Sanmina(US:SANM)2025-01-27 21:03Revenue and Earnings - Revenue for Q1 FY25 was $2.01 billion, an increase from $1.87 billion in Q1 FY24, representing a growth of approximately 6.8% year-over-year[15]. - Non-GAAP diluted EPS for Q1 FY25 was $1.44, compared to $1.30 in Q1 FY24, reflecting a year-over-year increase of about 10.8%[17]. - The company reported a net income attributable to common shareholders of $65 million for Q1 FY25, up from $57 million in Q1 FY24, marking a growth of approximately 14%[15]. - The outlook for Q2 FY25 projects revenue between $1.9 billion and $2.0 billion, with GAAP diluted EPS expected to range from $1.03 to $1.13[6]. Cash Flow and Financial Management - Cash flow from operations for Q1 FY25 was $64 million, with free cash flow reported at $47 million[5]. - Cash provided by operating activities in Q1'25 was $63,938 million, up 23.3% from $51,875 million in Q4'24[21]. - Free cash flow for Q1'25 was $47,017 million, representing a 60.3% increase compared to $29,278 million in Q4'24[21]. - Cash used in financing activities decreased to $28,831 million in Q1'25 from $60,412 million in Q4'24, reflecting improved cash management[21]. Shareholder Returns and Capital Allocation - The company has authorized an additional $300 million for its share repurchase program, with approximately $37 million remaining under the current program as of December 28, 2024[3]. - The company executed net share repurchases of $24,456 million in Q1'25, down from $60,412 million in Q4'24, indicating a strategic shift in capital allocation[21]. Operational Performance - GAAP operating margin for Q1 FY25 was 4.4%, consistent with the previous quarter, while non-GAAP operating margin improved to 5.6%[17]. - Sanmina continues to express confidence in fiscal 2025 being a growth year, driven by operational discipline and customer service capabilities[2]. Asset Management - Total assets as of December 28, 2024, were $4.81 billion, slightly down from $4.82 billion at the end of the previous quarter[13]. - The company’s ending cash and cash equivalents increased to $642 million from $625 million in the previous quarter[13]. - Net change in cash and cash equivalents for Q1'25 was $16,542 million, a significant recovery from a decrease of $31,849 million in Q4'24[21]. - The company reported a net change in net working capital of $(59,945) million in Q1'25, an improvement from $(77,229) million in Q4'24[21]. Depreciation and Capital Expenditures - Depreciation expense for Q1'25 was $31,845 million, slightly up from $31,654 million in Q4'24[21]. - Net purchases of property and equipment decreased to $16,921 million in Q1'25 from $22,597 million in Q4'24, indicating a reduction in capital expenditures[21]. Currency Impact - The effect of exchange rate changes resulted in a loss of $(1,344) million in Q1'25, compared to a gain of $2,585 million in Q4'24, highlighting currency volatility impacts[21].