Financial Data and Key Metrics Changes - Q2 revenue reached $1.91 billion, growing approximately 9% from the prior quarter and exceeding the outlook of $1.7 billion to $1.8 billion [14][16] - Non-GAAP gross margin was 8.1%, down from 8.5% in the prior quarter, primarily due to higher direct material costs and annual salary increases [15][16] - Non-GAAP operating margin remained stable at 5%, while non-GAAP fully diluted earnings per share increased by approximately 6% to $1.14, exceeding guidance by $0.09 [16][25] - Cash flow from operations was $79 million, with free cash flow at $52 million, indicating strong cash generation capabilities [21][22] Business Line Data and Key Metrics Changes - Q2 IMS revenue increased to $1.56 billion, driven by strong customer demand, with non-GAAP gross margin for IMS at 7%, down from 7.5% in the prior quarter [18] - Component products and services revenue grew approximately 6% to $390 million, with non-GAAP gross margin increasing by 50 basis points to 12.1% [19] Market Data and Key Metrics Changes - Communication networks and cloud infrastructure accounted for 40% of revenue, growing around 8%, while industrial, medical, defense, and automotive markets contributed 60% of revenue, with industrial growth at 13% [31][32] - Book-to-bill ratio was 1.1, indicating strong bookings and a solid pipeline of opportunities [32] Company Strategy and Development Direction - The company is focused on mission-critical, high-complexity markets, with plans to diversify end markets and invest in talent and technology to support growth [37][39] - Sanmina aims to leverage its strong supply chain capabilities to manage material constraints and drive growth in optical systems, 5G networks, and cloud infrastructure [35][36] Management's Comments on Operating Environment and Future Outlook - Management noted that while customer demand remains strong, supply chain challenges persist, particularly due to COVID lockdowns in China [25][29] - The outlook for Q3 revenue is projected between $1.825 billion and $1.925 billion, with expectations for non-GAAP gross margin between 8% and 8.5% [25][41] Other Important Information - The company has a healthy balance sheet with cash and cash equivalents of $560 million and total liquidity of approximately $1.3 billion [20] - Share repurchase authorization was increased by an additional $200 million, reflecting confidence in cash flow generation [23] Q&A Session Summary Question: Margin dynamics and revenue guidance clarification - Management explained that margins are influenced by product mix and higher direct material costs, with expectations for gross margins to improve in the next quarter [46][47] Question: Impact of regional supply chain shifts - Management acknowledged that customers are moving production closer to end destinations, which could benefit margins in the long term [60][61] Question: Supply chain stability - Management indicated that the supply chain remains challenging but stable, with no major improvements expected in the short term [69] Question: Impact of China lockdowns - Management confirmed some impact from lockdowns but emphasized that they are adapting to the ongoing challenges [72][73] Question: Long-term growth expectations - Management expressed confidence in growth opportunities and plans to invest in technology and products to drive margin expansion [80][81]

Q2 FY'22 Results May 2, 2022 Today's Presenters Jure Sola Chairman & CEO Kurt Adzema EVP & CFO S A N M I N A Safe Harbor Statement Certain statements made during this presentation, including our outlook for the third quarter of fiscal year 2022 and expectations for improvements in revenue, margins, operating leverage and cash flow from operations as supply chain constraints resolve constitute forward-looking statements within the meaning of the safe harbor provisions of Section 21E of the Securities Exchang ...

Financial Performance - Net sales for the first quarter of 2022 were $1,757,325, a slight increase of 0.1% compared to $1,755,249 in the first quarter of 2021[98] - Gross profit for the first quarter of 2022 was $144,489, up from $141,235 in the first quarter of 2021[98] - Operating income increased to $81,433 in the first quarter of 2022 from $75,559 in the first quarter of 2021[98] - Net income for the first quarter of 2022 was $58,634, compared to $48,021 in the first quarter of 2021, reflecting a significant year-over-year increase[98] - The gross margin improved to 8.2% in the first quarter of 2022 from 8.0% in the first quarter of 2021[100] Sales Performance - Sales in the Industrial, Medical, Defense, and Automotive sectors increased by $22,453, or 2.2%, to $1,054,971 in the first quarter of 2022[99] - Sales in the Communications Networks and Cloud Infrastructure sector decreased by $20,377, or 2.8%, to $702,354 in the first quarter of 2022[99] Expenses - Selling, General and Administrative expenses rose to $61,500, or 3.5% of net sales, from $59,000, or 3.4% of net sales, in the first quarter of 2021[102] Cash and Liquidity - Cash and cash equivalents were $628 million as of January 1, 2022, down from $650 million at October 2, 2021[107] - Working capital remained stable at $1.5 billion as of January 1, 2022, consistent with the previous reporting period[107] - Net cash provided by operating activities was $68 million for the three months ended January 1, 2022, compared to $62 million for the same period in 2021, reflecting an increase of approximately 9.7%[108] - Cash generated from operations was $98 million, while $30 million was consumed due to increases in accounts receivable and inventory[109] - The company believes existing cash resources and other sources of liquidity will be sufficient to meet working capital requirements for at least the next 12 months[121] Investing and Financing Activities - Net cash used in investing activities was $17 million for the three months ended January 1, 2022, compared to $11 million in the same period of 2021, indicating a 54.5% increase[110] - Net cash used in financing activities was $72 million for the three months ended January 1, 2022, compared to $16 million in the same period of 2021, representing a 350% increase[111] - The company repurchased 1.5 million shares of common stock for $60 million under a stock repurchase program, with an additional $200 million program approved by the Board of Directors[112] Accounts Receivable and Debt Management - The company sold approximately $93 million of accounts receivable under its receivables sales programs during the three months ended January 1, 2022[115] - The company had interest rate swaps with an aggregate notional amount of $350 million, effectively converting floating rate debt to fixed rate debt[117] - As of January 1, 2022, the company had a liability of $86 million for uncertain tax positions, reflecting potential future cash flow obligations[119]

Sanmina Corporation (NASDAQ:SANM) Q1 2022 Earnings Conference Call January 31, 2022 5:00 PM ET Company Participants Paige Melching – Senior Vice President-Investor Communications Jure Sola – Chairman and Chief Executive Officer Kurt Adzema – Executive Vice President and Chief Financial Officer Conference Call Participants Ruplu Bhattacharya – Bank of America Jim Suva – Citigroup Christian Schwab – Craig-Hallum Capital Anja Soderstrom – Sidoti Operator Good day and thank you for standing by. Welcome to the S ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark one) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended October 2, 2021 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 408 964-3500 | Title of each class | Trading symbol(s) | Name of each exchange on which registered | | --- | --- | --- | | Common ...

Financial Data and Key Metrics Changes - Q4 revenue was $1.64 billion, slightly below the outlook of $1.65 billion to $1.75 billion, impacted by supply chain constraints estimated to affect revenue by more than $200 million [14][15] - Non-GAAP gross margin was 8.2%, a decline from Q3 due to lower revenues and incremental costs from supply chain issues [16] - Non-GAAP operating margin was 4.8%, slightly lower than the prior quarter, but in line with outlook [16] - Non-GAAP fully-diluted earnings per share were $0.95, within the expected range of $0.93 to $1.03 [16] - Fiscal 2021 revenue was $6.8 billion, relatively flat compared to fiscal 2020, with non-GAAP gross margins improving by 70 basis points to 8.4% [22][24] Business Line Data and Key Metrics Changes - Q4 IMS revenue was $1.32 billion, slightly down from Q3, with non-GAAP gross margin declining to 6.8% from 7.6% due to supply chain constraints [19] - CPS revenue increased to $357 million, with non-GAAP gross margin improving to 12.8% as costs associated with new defense programs had less impact in Q4 [21] - Non-GAAP gross margins have exceeded 8% for the last six consecutive quarters, indicating consistent performance [17] Market Data and Key Metrics Changes - Communication, networks, and cloud infrastructure accounted for 44% of revenue in Q4, slightly up quarter-over-quarter, while industrial, medical, defense, and automotive saw a slight decline [36] - Book-to-bill ratio for Q4 was 1.14, indicating strong demand [37] Company Strategy and Development Direction - The company aims to provide industry-leading technology solutions and expand partnerships in high-complexity, heavily regulated markets [42] - Management is focused on resolving supply chain shortages and logistics challenges while maximizing shareholder value [42] - The outlook for fiscal year 2022 anticipates approximately 60% of revenue from industrial, medical, defense, and automotive markets, and 40% from communication networks and cloud infrastructure [40] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth despite ongoing supply chain constraints, emphasizing strong customer demand and a robust backlog [38][41] - The company expects to generate healthy cash flow and maintain operational efficiency despite current challenges [51] - Management acknowledged that material shortages, particularly in semiconductors, have significantly impacted operations and revenue [73][75] Other Important Information - Cash and cash equivalents increased to $650 million, with total liquidity of $1.4 billion [25] - The company repurchased 827,000 shares for approximately $32 million in Q4, with a total of 1.5 million shares repurchased for $54 million in fiscal 2021 [30] Q&A Session Summary Question: Fiscal 2022 outlook and revenue growth expectations - Management expects nice growth based on strong backlog but emphasizes that growth is dependent on material availability [46][48] Question: Inventory levels and working capital - Inventory increased by 16% sequentially, and management expects high inventory levels to persist until supply chain constraints ease [49][50] Question: Margin dynamics in IMS and CPS segments - IMS margins declined due to a prior quarter's favorable reserve reversal, while CPS margins improved due to reduced costs from defense program ramp-ups [52][55] Question: Long-term adjustments with clients regarding inventory - Management is actively discussing supply chain strategies with customers to mitigate risks and improve logistics [62][66] Question: Trends in communications network and cloud infrastructure - Strong demand for optical networking and 5G products is expected to continue, with customers eager for higher-end systems [68][70] Question: Component shortages and their impact - Semiconductors remain the primary constraint, with management noting that all sectors are affected by material shortages [74][75]

Fourth Quarter and Fiscal Year 2021 Results November 8, 2021 Today's Presenters Jure Sola Chairman & CEO Kurt Adzema EVP & CFO S A N M I N A Safe Harbor Statement Certain statements made during this presentation, including our expectations for fiscal year 2022, the financial outlook for the first quarter of fiscal year 2022, our expectations for an improvement in margins and revenue and expectations for future inventory levels, constitute forward-looking statements within the meaning of the safe harbor prov ...

Financial Performance - Net sales for the three months ended July 3, 2021, were $1,657,741, a slight increase of 0.2% compared to $1,654,691 for the same period in 2020[120] - Gross profit for the nine months ended July 3, 2021, was $420,923, up from $373,776 for the same period in 2020, reflecting improved operational efficiencies[120] - Operating income increased to $74,265 for the three months ended July 3, 2021, compared to $64,103 for the same period in 2020[120] - Net income for the three months ended July 3, 2021, was $117,375, significantly higher than $44,880 for the same period in 2020[120] - The gross margin increased to 8.2% for the third quarter of 2021, up from 7.9% for the third quarter of 2020[122] Customer Concentration - Sales to the ten largest customers represented approximately 55% of net sales, indicating a significant customer concentration risk[114] Revenue Segmentation - The Integrated Manufacturing Solutions (IMS) segment accounted for approximately 80% of total revenue in the first nine months of 2021[108] Restructuring and Charges - Restructuring charges incurred amounted to approximately $29 million, primarily for severance costs under a company-wide restructuring plan[113] Operational Challenges - The company expects component shortages to persist at least through the end of calendar 2021, potentially impacting revenue and operating cash flow[111] Expenses - Selling, General and Administrative expenses decreased to $57.4 million, or 3.5% of net sales, in the third quarter of 2021, down from $59.3 million, or 3.6% of net sales, in the third quarter of 2020[124] - Selling, General and Administrative expenses decreased by $7.2 million from $184.7 million (3.6% of net sales) in the nine months ended June 27, 2020, to $177.5 million (3.5% of net sales) in the nine months ended July 3, 2021[125] - Research and Development expenses increased by $0.1 million from $5.2 million (0.3% of net sales) in Q3 2020 to $5.3 million (0.3% of net sales) in Q3 2021, while decreasing by $0.7 million from $16.1 million (0.3% of net sales) in the nine months ended June 27, 2020, to $15.4 million (0.3% of net sales) in the nine months ended July 3, 2021[126] Interest and Other Income - Interest expense decreased from $8 million in Q3 2020 to $5 million in Q3 2021, and from $20 million in the nine months ended June 27, 2020, to $15 million in the nine months ended July 3, 2021, primarily due to lower daily average borrowings[134] - Other income for the three months ended July 3, 2021, was $29 million compared to $3 million in the same period of 2020, and for the nine months ended July 3, 2021, was $37 million compared to an expense of $3 million in the same period of 2020[135] Tax Provision - The provision for income taxes for the three months ended July 3, 2021, was $(18) million (19% of income before taxes) compared to $15 million (25% of income before taxes) in the same period of 2020[136] Cash Flow and Liquidity - Net cash provided by operating activities was $246.6 million for the nine months ended July 3, 2021, compared to $220.7 million for the same period in 2020[138] - Net cash used in investing activities was $60.8 million for the nine months ended July 3, 2021, compared to $83.9 million for the same period in 2020[144] - Net cash used in financing activities was $(42.7) million for the nine months ended July 3, 2021, compared to $525.7 million for the same period in 2020[145] - Cash and cash equivalents increased to $624 million at July 3, 2021, from $481 million at October 3, 2020[140] - Working capital was $1.5 billion as of July 3, 2021, compared to $1.3 billion as of October 3, 2020[140] - The company sold approximately $406 million and $1.4 billion of accounts receivable under its programs for the nine months ended July 3, 2021, and June 27, 2020, respectively[149] - As of July 3, 2021, the company had cash and cash equivalents of $624 million and an available Amended Cash Flow Revolver of $692 million, net of outstanding borrowings[154] - The company generated $247 million of cash from operations in the third quarter of 2021[154] Liabilities and Contingencies - As of July 3, 2021, the company had a liability of $74 million for uncertain tax positions, which decreased materially during the quarter[153] - The company had accrued liabilities of $37 million related to legal proceedings and contingencies[152] Financial Instruments - The company had outstanding interest rate swaps with an aggregate notional amount of $350 million, converting floating rate debt to fixed rate debt[160] - As of July 3, 2021, the company had outstanding foreign currency forward contracts with an aggregate notional amount of $357 million to exchange various foreign currencies for U.S. dollars[162] - The company had forward contracts related to cash flow hedges in various foreign currencies with an aggregate notional amount of $114 million as of July 3, 2021[163] Future Outlook - The company believes existing cash resources and liquidity sources will be sufficient to meet working capital requirements for at least the next 12 months[155] - The company has not been required to repurchase any receivable sold due to commercial disputes to date[150]

Sanmina Corporation (NASDAQ:SANM) Q3 2021 Earnings Conference Call August 2, 2021 5:00 PM ET Company Participants Paige Melching - Senior Vice President of Investor Relations Jure Sola - Chairman, Chief Executive Officer Kurt Adzema - Executive Vice President and Chief Financial Officer Conference Call Participants Ruplu Bhattacharya - Bank of America Jim Suva - Citigroup Investment Christian Schwab - Craig-Hallum Capital Group Operator Good day and thank you for standing by. Welcome to Sanmina Corporation' ...

Q3 FY'21 Results August 2, 2021 Today's Presenters Kurt Adzema EVP & CFO S A N M I N A Jure Sola Chairman & CEO Safe Harbor Statement Certain statements made during this presentation, including our expectations for customer demand during the fourth quarter, the Company's ability to manage ongoing supply chain constraints, the financial outlook for the fourth quarter and our expectations for increases in revenue and margins and decrease in inventory constitute forward-looking statements within the meaning of ...