San Jose, Calif. -- Sanmina Corporation ("Sanmina" or the "Company") (NASDAQ: SANM), a leading integrated manufacturing solutions company, today reported financial results for the fourth quarter and fiscal year ended October 3, 2015.
Fourth Quarter Fiscal 2015 Summary
- Revenue of $1.64 billion
- GAAP operating margin of 3.2 percent
- GAAP diluted earnings per share of $3.78(1)
- Non-GAAP(2) operating margin of 3.8 percent
- Non-GAAP(2) diluted earnings per share of $0.57
- Fiscal Year 2015 Summary
- Revenue of $6.37 billion
- GAAP diluted earnings per share of $4.41(1)
- Non-GAAP(2) diluted earnings per share of $2.21
Revenue for the fourth quarter was $1.64 billion, compared to $1.54 billion in the prior quarter and $1.69 billionfor the same period of fiscal 2014. Revenue for fiscal year ended October 3, 2015 was $6.37 billion, compared to $6.22 billion for the fiscal year ended September 27, 2014.
GAAP operating income in the fourth quarter was $52.7 million or 3.2 percent of revenue, compared to $61.5 million or 3.6 percent of revenue for the same period a year ago. GAAP operating income for fiscal year 2015 was $203.1 million, compared to $199.7 million in fiscal year 2014. GAAP net income in the fourth quarter was$315.4 million, compared to $132.5 million for the same period a year ago. GAAP diluted earnings per share for the fourth quarter was $3.78, compared to $1.52 in the same period a year ago. GAAP net income for fiscal year 2015 was $377.3 million, compared to $197.2 million in fiscal year 2014. GAAP diluted earnings per share in fiscal year 2015 was $4.41, compared to $2.27 in fiscal year 2014.
Non-GAAP operating income in the fourth quarter was $61.7 million or 3.8 percent of revenue, compared to$71.3 million or 4.2 percent of revenue for the same period a year ago. Non-GAAP operating income for the full fiscal year was $245.7 million, compared to $234.0 million for fiscal year 2014. Non-GAAP net income in the fourth quarter was $47.7 million, compared to $53.4 million for the same period a year ago. Non-GAAP diluted earnings per share for the fourth quarter was $0.57, compared to $0.61 in the same period a year ago. Non-GAAP net income for fiscal year 2015 was $189.3 million, compared to $172.5 million in fiscal year 2014. Non-GAAP diluted earnings per share in fiscal year 2015 was $2.21, compared to $1.99 in fiscal year 2014.
Balance Sheet Summary
Ending cash and cash equivalents were $412.3 million
Cash flow from operations was ($1.3) million in Q4, and $174.9 million for FY'15
Repurchased 2.5 million common shares for $51.8 million in Q4, and 5.8 million shares for $121.2 million in FY'15
Board authorized an additional $200 million in share repurchases
Inventory turns were 6.2x
Cash cycle days were 44.6 days
"We delivered a solid fourth quarter. Revenue was up 6 percent sequentially and non-GAAP EPS improved 8 percent," stated Jure Sola, Chairman and Chief Executive Officer of Sanmina Corporation.
"In fiscal 2015, we delivered revenue growth, operating margin improvement, EPS expansion and solid cash generation despite a mixed market environment. Our focus on executing our core strategy is evident in our results."
"Our technology and solutions offerings remain a differentiator for Sanmina. We are focused on the quality of our revenue, expanding our capabilities and providing value to our customers. Based on our diverse customer base, new programs ramping, pipeline of new business opportunities and forecasts from our customers, we are optimistic that fiscal 2016 will be another growth year," concluded Mr. Sola.
First Quarter Fiscal 2016 Outlook
The following outlook is for the first fiscal quarter ending January 2, 2016. These statements are forward-looking and actual results may differ materially.
Revenue between $1.55 billion to $1.60 billion
Non-GAAP diluted earnings per share between $0.56 to $0.60
Company Conference Call Information
Sanmina will hold a conference call regarding financial results for the fourth quarter and fiscal year end 2015 onMonday, November 2, 2015 at 5:00 p.m. ET (2:00 p.m. PT). The access numbers are: domestic 877-273-6760 and international 706-634-6605. The conference will also be broadcast live over the Internet. You can log on to the live webcast at www.sanmina.com. Additional information in the form of a slide presentation is available by logging onto Sanmina's website at www.sanmina.com. A replay of the conference call will be available for 48-hours. The access numbers are: domestic 855-859-2056 and international 404-537-3406, access code is 58137033.
(1) Fourth quarter 2015 GAAP diluted earnings per share includes a non-recurring tax benefit of $3.45. Full year fiscal 2015 GAAP diluted earnings per share includes a non-recurring tax benefit of $3.37. Fourth quarter and full year fiscal 2014 GAAP diluted earnings per share includes a non-recurring tax benefit of $1.01.
(2) In the commentary set forth above and/or in the financial statements included in this earnings release, we present the following non-GAAP financial measures: operating income, operating margin, net income and diluted earnings per share. In computing each of these non-GAAP financial measures, we exclude charges or gains relating to: stock-based compensation expenses, restructuring costs (including employee severance and benefits costs and charges related to excess facilities and assets), acquisition and integration costs (consisting of costs associated with the acquisition and integration of acquired businesses into our operations), impairment charges for goodwill and other assets, amortization expense and other infrequent or unusual items (including charges associated with distressed customers, litigation settlements, gains and losses on sales of assets and redemptions of debt, discrete tax events and deferred tax changes), to the extent material or which we consider to be of a non-operational nature in the applicable period. See Schedule 1 below for more information regarding our use of non-GAAP financial measures, including the economic substance behind each exclusion, the manner in which management uses non-GAAP measures to conduct and evaluate the business, the material limitations associated with using such measures and the manner in which management compensates for such limitations. A reconciliation of the non-GAAP results contained in this release to their most directly comparable GAAP measures is included in the financial statements contained in this release. Sanmina provides its first quarter fiscal 2016 outlook only on a non-GAAP basis due to the inherent uncertainties associated with forecasting the timing and amount of acquisitions, restructuring activities, asset impairments and other unusual and infrequent items.
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 http://www.sanmina.com.
For the complete press release, click here.