Sanmina Reports Revenue of $1.68 Billion for Q2 Fiscal 2018

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Sanmina Corporation today reported financial results for the second fiscal quarter ended March 31, 2018.

Second Quarter Fiscal 2018 Summary

• Revenue of $1.68 billion
• GAAP operating margin of 2.9 percent
• GAAP diluted earnings per share of $0.33
• Non-GAAP(1) operating margin of 3.1 percent
• Non-GAAP(1) diluted earnings per share of $0.50

Revenue for the second quarter was $1.68 billion, compared to $1.74 billion in the prior quarter and $1.68 billion for the same period of fiscal 2017. 

GAAP operating income in the second quarter was $48.8 million or 2.9% of revenue, compared to $58.2 million or 3.5% of revenue for the second quarter fiscal 2017.  GAAP net income in the second quarter was $24.6 million, compared to GAAP net income of $31.7 million for the same period a year ago. GAAP diluted earnings per share was $0.33, compared to GAAP diluted earnings per share of $0.41 in the second quarter of fiscal 2017.

Non-GAAP operating income in the second quarter was $52.1 million or 3.1% of revenue, compared to $70.9 million or 4.2% of revenue in the second quarter fiscal 2017. Non-GAAP net income in the second quarter was $37.0 million, compared to $59.1 million in the same period a year ago. Non-GAAP diluted earnings per share for the quarter was $0.50, compared to $0.76 for the same period a year ago.

"Results for the second quarter were better than expected," stated Bob Eulau, chief executive officer of Sanmina Corporation.  "Our outlook for the third quarter reflects new programs moving to volume production and better demand. As new programs come online and yields continue to improve, we remain optimistic about the second half of the year." 

Balance Sheet Summary

• Ending cash and cash equivalents were $405.3 million
• Cash flow from operations was $25.7 million
• Inventory turns were 5.7x
• Cash cycle days were 51.1 days 

Third Quarter Fiscal 2018 Outlook

The following forecast is for the third fiscal quarter ending June 30, 2018.  These statements are forward-looking and actual results may differ materially.

• Revenue between $1.70 billion to $1.75 billion
• GAAP diluted earnings per share between $0.34 to $0.42, including stock-based compensation expense of $0.14 and amortization of intangible assets and restructuring costs of $0.05
• Non-GAAP diluted earnings per share between $0.53 to $0.61

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 about the Company is available here.