SLR started the week off on the right foot for ECMs, Jabil's turn next:
Solectron Reports Record Fourth Quarter and
FY99 Earnings
FY99 Revenue Increases 58.7 Percent
MILPITAS, Calif., Sept. 13 /PRNewswire/ -- Solectron Corporation (NYSE: SLR - news), the world's largest provider
of customized electronics manufacturing solutions to original equipment manufacturers (OEMs), today announced
record sales for the fourth quarter of fiscal 1999, ended August 27, 1999. Revenues increased 41.5 percent from the
fourth quarter of fiscal 1998 to US$2.4 billion for fiscal 1999. Net income for the quarter was up 58.9 percent from the
fourth quarter of fiscal 1998 to a record US$88.8 million for fiscal 1999.
For the total fiscal year 1999, revenues grew 58.7 percent to US$8.4 billion. Net income grew 47.8 percent to US$293.9
million over the comparable period of fiscal 1998.
Diluted earnings per share for the fourth quarter were a record US$0.33 compared to US$0.23 for the fourth quarter of
last year. On a full-year basis, diluted earnings per share were US$1.13, an increase of 37.8 percent from US$0.82 for
the same period of fiscal 1998. Solectron's fourth quarter operating margin was 5.4 percent and its annualized return on
equity was 16.1 percent.
``Once again, I am pleased to report another record year that exceeded expectations on a number of different levels,' said
Dr. Ko Nishimura, Solectron's chairman, president and CEO. ``During fiscal 1999, we remained focused on deploying
our long-range vision and strategy to form business unit enterprises, which provide integrated technology, materials,
manufacturing and operations, and global service solutions. It was a year of remarkable growth made possible by the
stellar performance of our more than 37,000 associates, accompanied by numerous strategic initiatives designed to
transition Solectron into a global supply-chain facilitator.'
About Solectron
Founded in 1977, Solectron Corporation ( solectron.com ) provides integrated solutions that span the entire
product life cycle -- from pre-production planning and design, to manufacturing, distribution, and end-of-life product
service and support -- for the world's leading electronics OEMs. Solectron offers its customers competitive outsourcing
advantages such as access to advanced manufacturing technologies, shortened product time-to-market, reduced cost of
production and more effective asset utilization.
The company has received more than 210 quality and service awards from its customers in addition to the 1997 and
1991 Malcolm Baldrige National Quality Awards. Solectron is the first company to win the Baldrige Award for
Manufacturing twice in the 11-year history of the national program. The company has more than 37,000 associates in 23
manufacturing facilities worldwide with more than 7 million square feet of capacity.
Additional financial information on Solectron's earnings can be found on the company's Web site at
solectron.com .
SOLECTRON CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In millions)
(Unaudited)
August 27, August 28,
ASSETS 1999 1998
Current assets:
Cash, cash equivalents and
short-term investments $1,688.4 $308.8
Accounts receivable, net 1,118.3 670.2
Inventories 1,080.1 788.5
Prepaid expenses and
other current assets 107.3 120.0
Total current assets 3,994.1 1,887.5
Net property and equipment 653.6 448.0
Other assets 187.0 75.0
Total assets $4,834.7 $2,410.5
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term debt $21.4 $--
Accounts payable 902.6 666.5
Accrued employee compensation 88.9 72.1
Accrued expenses 40.4 34.9
Other current liabilities 59.9 67.3
Total current liabilities 1,113.2 840.8
Long-term debt 922.6 385.5
Other long-term liabilities 5.8 2.9
Total liabilities 2,041.6 1,229.2
Stockholders' equity:
Common stock 0.3 0.1
Additional paid-in capital 1,910.1 510.8
Retained earnings 971.2 677.4
Accumulated other
comprehensive losses (88.5) (7.0)
Total stockholders' equity 2,793.1 1,181.3
Total liabilities and
stockholders' equity $4,834.7 $2,410.5
SOLECTRON CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In millions, except per share data)
(Unaudited)
Three Months Ended Twelve Months Ended
August 27, August 28, August 27, August 28,
1999 1998 1999 1998
Net sales $2,386.1 $1,686.5 $8,391.4 $5,288.3
Cost of sales 2,165.2 1,531.2 7,614.6 4,750.0
Gross profit 220.9 155.3 776.8 538.3
Operating expenses:
Selling, general
& administrative 87.4 63.1 309.7 218.4
Research & development 3.7 6.2 28.2 20.9
Operating income 129.8 86.0 438.9 299.0
Interest income 11.3 5.1 29.9 24.8
Interest expense (10.4) (7.0) (36.5) (24.8)
Income before
income taxes 130.7 84.1 432.3 299.0
Income taxes 41.9 28.2 138.4 100.2
Net income $88.8 $55.9 $293.9 $198.8
Net income per share:
Basic $0.34 $0.24 $1.19 $0.86
Diluted $0.33 $0.23 $1.13 $0.82
Shares used in
computation:
Basic 258.3 234.4 246.3 231.7
Diluted 269.8 255.0 263.5 253.1
SOURCE: Solectron Corp.
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