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Sanmina Corporation reported financial results for the third fiscal quarter ended June 30, 2018.
Third Quarter Fiscal 2018 Summary
- Revenue of $1.81 billion
- GAAP operating margin of 2.6%
- GAAP diluted earnings per share of $0.47
- Non-GAAP(1) operating margin of 3%
Non-GAAP diluted earnings per share of $0.55 revenue for the third quarter was $1.81 billion, compared to $1.68 billion in the prior quarter and $1.71 billion for the same period of fiscal 2017. GAAP operating income in the third quarter was $47.1 million or 2.6% of revenue, compared to $66.6 million or 3.9% of revenue for the third quarter fiscal 2017. GAAP net income in the third quarter was $34.0 million, compared to GAAP net income of $36.4 million for the same period a year ago. GAAP diluted earnings per share was $0.47 for the third quarter fiscal 2018 and third quarter of fiscal 2017. Non-GAAP operating income in the third quarter was $54.5 million or 3.0% of revenue, compared to $71.4 million or 4.2% of revenue in the third quarter fiscal 2017. Non-GAAP net income in the third quarter was $39.9 million, compared to $58.0 million in the same period a year ago. Non-GAAP diluted earnings per share for the quarter was $0.55, compared to $0.74 for the same period a year ago.
“We achieved a significant milestone in our third quarter with revenue of $1.81 billion, the highest quarterly revenue since 2008 when the company refined its strategy to focus on our customers’ mission critical products, services and supply chain needs,” stated Bob Eulau, Chief Executive Officer of Sanmina Corporation. “Revenue was up 8.2% sequentially and 6% year over year driven by new program ramps and solid demand across all of our end-market segments. Despite strong revenue, profitability was negatively impacted by unfavorable costs and inefficiencies associated with the ongoing supply constrained environment.” “As we look to the fourth quarter, I am confident in our team’s ability to grow revenue on a sequential and year over year basis and I expect margins to improve as we reduce our cost inefficiencies. Our pipeline continues to be strong and we are optimistic about closing fiscal 2018 on a strong note.”
Balance Sheet Summary
- Ending cash and cash equivalents were $404.8 million
- Cash flow from operations was $61.8 million
- Inventory turns were 5.9x
- Cash cycle days were 48.5 days
Fourth Quarter Fiscal 2018 Outlook The following forecast is for the fourth fiscal quarter ending September 29, 2018.
- Revenue between $1.825 billion to $1.875 billion
- GAAP diluted earnings per share between $0.50 to $0.56, including stock-based compensation expense of $0.11 and amortization of intangible assets of $0.02
- Non-GAAP diluted earnings per share between $0.63 to $0.69
Sanmina Corporation is a leading integrated manufacturing solutions provider serving the fastest growing segments of the global electronics manufacturing services (EMS) market. Recognized as a technology leader, Sanmina provides end-to-end manufacturing solutions, delivering superior quality and support to Original Equipment Manufacturers (OEMs) primarily in the communications networks, storage, industrial, defense, medical, energy and industries that include embedded computing technologies such as point of sale devices, casino gaming and automotive. Sanmina has facilities strategically located in key regions throughout the world. More information click here.