Sanmina Reports Q2 Fiscal 2016 Revenue of $1.61B

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Sanmina Corporation, a leading integrated manufacturing solutions company, today reported financial results for the second fiscal quarter ended April 2, 2016.

Second Quarter Fiscal 2016 Summary

• Revenue of $1.61 billion
• GAAP operating margin of 3.8 percent
• GAAP diluted earnings per share of $0.39
• Non-GAAP⁽¹⁾ operating margin of 4.1 percent
• Non-GAAP⁽¹⁾ diluted earnings per share of $0.63

Revenue for the second quarter was $1.61 billion, compared to $1.53 billion in the prior quarter and $1.53 billion for the same period of fiscal 2015.  

GAAP operating income in the second quarter was $61.1 million or 3.8 percent of revenue, compared to $49.7 million or 3.3 percent of revenue in the second quarter fiscal 2015.  GAAP net income in the second quarter was $30.4 million, compared to $14.7 million for the same period a year ago.  GAAP diluted earnings per share for the quarter were $0.39, compared to $0.17 in the second quarter of fiscal 2015. 

Non-GAAP operating income in the second quarter was $65.4 million or 4.1 percent of revenue, compared to $56.6 million or 3.7 percent of revenue in the second quarter fiscal 2015.  Non-GAAP net income in the second quarter was $49.3 million, compared to $43.4 million in the same period a year ago.  Non-GAAP diluted earnings per share for the quarter were $0.63, compared to $0.50 for the same period a year ago.  

"Solid execution coupled with growth in the majority of our market segments drove improvements in our results for the second quarter.  Revenue was up sequentially and year over year, and we achieved our highest earnings per share in over ten years," stated Jure Sola, Chairman and Chief Executive Officer of Sanmina Corporation.  "Strong cash generation provides us flexibility to continue to invest in technologies and businesses that further enhance our differentiation in the market and provide industry leading value to our customers.  As we further diversify our business, we remain confident our financial results will continue to improve," concluded Sola.

Balance Sheet Summary

• Ending cash and cash equivalents were $407.3 million
• Cash flow from operations was $142.6 million
• Repurchased 4.0 million common shares for $74.7 million
• Inventory turns were 6.5x
• Cash cycle days were 44.6 days

Third Quarter Fiscal 2016 Outlook

The following forecast is for the third fiscal quarter ending July 2, 2016.  These statements are forward-looking and actual results may differ materially. 

• Revenue between $1.625 billion to $1.675 billion
• Non-GAAP diluted earnings per share between $0.61 to $0.65

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.