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Sanmina Reports Revenue of $1.88B in Q4 2018
November 5, 2018 | Sanmina Corp.Estimated reading time: 3 minutes
Sanmina Corporation reported financial results for the fourth quarter and fiscal year ended September 29, 2018.
Fourth Quarter Fiscal 2018 Summary
- Revenue of $1.88 billion
- GAAP operating margin of 0.8 percent
- GAAP diluted earnings per share of $0.08
- Non-GAAP(1) operating margin of 3.5 percent
- Non-GAAP diluted earnings per share of $0.67
- Fiscal Year 2018 Summary
- Revenue of $7.11 billion
- GAAP loss per share of $1.30
- Non-GAAP diluted earnings per share of $2.21
"We delivered respectable quarterly results. Revenue grew 3.5%, operating margin expanded 50 basis points and our earnings per share were up 21.3% sequentially. Our continuous improvement in the areas we can control are evident in our results," stated Jure Sola, executive chairman. "Fiscal 2018 revenue also grew 3.5%; however, profitability for the year fell short of our expectations. While we made nice improvements in our fourth quarter, there is still more work to do. We are moving in the right direction and I am encouraged by our momentum as we head into 2019."
"Sanmina has a solid foundation and I am confident in the team's ability to get us back to sustainable profitable growth. We have a lot of leverage in our business model that we can translate into higher levels of shareholder value. I am excited about the opportunities ahead of us," stated Michael Clarke, chief executive officer.
Revenue for the fourth quarter was $1.88 billion, compared to $1.81 billion in the prior quarter and $1.76 billion for the same period of fiscal 2017. Revenue for fiscal year ended September 29, 2018 was $7.11 billion, compared to $6.87 billion for the fiscal year ended September 30, 2017.
GAAP operating income in the fourth quarter was $15.8 million or 0.8% of revenue, compared to $43.1 million or 2.5% of revenue for the same period a year ago. GAAP operating income for fiscal year 2018 was $125.4 million, compared to $226.5 million in fiscal year 2017. GAAP net income in the fourth quarter was $5.4 million, compared to $25.8 million for the same period a year ago. GAAP diluted earnings per share for the fourth quarter was $0.08, compared to $0.33 in the same period a year ago. GAAP net loss for fiscal year 2018 was $90.9 million, compared to GAAP net income of $138.8 million in fiscal year 2017. GAAP loss per share in fiscal year 2018 was $1.30, compared to GAAP diluted earnings per share of $1.78 in fiscal year 2017. (The first quarter of 2018 GAAP loss per share includes a non-cash tax charge of $2.27 per share as a result of the U.S. Tax Cuts & Jobs Act and the fourth quarter of 2018 includes a non-cash goodwill impairment charge of $0.43 per share.)
Non-GAAP operating income in the fourth quarter was $64.7 million or 3.5% of revenue, compared to $61.1 million or 3.5% of revenue for the same period a year ago. Non-GAAP operating income for the full fiscal year was $218.8 million or 3.1% of revenue compared to $275.2 million or 4.0 percent of revenue for fiscal year 2017. Non-GAAP net income in the fourth quarter was $48.1 million, compared to $49.8 million for the same period a year ago. Non-GAAP diluted earnings per share for the fourth quarter was $0.67, compared to $0.64 in the same period a year ago. Non-GAAP net income for fiscal year 2018 was $161.4 million, compared to $224.6 million in fiscal year 2017. Non-GAAP diluted earnings per share in fiscal year 2018 was $2.21, compared to $2.87 in fiscal year 2017.
Balance Sheet and Cash Flow Summary
- Ending cash and cash equivalents were $419.5 million
- Cash flow from operations was $60.5 million in Q4 and $156.4 million for FY'18
- Inventory turns were 5.5x
- Cash cycle days were 47.3 days
- First Quarter Fiscal 2019 Outlook
The following outlook is for the first fiscal quarter ending December 29, 2018. These statements are forward-looking and actual results may differ materially.
Revenue between $1.875 billion to $1.925 billion
GAAP diluted earnings per share between $0.57 to $0.63, including stock-based compensation expense of $0.10 and amortization of intangible assets of $0.01
Non-GAAP diluted earnings per share between $0.68 to $0.74
This outlook includes the expected impact from the adoption of ASC 606, "Revenue from Contracts with Customers". The Company does not expect the adoption of ASC 606 to materially impact its revenue or earnings per share.
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.
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