Sanmina(US:SANM)2025-01-28 19:16Financial Performance - Net sales for the three months ended December 28, 2024, were $2,006,348, an increase of 7.0% compared to $1,874,798 for the same period in 2023[98]. - Gross profit for the same period was $167,915, up from $160,840 in the prior year, while gross margin decreased to 8.4% from 8.6%[98][100]. - Operating income increased to $88,610 for the three months ended December 28, 2024, compared to $87,576 for the same period in 2023[98]. - Net income attributable to common shareholders was $65,003 for the three months ended December 28, 2024, compared to $57,068 in the prior year[98]. Segment Performance - Sales in the Communications Networks and Cloud Infrastructure segment increased by 19.2% to $737,010, while Industrial, Medical, Defense and Aerospace, and Automotive sales rose by 1.0% to $1,269,338[99]. Expenses and Taxation - Selling, general and administrative expenses rose to $71 million for the three months ended December 28, 2024, from $65 million in the prior year, maintaining 3.5% of net sales[102]. - The provision for income taxes decreased to $15 million (18% of income before taxes) for the three months ended December 28, 2024, down from $21 million (26% of income before taxes) in the prior year[103]. Cash Flow and Liquidity - Cash and cash equivalents increased to $642 million as of December 28, 2024, compared to $626 million at September 28, 2024[108]. - Net cash provided by operating activities was $63,938 for the three months ended December 28, 2024, down from $126,025 in the prior year[104][109]. - Working capital increased to $2.0 billion as of December 28, 2024, compared to $1.9 billion at September 28, 2024[108]. - For the three months ended December 28, 2024, the company generated $124 million of cash from earnings, excluding non-cash items, compared to $109 million for the same period in 2023, reflecting a 13.8% increase[110][111]. - The company believes its existing cash resources and other sources of liquidity will be sufficient to meet working capital requirements for at least the next twelve months[123]. Investment and Financing Activities - The net cash used in investing activities was $17 million for the three months ended December 28, 2024, down from $35 million in the same period of 2023, indicating a 51.4% decrease[112]. - The net cash used in financing activities decreased to $29 million for the three months ended December 28, 2024, from $128 million in the same period of 2023, representing a 77.3% reduction[113]. - The company repurchased 0.2 million shares for $16 million during the three months ended December 28, 2024, compared to 2 million shares for $106 million in the same period of 2023, a decrease of 98.1% in shares repurchased[114]. Accounts Receivable and Liabilities - The company sold approximately $34 million of accounts receivable under its receivables sales programs for the three months ended December 28, 2024, a significant decrease from $407 million in the same period of 2023, reflecting an 91.6% decline[118]. - The maximum amount of sold receivables that could be outstanding under the Receivables Purchase Agreement is $490 million, as of December 28, 2024[115]. - As of December 28, 2024, the company had accrued liabilities of $37 million related to legal proceedings and other contingencies[120]. - The company had a liability of $55 million for uncertain tax positions as of December 28, 2024, based on subjective assessments of potential tax obligations[121].