Sanmina Corporation (the “Company”) identified misstatements in the unaudited condensed consolidated financial statements for the comparative periods of 2022 in conjunction with an independent investigation conducted by the Audit Committee of the Board of Directors, as further disclosed in the Company’s Current Report on Form 8-K filed by the Company with the Securities and Exchange Commission on May 11, 2023. The comparative periods have been amended and restated to correct for such misstatements. More detailed information related to the amendment and restatement is contained in Amendment No. 1 to the Company’s Annual Report on Form 10-K for the fiscal year ended October 1, 2022 and Amendment No. 1 to the Company’s Form 10-Q for the quarter ended December 31, 2022 as filed with the Securities and Exchange Commission on May 19, 2023.

During the preparation of its unaudited consolidated financial statements for the fiscal quarter ended April 1, 2023, the Company determined that certain personnel in one of its divisions had failed to properly substantiate and update cost estimates for materials and other costs over the life of certain contracts. As a result, the Company conducted an independent investigation (the “Investigation”) under the direction of the Audit Committee of the Company’s Board of Directors (the “Audit Committee”). The division, like other Company divisions, has a stand-alone finance organization, which reports directly to the Company finance organization and indirectly to the management of the division. References in the findings below refer solely to this division unless otherwise noted. The Investigation found that:

The “Previously Reported” amounts in the following tables are amounts derived from the Form 10-Q for the period ended April 2, 2022. The amounts in columns labeled “Investigation Adjustments” represent the effect of adjustments resulting from an independent investigation conducted by the Audit Committee of the Board of Directors and the amounts in columns labeled “Other Adjustments” represent the effect of uncorrected misstatements in previously filed financial statements that were not material, individually or in the aggregate, to those previously filed financial statements. The effects of the restatement, including the related income tax effects, have been corrected in all impacted tables and footnotes throughout these condensed consolidated financial statements. The only impact to the Condensed Consolidated Statements of Comprehensive Income and Condensed Consolidated Statements of Stockholders’ Equity was to net income.

Investigation Adjustments correct misstatements that resulted primarily from 1) increases to estimated costs at completion of a contract that previously did not properly reflect estimated costs remaining to be incurred to complete a contract, 2) reductions in the

amount of transaction consideration expected to be received under a contract, and 3) segmentation of contracts that had previously been combined. The adjustments primarily affected net sales, cost of sales, contract assets and inventory.

Other Adjustments primarily correct balance sheet misstatements related to inventory cut-off and advance payments from customers.

The following table presents the impact of the financial statement adjustments on the Company’s previously reported Condensed Consolidated Statements of Income for the three and six months ended April 2, 2022.


	Three Months Ended								Six Months Ended
	April 2, 2022								April 2, 2022
	(Unaudited)								(Unaudited)
	Previously		Investigation		Other				Previously		Investigation		Other
	Reported		Adjustments		Adjustments		As Restated		Reported		Adjustments		Adjustments			As Restated

	(In thousands, except per share data)
Net sales	$	1,911,530	$	3,540	$	—	$	1,915,070	$	3,668,855	$	2,541	$	—	$	3,671,396
Cost of sales		1,759,083		9,492		—		1,768,575		3,371,919		11,685		—		3,383,604
Gross profit		152,447		(5,952)		—		146,495		296,936		(9,144)		—		287,792

Operating expenses:
Selling, general and administrative		61,817		—		—		61,817		123,292		—		—		123,292
Research and development		5,472		—		—		5,472		10,249		—		—		10,249
Restructuring and other		2,932		—		—		2,932		4,346		—		—		4,346
Gain on sale of long-lived assets		—		—		—		—		(4,610)		—		—		(4,610)
Total operating expenses		70,221		—		—		70,221		133,277		—		—		133,277

Operating income		82,226		(5,952)		—		76,274		163,659		(9,144)		—		154,515

Interest income		349		—		—		349		658		—		—		658
Interest expense		(4,870)		—		—		(4,870)		(9,747)		—		—		(9,747)
Other income (expense), net		(1,408)		—		—		(1,408)		664		—		—		664
Interest and other, net		(5,929)		—		—		(5,929)		(8,425)		—		—		(8,425)

Income before income taxes		76,297		(5,952)		—		70,345		155,234		(9,144)		—		146,090
Provision for income taxes		23,077		(1,353)		—		21,724		43,380		(2,088)		—		41,292
Net Income	$	53,220	$	(4,599)		—	$	48,621	$	111,854	$	(7,056)	$	—	$	104,798

Net income per share:
Basic	$	0.85	$	(0.08)	$	—	$	0.77	$	1.76	$	(0.11)	$	—	$	1.65
Diluted	$	0.83	$	(0.07)	$	—	$	0.76	$	1.71	$	(0.11)	$	—	$	1.60

Weighted average shares used in computing per share amounts:
Basic		62,845		—		—		62,845		63,622		—		—		63,622
Diluted		64,271		—		—		64,271		65,365		—		—		65,365

The following table presents the impact of the financial statement adjustments on the Company’s previously reported Condensed Consolidated Balance Sheet as of October 1, 2022.


	As of
	October 1, 2022
	(Unaudited)
	Previously		Investigation		Other
	Reported		Adjustments		Adjustments		As Restated

	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	529,857	$	—	$	—	$	529,857
Accounts receivable, net of allowances		1,138,894		—		—		1,138,894
Contract assets		503,674		(27,953)		—		475,721
Inventories		1,691,081		(21,705)		14,723		1,684,099
Prepaid expenses and other current assets		62,044		—		—		62,044
Total current assets		3,925,550		(49,658)		14,723		3,890,615
Property, plant and equipment, net		575,170		—		—		575,170
Deferred tax assets		198,588		10,966		—		209,554
Other		160,192		—		—		160,192
Total assets	$	4,859,500	$	(38,692)	$	14,723	$	4,835,531
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	2,029,534	$	—	$	11,900	$	2,041,434
Accrued liabilities		275,735		1,441		4,423		281,599
Accrued payroll and related benefits		130,892		—		—		130,892
Short-term debt, including current portion of long-term debt		17,500		—		—		17,500
Total current liabilities		2,453,661		1,441		16,323		2,471,425
Long-term liabilities:
Long-term debt		329,237		—		—		329,237
Other		215,333		—		—		215,333
Total long-term liabilities		544,570		—		—		544,570
Contingencies (Note 8)
Stockholders’ equity		1,861,269		(40,133)		(1,600)		1,819,536
Total liabilities and stockholders’ equity	$	4,859,500	$	(38,692)	$	14,723	$	4,835,531

The following table presents the impact of the financial statement adjustments on the Company’s previously reported Condensed Consolidated Statements of Cash Flows for the six month period ended April 2, 2022. There were no adjustments to cash flows provided by (used in) investing or financing activities for the six month period ended April 2, 2022.


	Six Months Ended
	April 2, 2022
	(Unaudited)
	Previously		Investigation		Other
	Reported		Adjustments		Adjustments		As Restated

	(In thousands)
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES:
Net income before noncontrolling interest	$	111,854	$	(7,056)	$	—	$	104,798
Adjustments to reconcile net income before noncontrolling interest to cash provided by (used in) operating activities:
Depreciation and amortization		55,032		—		—		55,032
Stock-based compensation expense		18,362		—		—		18,362
Deferred income taxes		11,071		(1,898)		—		9,173
Other, net		(1,903)		—		—		(1,903)
Changes in operating assets and liabilities, net of amounts acquired:
Accounts receivable		(79,705)		—		397		(79,308)
Contract assets		(68,545)		4,804		(3,351)		(67,092)
Inventories		(403,396)		4,628		(5,015)		(403,783)
Prepaid expenses and other assets		(11,334)		—		—		(11,334)
Accounts payable		357,176		—		5,015		362,191
Accrued liabilities		158,661		(478)		2,954		161,137
Cash provided by operating activities	$	147,273	$	—	$	—	$	147,273