Advertisement

News Wire

Sanmina-SCI Reports Q3

SAN JOSE, Calif. — Sanmina-SCI Corporation (“Sanmina-SCI” or the “Company”) (NASDAQ GS: SANM), a leading global Electronics Manufacturing Services company, today reported financial results for the third quarter ended July 2, 2011.

Revenue for the third quarter was up 6.7 percent to $1.67 billion, compared to $1.57 billion in the prior quarter and up 3.0 percent compared to $1.63 billion for the same period of fiscal 2010.

GAAP operating income in the third quarter was $52.9 million or 3.2 percent of revenue, compared to $61.7 million or 3.8 percent of revenue in the third quarter fiscal 2010. GAAP net income in the third quarter was $7.2 million, a diluted earnings per share of $0.09, compared to $21.6 million, a diluted earnings per share of $0.26 for the same period of fiscal 2010.

Non-GAAP operating income in the third quarter was $65.0 million or 3.9 percent of revenue, compared to $64.2 million or 3.9 percent of revenue in the third quarter fiscal 2010. Non-GAAP net income in the third quarter was $35.1 million, a diluted earnings per share of $0.42, compared to $26.6 million, a diluted earnings per share of $0.32 for the same period a year ago.

During the third quarter, the Company issued $500 million in principal amount 7% senior notes due in 2019. The proceeds of the offering, together with $80 million of cash on hand, were used to fund the full redemption of the $380 million of debt due in 2013 and $200 million of debt due in 2016. During the quarter, the Company swapped the 2019 notes from a fixed to floating rate. The net effect of these transactions increased the average life of our debt from 3.4 to 5.7 years as of July 2, 2011 and is expected to reduce the Company's net interest expense in the future.

Cash and cash equivalents for the quarter ended July 2, 2011 were $582.8 million compared to $654.7 million in the prior quarter. Cash flow from operations was $51.3 million. Inventory turns were 7.2x. Cash cycle days were 51 days.

“We delivered nice growth in the third quarter and are pleased with our ability to expand our margins despite continued softness in the defense and aerospace market. Based on our customer forecasts, we believe demand in the short-term remains stable,” stated Jure Sola, Chairman and Chief Executive Officer. “We are confident our strategy focused on higher value added services, diversified markets and innovative technologies will continue to allow us to capitalize on opportunities with new and existing customers, and positions Sanmina-SCI for long-term growth and margin expansion.”

Fourth Quarter Fiscal 2011 Outlook
The following forecast is for the fourth fiscal quarter ending October 1, 2011. These statements are forward-looking and actual results may differ materially.

Revenue between $1.65 billion to $1.70 billion.

{complink 4773|Sanmina-SCI Corp.}

0 comments on “Sanmina-SCI Reports Q3

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.