Sanmina Q Earnings Report
Monday January 13 4:00 PM EDT
Sanmina Reports Record First Quarter Sales And Earnings
SAN JOSE, Calif., Jan. 13 /PRNewswire/ -- Sanmina Corp , a leading electronics contract manufacturer, today reported record results for the fiscal 1997 first quarter ended December 28, 1996.
First quarter fiscal 1997 highlights include:
* RECORD REVENUES; INCREASE 70 PERCENT VERSUS Q1 1996
* RECORD NET INCOME; INCREASE 61 PERCENT VERSUS Q1 1996
* FULLY DILUTED EARNINGS PER SHARE; $0.47 VERSUS $0.32 Q1 1996
* SOLID DEMAND EXPERIENCED ACROSS CUSTOMER BASE
Summary Financial Results:
(thousands, except per share data) Q1:97 Q1:96
Revenues $88,868 $52,170
Operating margin 17.1% 17.3%
Operating income $15,161 $9,022
Net income $9,174 $5,687
EPS -- primary $0.51 $0.33
EPS -- fully diluted $0.47 $0.32
STRONG GROWTH CONTINUES; FIRST QUARTER REVENUES UP 70 PERCENT
Revenues for the first quarter of fiscal 1997 ended December 28, 1996 were a record $88.9 million, an increase of 70 percent from $52.2 million in the same quarter a year ago. Sanmina also reported record
net income up over 61 percent to $9.2 million, or $0.47 fully diluted earnings per share. This compares to $5.7 million, or $0.32 fully diluted earnings per share in the first quarter last year. Earnings per share reflect the company's two-for-one stock split which became effective March 11, 1996.
Due to the solid increase in sales volume, gross profit for the quarter rose 67 percent to $21.1 million, up from $12.6 million in the same period of last year. Reflecting management's strategy, of maintaining control over operating expenses and focusing on growth in revenues and operating income, selling general and administrative expenses rose at a slower rate than revenues. The company reported a
$501,000 charge, in the quarter for the amortization of goodwill associated with its acquisitions of Golden Eagle Systems in January 1996 and Assembly Solutions, Inc. in June 1995. During the first quarter of fiscal 1996, the company had goodwill amortization of $219,000 reflecting charges associated with the
company's acquisition of Assembly Solutions, Inc. For the quarter, Sanmina again achieved industry leading operating margins, with an operating margin of 17.1 percent. Sanmina reported an increase in
operating income of nearly 68 percent to $15.2 million, up from $9.0 million last year.
Commenting on the quarter, Jure Sola, Sanmina's chairman and chief executive officer, said, "By continuing to serve OEMs in high growth sectors of the electronics industry and by providing higher value-added products and services, we again have achieved record revenues and earnings. During the quarter, we experienced increased demand from both our core customers and new customers. As a result of the success of our strategy of focusing on increasing sales, while maintaining control over expenses, we continue to post industry-leading operating margins, despite significantly higher goodwill amortization expense associated with our recent acquisitions. We are pleased with our results this quarter and remain steadfast in our commitment to meeting our customers demands on a quick-turn,
cost effective basis. Additionally, during the quarter we also successfully completed our acquisitions of assets consisting primarily of customer contracts, inventory and equipment of Lucent Technologies'
Custom Manufacturing Services operation as well as the assets of Comptronix Corporation, a contract manufacturing company based in Guntersville, Alabama. We believe these acquisitions will support and
contribute to our continued growth."
BALANCE SHEET REFLECTS SOLID OPERATING PERFORMANCE
At December 28, 1996, the company had $92.8 million in cash, cash equivalents and short-term investments and a current ratio of 3.5:1. The decrease in the cash balance from September 30, 1996 to
December 28, 1996 is due to the company's November 1996 acquisitions of certain assets of Lucent Technologies' Custom Manufacturing Services operation and of the assets of Comptronix Corporation.
Working capital was $139.9 million and stockholders' equity was $6.69 per outstanding share.
COMPANY PROFILE
Sanmina Corporation is a leading electronics contract manufacturing services company providing a full spectrum of integrated, value-added electronic manufacturing services. Services include the manufacture
of complex printed circuit board assemblies using surface mount (SMT) and pin-through hole (PTH) interconnection technologies, the manufacture of custom-designed backplane assemblies and subassemblies, the manufacture of complex, multi-layered printed circuit boards, the manufacture of custom cable and wire harness assemblies, and the testing and the assembly of electronic sub-systems and systems. The company provides these services to a diversified base of leading OEMs
in the telecommunications, networking (data communications),industrial and medical instrumentation and computer sectors of the electronics industry. Sanmina common stock trades on the Nasdaq National Market under the symbol: SANM.
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, and 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 Annual Report on Form 10-K filed with the Securities Exchange Commission on December 24, 1996.
SANMINA CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
in thousands, except per share data (unaudited)
Three Months Ended
December 28, December 30,
1996 1995
Net sales $88,868 $52,170
Cost of sales 67,805 39,544
Gross profit 21,063 12,626
Operating expenses:
Selling, general and
administrative 5,401 3,385
Amortization of goodwill 501 219
Total operating expenses 5,902 3,604
Operating income 15,161 9,022
Interest income (expense), net (122) 151
Income before provision
for income taxes 15,039 9,173
Provision for income taxes 5,865 3,486
Net income $9,174 $5,687
Earnings per share:
Primary $ 0.51 $ 0.33
Fully diluted $ 0.47 $ 0.32
Shares used in computing
per share amounts:
Primary 18,076 17,232
Fully diluted 21,267 20,330
SANMINA CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
December 28, September 30,
1996 1996
(unaudited)
ASSETS
Current Assets:
Cash and short-term
investments $92,811 $114,942
Accounts receivable, net 49,828 30,421
Inventories 45,028 32,109
Prepaids and other 7,937 7,851
Total current assets 195,604 185,323
Property and equipment, net 49,905 34,868
Deposits and other 10,411 10,350
Total assets $ 255,920 $ 230,541
LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $36,133 $24,401
Accrued liabilities
and other 19,598 15,613
Total current liabilities 55,731 40,014
Long-term liabilities 592 592
Convertible subordinated
notes 86,250 86,250
Stockholders' equity 113,347 103,685
Total liabilities and
stockholders' equity $255,920 $230,541
For more information regarding Sanmina Corporation via fax at no cost, dial 800-PRO-INFO, ticker symbol SANM. SOURCE Sanmina Corp. |
