Fourth Quarter Fiscal 2012 Summary
- Revenue of $1.58 billion
- GAAP operating margin 2.0 percent
- GAAP diluted earnings per share of $1.96, includes non-recurring tax benefit of $1.90(1)
- Non-GAAP(2) operating margin of 3.5 percent
- Non-GAAP diluted earnings per share of $0.46
Fiscal Year 2012 Summary
- Revenue of $6.09 billion
- GAAP diluted earnings per share of $2.16, includes non-recurring tax benefit of $1.90(1)
- Non-GAAP diluted earnings per share of $1.26
Revenue for the fourth quarter was $1.58 billion, compared to $1.55 billion in the prior quarter and $1.70 billion for the same period of fiscal 2011. Revenue for fiscal year ended September 29, 2012 was $6.09 billion, down 7.7 percent compared to $6.60 billion for the fiscal year ended October 1, 2011.
GAAP operating income in the fourth quarter was $32.2 million or 2.0 percent of revenue, compared to $53.5 million or 3.2 percent of revenue for the same period a year ago. GAAP operating income for fiscal year 2012 was $137.5 million, compared to $212.0 million in fiscal year 2011. GAAP net income in the fourth quarter was $164.2 million, compared to $18.1 million for the same period a year ago. GAAP diluted earnings per share for the quarter was $1.96, compared to $0.22 in the same period a year ago. GAAP net income for fiscal year 2012 was $180.2 million, compared to $68.9 million in fiscal year 2011. GAAP diluted earnings per share was $2.16, compared to $0.83 in fiscal year 2011.
Non-GAAP operating income in the fourth quarter was $56.0 million or 3.5 percent of revenue, compared to $70.4 million or 4.1 percent of revenue for the same period a year ago. Non-GAAP operating income for the full fiscal year was $194.8 million, compared to $257.9 million for fiscal year 2011. Non-GAAP net income in the fourth quarter was $38.0 million, compared to $38.7 million for the same period a year ago. Non-GAAP diluted earnings per share was $0.46, compared to $0.47 in the fourth quarter 2011. Non-GAAP net income for the full fiscal year was $105.3 million, compared to $136.0 million for fiscal year 2011. Fiscal year 2012 non-GAAP diluted earnings per share was $1.26, compared to $1.64 in fiscal 2011.
Cash and cash equivalents for the quarter ended September 29, 2012 were $409.6 million. Cash flow from operations was $121.1 million for the quarter and $215.4 million for the full year. Inventory turns were 7.1x. Cash cycle days were 51.9 days.
"I am pleased with our fourth quarter results and what we accomplished in fiscal 2012 despite the challenging economic environment. Modest revenue growth and expanded operating margins in the quarter were in line with our expectations. We generated very strong cash flow from operations of $121 million for the quarter and $215 million for the fiscal year," stated Jure Sola, Chairman and Chief Executive Officer.
"We continue to invest in leading technology, products and services which offer a distinct advantage to our customers. We have the right strategy in place, with a strong customer base and we are uniquely positioned for the future," Sola continued.
"Our first quarter fiscal 2013 guidance reflects continued uncertainty in the market. Though the macro-environment is challenging, we have taken action to position us for improved performance in fiscal 2013," concluded Sola.
First Quarter Fiscal 2013 Outlook
The following forecast is for the first fiscal quarter ending December 29, 2012. These statements are forward-looking and actual results may differ materially.
- Revenue between $1.5 billion to $1.55 billion
- Non-GAAP diluted earnings per share between $0.31 to $0.37
Sanmina-SCI also announced a restructuring plan which impacts two of its manufacturing facilities. This action will improve the Company's operational cost structure, flexibility and capacity utilization. As a result of this plan, the Company has recorded charges in its fourth quarter of approximately $11.9 million, consisting of severance pay for affected employees and related asset impairments. A total of $9.3 million of such expenses are expected to be cash and $2.6 million are expected to be non-cash in nature. Sanmina-SCI expects to complete the actions being taken under the plan in fiscal 2013. The Company will continue to evaluate its plans and further restructuring actions may occur, which may cause the Company to incur additional restructuring charges relating to this plan.
Upcoming Investor and Analyst Day
Sanmina-SCI will host an Investor and Analyst Day on Thursday, November 15, 2012 in New York, NY. The event will begin at 9:00 a.m. ET and conclude at approximately 1:00 p.m. ET. Jure Sola, Chairman and Chief Executive Officer, along with members of the management team will provide a closer look into the Company's business units and initiatives.
Financial analysts and institutional investors who are interested in attending the event should contact Paige Bombino at (408) 964-3610 or email Email Contact. For other interested parties, a webcast will be available on the company website at www.sanmina-sci.com, in the investor relations section.
(1)Based on all available evidence, management has concluded that it is more-likely-than-not that the Company will realize a significant portion of its U.S. deferred tax assets, and has therefore partially released the valuation allowance against U.S. deferred tax assets.
(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 and discrete tax events), 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 from GAAP to non-GAAP results is included in the financial statements contained in this release and is also available on the Investor Relations section of our website at
www.sanmina-sci.com . Sanmina-SCI provides first quarter fiscal 2013 outlook only on a non-GAAP basis due to the inherent uncertainties associated with forecasting the timing and amount of acquisitions, restructuring, impairment and other unusual and infrequent items.