EX-99 3 f98170exv99.txt EXHIBIT 99 PRESS RELEASE EXHIBIT 99 [SANMINA LOGO] CONTACTS: Mark Lustig Senior Vice President of Finance and Acting Chief Financial Officer Paige Bombino Investor Relations (408) 964-3610 FOR IMMEDIATE RELEASE SANMINA-SCI ANNOUNCES SECOND QUARTER RESULTS SAN JOSE, CA (APRIL 20, 2004) -- Sanmina-SCI Corporation (NASDAQ NM: SANM), a leading global electronics manufacturing services (EMS) company, today reported financial results for its second quarter ended March 27, 2004. A reconciliation from pro forma to GAAP results is contained in the attached financials and is available on the Investor Relations section of our website at www.sanmina-sci.com. SECOND QUARTER FISCAL 2004 HIGHLIGHTS INCLUDE: - REVENUES OF $2.86 BILLION IN LINE WITH COMPANY GUIDANCE OF $2.75-$2.9 BILLION - PRO FORMA EPS OF $0.05 AT THE HIGH-END OF COMPANY GUIDANCE - NEWISYS ODM SERVERS STARTING TO SHIP IN VOLUME, VALIDATING COMPANY'S ODM INITIATIVES - IMPROVEMENT IN HIGH-END TECHNOLOGY END-MARKETS PROVIDES SANMINA-SCI WITH FAVORABLE MIX SUMMARY OF PRO FORMA FINANCIAL RESULTS (Excludes restructuring, integration, impairment, other infrequent or unusual items and non-cash interest and amortization expense. Please note that we have excluded non-cash interest and amortization expense from our pro forma operating results to enhance comparability with other companies in the EMS industry.)
(In thousands, except per share data) Q2:04 Q2:03 6MOS04 6MOS03 Revenue $2,862,386 $2,443,553 $5,832,667 $4,980,514 Operating Margin 2.0% 1.1% 2.0% 1.1% Operating Income $ 56,775 $ 27,498 $ 114,021 $ 53,163 Net Income $ 26,619 $ 1,119 $ 52,769 $ 7,892 Earnings per share - diluted $ 0.05 $ 0.00 $ 0.10 $ 0.02
-more- PRESS RELEASE Sanmina-SCI Corporation April 20, 2004 Page 2 SUMMARY OF GAAP FINANCIAL RESULTS (Includes restructuring, integration, impairment, other infrequent or unusual items and non-cash interest and amortization expense)
(In thousands, except per share data) Q2:04 Q2:03 6MOS04 6MOS03 Revenue $ 2,862,386 $ 2,443,553 $ 5,832,667 $ 4,980,514 Operating Margin (loss) (1.1)% (0.7)% 0.3% (0.6)% Operating Income (loss) $ (31,461) $ (18,042) $ 14,728 $ (30,475) Net Income (loss) $ (43,856) $ (31,821) $ (28,087) $ (39,330) Earnings (loss) per share - basic $ (0.09) $ (0.06) $ (0.05) $ (0.08) Earnings (loss) per share - diluted $ (0.09) $ (0.06) $ (0.05) $ (0.08)
PRO FORMA FINANCIAL PERFORMANCE IN THE SECOND QUARTER For the second quarter ended March 27, 2004, Sanmina-SCI reported revenues of $2.86 billion, an increase of 17%, from $2.44 billion in the second quarter ended March 29, 2003. Pro forma net income for the second quarter this year was $26.6 million, or $0.05 pro forma diluted earnings per share, compared to pro forma net income of $1.1 million, or $0.00 pro forma diluted earnings per share for the same period a year ago. Pro forma financial results do not include restructuring, integration, impairment, other infrequent or unusual items and non-cash interest and amortization expense. Cash provided by operations was approximately $46 million for the second quarter. At March 27, 2004, the Company reported $1.1 billion in cash and short-term investments. At quarter-end, the Company reported a current ratio of 2.0, working capital of $2.1 billion and shareholders' equity of $3.3 billion. Jure Sola, Chairman and Chief Executive Officer of Sanmina-SCI, said, "In reviewing this quarter, which traditionally is a seasonally slow time for the EMS industry, we are encouraged by the improved revenues we are seeing in our target markets of communications infrastructure, medical, defense and industrial. The revenue increase in these faster growing markets resulted in a more favorable mix of business in high-end, complex-product programs. We believe our strengthening performance in these sectors validates our customer-focused initiative of emphasizing key end-markets and providing complete end-to-end manufacturing solutions. The high-end programs also helped to improve Sanmina-SCI's operating margin this quarter. "Looking forward we remain optimistic that we will achieve our strategic growth goals. Our revenue outlook reflects increasing momentum as the economy in our end-markets recovers. We expect our operating margins to continue to improve helped by our optimization of our manufacturing operations and expanding customer relationships. Customers who are striving to be industry leaders are increasingly taking advantage of our cost-effective, comprehensive portfolio of end-to-end manufacturing capabilities and our commitment to flawless execution. By leveraging our key strengths in support of our customers, Sanmina-SCI is well positioned for expanding growth and profitability," Sola concluded. COMPANY OUTLOOK Sanmina-SCI projects third quarter fiscal 2004 revenue to be approximately $2.9 billion to $3.1 billion, and pro forma diluted earnings per share to be between $0.05 to $0.07 before integration, restructuring and impairment charges, other infrequent or unusual items and non-cash interest and amortization expense. -more- PRESS RELEASE Sanmina-SCI Corporation April 20, 2004 Page 3 PRO FORMA FINANCIAL INFORMATION In addition to disclosing operating results determined in accordance with generally accepted accounting principles (GAAP), Sanmina-SCI also provides pro forma operating results that exclude certain items. Management utilizes pro forma operating results as a performance measure and furnishes the information in order to provide investors with additional information to analyze the Company's operating results and facilitate period-to-period comparisons. COMPANY CONFERENCE CALL INFORMATION Sanmina-SCI will be holding a conference call regarding this announcement on Tuesday, April 20, 2004 at 5:00 p.m. EDT (2:00 p.m. PDT). The access numbers are: domestic 877-273-6760 and international: 706-634-6605. The conference will be broadcast live over the Internet. Log onto the live webcast at http://www.firstcallevents.com/service/ajwz402984758gf12.html. Additional information in the form of a slide presentation is available by logging onto Sanmina-SCI's website at www.sanmina-sci.com. A replay of today's conference call will be available for 48-hours. The access numbers are: domestic 800-642-1687 and international: 706-645-9291, access code: 6513899. 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 unsurpassed 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 2003 Annual Report on Form 10-K filed on December 9, 2003 and 10-Q filed on February 9, 2004, with the Securities Exchange Commission. - FINANCIAL TABLES FOLLOW - -more- SANMINA - SCI LOGO PRESS RELEASE 2700 North First Street Tel: 408-964-3500 San Jose, CA 95134 SANMINA - SCI CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED)
Three Months Ended March 27, 2004 Three Months Ended March 29, 2003 ------------------------------------ ------------------------------------ Pro forma Pro forma Pro forma (1) Adjustments GAAP Pro forma (1) Adjustments GAAP ------------- ----------- ---- ------------- ----------- ---- Net sales $2,862,386 $ -- $2,862,386 $2,443,553 -- 2,443,553 Cost of sales 2,717,287 -- 2,717,287 2,338,830 -- 2,338,830 ---------- -------- ---------- ---------- -------- ---------- Gross profit 145,099 -- 145,099 104,723 -- 104,723 Operating expenses: Selling, general and administrative 81,304 -- 81,304 74,223 -- 74,223 Research and development 7,020 -- 7,020 3,002 -- 3,002 Amortization of intangibles -- 2,281 2,281 1,628 1,628 Integration costs -- 2,051 2,051 -- 3,963 3,963 Restructuring costs -- 83,904 83,904 -- 39,949 39,949 ---------- -------- ---------- ---------- -------- ---------- Total operating expenses 88,324 88,236 176,560 77,225 45,540 122,765 ---------- -------- ---------- ---------- -------- ---------- Operating income (loss) 56,775 (88,236) (31,461) 27,498 (45,540) (18,042) Other income (expense), net (20,310) (6,013) (26,323) (25,828) (3,624) (29,452) ---------- -------- ---------- ---------- -------- ---------- Income (loss) before provision for income taxes 36,465 (94,249) (57,784) 1,670 (49,164) (47,494) Provision (benefit) for income taxes 9,846 (23,774) (13,928) 551 (16,224) (15,673) ---------- -------- ---------- ---------- -------- ---------- Net income (loss) $ 26,619 $(70,475) $ (43,856) $ 1,119 $(32,940) $ (31,821) ========== ======== ========== ========== ======== ========== Earnings (loss) per share: Basic $ 0.05 (0.09) $ -- $ (0.06) Diluted $ 0.05 (0.09) $ -- $ (0.06) Shares used in computing per share amounts: Basic 514,924 514,924 509,735 509,735 Diluted 533,465 514,924 511,726 509,735
(1) Pro forma results of operations exclude restructuring and integration costs, impairment and other infrequent or unusual charges and non-cash interest and amortization expense. SANMINA - SCI LOGO PRESS RELEASE 2700 North First Street Tel: 408-964-3500 San Jose, CA 95134 SANMINA - SCI CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED)
Six Months Ended March 27, 2004 Six Months Ended March 29, 2003 ------------------------------------ ------------------------------------ Pro forma Pro forma Pro forma (1) Adjustments GAAP Pro forma (1) Adjustments GAAP ------------- ----------- ---- ------------- ----------- ---- Net sales $5,832,667 $ -- $5,832,667 $4,980,514 -- $4,980,514 Cost of sales 5,546,377 -- 5,546,377 4,766,834 -- 4,766,834 ---------- --------- ---------- ---------- -------- ---------- Gross profit 286,290 -- 286,290 213,680 -- 213,680 Operating expenses: Selling, general and administrative 158,350 -- 158,350 155,324 -- 155,324 Research and development 13,919 -- 13,919 5,193 -- 5,193 Amortization of intangibles -- 4,401 4,401 -- 3,237 3,237 Integration costs -- 3,782 3,782 -- 6,359 6,359 Restructuring costs -- 91,110 91,110 -- 74,042 74,042 ---------- --------- ---------- ---------- -------- ---------- Total operating expenses 172,269 99,293 271,562 160,517 83,638 244,155 ---------- --------- ---------- ---------- -------- ---------- Operating income (loss) 114,021 (99,293) 14,728 53,163 (83,638) (30,475) Other income (expense), net (41,736) (12,002) (53,738) (41,384) 13,158 (28,226) ---------- --------- ---------- ---------- -------- ---------- Income (loss) before provision for income taxes 72,285 (111,295) (39,010) 11,779 (70,480) (58,701) Provision (benefit) for income taxes 19,516 (30,439) (10,923) 3,887 (23,258) (19,371) ---------- --------- ---------- ---------- -------- ---------- Net income (loss) $ 52,769 $ (80,856) $ (28,087) $ 7,892 $(47,222) $ (39,330) ========== ========= ========== ========== ======== ========== Earnings (loss) per share: Basic $ 0.10 $ (0.05) $ 0.02 $ (0.08) Diluted $ 0.10 $ (0.05) $ 0.02 $ (0.08) Shares used in computing per share amounts: Basic 514,152 514,152 509,651 509,651 Diluted 529,911 514,152 511,191 509,651
(1) Pro forma results of operations exclude restructuring and integration costs, impairment and other infrequent or unusual charges and non-cash interest and amortization expense. SANMINA - SCI LOGO PRESS RELEASE 2700 North First Street Tel: 408-964-3500 San Jose, CA 95134 SANMINA - SCI CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS) (GAAP)
March 27, September 27, 2004 2003 ---------- ---------- (Unaudited) (Derived from audited financials) ASSETS Current assets: Cash and short-term investments $1,128,505 $1,082,988 Accounts receivable, net 1,544,232 1,576,392 Inventories, net 1,165,231 977,799 Deferred income taxes 428,308 421,478 Prepaid and other current assets 92,109 109,862 ---------- ---------- Total current assets 4,358,385 4,168,519 Property, plant and equipment, net 844,979 902,868 Goodwill 2,236,896 2,223,422 Long-term investments 27,817 15,614 Deposits and other 156,978 139,833 ---------- ---------- Total assets $7,625,055 $7,450,256 ========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current portion of long-term debt $ 1,256 $ 3,489 Accounts payable 1,713,047 1,506,998 Accrued liabilities and other 347,571 394,906 Accrued payroll and related benefits 166,997 130,660 ---------- ---------- Total current liabilities 2,228,871 2,036,053 Long-term liabilities: Convertible subordinated debentures 1,116,107 1,103,537 Long-term debt 813,865 822,093 Deferred income taxes 89,334 90,294 Other 72,876 75,025 Total stockholders' equity 3,304,002 3,323,254 ---------- ---------- Total liabilities and stockholders' equity $7,625,055 $7,450,256 ========== ==========
SANMINA - SCI LOGO PRESS RELEASE 2700 North First Street Tel: 408-964-3500 San Jose, CA 95134 SANMINA - SCI CORPORATION FORWARD LOOKING GUIDANCE THREE MONTHS ENDED JUNE 26, 2004 (IN BILLIONS, EXCEPT PER SHARE AMOUNTS) Net sales $2.90 - $3.10 Pro forma earnings per share (1) $0.05 - $0.07
(1) Forward looking guidance for the quarter ended June 26, 2004 is provided only on a pro forma basis. The comparable GAAP earnings or loss per share amount is not accessible due to inherent difficulties in predicting certain expenses and gains affecting GAAP earnings or loss, such as the amount and timing of Sanmina-SCI's restructuring costs, as well as debt security repurchases, if any, that could result in gains or losses reported in GAAP earnings.