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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

------------------------

FORM 10-Q

(MARK ONE)

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2001

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

FOR THE TRANSITION PERIOD FROM __________ TO __________

COMMISSION FILE NUMBER: 0-21272

SANMINA CORPORATION
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)

DELAWARE 77-0228183
(STATE OR OTHER JURISDICTION OF (I.R.S. EMPLOYER
INCORPORATION OR ORGANIZATION) IDENTIFICATION NUMBER)

2700 N. FIRST ST., SAN JOSE, CA 95134
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)

408/964-3500
(REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE)

Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes [X] No [ ]

As of April 30, 2001, there were 319,689,599 shares outstanding of the
issuer's common stock, $0.01 par value.

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2

SANMINA CORPORATION

INDEX

PART I. FINANCIAL INFORMATION
Item 1. Interim Financial Statements
Condensed Consolidated Statements of Operations..... 2
Condensed Consolidated Balance Sheets............... 3
Condensed Consolidated Statements of Cash Flows..... 4
Notes to Condensed Consolidated Financial
Statements................................................ 5
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations....................... 11
Item 3. Quantitative and Qualitative Disclosures about
Market Risk............................................... 16

PART II. OTHER INFORMATION
Item 1. Legal Proceedings................................... 18
Item 4. Submission of Matters to a Vote of Security
Holders................................................... 18
Item 6. Exhibits and Reports on Form 8-K.................... 18
Signature................................................... 19

1
3

SANMINA CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)

THREE MONTHS ENDED SIX MONTHS ENDED
---------------------- ------------------------
MARCH 31, APRIL 1, MARCH 31, APRIL 1,
2001 2000 2001 2000
---------- -------- ---------- ----------

Net sales.................................. $1,191,138 $948,358 $2,676,709 $1,785,713
Cost of sales.............................. 997,863 801,715 2,220,536 1,508,931
---------- -------- ---------- ----------
Gross profit............................. 193,275 146,643 456,173 276,782
---------- -------- ---------- ----------
Operating expenses:
Selling, general and administrative...... 68,071 47,714 144,280 94,310
Amortization of goodwill and
intangibles........................... 6,699 5,531 13,667 10,970
Plant closing, relocation, merger and
restructuring costs................... 24,948 -- 24,948 --
---------- -------- ---------- ----------
Total operating expenses......... 99,718 53,245 182,895 105,280
---------- -------- ---------- ----------
Operating income........................... 93,557 93,398 273,278 171,502
Other income (expense), net................ 6,838 (1,219) 12,988 (6,561)
---------- -------- ---------- ----------
Income before provision for income taxes... 100,395 92,179 286,266 164,941
Provision for income taxes................. 38,150 33,188 108,070 59,156
---------- -------- ---------- ----------
Net income............................... $ 62,245 $ 58,991 $ 178,196 $ 105,785
========== ======== ========== ==========
Earnings per share:
Basic.................................... $ 0.20 $ 0.20 $ 0.56 $ 0.36
Diluted.................................. 0.19 0.18 0.52 0.34
Shares used in computing per share amounts:
Basic.................................... 318,879 302,447 317,730 296,036
Diluted.................................. 349,015 334,185 349,389 327,491

See accompanying notes.
2
4

SANMINA CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
(UNAUDITED)

ASSETS

MARCH 31, SEPTEMBER 30,
2001 2000
---------- -------------

Current assets:
Cash and cash equivalents................................. $ 562,685 $ 998,242
Short-term investments.................................... 731,212 265,308
Accounts receivable, net.................................. 727,537 714,509
Inventories............................................... 592,532 608,434
Deferred income taxes..................................... 88,068 87,187
Prepaid expenses and other................................ 31,537 30,077
---------- ----------
Total current assets.............................. 2,733,571 2,703,757
Property, plant and equipment, net........................ 743,029 700,718
Long-term investments..................................... 67,293 55,917
Goodwill, intangibles and other........................... 357,687 375,208
---------- ----------
Total assets...................................... $3,901,580 $3,835,600
========== ==========

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable.......................................... $ 473,034 $ 541,268
Accrued liabilities and other............................. 163,967 248,872
---------- ----------
Total current liabilities......................... 637,001 790,140
---------- ----------
Long-term liabilities:
Long-term debt, net of current portion.................... 1,210,834 1,200,764
Other liabilities......................................... 80,144 85,903
---------- ----------
Total long-term liabilities....................... 1,290,978 1,286,667
---------- ----------
Stockholders' equity:
Common stock.............................................. 3,202 3,166
Additional paid-in capital................................ 1,215,372 1,168,938
Accumulated other comprehensive loss...................... (14,104) (9,503)
Retained earnings......................................... 769,131 596,192
---------- ----------
Total stockholders' equity........................ 1,973,601 1,758,793
---------- ----------
$3,901,580 $3,835,600
========== ==========

See accompanying notes.
3
5

SANMINA CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
(UNAUDITED)

SIX MONTHS ENDED
----------------------
MARCH 31, APRIL 1,
2001 2000
--------- ---------

Cash flows from operating activities:
Net income................................................ $ 178,196 $ 105,785
Adjustments to reconcile net income to cash provided by
(used for) operating activities
Adjustment to conform year end of pooled entities...... (5,259) (6,265)
Plant closing, merger and restructuring charges........ 24,948 --
Depreciation, amortization and other................... 111,225 71,153
Changes in operating assets and liabilities, net of
acquisitions:
Accounts receivable.................................. (39,815) (183,567)
Inventories.......................................... 12,801 (79,338)
Prepaid expenses, deposits and other................. (7,758) (6,325)
Accounts payable and accrued liabilities............. (151,536) 83,757
--------- ---------
Cash provided by (used for) operating
activities...................................... 122,802 (14,800)
--------- ---------
Cash flows from investing activities:
Purchases of short-term investments....................... (859,212) (169,271)
Proceeds from maturity of short-term investments.......... 395,430 135,600
Purchases of long-term investments........................ (11,102) (5)
Purchases of property and equipment, net of
acquisitions........................................... (125,014) (75,997)
Cash paid for businesses acquired, net of cash acquired... -- (70,195)
--------- ---------
Cash used for investing activities................ (599,898) (179,868)
--------- ---------
Cash flows from financing activities:
Proceeds of long-term liabilities......................... 2,649 9,664
Proceeds from sale of common stock, net of taxes.......... 43,754 560,590
--------- ---------
Cash provided by financing activities............. 46,403 570,254
--------- ---------
Effect of exchange rate changes............................. (4,864) (3,426)
--------- ---------
Decrease in cash and cash equivalents....................... (435,557) 372,160
Cash and cash equivalents at beginning of period............ 998,242 149,281
--------- ---------
Cash and cash equivalents at end of period.................. $ 562,685 $ 521,441
========= =========
Supplemental cash flow information
Cash paid during the period for:
Interest.................................................. $ 9,463 $ 21,485
Income taxes.............................................. $ 200,191 $ 48,152

See accompanying notes.
4
6

SANMINA CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

NOTE 1 -- BASIS OF PRESENTATION

The accompanying condensed consolidated financial statements of Sanmina
Corporation ("Sanmina") have been prepared pursuant to the rules and regulations
of the Securities and Exchange Commission. Certain information and footnote
disclosures normally included in annual financial statements prepared in
accordance with generally accepted accounting principles have been condensed or
omitted pursuant to those rules or regulations. The interim financial statements
are unaudited, but reflect all adjustments which are, in the opinion of
management, necessary for a fair presentation.

The results of operations for the six months ended March 31, 2001 are not
necessarily indicative of the results that may be expected for the year ending
September 29, 2001. These condensed consolidated financial statements should be
read in conjunction with the financial statements and notes thereto for the year
ended September 30, 2000, included in Sanmina's annual report on Form 10-K.

The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the amounts reported in the unaudited condensed
consolidated financial statements and accompanying notes. Actual results could
differ from those estimates.

Sanmina's fiscal year ends on the Saturday nearest September 30. All
general references to years relate to fiscal years unless otherwise noted.

NOTE 2 -- ACQUISITIONS

On March 1, 2001, Sanmina acquired AB Segerstrom and Svensson
("Segerstrom"), a global supplier of integrated enclosure systems headquartered
in Sweden. The transaction was structured as a stock-for-stock exchange and was
accounted for as a pooling of interests. Under the terms of the agreement, each
Segerstrom common share and convertible debenture was converted into
approximately 0.4519 shares of Sanmina common stock. Sanmina acquired
approximately 94% of the outstanding shares of Segerstrom pursuant to its offer
to acquire Segerstrom. Sanmina has commenced a compulsory acquisition process
for the remaining shares in accordance with Swedish law and business practice.
Approximately 12.2 million shares of common stock will be issued to acquire
Segerstrom, reflecting both the acquired Segerstrom shares and those acquired
from the compulsory acquisition process. Segerstrom has ten manufacturing
facilities in Sweden, Finland, Hungary, Scotland and Brazil.

As mentioned above, the merger was accounted for as pooling of interests
and the condensed consolidated financial statements have been restated to
reflect the combined operations of all entities for the periods presented. Prior
to being acquired by Sanmina, Segerstrom operated under a calendar year end, and
accordingly, Segerstrom statements of operations, shareholders' equity and cash
flows for the three and six month periods ended June 30, 2000 have been combined
with the corresponding Sanmina consolidated statements for the three and six
month periods ended April 1, 2000. During fiscal 2001, Segerstrom's year-end was
changed from December 31 to a 52 or 53 week year ending on the Saturday nearest
September 30 to conform to Sanmina's fiscal year end. Accordingly, an adjustment
was made to retained earnings in the first quarter of fiscal 2001 to eliminate
the duplication of $5.3 million of net income for Segerstrom for the three
months of Segerstrom operations ended December 31, 2000. Revenues for the three
months ended December 31, 2000 were $96 million. For the three months ended
December 31, 2000, Segerstrom cash provided by operating activities of $5.9
million, cash used for investing activities of $4.8 million and cash provided by
financing activities of $ 0.4 million have been excluded from the consolidated
statement of cash flows for the six months ended March 31, 2001.

5
7
SANMINA CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)

As a result of the pooling of interests accounting with Segerstrom, Sanmina
has restated its historical results of operations to include the results of
operations of Segerstrom. The financial information presented gives effect to
this restatement. A reconciliation of the financial statements for the three and
six months ended April 1, 2000, to previously reported information is as follows
(in thousands):

THREE MONTHS ENDED SIX MONTHS ENDED
------------------ ----------------

Revenue:
Sanmina.................................. $875,247 $1,638,948
Segerstrom............................... 74.409 149,959
Eliminations............................. (1,298) (3,194)
-------- ----------
Combined.............................. $948,358 $1,785,713
======== ==========
Net Income:
Sanmina.................................. $ 55,562 $ 98,354
Segerstrom............................... 3,429 7,431
-------- ----------
Combined.............................. $ 58,991 $ 105,785
======== ==========

Plant closing, relocation, merger and restructuring costs of $24.9 million
are comprised of $7.2 million for executive and other severance, attributable to
approximately 470 people and related costs, primarily from the Segerstrom
employees in Europe, of which 175 people had been terminated as of March 31,
2001, (accrual made in accordance with the criteria in EITF 94-3 "Liability
Recognition for Costs to Exit an Activity" including certain costs incurred in a
restructuring), $12.5 million for investment banking, accounting, legal and
related fees and expenses for the Segerstrom acquisition, and $5.2 million of
other related restructuring costs, which are related to the consolidation of
duplicate facilities primarily in Europe. These activities are expected to be
completed by March 2002. Below is a summary of the activity related to the
charges (in thousands):

PROVISION
CHARGED TO CHARGES BALANCE AT
OPERATIONS UTILIZED MARCH 31, 2001
---------- -------- --------------

Cash Provisions:
Employee severance and related expenses........ $ 7,220 $ (886) $ 6,334
Segerstrom merger fees......................... 12,523 (7,013) 5,510
Shut down and consolidation costs of duplicate
facilities.................................. 2,354 -- 2,354
------- ------- -------
Total cash provisions.................. $22,097 $(7,899) $14,198
======= ======= =======
Non-cash:
Writeoff of impaired or redundant fixed
assets...................................... $ 2,851
-------
Total.................................. $24,948
=======

6
8
SANMINA CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)

Sanmina had previously recorded plant closing, relocation, merger and
restructuring costs associated with various acquisitions, primarily Hadco and
Essex, completed in fiscal 2000. Below is a summary of the activity (in
thousands):

BALANCE AT
SEPTEMBER 30, CHARGES BALANCE AT
2000 UTILIZED MARCH 31, 2001
------------- -------- --------------

Cash Provisions:
Employee severance, restructuring and other
expenses.......................................... $15,574 $ (474) $15,100
Merger fees.......................................... 1,348 (567) 781
------- ------- -------
Total cash provisions........................ $16,922 $(1,041) $15,881
======= ======= =======

The remaining accrued amounts represent the estimated cost to be incurred
for severance and other restructuring for various Hadco and Essex facilities.
These activities are expected to be completed by June 2001.

NOTE 3 -- PRINCIPLES OF CONSOLIDATION

The consolidated financial statements include the accounts of Sanmina and
its wholly owned subsidiaries. All intercompany accounts and transactions have
been eliminated.

NOTE 4 -- COMPREHENSIVE INCOME

SFAS No. 130 "Reporting Comprehensive Income" establishes standards for
reporting and display of comprehensive income and its components. SFAS No. 130
requires companies to report a "comprehensive income" that includes unrealized
holding gains and losses and other items that have previously been excluded from
net income and reflected instead in stockholders' equity. Comprehensive income
for Sanmina consists of net income plus the effect of unrealized holding gains
or losses on investments classified as available-for-sale and foreign currency
translation adjustments. For the six months ended March 31, 2001, the unrealized
holding gain on investments and foreign currency translation adjustment were
$3.0 million and $(7.5 million), respectively. For the six months ended April 1,
2000, the unrealized holding loss on investments and foreign currency
translation adjustment were $0.4 million and $(4.4 million), respectively.
Comprehensive income for the six months ended March 31, 2001 and April 1, 2000
was approximately $173.6 million and $101.0 million, respectively.

NOTE 5 -- LONG-LIVED ASSETS

Sanmina continually evaluates whether long-lived assets have been impaired
in value. This process includes evaluating whether projected results of
operations of acquired businesses would support the carrying value of related
assets, including the future amortization of the remaining unamortized balance
of goodwill.

7
9
SANMINA CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)

NOTE 6 -- INVENTORIES

Inventories, net of provisions, stated at the lower of cost or market
(first-in, first-out method), consist of (in thousands):

AS OF
--------------------------
MARCH 31, SEPTEMBER 30,
2001 2000
--------- -------------

Raw materials....................................... $377,624 $371,384
Work-in-process..................................... 116,023 148,404
Finished goods...................................... 98,885 88,646
-------- --------
$592,532 $608,434
======== ========

NOTE 7 -- EARNINGS PER SHARE ("EPS")

Basic EPS was computed by dividing net income by the weighted average
number of shares of common stock outstanding during the second quarter and six
month periods of fiscal 2001 and 2000. Diluted EPS for the second quarter and
six month periods of fiscal 2001 and 2000 includes dilutive common stock
equivalents using the treasury stock method, and assumes that the convertible
debt instruments were converted into common stock, if dilutive. Reconciliations
of the net income and weighted average number of shares used for the diluted
earnings per share computations for the second quarter and six month periods of
fiscal 2001 and 2000 are as follows:

THREE MONTHS ENDED SIX MONTHS ENDED
-------------------------- ---------------------
MARCH 31, APRIL 1, MARCH 31, APRIL 1,
2001 2000 2001 2000
--------- ------------- --------- --------
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

Net Income............................ $ 62,245 $ 58,991 $178,196 $105,785
Interest expense, net of tax, related
to convertible subordinated debt.... 2,577 2,706 5,228 5,424
-------- -------- -------- --------
Income for calculating earnings per
share............................... $ 64,822 $ 61,697 $183,424 $111,209
======== ======== ======== ========
Weighted average number of shares
outstanding during the period....... 318,879 302,447 317,730 296,036
Weighted average number of shares for
stock options outstanding during the
period.............................. 14,347 15,613 15,701 15,324
Weighted average number of shares if
convertible subordinated debt were
converted........................... 15,789 16,125 15,958 16,131
-------- -------- -------- --------
Weighted average number of shares..... 349,015 334,185 349,389 327,491
======== ======== ======== ========
Diluted earnings per share............ $ 0.19 $ 0.18 $ 0.52 $ 0.34
======== ======== ======== ========

8
10
SANMINA CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)

NOTE 8 -- LONG-TERM DEBT

Long-term debt consists of the following (in thousands):

AS OF
---------------------------
MARCH 31, SEPTEMBER 30,
2001 2000
---------- -------------

Convertible Subordinated Notes due 2004.................... $ 350,000 $ 350,000
9 1/2% Senior Subordinated Notes due 2008.................. 12,120 12,118
Convertible Subordinated Notes due 2012.................... 2,201 2,886
Zero Coupon Convertible Subordinated Notes due 2020........ 768,452 753,385
Convertible debt due 2003, converted in March 2001......... -- 2,702
Revolving Credit Agreements................................ 10,974 8,565
Obligations under capital leases with interest rates
ranging from 7.0% to 7.75%............................... 10,592 17,598
Bank loans due through August 2010, at rates ranging from
4.63% to 6.10%........................................... 62,109 68,710
Other long term debt....................................... 5,837 --
Variable Rate Mortgages.................................... 1,657 1,741
---------- ----------
Total............................................ 1,223,942 1,217,705
Less: current portion...................................... (13,108) (16,941)
---------- ----------
Total long-term debt............................. $1,210,834 $1,200,764
========== ==========

NOTE 9 -- STOCK SPLIT

On December 13, 2000, Sanmina announced that its Board of Directors had
approved a two-for-one stock split payable in the form of a 100 percent stock
dividend. This stock split was effective for shareholders of record on December
18, 2000, and certificates reflecting the stock split were issued on January 8,
2001. Share and per share data have been retroactively adjusted to give effect
to the split.

NOTE 10 -- BUSINESS SEGMENT AND CONCENTRATION OF CREDIT RISK

Sanmina adopted SFAS No. 131, "Disclosures about Segments of an Enterprise
and Related Information," during fiscal 1999. SFAS No. 131 established standards
for reporting information about operating segments in annual financial
statements and requires selected information about operating segments in interim
financial reports issued to stockholders. It also established standards for
related disclosures about products and services, geographic areas and major
customers. Operating segments are defined as components of an enterprise about
which separate financial information is available that is evaluated regularly by
the chief operating decision maker, or decision making group, in deciding how to
allocate resources and in assessing performance.

Sanmina's chief operating decision maker is the Chief Operating Officer.
Based on the evaluation of financial information by the Chief Operating Officer,
management currently believes that Sanmina operates in two geographic segments,
domestic (U.S.A.) and international operations. Revenues are attributable to the
country in which the product is manufactured. During the three and six months
ended March 31, 2001 and April 1, 2000, there were no material assets or
revenues from any individual foreign country. Each segment manufactures, tests
and services a full spectrum of complex printed circuit boards, custom backplane
interconnect devices, electronic assembly services and integrated enclosure
systems. The chief operating decision maker evaluates performance based upon
each segment's operating income. Operating income is defined as income before
interest income or interest expense and taxes.

9
11
SANMINA CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)

The following summarizes financial information by geographic segment (in
thousands):

THREE MONTHS ENDED SIX MONTHS ENDED
---------------------- ------------------------
MARCH 31, APRIL 1, MARCH 31, APRIL 1,
2001 2000 2001 2000
---------- -------- ---------- ----------

Net Sales
Domestic......................... $ 926,131 $705,402 $2,076,750 $1,313,268
International.................... 313,453 271,421 673,904 537,088
Intersegment..................... (48,446) (28,465) (73,945) (64,643)
---------- -------- ---------- ----------
Total.................... $1,191,138 $948,358 $2,676,709 $1,785,713
========== ======== ========== ==========
Operating Income
Domestic......................... $ 81,163 $ 83,929 $ 232,531 $ 145,516
International.................... 12,394 9,469 40,747 25,986
Intersegment..................... -- -- -- --
---------- -------- ---------- ----------
Total.................... $ 93,557 $ 93,398 $ 273,278 $ 171,502
========== ======== ========== ==========

AS OF
--------------------------
MARCH 31, SEPTEMBER 30,
2001 2000
--------- -------------

Long Lived Assets (excludes goodwill and intangibles)
Domestic.................................................. $684,439 $631,139
International............................................. 151,793 153,686
-------- --------
Total............................................. $836,232 $784,825
======== ========

Although Sanmina seeks to diversify its customer base, a small number of
customers are responsible for a significant portion of Sanmina's net sales.
During the three months ended March 31, 2001 and April 1, 2000, sales to
Sanmina's ten largest customers accounted for 51.8% and 54.1% respectively, of
Sanmina's net sales. For the six months ended March 31, 2001 and April 1, 2000,
sales to Sanmina's ten largest customers accounted for 52.4% and 54.5%
respectively, of Sanmina's net sales In the three and six months ended March 31,
2001 none of Sanmina's customers individually represented over 10.0% of net
sales. In the three and six months ended April 1, 2000, only one of Sanmina's
customers individually represented over 10.0% of net sales.

NOTE 11 -- RECENT ACCOUNTING PRONOUNCEMENTS

In June 1999, the Financial Accounting Standards Board issued SFAS No. 137,
"Accounting for Derivative Instruments and Hedging Activities -- Deferral of the
Effective Date of FASB Statement No. 133," which amends SFAS No. 133 to be
effective for all fiscal years beginning after June 15, 2000. SFAS No. 133
establishes accounting and reporting standards requiring that every derivative
instrument be recorded in the balance sheet as either an asset or liability
measured at its fair value. The statement also requires that changes in the
derivative's fair value be recognized currently in earnings unless specific
hedge accounting criteria are met. The adoption of SFAS No. 133 in the first
quarter of fiscal 2001 did not have a material impact on Sanmina's financial
position, results of operations or cash flows.

In December 1999, the Securities and Exchange Commission issued SAB No.
101, "Revenue Recognition in Financial Statements," which will be effective for
Sanmina in the fourth quarter of fiscal 2001. Sanmina is currently analyzing
this statement and management does not expect the adoption of this statement to
have a material effect on its results of operations or cash flows.

10
12

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

GENERAL

Sanmina Corporation ("Sanmina") was incorporated in Delaware in May 1989 to
acquire its predecessor company, which had been in the printed circuit board and
backplane business since 1980. Sanmina is a leading independent provider of
customized integrated electronic manufacturing services ("EMS"), including
turnkey electronic assembly and manufacturing management services, to original
equipment manufacturers ("OEMs") in the electronics industry. Sanmina's main
customers include major industry leaders such as Alcatel, Cisco Systems, Inc.,
Ericcson, Nokia, Nortel Networks, Inc., Lucent Technologies, Motorola and
Tellabs. Sanmina's electronic manufacturing services consist primarily of the
design and manufacture of complex printed circuit board assemblies using surface
mount ("SMT") and pin-through hole ("PTH") interconnection technologies, the
manufacture of custom designed backplane assemblies, fabrication of complex
multi-layered printed circuit boards, metal stamping and plating, electronic
enclosure systems, subsystem assembly, testing, and assembly of completed
systems and direct order fulfillment. In addition to assembly, turnkey
manufacturing management also involves procurement and materials management, as
well as consultation on printed circuit board design and manufacturing. Sanmina
also manufactures custom cable and wire harness assemblies.

Sanmina has 60 facilities and 14 global technology solution centers,
located both domestically and internationally. Sanmina has electronics assembly,
printed circuit fabrication, enclosure manufacturing, cable manufacturing, and
global technology solution centers; domestically in Alabama, Arizona,
California, Colorado, Massachusetts, New Hampshire, New York, North Carolina,
Texas, Utah and Wisconsin; and internationally in Brazil, Canada, China,
Finland, France, Hungary, Ireland, Malaysia, Mexico, Scotland and Sweden. In
addition to these facilities, Sanmina has a 49.9% ownership interest in INBOARD,
the remainder of which is owned by Siemens AG. INBOARD is a manufacturer of
complex printed circuit boards, and is located in Germany.

Prior to being acquired by Sanmina, Segerstrom operated under a calendar
year end, and accordingly, Segerstrom's statements of operations, shareholders'
equity and cash flows for the three and six month periods ended June 30, 2000
have been combined with the corresponding Sanmina consolidated statements for
the three and six month periods ended April 1, 2000. During fiscal 2001,
Segerstrom's year-end was changed from December 31 to a 52 or 53 week year
ending on the Saturday nearest September 30 to conform to Sanmina's fiscal year
end. Accordingly, an adjustment was made to retained earnings in the first
quarter of fiscal 2001 to eliminate the duplication of $5.3 million of net
income for Segerstrom, for the three months of Segerstrom operations ended
December 31, 2000. Revenues for the three months ended December 31, 2000 were
$96 million. For the three months ended December 31, 2000, Segerstrom cash
provided by operating activities of $5.9 million, cash used for investing
activities of $4.8 million and cash provided by financing activities of $0.4
million have been excluded from the consolidated statement of cash flows for the
six months ended March 31, 2001.

Sanmina's results of operations have varied and may continue to fluctuate
significantly from period to period, including on a quarterly basis. Sanmina's
operating results are affected by a number of factors. These factors include
timing of orders from major customers, mix of product ordered by and shipped to
major customers, the volume of orders as related to Sanmina's capacity, the
ability of Sanmina to effectively manage

11
13

inventory and fixed assets, pricing and competitive pressures, component
shortages, which could cause Sanmina to be unable to meet customer delivery
schedules, and the ability of Sanmina to time expenditures in anticipation of
future sales. Sanmina's results are also affected by the mix of products between
backplane assemblies and printed circuit boards as well as general economic
conditions in the electronics industry. Sanmina's results can also be
significantly influenced by development and introduction of new products by
Sanmina's customers. From time to time, Sanmina experiences changes in the
volume of sales to each of its principal customers, and operating results may be
affected on a period-to-period basis by these changes. Sanmina's customers
generally require short delivery cycles, and a substantial portion of Sanmina's
backlog is typically scheduled for delivery within six months. Quarterly sales
and operating results therefore depend in large part on the volume and timing of
bookings received during the quarter, which are difficult to forecast. Sanmina
expects revenues for the quarter ending June 30, 2001 to be in the range of $900
million to $1 billion.

Sanmina's backlog also affects its ability to plan production and inventory
levels, which could lead to fluctuations in operating results. In addition, a
significant portion of Sanmina's operating expenses are relatively fixed in
nature and planned expenditures are based in part on anticipated orders. Any
inability to adjust spending quickly enough to compensate for any revenue
shortfall may magnify the adverse impact of such revenue shortfall on Sanmina's
results of operations. Results of operations in any period should not be
considered indicative of the results to be expected for any future period. In
addition, fluctuations in operating results may also result in fluctuations in
the price of Sanmina's convertible subordinated notes and Common Stock.

Sanmina's customers include a diversified base of OEMs in the
communications (telecommunications and networking), industrial and medical
instrumentation and high-speed computer systems sectors of the electronics
industry. These industry sectors, and the electronics industry as a whole, are
subject to rapid technological change and product obsolescence. Discontinuance
or modification of products being manufactured by Sanmina could adversely affect
Sanmina's results of operations. The electronics industry is also subject to
economic cycles and has in the past experienced, and is likely in the future to
experience, recessionary periods. In particular, many sectors of the electronics
industry are currently experiencing a downturn in economic conditions. This
downturn is leading to reduced demand for the services provided by EMS
companies. These changes in demand and in economic conditions have resulted and
may continue to result in customers rescheduling of orders and shipments, which
could affect Sanmina's results of operations. In addition, a protracted general
recession in the electronics industry could have a material adverse effect on
Sanmina's business, financial condition and results of operations. Sanmina has
no firm long-term volume commitments from its customers and over the last few
years has experienced reduced lead-time in customer orders. In addition,
customer orders can be canceled and volume levels can be changed or delayed. The
timely replacement of canceled, delayed or reduced orders with new business
cannot be assured. There can be no assurance that any of Sanmina's current
customers will continue to use Sanmina's manufacturing services. The loss of one
or more of Sanmina's principal customers, or reductions in sales to any of such
customers, could have a material adverse effect on Sanmina's business, financial
condition and results of operations.

A significant portion of Sanmina's customer base and operations are located
in the State of California, which is in the midst of an energy crisis that could
disrupt our operations and increase our expenses. In the event of an acute power
shortage, that is, when power reserves for the State of California fall below
1.5%, California has on some occasions implemented, and may in the future
continue to implement, rolling blackouts throughout California. If blackouts
interrupt our power supply, we could be temporarily unable to continue
operations at certain of our California facilities. In addition, concerns exist
that the California energy crisis could lead to worsening of economic conditions
in California which could affect our California customers. Power shortages in
California have also caused the wholesale price of electricity to increase,
which will likely cause our operating expenses for our California facilities to
increase. Accordingly, the California energy situation could adversely affect
our business and results of operations.

Sanmina has pursued, and intends to continue to pursue, business
acquisition opportunities, particularly when these opportunities have the
potential to enable Sanmina to increase its net sales while maintaining
operating margin, to access new geographic markets, to implement Sanmina's
vertical integration strategy and/or to obtain facilities and equipment on terms
more favorable than those generally available in the
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market. Acquisitions of companies and businesses and expansion of operations
involves certain risks, including (i) the potential inability to successfully
integrate acquired operations and businesses or to realize anticipated
synergies, economies of scale or other value, (ii) diversion of management's
attention, (iii) difficulties in scaling up production at new sites and
coordinating management of operations at new sites and (iv) loss of key
employees of acquired operations. No assurance can be given that Sanmina will
not incur problems with integrating acquired operations, and there can be no
assurance that Sanmina's recent acquisitions, or any future acquisition will
result in a positive contribution to Sanmina's results of operations.
Furthermore, there can be no assurance that Sanmina will realize value from any
such acquisition which equals or exceeds the consideration paid. In addition,
there can be no assurance that Sanmina will realize anticipated strategic and
other benefits from expansion of existing operations to new sites. Any such
problems could have a material adverse effect on Sanmina's business, financial
condition and results of operations. In addition, future acquisitions may result
in dilutive issuances of equity securities, the incurrence of additional debt,
increases in operating expenses, large one-time write-offs and the creation of
goodwill or other intangible assets that could result in amortization expense.

In addition, Sanmina expects to pursue opportunities to acquire assembly
operations being divested by electronics industry OEMs. Sanmina expects that
competition for these opportunities among electronics manufacturing services
firms will be intense because these transactions typically enable the acquiror
to enter into long-term supply arrangements with the divesting OEM. Accordingly,
Sanmina's future results of operations could be adversely affected if Sanmina is
not successful in attracting a significant portion of the OEM divestiture
transactions it pursues. In addition, due to the large scale and long-term
nature of supply arrangements typically entered into in OEM divestiture
transactions and because cost reductions are generally a major factor as to why
the OEM is divesting operations, pricing of manufacturing services may be less
favorable to the manufacturer than in standard contractual relationships.
Accordingly, as Sanmina enters into new OEM divestiture transactions, Sanmina
may experience erosion in gross margins.

RESULTS OF OPERATIONS

The following table sets forth, for the three and six months ended March
31, 2001 and April 1, 2000, certain items as a percentage of net sales. The
table and the discussion below should be read in connection with the condensed
consolidated financial statements and the notes thereto, which appear elsewhere
in this report.

THREE MONTHS ENDED SIX MONTHS ENDED
--------------------- ---------------------
MARCH 31, APRIL 1, MARCH 31, APRIL 1,
2001 2000 2001 2000
--------- -------- --------- --------

Net sales.................................... 100.0% 100.0% 100.0% 100.0%
Cost of sales................................ 83.8 84.5 83.0 84.5
----- ----- ----- -----
Gross profit............................... 16.2 15.5 17.0 15.5
----- ----- ----- -----
Operating expenses:
Selling, general and administrative........ 5.7 5.0 5.4 5.3
Amortization of goodwill and intangibles... 0.5 0.7 0.5 0.6
Plant closing, relocation, merger and
restructuring costs..................... 2.1 -- 0.9 --
----- ----- ----- -----
Total operating expenses........... 8.3 5.7 6.8 5.9
----- ----- ----- -----
Operating income............................. 7.9 9.8 10.2 9.6
Other income (expenses), net................. 0.5 (0.1) 0.5 (0.4)
----- ----- ----- -----
Income before provision for income taxes..... 8.4 9.7 10.7 9.2
Provision for income taxes................... (3.2) (3.5) (4.0) (3.3)
----- ----- ----- -----
Net income................................... 5.2% 6.2% 6.7% 5.9%
===== ===== ===== =====

Sales for the second quarter of fiscal 2001 increased by 25.6% to $1.2
billion from $948.4 million in the corresponding quarter of the prior year. For
the six months ended March 31, 2001, sales increased by 49.9% to $2.7 billion
from $1.8 billion in the first six months ended April 1, 2000. The results
reflect continued demand

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for Sanmina's advanced technologies and total manufacturing solution
capabilities. The increase in net sales for the second quarter of fiscal 2001
over the same period in fiscal 2000, was due primarily to overall growth in the
industry segments we serve, growth of our customers, success at winning new
customers and new programs from the existing customer base, the industry trend
towards outsourcing, expansion of Sanmina's operations, both through
acquisitions and organic growth, and a generally positive economic environment
in the communications, medical and industrial instrumentation, and high-speed
computer segments of the electronics industry. These industry sectors continued
to experience overall growth during these periods.

As a result of the pooling of interests accounting with Segerstrom, Sanmina
has restated its historical results of operations to include the results of
operations of Segerstrom. The financial information presented gives effect to
this restatement. A reconciliation of the financial statements for the three and
six month periods ended April 1, 2000, to previously reported information is as
follows (in thousands):

THREE MONTHS ENDED SIX MONTHS ENDED
------------------ ----------------

Revenue:
Sanmina.......................................... $875,247 $1,638,948
Segerstrom....................................... 74.409 149,959
Eliminations..................................... (1,298) (3,194)
-------- ----------
Combined...................................... $948,358 $1,785,713
======== ==========
Net Income:
Sanmina.......................................... $ 55,562 $ 98,354
Segerstrom....................................... 3,429 7,431
-------- ----------
Combined...................................... $ 58,991 $ 105,785
======== ==========

Gross margin increased from 15.5% in the second quarter of fiscal 2000 to
16.2% in the second quarter of fiscal 2001. For the six months ended March 31,
2001, gross margin increased to 17.0% from 15.5% in the first six months ended
April 1, 2000. Sanmina expects gross margins to continue to fluctuate based on
overall production and shipment volumes as well as changes in the mix of
products ordered by and shipped to major customers. The increase in gross
margins for the second quarter and for the six months ended March 31, 2001 was
primarily attributable to improved mix and cost efficiencies and reductions and
capacity utilization. This increase was offset partially by pricing terms
negotiated as part of OEM divestiture transactions and additions to inventory
reserves to account for changing customer demand. Due to increased competition,
changes in product and customer mix, and pricing terms negotiated as part of OEM
divestiture transactions, Sanmina may continue to experience fluctuations in
gross margins. Changes in customer demand and sales volumes could also result in
fluctuations in gross margins.

Selling, general and administrative expenses increased from $47.7 million
in the second quarter of fiscal 2000 to $68.1 million in the second quarter of
fiscal 2001. As a percentage of sales, selling, general and administrative
expenses increased from 5.0% in the second quarter of fiscal 2000 to 5.7% for
the second quarter of fiscal 2001. The absolute dollar increase in selling and
general and administrative expenses over the comparable periods in fiscal 2000
was primarily the result of increased expenditures in infrastructure to support
higher sales volume and other related corporate costs. For the six months ended
March 31, 2001, selling, general, and administrative expenses increased to
$144.3 million from $94.3 million for the first six months ended April 1, 2000.
As a percentage of sales, selling, general and administrative expenses increased
from 5.3% for the six months of fiscal 2000 to 5.4% for the first six months of
fiscal 2001. Sanmina anticipates that operating expenses will increase in
absolute dollars compared to fiscal 2000, due to additions to the sales force
and other administrative expenditures to our support higher sales volume in
fiscal 2001. However, operating expenses as a percentage of sales are
anticipated to remain relatively constant depending upon sales volume, Sanmina's
ability to achieve expected operating synergies as a result of the integration
of acquired businesses and Sanmina's focus on controlling our operating
expenses.

Amortization expense increased from $5.5 million in the second quarter of
fiscal 2000 to $6.7 million in the second quarter of fiscal 2001. For the six
months ended March 31, 2001, amortization expense increased from $11.0 million
for the six months of fiscal 2000 to $13.7 million for the six months of fiscal
2001. These

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amortization expenses reflect the amortization of intangibles and goodwill
related to those acquisitions which were accounted for as purchase transactions.

Operating expenses increased from $53.2 million in the second quarter of
fiscal 2000 to $99.7 million in the second quarter of 2001. As a percentage of
sales, operating expenses increased from 5.7% to 8.3% in the second quarter of
2001 compared to the second quarter of fiscal 2000. For the six months ended,
operating expenses in absolute dollars increased from $105.3 million in fiscal
2000 to $182.9 million in fiscal 2001 and operating expenses as a percentage of
sales increased from 5.9% in fiscal 2000 to 6.8% in fiscal 2001. The increase in
operating expenses for the first six months of fiscal 2001 as compared to the
first six months in fiscal 2000 was mainly attributable to certain charges
recorded in the second quarter of 2001. During the second quarter of fiscal
2001, Sanmina recorded plant closing, relocation, merger and restructuring costs
of approximately $24.9 million related to the acquisition of Segerstrom. The
plant closing, relocation, merger and restructuring costs of $24.9 million are
comprised of $7.2 million for executive and other severance, attributable to
approximately 470 people and related costs, primarily from the Segerstrom
employees in Europe, of which 175 people had been terminated as of March 31,
2001, (accrual made in accordance with the criteria in EITF 94-3 "Liability
Recognition for Costs to Exit an Activity" including certain costs incurred in a
restructuring), $12.5 million for investment banking, accounting, legal and
related fees and expenses for the Segerstrom acquisition, and $5.2 million of
other related restructuring costs which are related to the consolidation of
duplicate facilities primarily in Europe. These activities are expected to be
completed by March 2002. Excluding merger and restructuring charges, for the
first six months of fiscal 2001, operating expenses as a percentage of sales
remained flat at 5.9%, as compared to the same period for fiscal 2000. Below is
a summary of the activity related to the charges (in thousands):

PROVISION
CHARGED TO CHARGES BALANCE AT
OPERATIONS UTILIZED MARCH 31, 2001
---------- -------- --------------

For the second quarter of fiscal 2001, Sanmina reported net other income of
$6.8 million compared to net other expense of $1.2 million for the corresponding
quarter of last year. For the six months of fiscal 2001, Sanmina reported net
other income of $13.0 million compared to net other expense of $6.6 million for
the six months of fiscal 2000. The components of other income and expense,
comprising the overall net income or expense, are primarily interest expense on
borrowings and convertible subordinated notes and interest income on cash
balances and short-term investments. For the second quarter of fiscal 2001 and
the first six months of fiscal 2001, the increase in net other income was
largely due to interest received from additional cash flow from operations and
higher cash balances.

Sanmina's provision for income taxes for the second quarter of fiscal 2001
is based upon Sanmina's estimate of the effective tax rate for fiscal 2001 of
38.0 %. For the second quarter of fiscal 2000, the effective tax rate was 36.0%.
For the first six months of fiscal 2001, the effective tax rate was 37.8%.

LIQUIDITY AND CAPITAL RESOURCES

Cash, cash equivalents, and short-term investments as of March 31 2001 and
September 30, 2000 were each $1.3 billion. For the six months ending March 31,
2001, cash provided by operations was $122.8 million, which was primarily due to
net income, depreciation and amortization, offset by decreases in current
liabilities. Working capital increased to $2.1 billion as of March 31, 2001
compared to $1.9 billion at September 30,

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2000. This increase in working capital was primarily due to increases in
receivables and decreases in accounts payable and accrued liabilities.

Net cash used for investing activities for the first six months of fiscal
2001 primarily related to the purchase of property, plant, and equipment of
$125.0 million and short and long-term investments of $870.3 million. These
payments were offset by $395.4 million in maturities of short-term investments.

Net cash provided by financing activities for the first six months of
fiscal year 2001 was related to the proceeds from the sale of common stock from
the exercise of stock options and the employee stock purchase plan of $43.8
million and net proceeds of long-term liabilities of $2.6 million.

In fiscal 1999, Sanmina entered into an operating lease agreement for new
facilities in San Jose, California which houses its corporate headquarters and
certain assembly operations. In connection with these transactions, Sanmina
pledged $52.9 million of its cash and investments as collateral for certain
obligations of the lease.

Sanmina's future needs for financial resources include increases in working
capital to support anticipated sales growth and investment in manufacturing
facilities and equipment. Sanmina has evaluated and will continue to evaluate
possible business acquisitions. In this regard, Sanmina anticipates incurring
additional expenditures during fiscal 2001 in connection with the integrations
of its recently acquired businesses and expenditures associated with the
anticipated growth.

Sanmina believes that its existing cash resources, together with cash
generated from operations, will be sufficient to meet its working capital
requirements through at least the next 12 months. Sanmina may seek to raise
additional capital through the issuance of either debt or equity securities.
Debt financing may require Sanmina to pledge assets as collateral and comply
with financial ratios and covenants. Equity financing may result in dilution to
stockholders.

EFFECT OF RECENT ACCOUNTING PRONOUNCEMENTS

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There has not been a material change in our exposure to interest rate and
foreign currency risks since the date of our report on Form 10-K for the fiscal
year ended September 30, 2000.

Interest Rate Risk

Sanmina's exposure to market risk for changes in interest rates relate
primarily to Sanmina's investment portfolio. Currently, Sanmina does not use
derivative financial instruments in its investment portfolio. Sanmina invests in
high credit quality issuers and, by policy, limits the amount of principal
exposure to any one issuer. As stated in Sanmina's policy, Sanmina seeks to
ensure the safety and preservation of its invested principal funds by limiting
default and market risk.

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Sanmina seeks to mitigate default risk by investing in high-credit quality
securities and by positioning its investment portfolio to respond to a
significant reduction in a credit rating of any investment issuer, guarantor or
depository. Sanmina seeks to mitigate market risk by limiting the principal and
investment term of funds held with any one issuer and by investing funds in
marketable securities with active secondary or resale markets.

The table below presents carrying amounts and related average interest
rates by year of maturity for Sanmina's investment portfolio as of March 31,
2001 (in thousands):

YEAR ENDED
----------------------------------------------------------------------
2001 2002 2003 2004 2005 THEREAFTER TOTAL
-------- -------- ---------- ---- ---- ---------- --------
(IN THOUSANDS)

Cash equivalents, short-term, and
long-term investments........... $661,545 $275,346 $42,755 -- -- -- $979,646
Average interest rate........ 5.4% 6.5% 7.7% -- -- -- 5.8%

Foreign Currency Exchange Risk

Sanmina transacts business in foreign countries. Sanmina's primary foreign
currency cash flows are in certain European countries, Canada, Brazil and Asia.
Sanmina enters into foreign exchange contracts to hedge certain of its assets
and liabilities denominated in foreign currencies. At March 31, 2001, Sanmina
had forward contracts to exchange various foreign currencies for U.S. dollars in
the gross amount of $30.4 million. Market value gains and losses on forward
exchange contracts are recognized in the Consolidated Statement of Operations as
offsets to the exchange gains and losses on the hedged transactions.

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PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

Sanmina is a party to certain legal proceedings that have arisen in the
ordinary course of its business. The amounts in controversy in these matters is
not material to Sanmina, and Sanmina believes that the resolution of these
proceedings will not have a material adverse effect on Sanmina's business,
financial condition and results of operations.

ITEM 2. CHANGES IN SECURITIES

None

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

On January 29, 2001, Sanmina held its annual meeting of stockholders. The
votes on the matters submitted to a vote of stockholders at the meeting were
reported on in Sanmina's report on Form 10-Q for the quarter ended December 30,
2000.

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

(a) Exhibits

3.1(a) Certificate of Amendment to Certificate of Incorporation
(increasing authorized number of shares of common stock to 1
billion shares).

(b) Reports on Form 8-K

On January 26, 2001, Sanmina filed a report on Form 8-K relating to the
announcement of its intention to acquire the outstanding shares of AB Segerstrom
& Svensson.

On January 31, 2001, Sanmina filed a report on Form 8-K relating to the
announcement of the exchange ratio for each outstanding share of AB Segerstrom &
Svensson.

On February 15, 2001, Sanmina filed a report on Form 8-K relating to the
announcement of the extension of the acceptance date for offer to the
shareholders of AB Segerstrom & Svensson.

On February 22, 2001, Sanmina filed a report on Form 8-K relating to the
announcement of an increase in its offer to the shareholders of AB Segerstrom &
Svensson and the Segerstrom's board reaffirmation of its recommendation to
accept the offer.

On February 26, 2001, Sanmina filed a report on Form 8-K relating to the
announcement of the determination of the new exchange ratio for Sanmina's offer
to the shareholder's of AB Segerstrom & Svensson.

On March 1, 2001, Sanmina filed a report on Form 8-K relating to the
announcement of the completion of the offer to the AB Segerstrom & Svensson
shareholders.

On March 2, 2001, Sanmina filed a report on Form 8-K relating to the
announcement of the shares of stock to be included in a registration statement.

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SIGNATURE

Pursuant to the Requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

SANMINA CORPORATION
(Registrant)

Date: May 9, 2001

By: /s/ RANDY W. FURR
------------------------------------
Randy W. Furr
President and Chief Operating
Officer

By: /s/ RICK R. ACKEL
------------------------------------
Rick R. Ackel
Executive Vice President and
Chief Financial Officer

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EXHIBIT INDEX

EXHIBIT
NUMBER DESCRIPTION
- ------- -----------

3.1(a) Certificate of Amendment to Certificate of Incorporation
(increasing authorized number of shares of common stock to 1
billion shares).