Sanmina(SANM)2024-07-31 20:29Financial 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]