Sanmina(US:SANM)2022-02-02 17:34Financial 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]