EX-99 2 a04-14955_2ex99.htm EX-99

Exhibit 99

 

PRESS RELEASE

 

 

Sanmina-SCI Contact:

Paige Bombino

Investor Relations

+1.408.964.3610

 

FOR IMMEDIATE RELEASE

 

SANMINA-SCI ISSUES REVISED FOURTH QUARTER AND FISCAL YEAR END RESULTS AND ANNOUNCES FILING OF FISCAL 2004 FORM 10-K ANNUAL REPORT

 

SAN JOSE, CA (December 29, 2004) — Sanmina-SCI Corporation (NASDAQ NM: SANM), a leading global electronics manufacturing services (EMS) company, today reported revised financial results for its fourth fiscal quarter and fiscal year ended October 2, 2004.  The Company had previously issued a press release announcing its results for the fourth quarter and 2004 fiscal year on October 28, 2004.  The Company also announced that, concurrent with this press release, it is filing its report on Form 10-K for fiscal 2004 with the U.S. Securities and Exchange Commission.

 

As previously indicated in the Company’s press release on December 17, 2004, the Company estimated that the effect of any adjustments resulting from the completion of its reviews at the plant mentioned in the release, together with the net effect of other adjustments, could potentially result in a charge to income increasing its GAAP loss per share for fiscal 2004 by an amount ranging from $(0.00) to $(0.03) per share as compared to the Company’s previously announced results for fiscal 2004.  After the completion of the company’s 2004 fiscal year audit, the net effect of these adjustments increased the GAAP loss per share by $(0.01) from the $(0.01) amount previously announced to $(0.02) per share.  Non-GAAP earnings per share were not affected by the adjustments.  Updated financial results are summarized below and set forth in detail in the financial statements accompanying this release.

 

FINANCIAL RESULTS

 

Q4:2004

 

Q4:2003

 

FY2004

 

FY2003

 

(In thousands, except per share data)

 

 

 

 

 

 

 

 

 

Revenue

 

$

3,302,157

 

$

2,732,013

 

$

12,204,607

 

$

10,361,434

 

GAAP:

 

 

 

 

 

 

 

 

 

Net Income (loss)

 

$

5,338

 

$

(85,653

)

$

(11,398

)

$

(137,157

)

Earnings (loss) per share

 

$

0.01

 

$

(0.17

)

$

(0.02

)

$

(0.27

)

Non-GAAP: (1)

 

 

 

 

 

 

 

 

 

Operating Income

 

$

78,045

 

$

49,333

 

$

260,826

 

$

142,484

 

Operating Margin

 

2.4

%

1.8

%

2.1

%

1.4

%

Net Income

 

$

39,518

 

$

13,961

 

$

126,675

 

$

28,271

 

Diluted earnings per share

 

$

0.08

 

$

0.03

 

$

0.24

 

$

0.06

 

 

(1)   Please refer to “Non-GAAP Financial Information” below for a discussion of how the above non-GAAP financial measures are calculated and why we believe this information is useful to investors.

 

The net effect of the recording of the adjustments in the fourth quarter was, among other things, an increase in GAAP selling, general and administrative expenses due to the recordation of certain stock-based compensation charges of $2.4 million, an increase in interest expense resulting from the recordation of imputed interest of $2.0 million related to a transaction in which the Company resolved the acquisition of certain minority interests in one of its subsidiaries and an increase in restructuring charges of $1.1 million.

 

-more-

 


 

Non-GAAP Financial Information

In the summary table set forth above, we present the following Non-GAAP financial measures:  operating income, operating margin, net income and earnings per share.  In computing each of these non-GAAP financial measures, including those presented in the attached financial statements, we exclude charges or gains relating to: restructuring (including employee severance and benefits costs and charges related to excess facilities and assets), integration costs (consisting of costs associated with the integration of acquired businesses into our operations), impairment charges for goodwill and intangible assets, amortization of intangible assets, extraordinary gains or losses, non-cash interest and amortization expense and other infrequent or unusual items, to the extent material, which we consider to be of a non-operational nature in the applicable period..   We have also provided a non-GAAP income tax provision to exclude the tax effect of the items excluded in computing the non-GAAP financial measures.

 

We have furnished these Non-GAAP financial measures because we believe they provide useful supplemental information to investors in that they eliminate certain financial items that are of a non-recurring, unusual or infrequent nature or are not related to the Company’s regular, ongoing business.  Our management also uses this information internally for forecasting, budgeting and other analytical purposes.  Therefore, the non-GAAP financial measures enable investors to analyze the core financial and operating performance of our company and to facilitate period-to-period comparisons and analysis of operating trends.  A reconciliation from non-GAAP to GAAP results is contained in the attached financial summary and is available on the Investor Relations section of our website at www.sanmina-sci.com.

 

The non-GAAP financial information presented in this release may vary from non-GAAP financial measures used by other companies.  In addition, non-GAAP financial information should not be viewed as a substitute for financial data prepared in accordance with GAAP.

 

About Sanmina-SCI

Sanmina-SCI Corporation (NASDAQ: SANM) is a leading electronics contract manufacturer serving the fastest-growing segments of the global electronics manufacturing services (EMS) market. Recognized as a technology leader, Sanmina-SCI provides end-to-end manufacturing solutions, delivering superior quality and support to large OEMs primarily in the communications, defense and aerospace, industrial and medical instrumentation, computer technology and multimedia sectors. Sanmina-SCI has facilities strategically located in key regions throughout the world. Information about Sanmina-SCI is available at www.sanmina-sci.com.

 

Sanmina-SCI Safe Harbor Statement

The foregoing, including the discussion regarding the company’s future prospects, contains certain forward-looking statements that involve risks and uncertainties, including uncertainties associated with economic conditions in the electronics industry, particularly in the principal industry sectors served by the company, changes in customer requirements and in the volume of sales to principal customers, the ability of Sanmina-SCI to effectively assimilate acquired businesses and achieve the anticipated benefits of its acquisitions, and competition and technological change. The company’s actual results of operations may differ significantly from those contemplated by such forward-looking statements as a result of these and other factors, including factors set forth in the

 


 

company’s fiscal year 2004 Annual Report on Form 10-K filed today with the Securities Exchange Commission.

 

# # #

 


 

Press Release Financials

 

SANMINA-SCI

 

 

2700 North First Street

 

 

San Jose, CA 95134

 

 

Tel: 408-964-3500

 

Sanmina - SCI Corporation

Condensed Consolidated Statements of Operations

(In thousands, except per share data)

(Unaudited)

 

 

 

Three Months Ended October 2, 2004

 

Three Months Ended September 27, 2003

 

 

 

Non-GAAP (1)

 

Non-GAAP Adjustments

 

GAAP

 

Non-GAAP (1)

 

Non-GAAP Adjustments

 

GAAP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

3,302,157

 

$

—

 

$

3,302,157

 

$

2,732,013

 

$

—

 

$

2,732,013

 

Cost of sales

 

3,126,747

 

—

 

3,126,747

 

2,602,859

 

—

 

2,602,859

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

175,410

 

—

 

175,410

 

129,154

 

—

 

129,154

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative

 

89,208

 

2,400

 

91,608

 

72,490

 

—

 

72,490

 

Research and development

 

8,157

 

—

 

8,157

 

7,331

 

—

 

7,331

 

Amortization of intangibles

 

—

 

2,087

 

2,087

 

—

 

1,733

 

1,733

 

Write-down of long-lived assets

 

—

 

—

 

—

 

—

 

95,600

 

95,600

 

Integration costs

 

—

 

160

 

160

 

—

 

2,472

 

2,472

 

Restructuring costs

 

—

 

28,925

 

28,925

 

—

 

14,926

 

14,926

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total operating expenses

 

97,365

 

33,572

 

130,937

 

79,821

 

114,731

 

194,552

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

78,045

 

(33,572

)

44,473

 

49,333

 

(114,731

)

(65,398

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense), net

 

(21,499

)

(9,194

)

(30,693

)

(28,493

)

(27,445

)

(55,938

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before provision for income taxes

 

56,546

 

(42,766

)

13,780

 

20,840

 

(142,176

)

(121,336

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision (benefit) for income taxes

 

17,028

 

(5,003

)

12,025

 

6,879

 

(42,562

)

(35,683

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations

 

39,518

 

(37,763

)

1,755

 

13,961

 

(99,614

)

(85,653

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Extraordinary gain (net of tax)

 

—

 

3,583

 

3,583

 

—

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

39,518

 

$

(34,180

)

$

5,338

 

$

13,961

 

$

(99,614

)

$

(85,653

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per share from continuing operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic:

 

$

0.08

 

 

 

$

—

 

$

0.03

 

 

 

$

(0.17

)

Diluted

 

$

0.08

 

 

 

$

—

 

$

0.03

 

 

 

$

(0.17

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share from extraordinary gain, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic:

 

$

—

 

 

 

$

0.01

 

$

—

 

 

 

$

—

 

Diluted

 

$

—

 

 

 

$

0.01

 

$

—

 

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.08

 

 

 

$

0.01

 

$

0.03

 

 

 

$

(0.17

)

Diluted

 

$

0.08

 

 

 

$

0.01

 

$

0.03

 

 

 

$

(0.17

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used in computing per share amounts:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

517,596

 

 

 

517,596

 

510,732

 

 

 

510,732

 

Diluted

 

522,152

 

 

 

522,152

 

517,725

 

 

 

510,732

 

 

(1)          Non-GAAP results of operations exclude restructuring and integration costs, impairment and other infrequent or unusual items charges, extraordinary gains, and non-cash interest and amortization expense, as described further in the text of this press release.

 


 

 

 

Year Ended October 2, 2004

 

Year Ended September 27, 2003

 

 

 

Non-GAAP (1)

 

Non-GAAP
Adjustments

 

GAAP

 

Non-GAAP (1)

 

Non-GAAP
Adjustments

 

GAAP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

12,204,607

 

—

 

$

12,204,607

 

$

10,361,434

 

—

 

$

10,361,434

 

Cost of sales

 

11,584,384

 

—

 

11,584,384

 

9,898,964

 

—

 

9,898,964

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

620,223

 

—

 

620,223

 

462,470

 

—

 

462,470

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative

 

329,995

 

4,991

 

334,986

 

305,034

 

1,700

 

306,734

 

Research and development

 

29,402

 

—

 

29,402

 

14,952

 

—

 

14,952

 

Amortization of intangibles

 

—

 

8,547

 

8,547

 

—

 

6,596

 

6,596

 

Write-down of long-lived assets

 

—

 

—

 

—

 

—

 

95,600

 

95,600

 

Integration costs

 

—

 

4,203

 

4,203

 

—

 

10,720

 

10,720

 

Restructuring costs

 

—

 

137,384

 

137,384

 

—

 

105,744

 

105,744

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total operating expenses

 

359,397

 

155,125

 

514,522

 

319,986

 

220,360

 

540,346

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

260,826

 

(155,125

)

105,701

 

142,484

 

(220,360

)

(77,876

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense), net

 

(84,888

)

(36,394

)

(121,282

)

(100,281

)

(20,050

)

(120,331

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before provision for income taxes

 

175,938

 

(191,519

)

(15,581

)

42,203

 

(240,410

)

(198,207

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision (benefit) for income taxes

 

49,263

 

(49,863

)

(600

)

13,932

 

(74,982

)

(61,050

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations

 

126,675

 

(141,656

)

(14,981

)

28,271

 

(165,428

)

(137,157

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Extraordinary gain (net of tax)

 

—

 

3,583

 

3,583

 

—

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

126,675

 

$

(138,073

)

$

(11,398

)

$

28,271

 

$

(165,428

)

$

(137,157

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per share from continuing operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic:

 

$

0.25

 

 

 

$

(0.03

)

$

0.06

 

 

 

$

(0.27

)

Diluted

 

$

0.24

 

 

 

$

(0.03

)

$

0.06

 

 

 

$

(0.27

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share from extraordinary gain, net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic:

 

$

—

 

 

 

$

0.01

 

$

—

 

 

 

$

—

 

Diluted

 

$

—

 

 

 

$

0.01

 

$

—

 

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.25

 

 

 

$

(0.02

)

$

0.06

 

 

 

$

(0.27

)

Diluted

 

$

0.24

 

 

 

$

(0.02

)

$

0.06

 

 

 

$

(0.27

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used in computing per share amounts:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

515,803

 

 

 

515,803

 

510,102

 

 

 

510,102

 

Diluted

 

527,460

 

 

 

515,803

 

513,515

 

 

 

510,102

 

 

(1)          Non-GAAP results of operations exclude restructuring and integration costs, impairment and other infrequent or unusual items, extraordinary gains, and non-cash interest and amortization expens, as described further in the text of this press release.

 


 

Sanmina - SCI Corporation

Condensed Consolidated Balance Sheets

(In thousands)

(GAAP)

 

 

 

October 2,
2004

 

September 27,
2003

 

 

 

(Unaudited)

 

(Derived from
audited financials)

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and short-term investments

 

$

1,128,667

 

$

1,082,988

 

Accounts receivable, net

 

1,668,973

 

1,576,392

 

Inventories, net

 

1,064,518

 

977,799

 

Deferred income taxes

 

303,965

 

362,124

 

Prepaid expenses and other

 

96,523

 

109,862

 

 

 

 

 

 

 

Total current assets

 

4,262,646

 

4,109,165

 

 

 

 

 

 

 

Property, plant and equipment, net

 

782,642

 

902,868

 

Goodwill

 

2,254,979

 

2,223,422

 

Other assets

 

246,369

 

155,447

 

 

 

 

 

 

 

Total assets

 

$

7,546,636

 

$

7,390,902

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Current portion of long-term debt

 

$

609,746

 

$

3,489

 

Accounts payable

 

1,630,833

 

1,506,998

 

Accrued liabilities

 

381,123

 

394,906

 

Accrued payroll and related benefits

 

164,357

 

130,660

 

 

 

 

 

 

 

Total current liabilities

 

2,786,059

 

2,036,053

 

 

 

 

 

 

 

Long-term liabilities:

 

 

 

 

 

Convertible subordinated debentures

 

520,818

 

1,103,537

 

Long-term debt

 

790,559

 

822,093

 

Deferred income taxes

 

—

 

30,940

 

Other

 

94,489

 

75,025

 

 

 

 

 

 

 

Total stockholders’ equity

 

3,354,711

 

3,323,254

 

 

 

 

 

 

 

Total liabilities and stockholders’ equity

 

$

7,546,636

 

$

7,390,902