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Sanmina-SCI Announces Earnings for Q1: Outlook Improving
January 23, 2008 |Estimated reading time: 2 minutes
Sanmina-SCI Corporation (NASDAQ:SANM) , a leading global Electronics Manufacturing Services (EMS) company, today reported financial results for its first fiscal quarter Sanmina-SCI reported revenue of $2.53 billion for the first fiscal quarter ended December 29, 2007. This is compared to $2.51 billion in the fourth fiscal quarter ended September 29, 2007 and $2.78 billion in the first fiscal quarter ended December 30, 2006. The Company's core business met expectations with revenue of $1.79 billion. The PC business experienced weakness in the quarter and delivered below expectation with revenue of $740 million.
Non-GAAP Results for the Quarter
Net income for the first quarter of fiscal 2008 was $21.0 million, $0.04 diluted earnings per share, compared to $10.2 million, a diluted earnings per share of $0.02, for the fourth fiscal quarter ended September 29, 2007, and $34.7 million, $0.07 diluted earnings per share for the first fiscal quarter of 2007.
Gross profit for the first fiscal quarter was $155.1 million, 6.1 percent of revenue, compared to $134.1 million, 5.4 percent of revenue for the prior quarter, and $169.9 million, 6.1 percent of revenue in the same period a year ago. Operating income for the quarter was $61.2 million, compared to $42.8 million in the prior quarter and $70.6 million for the same period a year ago (see Non-GAAP Financial Information).
GAAP Results for the Quarter
For the first quarter of fiscal 2008, the Company reported net income of $7.9 million, $0.01 diluted earnings per share versus a net loss of $1.1 billion, $2.10 diluted loss per share for the fourth quarter of fiscal 2007 and net income of $28.2 million, $0.05 diluted earnings per share for the same period a year ago.
Cash Flow and Balance Sheet Metrics
Free cash flow during the first quarter of fiscal 2008 (cash flow from operating and investing activities), amounted to $121.9 million. Other balance sheet results included:-- Cash and cash equivalents at quarter-end were $941 million;
-- Cash cycle days of 25 represented a 4 day improvement quarter-over quarter and a 20 day improvement year-over-year; and
-- Redeemed $120 million of long-term debt
"I am pleased with the progress we made during the quarter. Our Technology Components Group made significant operational and financial improvements and our core business met our profitability expectations. Strength in the quarter was driven by the communications, defense and aerospace and enterprise computing and storage end-markets," stated Jure Sola, Chairman and Chief Executive Officer.
"Our second quarter has historically been seasonally down, but we are cautiously optimistic about our outlook based on what we currently have in the pipeline from new and existing customers. We expect to continue to strengthen our results, improve profitability and generate free cash flow throughout fiscal 2008," continued Sola.
Second Quarter Fiscal 2008 Outlook
The following guidance is based on current expectations. These statements are forward-looking and actual results may differ materially. The Company provides the following guidance with respect to the second fiscal quarter ending March 29, 2008:
-- Revenue is expected to be in the range of $2.4 billion to $2.5 billion
-- Non-GAAP diluted earnings per share to be between $0.03 to $0.05
About Sanmina-SCI
Sanmina-SCI Corporation (NASDAQ:SANM) 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, delivering superior quality and support to large OEMs primarily in the communications, defense and aerospace, industrial and medical instrumentation, computer technology and multimedia sectors. Sanmina-SCI has facilities strategically located in key regions throughout the world. Information about Sanmina-SCI is available at http://www.sanmina-sci.com/ .