010


2011


2010


































GAAP Gross Profit

$ 116,831


$ 128,047


$ 117,477


$ 244,878


$ 227,164


GAAP gross margin

7.4%


7.7%


7.7%


7.6%


7.6%

Adjustments











Stock compensation expense (2)

1,013


1,039


2,040


2,052


4,106


Amortization of intangible assets

157


157


-


314


-


Customer bankruptcy reorganization (1)

(759)


-


-


(759)


-

Non-GAAP Gross Profit

$ 117,242


$ 129,243


$ 119,517


$ 246,485


$ 231,270


Non-GAAP gross margin

7.5%


7.8%


7.8%


7.6%


7.7%























GAAP operating income

$   44,634


$   60,955


$   45,238


$ 105,589


$   84,896


GAAP operating margin

2.8%


3.7%


3.0%


3.3%


2.8%

Adjustments











Stock compensation expense (2)

4,237


3,687


5,352


7,924


10,004


Amortization of intangible assets

1,116


1,115


1,059


2,231


2,237


Customer bankruptcy reorganization (1)

(759)


-


-


(759)


-


Restructuring, acquisition and integration costs

4,510


5,039


3,871


9,549


7,209


Gain on sales of long-lived assets

(398)


(1,627)


-


(2,025)


-


Asset impairment

-


85


500


85


500

Non-GAAP operating income

$   53,340


$   69,254


$   56,020


$ 122,594


$ 104,846


Non-GAAP operating margin

3.4%


4.2%


3.7%


3.8%


3.5%























GAAP net income

$   13,065


$   28,359


$   10,091


$   41,424


$   69,473












Adjustments:











Operating income adjustments (see above)

8,706


8,299


10,782


17,005


19,950


Gain on sale of business

-


-


-


-


(3,710)


Loss on repurchase of debt (3)

-


-


-


-


828


Gain from litigation settlement (4)

-


-


-


-


(35,556)


Nonrecurring tax items

3,157


623


3,164


3,780


(8,480)

Non-GAAP net income

$   24,928


$   37,281


$   24,037


$   62,209


$   42,505























GAAP Income Per Share:











Basic

$       0.16


$       0.36


$       0.13


$       0.52


$       0.88


Diluted

$       0.16


$       0.34


$       0.12


$       0.50


$       0.85












Non-GAAP Income Per Share:











Basic

$       0.31


$       0.47


$       0.30


$       0.78


$       0.54


Diluted

$       0.30


$       0.45


$       0.29


$       0.75


$       0.52












Weighted-average shares used in computing per share amounts:











Basic

80,242


79,846


79,001


80,044


78,808


Diluted

83,940


82,825


82,782


83,338


81,773























(1)  Relates to revenue reversal and inventory and bad debt reserves associated with customer bankruptcy reorganization announcements.  

(2)  Stock compensation expense was as follows:    














Three Months Ended


Six Months Ended



April 2,


January 1,


April 3,


April 2,


April 3,



2011


2011


2010


2011


2010







Cost of sales

$     1,013


$     1,039


$     2,040


$     2,052


$     4,106


Selling, general and administrative

3,184


2,605


3,208


5,789


5,695


Research and development

40


43


104


83


203


Stock compensation expense - total company

$     4,237


$     3,687


$     5,352


$     7,924


$   10,004












(3)  Represents gain or loss, including write-off of unamortized debt issuance costs, on debt redeemed or repurchased prior to maturity.  

(4)  Represents cash received in connection with a litigation settlement.  

Schedule I

The commentary above includes non-GAAP measures of gross profit, gross margin, operating income, operating margin, net income and earnings per share.  Management excludes from these measures stock-based compensation, restructuring, acquisition and integration expenses, impairment charges, amortization charges and other infrequent items, including customer bankruptcy impacts, to the extent material or which we consider to be of a non-operational nature in the applicable period.

Management excludes these items principally because such charges are not directly related to the Company's ongoing core business operations. We use such non-GAAP measures in order to (1) make more meaningful period-to-period comparisons of Company's operations, both internally and externally, (2) guide management in assessing performance of the business, internally allocating resources and making decisions in furtherance of Company's strategic plan, (3) provide investors with a better understanding of how management plans and measures the business and (4) provide investors with a better understanding of the ongoing, core business. The material limitations to management's approach include the fact that the charges and expenses excluded are nonetheless charges required to be recognized under GAAP. Management compensates for these limitations primarily by using GAAP results to obtain a complete picture of the Company's performance and by including a reconciliation of non-GAAP results back to GAAP in its earnings releases.

Additional information regarding the economic substance of each exclusion, management's use of the resultant non-GAAP measures, the material limitations of management's approach and management's methods for compensating for such limitations is provided below.

Stock-based Compensation Expense, which consists of non-cash charges for the estimated fair value of stock options and unvested restricted stock units granted to employees, is excluded in order to permit more meaningful period-to-period comparisons of the Company's results since the Company grants different amounts and value of stock options in each quarter. In addition, given the fact that competitors grant different amounts and types of equity award and may use different option valuation assumptions, excluding stock-based compensation permits more accurate comparisons of the Company's core results with those of its competitors.

Restructuring, Acquisition and Integration Expenses, which consist of severance, lease termination, exit costs and other charges primarily related to closing and consolidating manufacturing facilities and those associated with the acquisition and integration of acquired businesses, are excluded because such charges (1) can be driven by the timing of acquisitions which are difficult to predict, (2) are not directly related to ongoing business results and (3) do not reflect expected future operating expenses. In addition, given the fact that the Company's competitors complete acquisitions and adopt restructuring plans at different times and in different amounts than the Company, excluding these charges permits more accurate comparisons of the Company's core results with those of its competitors. Items excluded by the Company may be different from those excluded by the Company's competitors and restructuring and integration expenses include both cash and non-cash expenses. Cash expenses reduce the Company's liquidity. Therefore, management also reviews GAAP results including these amounts.

Impairment Charges, which consist of non-cash charges, are excluded because such charges are non-recurring and do not reduce the Company's liquidity. In addition, given the fact that the Company's competitors may record impairment charges at different times, excluding these charges permits more accurate comparisons of the Company's core results with those of its competitors.

Amortization Charges, which consist of non-cash charges impacted by the timing and magnitude of acquisitions of businesses or assets, are also excluded because such charges do not reduce the Company's liquidity or availability under its credit facilities. In addition, such charges can be driven by the timing of acquisitions, which is difficult to predict. Excluding these charges permits more accurate comparisons of the Company's core results with those of its competitors because the Company's competitors complete acquisitions at different times and for different amounts than the Company.  

Other Items, which consist of other infrequent or unusual items (including charges for customer bankruptcy reorganizations, litigation settlements, gains and losses on sales of assets and discrete tax events), to the extent material or non-operational in nature, are excluded because such items are typically non-recurring, difficult to predict and generally not directly related to the Company's ongoing core operations. However, items excluded by the Company may be different from those excluded by the Company's competitors. In addition, these expenses include both cash and non-cash expenses. Cash expenses reduce the Company's liquidity. Management compensates for these limitations by reviewing GAAP results including these amounts.

SOURCE Sanmina-SCI Corporation

Modal title

Contact Cision

  • Cision Distribution 888-776-0942
    from 8 AM - 9 PM ET

  • Chat with an Expert
  • General Inquiries
  • Request a Demo
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices

Products

  • Cision Communication Cloud®
  • For Marketers
  • For Public Relations
  • For IR & Compliance
  • For Agency
  • For Small Business
  • All Products

About

  • About PR Newswire
  • About Cision
  • Become a Publishing Partner
  • Become a Channel Partner
  • Careers
  • COVID-19 Resources
  • Accessibility Statement
  • Asia
  • Brazil
  • Canada
  • Czech
  • Denmark
  • Finland
  • France
  • Germany
  • India
  • Israel
  • Italy
  • Mexico
  • Middle East
  • Middle East - Arabic
  • Netherlands
  • Norway
  • Poland
  • Portugal
  • Russia
  • Slovakia
  • Spain
  • Sweden
  • United Kingdom

My Services

  • All New Releases
  • Online Member Center
  • ProfNet

Contact Cision

Products

About

My Services
  • All News Releases
  • Online Member Center
  • ProfNet
Cision Distribution Helpline
888-776-0942
  • Terms of Use
  • Privacy Policy
  • Information Security Policy
  • Site Map
  • RSS
  • Cookie Settings
Copyright © 2023 Cision US Inc.