Sanmina Reports Solid 4Q and FY2016 Results

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Sanmina Corp., a leading integrated manufacturing solutions company, has reported financial results for the fourth quarter and fiscal year ended October 1, 2016.

Revenue for the fourth quarter was $1.67 billion, compared to $1.67 billion in the prior quarter and $1.64 billion for the same period last year. Revenue for fiscal year was $6.48 billion, compared to $6.37 billion for FY2015.

GAAP operating income in the fourth quarter was $55.1 million or 3.3% of revenue, compared to $52.7 million or 3.2% of revenue for the same period a year ago. GAAP operating income for fiscal year 2016 was $224.8 million, compared to $203.1 million in fiscal year 2015. GAAP net income in the fourth quarter was $100.8 million, compared to $315.4 million for the same period a year ago. GAAP diluted earnings per share for the fourth quarter was $1.30, compared to $3.78 in the same period a year ago. GAAP net income for fiscal year 2016 was $187.8 million, compared to $377.3 million in fiscal year 2015. GAAP diluted earnings per share in fiscal year 2016 was $2.38, compared to $4.41 in fiscal year 2015.

Non-GAAP operating income in the fourth quarter was $69.3 million or 4.2% of revenue, compared to $61.7 million or 3.8% of revenue for the same period a year ago. Non-GAAP operating income for the full fiscal year was $257.5 million, compared to $245.7 million for fiscal year 2015. Non-GAAP net income in the fourth quarter was $55.7 million, compared to $47.7 million for the same period a year ago. Non-GAAP diluted earnings per share for the fourth quarter was $0.72, compared to $0.57 in the same period a year ago. Non-GAAP net income for fiscal year 2016 was $200.0 million, compared to $189.3 million in fiscal year 2015. Non-GAAP diluted earnings per share in fiscal year 2016 was $2.54, compared to $2.21 in fiscal year 2015. 

“We delivered solid financial results for the fourth quarter. Operating margin, EPS and cash flow from operations exceeded our expectations in spite of flat revenue,” stated Jure Sola, Chairman and CEO of Sanmina.

“I am pleased with our performance in fiscal 2016. We delivered margin improvement, EPS expansion and strong cash flow, in a modest growth environment. We continue to diversify our customer base and win new programs which are evident in our financial results and positions us for the future.”

“As we look to fiscal 2017, we remain focused on market diversification, operational excellence and leading edge technology, which offer a distinct advantage to our customers. Our strong cash generation provides the flexibility for investments in markets and technologies where we see the greatest opportunity to create value for our customers. We are confident that our focus on servicing customers and operational discipline will continue to strengthen our operating model and drive shareholder value.  We are optimistic that fiscal 2017 will be another solid year,” concluded Sola.

First Quarter Fiscal 2017 Outlook

The following outlook is for the first fiscal quarter ending December 31, 2016.  These statements are forward-looking and actual results may differ materially. 

-        Revenue between $1.675 billion to $1.725 billion

-        Non-GAAP diluted earnings per share between $0.65 to $0.70

About Sanmina

Sanmina Corporation is a leading integrated manufacturing solutions provider serving the fastest growing segments of the global Electronics Manufacturing Services (EMS) market. Recognized as a technology leader, Sanmina provides end-to-end manufacturing solutions, delivering superior quality and support to Original Equipment Manufacturers (OEMs) primarily in the communications networks, storage, industrial, defense, medical, energy and industries that include embedded computing technologies such as, point of sale devices, casino gaming and automotive. Sanmina has facilities strategically located in key regions throughout the world. More information regarding the company is available at www.sanmina.com.