Solectron Reports Record Fourth Quarter and FY98 Earnings
FY98 Revenue Increases 43.1%
MILPITAS, Calif., Sept. 14 /PRNewswire/ -- Solectron Corporation (NYSE: SLR - news), a worldwide provider of customized electronics manufacturing solutions to original equipment manufacturers (OEMs), today announced record sales for the fourth quarter of fiscal 1998, ended August 28, 1998. Revenues increased 61.4% from the fourth quarter of fiscal 1997 to $1.7 billion for fiscal 1998. Net income for the quarter was up 17.8% from the fourth quarter of fiscal 1997 to a record $55.9 million for fiscal 1998.
For the total fiscal year 1998, revenues grew 43.1% to $5.3 billion. Net income grew 25.8% to $198.8 million over the comparable period of fiscal 1997.
Diluted earnings per share for the fourth quarter were a record $0.46 compared to $0.40 for the fourth quarter of last year. On a full-year basis, diluted earnings per share were $1.65, an increase of 20% from $1.37 for the same period of fiscal 1997. Solectron's fourth quarter operating margin was 5.1% and its annualized return on equity was 19.8%.
''Our fourth quarter and full-year results indicate that our long-term strategy and vision is focused and on target,'' said Dr. Ko Nishimura, Solectron chairman, president and CEO.
''Solectron's success in fiscal 1998 was based on managing growth, anticipating new areas of growth and creating and expanding mutually beneficial relationships with our customers and suppliers,'' Dr. Nishimura said. ''It was a year of industry firsts and one where we undertook a number of strategic initiatives designed to expand our capabilities and service offerings across the entire product life cycle. Through internal development and acquisitions we entered five new geographies, expanded six of our existing manufacturing sites, enhanced our systems design, build-to-order and configure-to-order capabilities and added high-end printed circuit board assembly and test capabilities. At the same time, we created a new market by announcing an alliance with Ingram Micro to streamline the global supply chain and announced the first virtual outsourcing partnership with a Japanese OEM, Mitsubishi.
''I attribute our success to our more than 24,000 associates worldwide who continue to execute our sound business practices with an entrepreneurial spirit and an unparalleled focus on customer satisfaction. I look to fiscal 1999 with enthusiasm and a deep sense of appreciation for all of our stakeholders,'' Dr. Nishimura said.
Company Background
Founded in 1977, Solectron Corporation (www.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 160 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 Malcolm Baldrige National Quality Award for Manufacturing twice in the 10-year history of the national program. The Company has more than 24,000 associates in 21 manufacturing facilities worldwide with more than five and a half million square feet of manufacturing capacity. |
