SAN JOSE, Calif., Jan. 27, 2025 /PRNewswire/ -- Sanmina Corporation ("Sanmina" or the "Company") (NASDAQ: SANM), a leading integrated manufacturing solutions company, today reported financial results for the first quarter ended December 28, 2024 and outlook for its second fiscal quarter ending March 29, 2025. First Quarter Fiscal 2025 Financial Highlights •    Revenue: $2.01 billion •    GAAP operating margin: 4.4% •    GAAP diluted EPS: $1.16 •    Non-GAAP(1) operating margin: 5.6% •    Non-GAAP(1) dilut ...

SAN JOSE, Calif., Jan. 16, 2025 /PRNewswire/ -- Sanmina Corporation (NASDAQ: SANM) announced today that it will host its first quarter fiscal 2025 earnings conference call on Monday, January 27, 2025 at 5:00 PM ET. The live webcast presentation and supporting materials will be available on the Sanmina website at www.sanmina.com in the Investor Relations section. A webcast replay will be available at the same location upon the conclusion of the event.About SanminaSanmina Corporation, a Fortune 500 company, i ...

Manufacturing Facilities and Operations - The company's total manufacturing facilities cover approximately 11,559,002 square feet, with 5,706,824 square feet in the Americas, 4,479,735 square feet in APAC, and 1,372,443 square feet in EMEA[207] - As of September 28, 2024, the company owns 9 million square feet of manufacturing facilities and leases 2 million square feet with lease terms expiring between 2024 and 2042[207] - About 80% of the company's net sales are generated from products manufactured in foreign operations, with plans to expand presence in regions like Asia, Latin America, and Eastern Europe[243] Stock and Shareholder Information - The company's common stock is traded on the Nasdaq Global Select Market under the symbol SANM, with approximately 712 holders of record as of November 14, 2024[222] - The company's stock price increased from $100 on September 28, 2019, to $214.41 on September 28, 2024, outperforming the S&P 500 index during the same period[226] - The company repurchased 944,911 shares of its common stock during the fourth quarter of 2024 at an average price of $68.70 per share[230] - The company repurchased $254 million of common stock in 2024, including $26 million for employee tax withholding obligations[289] - The company repurchased 4.0 million shares of common stock for $227 million in 2024, with $53 million remaining available under the repurchase programs[293] Cybersecurity and Information Security - The company's SCI Technology subsidiary is certified under the U.S. Cybersecurity Maturity Model Certification (CMMC) program[200] - The company employs cybersecurity measures including end-to-end email encryption, two-factor authentication, and strong password requirements[198] - The company provides annual cybersecurity and information security compliance training to relevant employees, including simulated phishing campaign tests[199] - The company's Board oversees cybersecurity risks, with regular reports from the Chief Information Officer (CIO) and oversight from the Audit Committee[203] Revenue and Financial Performance - The company's Integrated Manufacturing Solutions (IMS) segment represented approximately 80% of total revenue in 2024[238] - Approximately 50% of the company's net sales in any given year come from its ten largest customers[241] - Net sales decreased by 15.3% to $7.57 billion in 2024 from $8.94 billion in 2023, primarily due to reduced demand in communications networks and cloud infrastructure[266][267] - Gross margin improved to 8.5% in 2024 from 8.3% in 2023, with CPS gross margin increasing to 12.8% from 11.6% due to fewer losses on fixed-price contracts[268] - Operating income decreased to $335.5 million in 2024 from $455.7 million in 2023, with operating margin declining to 4.4% from 5.1%[265] - Net income attributable to common shareholders fell to $222.5 million in 2024 from $310.0 million in 2023[265] - Revenue for the CPS segment was $1.5 billion for the year ended September 28, 2024, with the defense and aerospace division representing a portion of the segment[329] - Net sales for the year ended September 28, 2024, were $7,568,328 thousand, a decrease of 15.3% compared to $8,935,048 thousand in the previous year[340] - Gross profit for the year ended September 28, 2024, was $640,429 thousand, down 13.8% from $743,211 thousand in the previous year[340] - Operating income for the year ended September 28, 2024, was $335,494 thousand, a decrease of 26.4% compared to $455,658 thousand in the previous year[340] - Net income attributable to common shareholders for the year ended September 28, 2024, was $222,536 thousand, down 28.2% from $309,970 thousand in the previous year[340] - Basic earnings per share for the year ended September 28, 2024, were $4.00, a decrease of 25.4% compared to $5.36 in the previous year[340] - Comprehensive income attributable to common shareholders for the year ended September 28, 2024, was $218,398 thousand, down 32.7% from $324,524 thousand in the previous year[343] - Total other comprehensive loss for the year ended September 28, 2024, was $(4,138) thousand, compared to a gain of $14,554 thousand in the previous year[343] - Net income before noncontrolling interest for the year ended September 28, 2024 was $237.75 million, compared to $327.51 million in 2023 and $240.38 million in 2022[349] Research and Development - Research and development expenses increased to $29 million in 2024 from $26 million in 2023, representing 0.4% of net sales[273] - Research and development expenses for the year ended September 28, 2024, were $28,514 thousand, an increase of 7.9% compared to $26,427 thousand in the previous year[340] Cash Flow and Financial Position - Net cash provided by operating activities rose to $340.2 million in 2024 from $235.2 million in 2023, driven by improved working capital management[279][286] - Days sales outstanding (DSO) increased to 56 days in 2024 from 55 days in 2023, while inventory turns improved to 5.2 from 5.1[279] - Cash and cash equivalents decreased to $626 million at September 28, 2024, from $668 million at September 30, 2023[283] - Capital expenditures were $111 million in 2024, down from $191 million in 2023[288] - Net cash used in financing activities was $(270) million in 2024, compared to $95 million in 2023 and $(314) million in 2022[289] - The company has an $800 million revolving credit facility and a $350 million secured term loan due in 2027, with an additional $200 million available through an accordion feature[290] - As of September 28, 2024, $786 million was available under the Credit Agreement, with no borrowings and $14 million of letters of credit outstanding[291] - The company sold approximately $1.1 billion of accounts receivable in 2024, compared to $2.6 billion in 2023[297] - As of September 28, 2024, the company had $626 million in cash and cash equivalents and $786 million available under the Credit Agreement[300] - Cash and cash equivalents decreased from $667.57 million as of September 30, 2023, to $625.86 million as of September 28, 2024[337] - Accounts receivable increased from $1.23 billion as of September 30, 2023, to $1.34 billion as of September 28, 2024[337] - Inventories decreased from $1.48 billion as of September 30, 2023, to $1.44 billion as of September 28, 2024[337] - Total current assets slightly decreased from $3.88 billion as of September 30, 2023, to $3.87 billion as of September 28, 2024[337] - Total liabilities decreased from $2.03 billion as of September 30, 2023, to $1.94 billion as of September 28, 2024[337] - Long-term debt decreased from $312.33 million as of September 30, 2023, to $299.82 million as of September 28, 2024[337] - Accumulated deficit improved from -$2.93 billion as of September 30, 2023, to -$2.71 billion as of September 28, 2024[337] - Total stockholders' equity increased from $2.32 billion as of September 30, 2023, to $2.36 billion as of September 28, 2024[337] - Cash provided by operating activities increased to $340.22 million in 2024 from $235.17 million in 2023 and $330.85 million in 2022[349] - Depreciation and amortization expenses rose to $122.42 million in 2024 from $118.24 million in 2023 and $108.78 million in 2022[349] - Cash used in investing activities decreased to $114.40 million in 2024 from $192.46 million in 2023 and $132.21 million in 2022[349] - Cash and cash equivalents at the end of 2024 were $625.86 million, down from $667.57 million in 2023 and $529.86 million in 2022[349] Tax and Regulatory Matters - The company's effective tax rate is influenced by geographic income distribution, tax regulations, and the utilization of net operating losses and tax credits[261] - The company recorded income tax expense of $80 million in 2024, with an effective tax rate of 25%, up from 21% in 2023[275] - The company has a liability of $57 million for uncertain tax positions, with a potential decrease of $8 million in the next 12 months[299] - Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in future years, with a valuation allowance for assets not meeting the "more likely than not" criteria[394][396] Inventory and Cost Management - Inventory is stated at the lower of cost and net realizable value, with provisions made for excess and obsolete inventories based on forecasted demand and customer financial difficulties[252] - The company's raw materials inventories are generally acquired in anticipation of specific customer orders and pursuant to customer-specific design specifications[367] - The company's inventory at the end of a given period is 99% or more in the form of raw materials due to revenue recognition over time for most contracts[386] Property, Plant, and Equipment - Property, plant and equipment are depreciated on a straight-line basis over 20 to 40 years for buildings and 3 to 15 years for machinery, equipment, furniture and fixtures[368] Derivatives and Hedging - The company uses derivatives such as foreign currency forward contracts and interest rate swaps to minimize earnings and cash flow volatility due to foreign currency exchange rates and interest rate changes[372] - Derivative instruments are recorded on the consolidated balance sheets at fair value, with gains or losses not caused by time value changes recorded in AOCI and reclassified into earnings[373] - The company has $366 million in outstanding foreign currency forward contracts to hedge currency exposures[314] - The company has $117 million in foreign currency forward contracts designated as cash flow hedges[315] Leases and Contracts - The company's leases have initial terms of up to 44 years, with certain leases containing options to extend or terminate, and leases with terms of 12 months or less are not recorded on the balance sheet[376] - Revenue is recognized over time for at least 95% of the company's contracts, primarily due to the lack of alternative use for end products and enforceable right to payment for work in progress[386] - The company applies the cost-to-cost method for government contracts in the Defense and Aerospace division, requiring significant judgments on estimated costs[387] - Contract assets are recognized when revenue is recognized but no invoice has been issued, and these assets are generally transferred to accounts receivable within the next fiscal quarter[390] - The company does not adjust the promised amount of consideration for significant financing components, as the period between transfer and payment is generally one year or less[392] Stock-Based Compensation - Stock-based compensation for the year ended September 28, 2024, was $57,407 thousand, an increase of 13.9% compared to $50,402 thousand in the previous year[346] - Stock-based compensation expense is recognized over the requisite service period, with adjustments made if the probability of vesting changes for performance-based awards[393] - Stock-based compensation expense increased to $57.41 million in 2024 from $50.40 million in 2023 and $39.61 million in 2022[349] Revenue Recognition and Accounting - Revenue recognition for the majority of contracts is on an over-time basis using the cost-to-cost method, with favorable revenue impacts of $12.22 million in 2024 and $6.02 million in 2023[246][249] - Operating income impacts from changes in estimates were favorable by $21.23 million in 2024 and unfavorable by $16.10 million in the same year[251] - The company consolidates its Indian manufacturing entity, SIPL, despite holding only 49.9% of the shares, due to a management services contract granting unilateral control[256][258] - Allowances for uncollectible accounts were approximately $7 million as of September 28, 2024, down from $8 million in 2023[363] Other Financial Metrics - Repurchases of treasury stock for the year ended September 28, 2024, amounted to $254,298 thousand, an increase of 137.4% compared to $107,093 thousand in the previous year[346] - The Integrated Manufacturing Solutions (IMS) segment represented approximately 80% of total revenue in 2024[355]

Financial Data and Key Metrics Changes - For Q4 2024, the company reported revenue of $2.02 billion, exceeding the outlook of $1.9 billion to $2.0 billion, and representing a 9.6% sequential growth [11][8] - Non-GAAP diluted earnings per share (EPS) was $1.43, surpassing the high end of the outlook of $1.30 to $1.40, and showing a 14% sequential improvement [14][17] - Non-GAAP gross profit was $175 million, or 8.7% of revenue, which was at the higher end of the outlook and up 20 basis points sequentially [12][16] Business Line Data and Key Metrics Changes - IMS revenue reached $1.63 billion, up 10.1% sequentially, while non-GAAP gross margin was 7.3%, down 30 basis points sequentially [18] - CPS revenue was $418 million, up 7.6% sequentially, with non-GAAP gross margin improving to 13.6%, up 210 basis points sequentially [19] Market Data and Key Metrics Changes - Revenue from industrial, medical, defense, aerospace, and automotive segments was $1.253 billion, accounting for 62% of total revenue, and up 6% quarter-over-quarter [34] - Communication networks and cloud infrastructure revenue was $765 million, representing 38% of total revenue, and increased by 16% quarter-over-quarter [34] Company Strategy and Development Direction - The company aims for fiscal year 2025 to be a growth year, forecasting high single-digit revenue growth driven by new and existing programs [42] - Focus on margin expansion with non-GAAP EPS expected to grow faster than revenue, leveraging operational efficiencies [43] - The strategy emphasizes a customer-centric approach, aiming for long-term growth and maximizing shareholder value [44] Management's Comments on Operating Environment and Future Outlook - Management noted that fiscal year 2024 was a transition year, but expressed optimism for fiscal year 2025 based on improving customer visibility and inventory levels [32][30] - Positive trends are expected in various segments, including industrial, medical, defense, and cloud infrastructure, with significant opportunities in AI and advanced technologies [36][40] Other Important Information - The company maintained a strong balance sheet with cash and cash equivalents of $626 million and no outstanding borrowings [21] - Free cash flow for the year was $231 million, up $186 million compared to the prior year, with nearly 100% of free cash flow returned to shareholders through share repurchases [26][27] Q&A Session Summary Question: Clarification on cloud segment revenue - Management acknowledged that fiscal year 2024 was challenging for the cloud segment due to inventory issues but expressed optimism for growth in high-performance networks and cloud infrastructure [47][48] Question: Trends in communications and inventory correction - Management indicated that inventory corrections are nearing completion and expressed confidence in growth across networking and optical segments [49][50] Question: Operating margin progression in fiscal 2025 - Management expects margin expansion driven by revenue growth and operational leverage, with targeted investments in R&D and strategic opportunities [50][51] Question: Cash allocation priorities and M&A opportunities - Management reiterated a focus on organic growth, strategic acquisitions, and disciplined share repurchases, emphasizing a balanced approach to capital allocation [52][54] Question: Update on Reliance Industries joint venture - Management expressed satisfaction with the partnership and highlighted growth opportunities in the Indian market, indicating strong performance ahead [64][65]

Sanmina (SANM) came out with quarterly earnings of $1.43 per share, beating the Zacks Consensus Estimate of $1.37 per share. This compares to earnings of $1.42 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 4.38%. A quarter ago, it was expected that this electronics manufacturing services company would post earnings of $1.30 per share when it actually produced earnings of $1.25, delivering a surprise of -3.85%.Over the last f ...

Exhibit 99.1 FINANCIAL NEWS Sanmina Reports Fourth Quarter and Fiscal 2024 Financial Results San Jose, CA – November 4, 2024. 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 September 28, 2024 and outlook for its fiscal first quarter ending December 28, 2024. Fourth Quarter Fiscal 2024 Financial Highlights • Revenue: $2.02 billion • GAAP operating margin: 4.4% ...

SAN JOSE, Calif., Nov. 4, 2024 /PRNewswire/ -- 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 September 28, 2024 and outlook for its fiscal first quarter ending December 28, 2024. Fourth Quarter Fiscal 2024 Financial Highlights •    Revenue: $2.02 billion •    GAAP operating margin: 4.4% •    GAAP diluted EPS: $1.09 •    Non-GAAP(1) operating margin: 5.3% •  ...

SAN JOSE, Calif., Oct. 8, 2024 /PRNewswire/ -- 42Q, a Sanmina division, a leading provider of cloud-based Manufacturing Execution Systems (MES), announces the launch and immediate availability of 42Q Connected Manufacturing. An innovative solution that addresses manufacturing supply challenges in real-time, providing global visibility, optimization and manufacturing supply insights. "Working with our customers and manufacturing partners around the world, it became clear that the legacy approach to collectin ...

SANTA CLARA, Calif., Aug. 7, 2024 /PRNewswire/ -- Viking Enterprise Solutions; a division of Sanmina Corporation (NASDAQ: SANM), is proud to announce that it has received a "Best of Show" award at FMS: the Future of Memory and Storage, for its Viking Edge AI solution. The 'Best of Show' award is given to the most outstanding product, service, or innovation showcased at FMS. This recognition highlights Viking Enterprise Solutions commitment to excellence and innovation. Use cases for AI/ML workloads such as ...

Financial Performance - Net sales for the three months ended June 29, 2024, were $1,841.43 million, a decrease of 16.6% compared to $2,207.12 million in the same period last year[95][96] - Gross profit for the three months ended June 29, 2024, was $153.54 million, down from $183.21 million in the same period last year[95] - Operating income for the three months ended June 29, 2024, was $82.37 million, compared to $107.37 million in the same period last year[95] - Net income attributable to common shareholders for the three months ended June 29, 2024, was $51.60 million, down from $76.49 million in the same period last year[95] - Net sales decreased by 16.6% for the three months ended June 29, 2024, and by 19.4% for the nine months ended June 29, 2024, primarily due to reduced demand in telecommunications and other end markets[97] - Gross margin remained at 8.3% for the three months ended June 29, 2024, but IMS gross margin decreased to 7.6% from 8.3%, while CPS gross margin increased to 11.5% from 8.8%[98] - Selling, general, and administrative expenses decreased to $62 million for the three months ended June 29, 2024, from $69 million in the same period in 2023, representing 3.4% and 3.1% of net sales, respectively[99] Segment Performance - Industrial, Medical, Defense and Aerospace, and Automotive segment revenue for the three months ended June 29, 2024, was $1,181.49 million, a decrease of 12.1% compared to $1,344.07 million in the same period last year[96] - Communications Networks and Cloud Infrastructure segment revenue for the three months ended June 29, 2024, was $659.94 million, a decrease of 23.5% compared to $863.05 million in the same period last year[96] - The Integrated Manufacturing Solutions (IMS) segment represented approximately 80% of the company's total revenue for the nine months ended June 29, 2024[85] Strategic Initiatives - The company expects headwinds to revenue growth in the near term due to customers absorbing their finished goods inventory in some end markets[86] - The company is focusing on diversifying into mission-critical markets with longer product life cycles and higher technology products[86] - The company is proactively managing cost impacts through pricing actions and targeted cost-saving measures to enhance stockholder value[86] Cash Flow and Liquidity - Cash and cash equivalents were $658 million at June 29, 2024, compared to $668 million at September 30, 2023, with working capital at $1.9 billion and $1.8 billion, respectively[109] - Net cash provided by operating activities was $288 million for the nine months ended June 29, 2024, compared to $158 million in the same period in 2023[110] - Net cash used in investing activities was $88 million for the nine months ended June 29, 2024, primarily for capital expenditures, compared to $154 million in the same period in 2023[112] - The company generated $288 million of cash from operations for the nine months ended June 29, 2024[120] - The company's cash and cash equivalents totaled $658 million as of June 29, 2024, with $188 million held by Sanmina SCI India Private Limited (SIPL) for its operations[120] - The company had $786 million available under its Credit Agreement, net of outstanding borrowings and letters of credit, as of June 29, 2024[120] - The company's foreign short-term borrowing facilities amounted to $71 million, all of which was available as of June 29, 2024[120] - The company may increase the revolving commitments under the Credit Agreement by up to an additional $200 million, subject to certain conditions[120] - 35% of the company's cash balance was held in the United States as of June 29, 2024[122] - The company believes its existing cash resources and liquidity sources will be sufficient to meet working capital requirements for at least the next twelve months[121] Share Repurchase and Liabilities - The company repurchased 3 million shares of common stock for $162 million during the nine months ended June 29, 2024, compared to 1 million shares for $51 million in the same period in 2023[113] - Accounts receivable sold under the Receivables Purchase Agreement (RPA) were $127 million as of June 29, 2024, compared to $162 million as of September 30, 2023[116] - The company had accrued liabilities of $37 million related to legal proceedings and contingencies as of June 29, 2024[118] - The liability for uncertain tax positions was $51 million as of June 29, 2024, with potential future cash flows that could be significantly higher or lower than the recorded liability[119] Risk Management and Off-Balance Sheet Arrangements - The company has no off-balance sheet arrangements as of June 29, 2024 that would materially affect its financial condition[123] - The company's primary risk exposures and management of market risks remained unchanged from those disclosed in its Annual Report on Form 10-K for the fiscal year ended September 30, 2023[125]