Sanmina Q1 Shr Diluted $0.58 Vs $0.45 (NasdaqNM:SANM)
SAN JOSE, Calif., Jan. 18 /PRNewswire/ -- Sanmina Corporation (Nasdaq: SANM - news), a leading electronics contract manufacturer, today reported financial results for its first quarter ended January l, 2000. Results for the quarter ended January 2, 1999 have been restated to give effect to Sanmina's mergers accounted for as pooling of interests.
First quarter fiscal 2000 highlights include:
REVENUES INCREASE 67% VERSUS Q199
EXCLUDING NON-RECURRING CHARGES IN Q199, OPERATING INCOME IN Q100
ADVANCED 34%
RECORD DILUTED EARNINGS PER SHARE OF $0.58
RESULTS REFLECT SUCCESSFUL INTEGRATION OF ACQUISITIONS
Summary of Financial Results (excluding non-recurring charges in Q199):
(thousands, except per share data) Q1:00 Q1:99
Revenues $459,685 $275,533
Operating margin 12.0% 15.0%
Operating income $55,154 $41,304
Net income $36,188 $27,635
Earnings per share - basic $0.61 $0.48
Earnings per share - diluted $0.58 $0.45
Summary of Financial Results (including non-recurring charges in Q199):
(thousands, except per share data) Q1:00 Q1:99
Revenues $459,685 $275,533
Operating margin 12.0% NM
Operating income (loss) $55,154 ($2,300)
Net income (loss) $36,188 ($562)
Earnings (loss) per share - basic $0.61 ($0.01)
Earnings (loss) per share - diluted $0.58 ($0.01)
Record Quarterly Results
Revenues for the first quarter of fiscal 2000 were $459.7 million, an increase of 67% from $275.5 million in the same quarter a year ago. Sanmina reported first quarter net income of $36.2 million, or $0.58 diluted earnings per share on 62.7 million shares. This compares to $27.6 million, or $0.45 diluted earnings per share on 60.8 million shares, excluding non-recurring charges in the first quarter a year ago. Including non-recurring charges in the first quarter last year, Sanmina reported a loss of $0.01 per share.
For the quarter, Sanmina reported gross profit of nearly $78.0 million, an increase of 49% from the first quarter last year. Gross margin declined to 17.0%, compared to 19.0% in the comparable period a year ago.
Excluding non-recurring charges in the first quarter of last year, operating expenses rose 24% to $22.8 million from $18.5 million. These expenses increased at a significantly lower rate than revenue due to Sanmina's ability to control costs. As a result, operating income advanced 34% to $55.2 million from $41.3 million. Including non-recurring charges in the first quarter last year, Sanmina reported an operating loss of $2.3 million.
Commenting on the quarter, Jure Sola, Chairman of the Board and Chief Executive Officer at Sanmina, said, ``During the quarter, we saw very strong demand across our customer base, especially in the communications sector, which accounted for 77% of our revenues, up from 74% in the fourth quarter last year. Due to growth in the Internet and the need for optical and wireless switches, we are continuing to see robust demand from the communications sector.
``The quarter also reflects the successful integration of our acquisition of the enclosure facilities in Toronto, Canada as well as the assets we purchased from Nortel Networks in Calgary, Alberta, Canada and Chateaudun, France. These acquisitions have further strengthened our ability to provide our global customer base with a total manufacturing solution, encompassing engineering design, fabrication of bare boards, printed circuit board assembly, enclosures, backplane assembly, cable assemblies, complete system integration and test as well as order fulfillment. We believe we are the only global electronics contract manufacturer that can provide our customers with a total end-to-end solution. Our recently announced asset acquisitions of the Alcatel enclosure and integration facility in North Carolina and the Harris state-of-the art printed circuit board assembly operation in Texas underscore this commitment to our customers and the communications industry.
``As we look ahead, we are optimistic about our growth opportunity in the global electronic manufacturing services (EMS) market, which is expected to continue to show high growth. We are especially excited about our leading position in engineering design and manufacturing of advanced RF products for the wireless telecommunications and networking markets. We believe our expertise will allow us to successfully increase our penetration within this fast growing segment,' stated Sola.
Sanmina also announced today that its Board of Directors has approved a two-for-one stock split payable in the form of a 100% stock dividend to shareholders of record on February l, 2000. Upon completion of the stock split, the number of shares outstanding will be approximately 120 million. Certificates reflecting the stock split will be issued on or about February 22, 2000.
``As a result of our solid operating results and continued prospects for growth, today we also announced a two-for-one stock split, which we believe will contribute to improved shareholder value,' Sola concluded. |
