Sanmina-SCI announces Q1 results
Jan 26, 2007
First Quarter Fiscal 2007 Highlights Include:
-- Revenue of $2.78 Billion, within guidance of $2.70-$2.85 Billion
-- Non-GAAP Earnings Per Share of $0.07, within guidance of $0.06-$0.08
-- GAAP Earnings Per Share of $0.05
-- Non-GAAP Gross margin of 6.1%
For the first quarter ended December 30, 2006, Sanmina-SCI reported revenue of $2.78 billion, up from $2.72 billion in the fourth quarter of fiscal 2006 ended September 30, 2006. Revenue in the first quarter of fiscal 2006 was $2.86 billion.
Non-GAAP Financial Results for the Quarter (1):
Net income for the first fiscal quarter of 2007 was $34.7 million, up from the fourth quarter net loss of $2.1 million. Diluted earnings per share for the quarter was $0.07, compared to $(0.00) in the prior quarter. Operating income was $70.6 million or 2.5% of revenue, compared to $32.1 million, or 1.2% of revenue in the prior quarter and $76.1 million, or 2.7% of revenue in the same period a year ago. Gross profit was $169.9 million, up 29.8% over the fourth quarter of fiscal 2006. Gross margin was 6.1%, up from the prior quarter of 4.8% and up from 6.0% in the first quarter of fiscal 2006.
GAAP Financial Results for the Quarter
For the first quarter of fiscal 2007, the Company reported net income of $28.2 million, versus a net loss of $28.1 million for the fourth quarter fiscal 2006 and net income of $17.4 million for the same period a year ago. Diluted earnings per share for the quarter were $0.05.
(In thousands, except
per share data) Q1:2007 Q4:2006 Q1:2006
Revenue $2,778,790 $2,717,306 $2,861,797
Net Income (loss) $28,249 $(28,087) $17,394
Earnings (loss) per share $0.05 $(0.05) $0.03
Gross Profit $169,941 $130,968 $171,073
Gross Margin 6.1% 4.8% 6.0%
Operating Income $70,631 $32,135 $76,130
Operating Margin 2.5% 1.2% 2.7%
Net Income (loss) $34,652 $(2,088) $39,581
Earnings (loss) per share $0.07 $(0.00) $0.08
(1) Non-GAAP financial results exclude integration and restructuring
costs, amortization expense, impairment charges, stock-based
compensation expenses and other infrequent or unusual items. Please
refer to "Non-GAAP Financial Information" below for a discussion of
how the above non-GAAP financial measures are calculated and why we
believe this information is useful to investors. A reconciliation
from GAAP to non-GAAP results is contained in the attached financial
summary and is available in the Investor Relations section of our
website at http://www.sanmina-sci.com .
At December 30, 2006, the Company reported $538.8 million in cash and cash equivalents. At quarter-end, the Company also reported a current ratio of 1.7, working capital of $1.63 billion, and stockholders' equity of $2.3 billion.
"I am pleased with our first quarter results," stated Jure Sola, Chairman and Chief Executive Officer. "Demand in the first quarter was not as strong as we have seen historically, but we experienced nice growth from a number of our core markets and a majority of our key customers. Due to our continued focus on the basic fundamentals of our business, improved product mix and increased operating efficiencies, our gross margins improved to 6.1%. I am confident that our business is moving in the right direction and that we will continue to see the benefits of our strategic initiatives and hard work."
The following statements are based on current expectations. These statements are forward-looking and actual results may differ materially. Please refer to the Risk Factors reported in the Company's annual and quarterly reports on file with the Securities and Exchange Commission for a description of some of the factors that could influence the Company's ability to achieve the projected results.