Sanmina Corporation (NASDAQ:SANM) Q3 2024 Earnings Conference Call July 29, 2024 5:00 PM ET Company Participants Paige Melching - Senior Vice President, Investor Communications Jure Sola - Chairman and CEO Jon Faust - Executive Vice President and CFO Conference Call Participants Ruplu Bhattacharya - Bank of America Steven Fox - Fox Advisors Christian Schwab - Craig-Hallum Capital Group Operator Good afternoon, ladies and gentlemen. And welcome to the Sanmina Corporation Third Quarter Fiscal 2024 Earnings Co ...

Core Viewpoint - Sanmina reported quarterly earnings that missed expectations, indicating potential challenges ahead for the company despite its strong year-to-date stock performance [1][8][12]. Financial Performance - Sanmina's revenues for the quarter ended June 2024 were $1.84 billion, missing the Zacks Consensus Estimate by 0.19% and down from $2.21 billion year-over-year [2]. - The company posted earnings of $1.25 per share, which was below the Zacks Consensus Estimate of $1.30 per share and down from $1.55 per share a year ago [8]. - The current consensus EPS estimate for the upcoming quarter is $1.50 on revenues of $1.97 billion, and for the current fiscal year, it is $5.40 on revenues of $7.52 billion [5]. Stock Performance - Sanmina shares have increased approximately 44.7% since the beginning of the year, significantly outperforming the S&P 500's gain of 14.5% [3]. - The company has surpassed consensus EPS estimates two times over the last four quarters [9]. Earnings Outlook - The estimate revisions trend for Sanmina is currently mixed, leading to a Zacks Rank of 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [12]. - The sustainability of the stock's price movement will largely depend on management's commentary during the earnings call [10]. Industry Context - The Electronics - Manufacturing Services industry, to which Sanmina belongs, is currently ranked in the top 41% of over 250 Zacks industries, indicating a favorable outlook compared to lower-ranked industries [13].

Financial Performance - Revenue for Q3 FY24 was $1.84 billion, a decrease from $2.21 billion in Q3 FY23[15] - GAAP diluted EPS for Q3 FY24 was $0.91, compared to $1.28 in Q3 FY23[15] - Non-GAAP diluted EPS for Q3 FY24 was $1.25, down from $1.55 in Q3 FY23[17] - The company reported a GAAP operating margin of 4.5% for Q3 FY24, compared to 4.9% in Q3 FY23[17] - Non-GAAP operating margin for Q3 FY24 was 5.3%, slightly down from 5.7% in Q3 FY23[17] - Net income before noncontrolling interest for Q3'24 was $54,738 million, a decrease of 33.1% compared to Q3'23's $81,737 million[20] Cash Flow and Liquidity - Cash flow from operations for Q3 FY24 was $90 million, with ending cash and cash equivalents at $658 million[7] - Cash provided by operating activities increased to $89,999 million in Q3'24 from $56,509 million in Q3'23, representing a year-over-year growth of 59.2%[20] - Free cash flow for Q3'24 was $67,227 million, up from $4,342 million in Q3'23, indicating a significant improvement in cash generation[20] - Net change in cash and cash equivalents for Q3'24 was $6,851 million, compared to a decrease of $61,615 million in Q3'23[20] - Cash used in investing activities decreased to $23,372 million in Q3'24 from $52,667 million in Q3'23, reflecting a reduction in capital expenditures[20] Future Outlook - The outlook for Q4 FY24 projects revenue between $1.9 billion and $2.0 billion, with GAAP diluted EPS expected to be between $1.02 and $1.12[8] - Non-GAAP diluted EPS for Q4 FY24 is projected to be between $1.30 and $1.40[18] - The company anticipates growth in fiscal 2025, citing stabilization and improved demand going into Q4 FY24[3] Asset Management - Total assets as of June 29, 2024, were $4.66 billion, down from $4.87 billion as of September 30, 2023[13] - The net change in net working capital improved to $(14,211) million in Q3'24 from $(76,300) million in Q3'23, indicating better management of working capital[20] Other Financial Metrics - Net share repurchases in Q3'24 totaled $54,629 million, significantly higher than $52,072 million in Q3'23[20] - Depreciation and amortization expenses for Q3'24 were $29,764 million, slightly up from $29,898 million in Q3'23[20] - The company reported a net borrowing activity of $(4,375) million in Q3'24, consistent with the previous quarter[20] - The effect of exchange rate changes resulted in a loss of $(772) million in Q3'24, compared to a loss of $(452) million in Q3'23[20]

Core Viewpoint - Sanmina Corporation reported financial results for the fiscal third quarter of 2024, showing stabilization in demand and an optimistic outlook for growth in fiscal 2025 [3][4]. Financial Highlights - Revenue for Q3 2024 was $1.84 billion, a decrease from $2.21 billion in Q3 2023 [2][12]. - GAAP operating margin was 4.5%, while non-GAAP operating margin was 5.3% [2][13]. - GAAP diluted earnings per share (EPS) was $0.91, and non-GAAP diluted EPS was $1.25 [2][12]. - Cash flow from operations amounted to $90 million, with ending cash and cash equivalents at $658 million [2][12]. Fourth Quarter Outlook - The company expects revenue for Q4 2024 to be between $1.9 billion and $2.0 billion [4]. - GAAP diluted EPS is projected to be between $1.02 and $1.12, while non-GAAP diluted EPS is expected to range from $1.30 to $1.40 [4][12]. Management Commentary - Jure Sola, Chairman and CEO, stated that the company is seeing demand improve and is focused on delivering profitable growth and free cash flow while maintaining a strong balance sheet [3][4]. Company Overview - Sanmina Corporation is a leading integrated manufacturing solutions provider in the Electronics Manufacturing Services (EMS) market, serving various sectors including industrial, medical, defense, aerospace, automotive, communications networks, and cloud infrastructure [7].

Core Insights - The launch of the 42Q chatbot represents a significant advancement in manufacturing automation and customer interaction, leveraging Amazon Bedrock technology to enhance user engagement and operational efficiency [1][9]. Company Overview - 42Q is a division of Sanmina Corporation, a Fortune 500 company recognized as a leader in integrated manufacturing solutions, particularly in the Electronics Manufacturing Services (EMS) market [7]. - Sanmina serves various sectors including industrial, medical, defense, aerospace, automotive, communications networks, and cloud infrastructure [7]. Product Features - The 42Q chatbot is designed to provide automated customer support, handling a high volume of inquiries and offering instant responses to frequently asked questions, thereby reducing the workload on customer service teams [15]. - It supports multi-language capabilities, allowing users to interact in their local language and access information from various sources such as wikis and whitepapers [15]. - The chatbot integrates seamlessly with existing Manufacturing Execution Systems (MES), ensuring minimal disruption to ongoing operations [10][15]. - It features advanced natural language processing capabilities, enabling it to understand and respond to a wide range of user inputs [10]. - The chatbot can generate code examples for developers based on API documentation, enhancing its utility for technical users [15]. - Built on Amazon Bedrock, the chatbot is customizable and scalable, allowing organizations to tailor it to specific needs and grow alongside their operations [15]. Technological Integration - Amazon Bedrock provides the foundational technology for the 42Q chatbot, enhancing its accuracy, speed, and flexibility in user engagement [5]. - The chatbot is equipped to handle various tasks, including guiding users through complex MES functions and interacting with all 42Q's documentation resources [5][10]. Market Position - The introduction of the 42Q chatbot is expected to set a new standard in the manufacturing industry, reflecting the company's commitment to innovation and excellence [1][9].

Core Insights - Viking Technology, a division of Sanmina Corporation, has launched a new 16GB DDR4 Multi-Chip Package (MCP) designed for embedded systems and rugged applications, emphasizing performance, efficiency, and compactness [1][2] Product Features - The 16GB DDR4 MCP offers high storage capacity in a compact BGA footprint, enhancing memory density and speed compared to previous models [2] - The design features soldered connections for improved ruggedness, providing significant space savings over standard DIMM modules [2] - The product delivers superior signal integrity and high memory bandwidth efficiency, contributing to lower motherboard costs [2] Application and Performance - The MCP has proven its reliability in demanding environments, including missile applications and fighter jets, enhancing guidance systems and ensuring mission success [3] - Its integration into Digital Signal Processing (DSP) boards allows for advanced signal processing capabilities, facilitating real-time data analysis in complex battlefield situations [3] Company Background - Viking Technology has over 25 years of experience in engineering, design, manufacturing, and testing, providing advanced hardware products for various markets, including defense and aerospace [5] - Sanmina Corporation, a Fortune 500 company, is recognized as a technology leader in integrated manufacturing solutions, serving sectors such as industrial, medical, and defense [6]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark one) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File Number 0-21272 Sanmina Corporation (Exact name of registrant as specified in its charter) DE 77-0228183 (State or other jurisdiction of ( ...

Sanmina Corporation (NASDAQ:SANM) Q2 2024 Results Conference Call April 29, 2024 5:00 PM ET Company Participants Paige Melching - SVP of Investor Communications Jure Sola - Chairman & CEO Jon Faust - EVP & CFO Conference Call Participants Ruplu Bhattacharya - Bank of America Steven Fox - Fox Advisors LLC Anja Soderstrom - Sidoti Christian Schwab - Craig-Hallum Capital Group Operator Good afternoon, ladies and gentlemen, and welcome to Sanmina's Second Quarter Fiscal 2024 Earnings Conference Call. [Operator ...

Exhibit 99.1 Second Quarter Fiscal 2024 Financial Highlights See Schedule 1 below for more information regarding our use of non-GAAP financial measures. A reconciliation of the non-GAAP financial information contained in this release to their most directly comparable GAAP measures is included in the financial statements furnished with this release. (1) FINANCIAL NEWS Sanmina's Second Quarter Fiscal 2024 Financial Results San Jose, CA – April 29, 2024. Sanmina Corporation ("Sanmina" or the "Company") (NASDAQ ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark one) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File Number 0-21272 Sanmina Corporation (Exact name of registrant as specified in its charter) (State or other jurisdiction of (I.R.S. Empl ...