Fourth Quarter Fiscal 2013 Summary
- Revenue of $1.51 billion
- GAAP operating margin of 3.0 percent
- GAAP diluted earnings per share of $0.44(1)
- Non-GAAP(2) operating margin of 3.7 percent
- Non-GAAP(2) diluted earnings per share of $0.46
Fiscal Year 2013 Summary
- Revenue of $5.92 billion
- GAAP diluted earnings per share of $0.93(1)
- Non-GAAP diluted earnings per share of $1.44
Revenue for the fourth quarter was $1.51 billion, compared to $1.49 billion in the prior quarter and $1.58 billion for the fourth quarter of fiscal 2012. Revenue for fiscal year ended September 28, 2013 was $5.92 billion, compared to $6.09 billion for the fiscal year ended September 29, 2012.
GAAP operating income in the fourth quarter was $44.7 million or 3.0 percent of revenue, compared to $32.2 million or 2.0 percent of revenue for the same period a year ago. GAAP operating income for fiscal year 2013 was $157.6 million, compared to $137.5 million in fiscal year 2012. GAAP net income in the fourth quarter was $38.8 million, compared to $164.2 million for the same period a year ago. GAAP diluted earnings per share for the quarter was $0.44, compared to $1.96 in the same period a year ago. GAAP net income for fiscal year 2013 was $79.4 million, compared to $180.2 million in fiscal year 2012. GAAP diluted earnings per share in fiscal year 2013 was $0.93, compared to $2.16 in fiscal year 2012.
Non-GAAP operating income in the fourth quarter was $55.7 million or 3.7 percent of revenue, compared to $56.0 million or 3.5 percent of revenue for the same period a year ago. Non-GAAP operating income for the full fiscal year was $186.9 million, compared to $194.8 million for fiscal year 2012. Non-GAAP net income in the fourth quarter was $39.9 million, compared to $38.0 million for the same period a year ago. Non-GAAP diluted earnings per share was $0.46 for the fourth quarter in both fiscal years. Non-GAAP net income for the full fiscal year was $123.4 million, compared to $105.3 million for fiscal year 2012. Non-GAAP diluted earnings per share in fiscal year 2013 was $1.44, compared to $1.26 in fiscal 2012.
Balance Sheet Summary
- Ending cash and cash equivalents were $402.9 million
- Cash flow from operations was $90.0 million in Q4, and $317.9 million for fiscal year 2013
- Reduced long-term debt $274.9 million in fiscal year 2013
- Inventory turns were 7.0x
- Cash cycle days were 46 days
"Our fourth quarter results were solid. Revenue was up modestly, operating margins expanded 40 basis points sequentially and we generated cash flow from operations of $90 million for the quarter and $318 million for the fiscal year. Our continued focus on cash generation provided us the financial flexibility to reduce our long-term debt $275 million for the year. Improvements in our financial results are a testament to our focus on the fundamentals and solid execution of our strategy. We will continue to invest in leading technologies that enhance our offerings to our customers, and we remain focused on the quality of our revenue to further strengthen our operating model and drive shareholder value," stated Jure Sola, Chairman and Chief Executive Officer of Sanmina Corporation.
"Our revenue outlook for the first quarter is slightly down sequentially as a result of seasonality and slower than anticipated ramp of new programs. We expect to deliver modest growth and further improve our financial results for fiscal year 2014," concluded Sola.
First Quarter Fiscal 2014 Outlook
The following outlook is for the first fiscal quarter ending December 28, 2013. These statements are forward-looking and actual results may differ materially.
- Revenue between $1.425 billion to $1.475 billion
- Non-GAAP diluted earnings per share between $0.35 to $0.41
Company Conference Call Information
Sanmina will hold a conference call regarding results for the fourth quarter and fiscal year end 2013 on Monday, October 28, 2013 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 78487144.
(1)Fourth quarter and full year fiscal 2013 GAAP diluted earnings per share includes a non-recurring tax benefit of $0.25 and fourth quarter and full year fiscal 2012 GAAP diluted earnings per share includes a non-recurring tax benefit of $1.90.
(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 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.com . Sanmina provides first quarter fiscal 2014 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.