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
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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.
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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 -
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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.