7/17....SANM Reports First Quarter of $1 Billion Revenues
SAN JOSE, Calif., July 17 /PRNewswire/ -- Sanmina Corporation (Nasdaq: SANM - news), a leading electronics contract manufacturer, today reported financial results for its third quarter and nine-month period ended July 1, 2000. Results for the nine months ended July 1, 2000 and the quarter and nine months ended July 3, 1999 have been restated to give effect to Sanmina's mergers accounted for as pooling of interests. Earnings per share for the prior periods have been restated to reflect the company's two-for-one stock split effective March 22, 2000.
Third quarter fiscal 2000 highlights include:
-- $1 BILLION IN REVENUES, UP 66% VERSUS Q399
-- RECORD DILUTED EARNINGS PER SHARE OF $0.40, EXCLUDING ONE-TIME CHARGES
-- SUCCESSFUL ACQUISITION STRATEGY FURTHERS COMPANY'S LEADERSHIP IN
ADVANCED TECHNOLOGY AND EXPANDS GLOBAL FOOTPRINT
Summary of Financial Results (*excluding one-time charges):
(thousands, except Q3:00* Q3:99 9MOS00* 9MOS99*
per share data)
Revenues $1,000,632 $604,622 $2,639,580 $1,729,693
Operating margin 10.7% 11.2% 10.2% 10.4%
Operating income $107,292 $67,550 $268,019 $179,362
Net income $63,912 $39,465 $162,266 $102,018
EPS - basic $0.42 $0.29 $1.12 $0.75
EPS - diluted $0.40 $0.27 $1.06 $0.71
Summary of Financial Results (*including one-time charges):
(thousands, except Q3:00* Q3:99 9MOS00* 9MOS99*
per share data)
Revenues $1,000,632 $604,622 $2,639,580 $1,729,693
Operating margin 1.7% 11.2% 6.7% 7.8%
Operating income $17,174 $67,550 $177,901 $135,758
Net income $1,821 $39,465 $100,175 $73,821
EPS - basic $0.01 $0.29 $0.69 $0.54
EPS - diluted $0.01 $0.27 $0.65 $0.51
Company Posts Record Revenues
Revenues for the third quarter of fiscal 2000 were $1.0 billion, an increase of 66% from $604.6 million in the same quarter last year. Excluding one-time charges, Sanmina reported third quarter net income of $63.9 million, or $0.40 diluted earnings per share on 167.1 million shares. This compares to $39.5 million, or $0.27 diluted earnings per share on 145.0 million shares. Including one-time charges in the third quarter this year, Sanmina reported $1.8 million in net income, or $0.01 per share.
For the quarter, Sanmina reported gross profit excluding one-time charges of $164.9 million, an increase of 50% from the third quarter last year. Including one-time charges, gross profit rose by 34% and gross margin was 14.7%.
Excluding one-time charges in the third quarter this year, operating expenses rose 35% to $57.6 million from $42.6 million. Operating income advanced 59% to $107.3 million from $67.6 million. Including one-time charges in the third quarter this year, Sanmina reported operating income of $17.2 million.
At July l, 2000, the company had $740.2 million in cash and investments and a current ratio of 3.1:1. Working capital was $1.2 billion and shareholders' equity was $1.5 billion.
Acquisitions Increase Sanmina's Technology Leadership and Expand Company's Global Footprint
Jure Sola, Sanmina's Chairman and Chief Executive Officer, said, ``This was another great quarter for Sanmina. We are very excited about achieving over $1 billion in revenues, which we believe reflects continued strong demand for our advanced technology and total manufacturing solution capabilities.
``To take advantage of our expanding market opportunity, we've made a number of acquisitions to further our leading position in this industry. First, we merged with Hadco, which enhanced our advanced circuit fabrication capacity and technology, allowing us to meet customers' increasing demands for higher layer counts, higher density and advanced printed circuit boards (PCBs). We now have 17 PCB facilities in North America and one in Asia. We are very pleased about the merger with Hadco and with the progress and effectiveness of our integration program.
``We further increased our design and engineering capabilities with our acquisition of InterWorks, a leading designer and manufacturer of standard and custom modular subsystems, and we announced our plan to acquire Nortel Networks Wireless and Enterprise Design Services Operations. As a result of these transactions, we now have over 200 designers and engineers and have established a Global Technology Solutions Group to further support our mission of having the best physical design and test capabilities in the EMS industry.
``We also acquired an EMS operation in China and Essex AB, the leading EMS provider in Sweden and Finland. These two acquisitions in combination with our EMS operations in Ireland and France and our PCB fabrication facility in Malaysia provide us with a global footprint, furthering our ability to meet our customers requirements for superior local service and support.
``Our goal is to work closely with our customers and build solid, long-term relationships by providing them with leading-edge technologies in each of our focused disciplines. As a result of our solid financial performance and our strategic growth plan, we believe we our well positioned to strengthen our market leadership,'' Sola concluded.
Company Profile
Sanmina Corporation is a leading global electronics contract manufacturing services company providing a full spectrum of integrated, value-added electronic manufacturing services. These include the manufacture of complex printed circuit board assemblies, custom-designed backplane assemblies and subassemblies, multi-layered printed circuit boards, electronic enclosure systems and custom cable and wire harness assemblies, and the testing and assembly of electronic sub-systems and systems. The company provides these services to a diversified base of leading OEMs in the communications, industrial and medical instrumentation and high-end computer sectors of the electronics industry. Sanmina common stock trades on the Nasdaq National Market under the symbol: SANM. Information regarding Sanmina can be found on its World Wide Web page located at sanmina.com .
Safe Harbor Statement
The foregoing, including the discussion regarding the company's future prospects, contains certain forward-looking statements that involve risks and uncertainties, including uncertainties associated with economic conditions in the electronics industry, particularly in the principal industry sectors served by the company, changes in customer requirements and in the volume of sales to principal customers, the ability of the company to assimilate acquired businesses and to achieve the anticipated benefits of such acquisitions, competition and technological change. The company's actual results of operations may differ significantly from those contemplated by such forward-looking statements as a result of these and other factors, including factors set forth in the company's 1999 Annual Report on Form 10-K filed with the Securities Exchange Commission on December 15, 1999 and the company's most recent quarterly 10-Q report dated May 16, 2000.
Sanmina Corporation
Consolidated Statements of Operations
(In thousands, except for per share data)
(unaudited)
Three Months Ending Nine Months Ending
July 1, July 3, July 1, July 3,
2000 1999 2000 1999
Sales $1,000,632 $604,622 $2,639,580 $1,729,693
Cost of Sales 853,266 494,517 2,235,849 1,433,057
Gross profit 147,366 110,105 403,731 296,636
Selling, general and
administrative 69,131 38,584 154,638 115,338
Amortization 13,860 3,971 23,991 11,786
Provision for plant
closing and relocation -- -- -- 16,875
Write-down of
long-lived assets -- -- -- 11,400
Merger costs 47,201 -- 47,201 5,479
Total operating
expenses 130,192 42,555 225,830 160,878
Income from
Operations 17,174 67,550 177,901 135,758
Other income, net 2,147 (5,483) (4,310) (18,185)
Income before provision
for income taxes 19,321 62,067 173,591 117,573
Provision for income
taxes 17,500 22,602 73,416 43,752
Net income $1,821 $39,465 $100,175 $73,821
Earnings per share
Basic $0.01 $0.29 $0.69 $0.54
Diluted $0.01 $0.27 $0.65 $0.51
Shares used in computing
per share amounts
Basic 150,818 137,481 145,200 136,432
Diluted 158,995 144,958 153,202 144,039
Dilutive Interest
Add Back -- -- 99 --
Dilutive Shares
Add Back -- -- 169 --
Supplemental Information:
Income before taxes,
goodwill amortization
and write down of
long-lived assets $33,181 $66,038 $197,582 $140,759
Provision for income
taxes 30,054 24,048 83,562 52,380
Income before goodwill
amortization and write
down of long-lived
assets 3,127 41,990 114,020 88,379
Amortization of
goodwill, net of tax 1,306 2,525 13,845 7,400
Write down of long-lived
assets, net of tax -- -- -- 7,158
Net Income $1,821 $39,465 $100,175 $73,821
Earnings per share:
Basic $0.02 $0.31 $0.79 $0.65
Diluted $0.02 $0.29 $0.74 $0.61
Shares used in
computing per share
amounts
Basic 150,818 137,481 145,200 136,432
Diluted 158,995 145,145 161,097 144,039
Dilutive Interest
Add Back -- 51 5,790 --
Dilutive Shares
Add Back -- 187 8,064 --
Sanmina Corporation
Condensed Consolidated Balance Sheets
(In thousands)
July 1, October 2,
2000 1999
(unaudited)
ASSETS
Current Assets:
Cash and short-term investments $ 740,227 $ 467,211
Accounts receivable, net 542,481 335,288
Inventories 480,496 299,261
Deferred income taxes 40,723 34,414
Prepaid and other 31,018 19,959
Total current assets 1,834,945 1,156,133
Property, plant, and equipment, net 604,525 549,434
Intangibles 279,499 229,070
Long-term investments 53,108 19,748
Deposits and other 14,120 53,056
Total assets $ 2,786,197 $ 2,007,441
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 409,430 $ 280,914
Accrued liabilities and other 175,646 132,869
Total current liabilities 585,076 413,783
Long-term Liabilities
Convertible subordinate debentures 354,965 355,259
Long-term debt and other 306,030 374,305
Total stockholders' equity 1,540,126 864,094
Total liabilities and
stockholders' equity $ 2,786,197 $ 2,007,441
Sanmina Corporation
Consolidated Statements of Operations (Excluding One-time Charges)
(In thousands, except for per share data)
(unaudited)
Supplemental Financial Data
Three Months Ending Nine Months Ending
July 1, July 3, July 1, July 3,
2000 1999 2000 1999
Sales $1,000,632 $604,622 $2,639,580 $1,729,693
Cost of Sales 835,724 494,517 2,218,307 1,425,566
Gross profit 164,908 110,105 421,273 304,127
Selling, general
and administrative 52,506 38,584 138,013 112,979
Amortization 5,110 3,971 15,241 11,786
Provision for plant
closing and relocation -- -- -- --
Write-down of
long-lived assets -- -- -- --
Merger costs -- -- -- --
Total operating
expenses 57,616 42,555 153,254 124,765
Income from
Operations 107,292 67,550 268,019 179,362
Other income, net 2,147 (5,483) (4,310) (18,185)
Income before provision
for income taxes 109,439 62,067 263,709 161,177
Provision for
income taxes 45,527 22,602 101,443 59,159
Net income $63,912 $39,465 $162,266 $102,018
Earnings per share
Basic $0.42 $0.29 $1.12 $0.75
Diluted $0.40 $0.27 $1.06 $0.71
Shares used in computing
per share amounts
Basic 150,818 137,481 145,200 136,432
Diluted 167,056 144,958 161,097 144,039
Dilutive Interest
Add Back 2,468 -- 7,861 --
Dilutive Shares
Add Back 8,061 -- 8,064 --
Supplemental Information:
Income before taxes,
goodwill amortization
and write down of
long-lived assets $114,549 $66,038 $278,950 $172,963
Provision for income
taxes 47,653 24,048 107,306 63,485
Income before goodwill
amortization and write
down of long-lived
assets 66,896 41,990 171,644 109,478
Amortization of
goodwill, net of tax 2,984 2,525 9,378 7,460
Write down of
long-lived assets,
net of tax -- -- -- --
Net Income $63,912 $39,465 $162,266 $102,018
Earnings per share:
Basic $0.44 $0.31 $1.18 $0.80
Diluted $0.42 $0.29 $1.11 $0.76
Shares used in
computing per share
amounts
Basic 150,818 137,481 145,200 136,432
Diluted 167,056 145,145 161,097 144,039
Dilutive Interest
Add Back 2,468 51 7,861 --
Dilutive Shares
Add Back 8,061 187 8,064 --
Sanmina Corporation
Supplemental Financial Data
Third Quarter Ended July 1, 2000
(In thousands, except for per share data)
(unaudited)
Sanmina Hadco Essex Elim.
Sales 651,831 296,248 54,594 (2,041)
Cost of Goods Sold 547,057 238,497 52,211 (2,041)
Gross Profit 104,774 57,751 2,383 --
Operating Expenses 28,738 28,000 878
Operating Income 76,036 29,751 1,505 --
Other Income/(Expense) 8,165 (5,672) (346)
Pre-Tax Income 84,201 24,079 1,159 --
Consolidated One-time Consolidated
Before Charges Charges Actual
Sales 1,000,632 1,000,632
Cost of Goods Sold 835,724 17,542 853,266
Gross Profit 164,908 (17,542) 147,366
Operating Expenses 57,616 72,576 130,192
Operating Income 107,292 (90,118) 17,174
Other Income/(Expense) 2,147 0 2,147
Pre-Tax Income 109,439 (90,118) 19,321
Provision for Taxes 45,527 (28,027) 17,500
Net Income 63,912 (62,091) 1,821
6.4% 0.2%
Earnings Per Share (Basic) $ 0.42 $ 0.01
Earnings Per Share (Diluted) $ 0.40 $ 0.01
Net Interest Add-back $ 2,468 0
Converted Share Add-back 8,061 0
Basic Shares 150,818 150,818
Diluted Shares 167,056 158,995
SOURCE: Sanmina Corporation
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