Earnings are out
Revenues up 8.8% sequentially, but EPS at 38 cents on lower margin.
Here is press release:
Company Reports First Quarter Revenue Increases 41%
MILPITAS, Calif., Dec. 15 /PRNewswire/ -- Solectron Corporation (NYSE:
SLR) today announced record sales for the first quarter of fiscal
1998,ended November 28, 1997. Revenues increased 41% from the first
quarterof fiscal 1997 to $1,136.8 million for fiscal 1998. Net income
for the quarter was up 43% from the first quarter of fiscal 1997 to
$44.9 million for fiscal 1998.
Fully diluted earnings per share for the first quarter were $0.38
compared to $0.29 for the first quarter of last year. Solectron's
first quarter operating margin was 5.9% and its annualized return
on equity was 18.9%.
"I am very pleased to report that during our first quarter we made
significant progress in strengthening our common processes worldwide
to ensure that we deliver consistent quality, reliability,
on-time-delivery and superior service to our customers no matter where
we build their products worldwide," said, Dr. Ko Nishimura, Solectron
chairman, president and CEO. "In addition, we also broadened our
global footprint this quarter to support our rapid growth and to meet
our customers' growing demands to service their accounts from multiple
geographies worldwide. We successfully opened new facilities in
Mexico, Brazil and Sweden and have begun adding capacity in Texas as
well as other sites worldwide."
Founded in 1977, Solectron Corporation www.solectron.com ) is a
worldwide provider of pre-manufacturing, manufacturing and post
manufacturing services to leading electronics original equipment
manufacturers (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 140 quality and service awards from
its customers in addition to the 1991 and 1997 Malcolm Baldrige
National Quality Awards. Solectron is the first company to win the
Malclom Baldrige National Quality Award for Manufacturing twice in the
10-year history of the national program. Solectron has more than
20,000 employees in 18 manufacturing facilities worldwide with more
than four million square feet of manufacturing capacity. Revenues for
fiscal year ended August 31, 1997 were $3.7 billion.
SOLECTRON CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(unaudited)
Three Months Ended
Nov. 28 Nov. 29
1997 1996
Net sales $ 1,136,820 $ 807,725
Cost of sales 1,013,061 721,577
Gross profit 123,759 86,148
Operating expenses:
Selling, general
& administrative 51,939 32,672
Research & development 4,382 1,190
Acquisition Costs 0 4,000
Operating income 67,438 48,286
Interest income 6,577 6,213
Interest expense (6,513) (6,811)
Income before income taxes 67,502 47,688
Income taxes 22,614 16,213
Net income $ 44,888 $ 31,475
Net income per share:
Primary $ 0.38 $ 0.29
Fully diluted $ 0.38 $ 0.29
Shares used in computation:
Primary 119,236 109,026
Fully diluted 126,039 116,601
See accompanying notes to interim consolidated financial statements
SOLECTRON CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
Nov. 28 Aug. 29
1997 1997
(unaudited)
ASSETS
Current assets:
Cash, cash equivalents and
short-term investments $ 412,892 $ 482,902
Accounts receivable, net 519,493 418,682
Inventories 590,058 494,622
Prepaid expenses and other
current assets 59,209 79,426
Total current assets 1,581,652 1,475,632
Net property and equipment 378,199 326,361
Other assets 50,173 50,426
Total assets $ 2,010,024 $ 1,852,419
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt
and capital lease obligations $ 0 $ 1,464
Accounts payable 513,581 415,896
Accrued employee compensation 49,087 56,218
Accrued expenses 17,133 24,787
Other current liabilities 60,529 45,577
Total current liabilities 640,330 543,942
Long-term debt and capital
lease obligations 386,785 385,850
Other long-term liabilities 3,510 3,558
Total liabilities 1,030,625 933,350
Shareholders' equity:
Common stock 115 115
Additional paid-in capital 462,006 451,093
Retained earnings 523,500 478,612
Cumulative translation adjustment (6,222) (10,751)
Total shareholders' equity 979,399 919,069
Total liabilities and
shareholders' equity $ 2,010,024 $ 1,852,419
SOURCE Solectron Corporation
-0- 12/15/97 /CONTACT: Phil Kagel, Vice
President, Controller, 408-956-7627, or Michael E. Donner, Director,
Corporate Communications, 408-956-6688, both of Solectron |
