- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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 JUNE 30, 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)

<Table>

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

<Table>

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

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 August 6, 2001, there were 320,618,953 shares outstanding of the
issuer's common stock, $0.01 par value.

- --------------------------------------------------------------------------------
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2

SANMINA CORPORATION

INDEX

<Table>

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................................... 12
Item 3. Quantitative and Qualitative Disclosure about Market Risk... 19

PART II. OTHER INFORMATION
Item 1. Legal Proceedings........................................... 21
Item 2. Changes in Securities....................................... 21
Item 6. Exhibits and Reports on Form 8-K............................ 21
Signature............................................................ 22
</Table>

1
3

SANMINA CORPORATION

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

<Table>
<Caption>
THREE MONTHS ENDED NINE MONTHS ENDED
---------------------- ------------------------
JUNE 30, JULY 1, JUNE 30, JULY 1,
2001 2000 2001 2000
-------- ---------- ---------- ----------

Net sales.................................. $776,602 $1,086,182 $3,453,311 $2,871,895
Cost of sales.............................. 680,231 927,236 2,900,767 2,436,167
-------- ---------- ---------- ----------
Gross profit............................. 96,371 158,946 552,544 435,728
-------- ---------- ---------- ----------
Operating expenses:
Selling, general and administrative...... 42,069 69,864 186,349 164,174
Amortization of goodwill and
intangibles........................... 6,681 5,614 20,348 16,584
Write down of long-lived assets.......... -- 8,750 -- 8,750
Plant closing, relocation, merger and
restructuring costs................... 2,959 47,201 27,907 47,201
-------- ---------- ---------- ----------
Total operating expenses......... 51,709 131,429 234,604 236,709
-------- ---------- ---------- ----------
Operating income........................... 44,662 27,517 317,940 199,019
Other income (expense), net................ 3,881 1,527 16,869 (5,034)
-------- ---------- ---------- ----------
Income before provision for income taxes... 48,543 29,044 334,809 193,985
Provision for income taxes................. 18,446 22,153 126,516 81,309
-------- ---------- ---------- ----------
Net income............................... $ 30,097 $ 6,891 $ 208,293 $ 112,676
======== ========== ========== ==========
Earnings per share:
Basic.................................... $ 0.09 $ 0.02 $ 0.65 $ 0.37
Diluted.................................. $ 0.09 $ 0.02 $ 0.62 $ 0.36
Shares used in computing per share amounts:
Basic.................................... 321,011 312,892 318,824 301,655
Diluted.................................. 333,088 329,337 349,266 317,352
</Table>

See accompanying notes.
2
4

SANMINA CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)

ASSETS

<Table>
<Caption>
JUNE 30, SEPTEMBER 30,
2001 2000
----------- -------------
(UNAUDITED) (AUDITED)

Current assets:
Cash and cash equivalents................................. $ 618,219 $ 998,242
Short-term investments.................................... 777,100 265,308
Accounts receivable, net.................................. 553,954 714,509
Inventories............................................... 550,535 608,434
Deferred income taxes..................................... 90,282 87,187
Prepaid expenses and other................................ 29,681 30,077
---------- ----------
Total current assets.............................. 2,619,771 2,703,757
Property, plant and equipment, net........................ 723,881 700,718
Long-term investments..................................... 78,954 55,917
Goodwill, intangibles and other........................... 349,536 375,208
---------- ----------
Total assets...................................... $3,772,142 $3,835,600
========== ==========

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable.......................................... $ 363,175 $ 541,268
Accrued liabilities and other............................. 113,220 248,872
---------- ----------
Total current liabilities......................... 476,395 790,140
---------- ----------
Long-term liabilities:
Long-term debt, net of current portion.................... 1,213,632 1,200,764
Other liabilities......................................... 76,257 85,903
---------- ----------
Total long-term liabilities....................... 1,289,889 1,286,667
---------- ----------
Stockholders' equity:
Common stock.............................................. 3,209 3,166
Additional paid-in capital................................ 1,218,297 1,168,938
Accumulated other comprehensive loss...................... (14,876) (9,503)
Retained earnings......................................... 799,228 596,192
---------- ----------
Total stockholders' equity........................ 2,005,858 1,758,793
---------- ----------
$3,772,142 $3,835,600
========== ==========
</Table>

See accompanying notes.
3
5

SANMINA CORPORATION

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

<Table>
<Caption>
NINE MONTHS ENDED
------------------------
JUNE 30, JULY 1,
2001 2000
----------- ---------

Cash flows from operating activities:
Net income................................................ $ 208,293 $ 112,676
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, relocation, merger and restructuring
charges............................................... 27,907 47,201
Depreciation, amortization and other................... 155,122 135,849
Write down of long-lived assets........................ -- 8,750
Changes in operating assets and liabilities, net of
acquisitions:
Accounts receivable.................................. 136,311 (248,229)
Inventories.......................................... 54,798 (157,089)
Prepaid expenses, deposits and other................. (8,029) (31,772)
Income tax account................................... (90,951) 6,529
Accounts payable and accrued liabilities............. (196,838) 141,484
----------- ---------
Cash provided by operating activities............. 281,354 9,134
----------- ---------
Cash flows from investing activities:
Purchases of short-term investments....................... (1,692,065) (289,812)
Proceeds from maturity of short-term investments.......... 1,182,330 265,315
Purchases of long-term investments........................ (22,434) (52)
Purchases of property and equipment, net of
acquisitions........................................... (161,806) (241,034)
Cash paid for businesses acquired, net of cash acquired... -- (30,470)
----------- ---------
Cash used for investing activities................ (693,975) (296,053)
----------- ---------
Cash flows from financing activities:
Payments of long-term liabilities......................... (8,973) (40,619)
Proceeds from sale of common stock, net of issuance
costs.................................................. 46,561 581,451
----------- ---------
Cash provided by financing activities............. 37,588 540,832
----------- ---------
Effect of exchange rate changes............................. (4,990) (3,187)
----------- ---------
Increase/(decrease) in cash and cash equivalents............ (380,023) 250,726
Cash and cash equivalents at beginning of period............ 998,242 149,281
----------- ---------
Cash and cash equivalents at end of period.................. $ 618,219 $ 400,007
=========== =========
Supplemental cash flow information
Cash paid during the period for:
Interest.................................................. $ 19,100 $ 40,270
Income taxes.............................................. $ 219,049 $ 72,901
</Table>

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 nine months ended June 30, 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 and
our Form 8-K which restates prior reported information to reflect Sanmina's
pooling of interest with AB Segerstrom and Svensson.

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 & 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. As of June 30, 2001,
Sanmina has issued approximately 11.6 million shares of common stock in
connection with the acquisition of Segerstrom. This number represents 94% of
outstanding shares and convertible debentures of Segerstrom, and the remaining
6% will be acquired under the compulsory acquisition process. Segerstrom has
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's statements of operations, shareholders' equity and
cash flows for the three and nine month periods ended September 30, 2000 have
been combined with the corresponding Sanmina consolidated statements for the
three and nine month periods ended July 1, 2000. During Sanmina's 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. Segerstrom's 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 Sanmina's consolidated statement of cash flows
for the nine months ended June 30, 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
nine months ended July 1, 2000, to previously reported information is as follows
(in thousands):

<Table>
<Caption>
THREE MONTHS NINE MONTHS
ENDED ENDED
------------ -----------

Revenue:
Sanmina.......................................... $1,000,632 $2,639,580
Segerstrom....................................... 86,658 236,617
Eliminations..................................... (1,108) (4,302)
---------- ----------
Combined...................................... $1,086,182 $2,871,895
========== ==========
Net income:
Sanmina.......................................... $ 1,821 $ 100,175
Segerstrom....................................... 5,070 12,501
---------- ----------
Combined...................................... $ 6,891 $ 112,676
========== ==========
</Table>

NOTE 3 -- PLANT CLOSING, RELOCATION, MERGER AND RESTRUCTURING COSTS

Below is a summary of the activity related to plant closing, relocation,
merger and restructuring costs:

<Table>
<Caption>
BALANCE AT PROVISION BALANCE AT
NATURE OF SEPTEMBER 30, CHARGED TO CHARGES JUNE 30,
CHARGES 2000 OPERATIONS UTILIZED 2001
--------- ------------- ---------- -------- ----------

Cash and Non-Cash
Provisions:
Employee severance and
related expenses....... Cash $15,574 $(5,524) $ (4,918) $ 5,132
Restructuring and other
expenses............... Cash/Non-Cash -- 3,733 (3,298) 435
Merger fees............... Cash 1,348 12,523 (9,861) 4,010
Shut down and
consolidation costs of
duplicate facilities... Cash -- 5,205 (2,851) 2,354
Write-off of impaired or
redundant fixed
assets................. Non-Cash -- 11,970 (11,127) 843
------- ------- -------- -------
Total provision... $16,922 $27,907 $(32,055) $12,774
======= ======= ======== =======
</Table>

<Table>
<Caption>
BALANCE AT PROVISION BALANCE AT
NATURE OF OCTOBER 2, CHARGED TO CHARGES JUNE 30,
CHARGES 1999 OPERATIONS UTILIZED 2000
--------- ---------- ---------- -------- ----------

Cash and Non-Cash Provisions:
Employee severance and
related expenses......... Cash $ 2,458 $26,506 $ (2,458) $26,506
Restructuring and other
expenses................. Cash/Non-Cash -- 832 -- 832
Merger fees................. Cash 2,191 19,863 (2,191) 19,863
Shut down and consolidation
costs of duplicate
facilities............... Cash 6,926 -- (6,926) --
Write-off of impaired or
redundant fixed assets... Non-Cash 714 -- (714) --
------- ------- -------- -------
Total provision..... $12,289 $47,201 $(12,289) $47,201
======= ======= ======== =======
</Table>

6
8
SANMINA CORPORATION

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

During the three months ended June 30, 2001, Sanmina recorded plant
closing, relocation, merger and restructuring costs of approximately $3.0
million, related to the consolidation of certain facilities. These costs were
comprised of the following: $1.7 million for severance, attributable to
approximately 665 people and related costs as of June 30, 2001; and a net $1.3
million for restructuring and other costs, primarily related to discontinued use
of enterprise-wide software costs used internally by acquired companies (no
longer required post acquisition); integration of new information systems at
acquired companies; costs related to consolidation of duplicate facilities and
write-offs of redundant fixed assets, and the reversal of an accrual related to
plant closing, relocation, merger and restructuring costs recorded as part of
the Hadco and Essex acquisitions. Activities related to the Hadco and Essex
acquisitions were completed as of June 30, 2001. Certain estimates made in the
original accrual for the Hadco and Essex restructuring was originally taken in
the third quarter of fiscal 2000 and were no longer required as the
restructuring was completed at a lower cost than originally estimated.

In the second quarter of 2001, Sanmina recorded plant closing, relocation,
merger and restructuring costs of $24.9 million as part of the merger with
Segerstrom. These costs were comprised of $7.2 million for executive and other
severance, attributable to approximately 470 people and related costs, primarily
affecting Segerstrom's employees in Europe, of which 241 were terminated as of
June 30, 2001, $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.

NOTE 4 -- 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 5 -- 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 nine months ended June 30, 2001, the unrealized
holding gain on investments and foreign currency translation adjustment were
$2.9 million and $(7.7) million, respectively. For the nine months ended July 1,
2000, the unrealized holding loss on investments and foreign currency
translation adjustment were $(0.1) million and $(7.4) million, respectively.
Comprehensive income for the nine months ended June 30, 2001 and July 1, 2000
was approximately $203.5 million and $105.2 million, respectively.

NOTE 6 -- 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 7 -- INVENTORIES

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

<Table>
<Caption>
AS OF
-------------------------
JUNE 30, SEPTEMBER 30,
2001 2000
-------- -------------

Raw materials....................................... $343,686 $371,384
Work-in-process..................................... 71,647 148,404
Finished goods...................................... 135,202 88,646
-------- --------
$550,535 $608,434
======== ========
</Table>

NOTE 8 -- 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 third quarter and nine
month periods of fiscal 2001 and 2000. Diluted EPS for the third quarter and
nine 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 third quarter and nine month periods of
fiscal 2001 and 2000 are as follows:

<Table>
<Caption>
THREE MONTHS ENDED NINE MONTHS ENDED
-------------------- --------------------
JUNE 30, JULY 1, JUNE 30, JULY 1,
2001 2000 2001 2000
-------- -------- -------- --------
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

Net income.............................. $ 30,097 $ 6,891 $208,293 $112,676
Interest expense, net of tax, related to
convertible subordinated debt (if
diluted).............................. -- -- 7,824 --
-------- -------- -------- --------
Income for calculating earnings per
share................................. $ 30,097 $ 6,891 $216,117 $112,676
======== ======== ======== ========
Weighted average number of shares
outstanding during the period......... 321,011 312,892 318,824 301,655
Weighted average number of shares for
stock options outstanding during the
period................................ 12,077 16,445 14,493 15,697
Weighted average number of shares if
convertible subordinated debt were
converted............................. -- -- 15,949 --
-------- -------- -------- --------
Weighted average number of shares....... 333,088 329,337 349,266 317,352
======== ======== ======== ========
Diluted earnings per share.............. $ 0.09 $ 0.02 $ 0.62 $ 0.36
======== ======== ======== ========
</Table>

8
10
SANMINA CORPORATION

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

NOTE 9 -- LONG-TERM DEBT

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

<Table>
<Caption>
AS OF
---------------------------
JUNE 30, SEPTEMBER 30,
2001 2000
---------- -------------

Convertible Subordinated Notes due 2004.................... $ 350,000 $ 350,000
9 1/2% Senior Subordinated Notes due 2008.................. 12,121 12,118
Convertible Subordinated Notes due 2012.................... 2,135 2,886
Zero Coupon Convertible Subordinated Notes due 2020........ 776,121 753,385
Convertible debt due 2003, converted in March 2001......... -- 2,702
Revolving Credit Agreements................................ 37,888 8,565
Obligations under Capital Leases with Interest Rates
ranging from 7.0% to 7.75%............................... 8,889 17,598
Bank Loans due through August 2010, at rates ranging from
4.63% to 6.10%........................................... 32,757 68,710
Other Long-Term Debt....................................... 3,439 --
Variable Rate Mortgages.................................... 502 1,741
---------- ----------
Total............................................ 1,223,852 1,217,705
Less: Current Portion...................................... (10,220) (16,941)
---------- ----------
Total Long-Term Debt............................. $1,213,632 $1,200,764
========== ==========
</Table>

NOTE 10 -- 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 11 -- BUSINESS SEGMENT AND CONCENTRATION OF CREDIT RISK

SFAS No. 131, "Disclosures about Segments of an Enterprise and Related
Information," 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 nine months
ended June 30, 2001 and July 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):

<Table>
<Caption>
THREE MONTHS ENDED NINE MONTHS ENDED
---------------------- ------------------------
JUNE 30, JULY 1, JUNE 30, JULY 1,
2001 2000 2001 2000
-------- ---------- ---------- ----------

Net Sales:
Domestic......................... $560,495 $ 531,507 $2,614,658 $1,330,359
International.................... 222,619 558,815 864,729 1,549,337
Intersegment..................... (6,512) (4,140) (26,076) (7,801)
-------- ---------- ---------- ----------
Total.................... $776,602 $1,086,182 $3,453,311 $2,871,895
======== ========== ========== ==========
Operating Income:
Domestic......................... $ 43,109 $ (15,523) $ 275,642 $ 94,067
International.................... 1,553 43,040 42,298 104,952
-------- ---------- ---------- ----------
Total.................... $ 46,662 $ 27,517 $ 317,940 $ 199,019
======== ========== ========== ==========
</Table>

<Table>
<Caption>
AS OF
-------------------------
JUNE 30, SEPTEMBER 30,
2001 2000
-------- -------------

Long Lived Assets (excludes goodwill and intangibles):
Domestic.................................................. $598,975 $631,139
International............................................. 150,468 153,686
-------- --------
Total............................................. $749,443 $784,825
======== ========
</Table>

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 June 30, 2001 and July 1, 2000, sales to Sanmina's
ten largest customers accounted for 54.8% and 55.9% respectively, of Sanmina's
net sales. For the nine months ended June 30, 2001 and July 1, 2000, sales to
Sanmina's ten largest customers accounted for 51.9% and 54.6% respectively, of
Sanmina's net sales. In the three month ended June 30, 2001 two of Sanmina's
customers represented over 10.0% of net sales and for the nine month ended June
30, 2001 only one of Sanmina's customers individually represented over 10.0% of
net sales. In the three and nine months ended July 1, 2000, only one of
Sanmina's customers individually represented over 10.0% of net sales.

NOTE 12 -- RECENT ACCOUNTING PRONOUNCEMENTS

In June 2000, the Financial Accounting Standards Board issued SFAS No. 138,
"Accounting for Certain Derivative Instruments and Certain Hedging
Activities -- an amendment of FASB Statement No. 133". 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 July 2001, the Financial Accounting Standards Board issued SFAS No. 141,
"Business Combinations" to be effective for all business combinations initiated
after June 30, 2001. Under the provisions of the statement, the use of
pooling-of-interests method of accounting for those transactions is prohibited
and all business combinations should be accounted for using the purchase method
of accounting. Sanmina is currently

10
12
SANMINA CORPORATION

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

analyzing this statement and the impact of its adoption on Sanmina's financial
position, results of operations and cash flows.

In July 2001, the Financial Accounting Standards Board issued SFAS No. 142,
"Goodwill and Other Intangible Assets" to be effective for all fiscal years
beginning after December 15, 2001. Early adoption of the statement is permitted
for entities with fiscal years beginning after March 15, 2001. In all cases, the
provisions of SFAS No. 142 should be applied at the beginning of a fiscal year.
SFAS No. 142 establishes accounting and reporting standards for goodwill and
intangible assets acquired singly, as part of a group or in a business
combination and supersedes APB Opinion No. 17, "Intangible Assets." The
statement requires that goodwill will no longer be amortized, but should be
tested for impairment at least annually at the reporting unit level. Sanmina is
currently analyzing this statement and the impact of its adoption on Sanmina's
financial position, results of operations and cash flows.

NOTE 13 -- SUBSEQUENT EVENT

In June 2001, Sanmina announced that it had agreed to acquire Alcatel's
manufacturing operations, located in Richardson, Texas. The deal is expected to
close in the fourth quarter of fiscal 2001.

In July 2001, Sanmina announced that it had entered into a definitive
merger agreement with SCI Systems, Inc. ("SCI"). Under the terms of the
agreement, each outstanding share of SCI common stock will be converted into
1.36 shares of Sanmina common stock. The transaction, which is subject to the
approval of Sanmina's and SCI's stockholders and certain U.S. and international
regulatory authorities, is expected to close either late in Sanmina's fiscal
fourth quarter (September 2001) or early in its first fiscal quarter of 2002,
subject to timing of completion of regulatory review. The transaction will be
accounted for as a purchase business combination.

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13

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

This report on Form 10-Q contains forward-looking statements, which involve
risks and uncertainties. Our actual results could differ materially from those
anticipated by such forward looking statements as a result of certain factors,
including those set forth below. You should carefully consider the risks
described below in connection with any evaluation of our business and prospects.
Additional risks and uncertainties not presently known to us or that we
currently deem immaterial may also impair our business operations. A holder of
securities issued by Sanmina should be aware of these and other various risks,
including those just described and those described below. The risks set in this
quarterly report are not the only risks we face. If any of the risks set forth
above or if any of the following risks occur, our business, financial condition
and results of operations could be materially adversely affected. In that case,
the trading price of our common stock and our convertible subordinated notes
could decline.

Keep these risk factors in mind when you read "forward-looking" statements
elsewhere in this report and in other reports and documents filed by Sanmina
with the Securities and Exchange Commission. These are statements that relate to
our expectations for future events and time periods. Generally, the words
"anticipate," "expect," "intend" and similar expressions identify
forward-looking statements. Forward-looking statements involve risks and
uncertainties, and future events and circumstances could differ significantly
from those anticipated in the forward-looking statements.

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, Ciena 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 58 facilities and 13 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, 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.

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14

will be acquired under the compulsory acquisition process. Segerstrom has
manufacturing facilities in Sweden, Finland, Hungary, Scotland and Brazil.

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 nine month periods ended September 30,
2000 have been combined with the corresponding Sanmina consolidated statements
for the three and nine month periods ended July 1, 2000. During Sanmina's 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. Segerstrom's 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 Sanmina's consolidated statement of cash flows
for nine months ended June 30, 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 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, especially with the uncertainty and slowdown of
Sanmina's customers' end-markets. Sanmina expects revenues for the quarter
ending September 30, 2001 to be down five percent to flat, as compared to the
third fiscal quarter.

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, including particularly the telecommunications sector, are currently
experiencing a significant downturn in economic conditions. This downturn is
leading to reduced demand for the services provided by EMS companies, including
Sanmina. These changes in demand and in economic conditions have resulted and
may continue to result in customer 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
13
15

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 the 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 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, the creation of other intangible assets
that could result in amortization expense and goodwill.

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.

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RESULTS OF OPERATIONS

The following table sets forth, for the three and nine months ended June
30, 2001 and July 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.

<Table>
<Caption>
THREE MONTHS ENDED NINE MONTHS ENDED
--------------------- ---------------------
JUNE 30, JULY 1, JUNE 30, JULY 1,
2001 2000 2001 2000
-------- ------- -------- -------

Net sales.................................... 100.0% 100.0% 100.0% 100.0%
Cost of sales................................ 87.6 85.4 84.0 84.8
----- ----- ----- -----
Gross profit............................... 12.4 14.6 16.0 15.2
----- ----- ----- -----
Operating expenses:
Selling, general and administrative........ 5.4 6.4 5.4 5.7
Amortization of goodwill and intangibles... 0.9 0.5 0.6 0.6
Write down of long-lived assets............ 0.8 0.3
Plant closing, relocation, merger and
restructuring costs..................... 0.4 4.4 0.8 1.6
----- ----- ----- -----
Total operating expenses........... 6.7 12.1 6.8 8.2
----- ----- ----- -----
Operating income............................. 5.8 2.5 9.2 6.9
Other income (expense), net.................. 0.5 0.1 0.5 (0.2)
----- ----- ----- -----
Income before provision for income taxes..... 6.3 2.6 9.7 6.7
Provision for income taxes................... (2.4) (2.0) (3.7) (2.8)
----- ----- ----- -----
Net income................................... 3.9% 0.6% 6.0% 3.9%
===== ===== ===== =====
</Table>

Sales for the third quarter of fiscal 2001 decreased by 28.5% to $ 776.6
million from $1.1 billion in the corresponding quarter of the prior year. For
the nine months ended June 30, 2001, sales increased by 20.2% to $3.5 billion
from $2.9 billion in the first nine months ended July 1, 2000. The decrease in
net sales for the third quarter of fiscal 2001 over the same period in fiscal
2000, was due primarily to the downturn in economic conditions worldwide and in
the electronics industry in general and the communications sector in particular.
This downturn has had a significant impact on our customers and their end
markets during the last six months. These economic conditions have led to a
reduced demand for services provided by Sanmina and other EMS companies. The
increase in net sales for the nine months ended June 30, 2001, as compared to
same period in the prior year, was due primarily to a more positive economic
environment in the first two quarters of Sanmina's 2001 fiscal year as compared
to our third fiscal quarter. Sanmina expects revenues for the quarter ending
September 30, 2001 to be down five percent to flat, as compared to the third
fiscal quarter.

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

<Table>
<Caption>
THREE MONTHS ENDED NINE MONTHS ENDED
---------------------- ------------------------
JUNE 30, JULY 1, JUNE 30, JULY 1,
2001 2000 2001 2000
-------- ---------- ---------- ----------

Domestic sales for the third quarter of fiscal 2001 increased by 5.5% to
$560.5 million from $531.5 million and international sales decreased by 60.2% to
$222.6 million from $558.8 million in the corresponding quarter of the prior
year. For the nine months ended June 30, 2001, domestic sales increased by 96.5%
to $2.6 billion from $1.3 billion and international sales decreased by 44.2% to
$864.7 million from $1.5 billion in the first nine months ended July 1, 2000.

15
17

As a result of the acquisition of 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 nine
month periods ended July 1, 2000, to previously reported information is as
follows (in thousands):

<Table>
<Caption>
THREE MONTHS NINE MONTHS
ENDED ENDED
------------ -----------

Revenue:
Sanmina.................................................. $1,000,632 $2,639,580
Segerstrom............................................... 86,658 236,617
Eliminations............................................. (1,108) (4,302)
---------- ----------
Combined.............................................. $1,086,182 $2,871,895
========== ==========
Net income:
Sanmina.................................................. $ 1,821 $ 100,175
Segerstrom............................................... 5,070 12,501
---------- ----------
Combined.............................................. $ 6,891 $ 112,676
========== ==========
</Table>

Gross margin decreased from 14.6% in the third quarter of fiscal 2000 to
12.4% in the third quarter of fiscal 2001. For the nine months ended June 30,
2001, gross margin increased to 16.0% from 15.2% in the first nine months ended
July 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 decrease in gross
margins for the third quarter was primarily attributable to a lower base of
revenues, changes in product and customer mix and additions to inventory
reserves to account for changing customer demand, as compared to the comparable
quarter of the prior year. The increase in gross margins for the nine months
ended June 30, 2001 was primarily attributable to improved product mix, cost
efficiencies and reductions and capacity utilization that occurred in the first
two quarters of fiscal 2001. 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 decreased from $69.9 million
in the third quarter of fiscal 2000 to $42.1 million in the third quarter of
fiscal 2001. As a percentage of sales, selling, general and administrative
expenses decreased from 6.4% in the third quarter of fiscal 2000 to 5.4% in the
third quarter of fiscal 2001. The decrease in selling, general and
administrative expense was primarily due to Sanmina's ability to respond quickly
to marketplace challenges and cost effectively scale back our operations. For
the nine months ended June 30, 2001, selling, general, and administrative
expenses increased to $186.3 million from $164.2 million for the first nine
months ended July 1, 2000. As a percentage of sales, selling, general and
administrative expenses decreased from 5.7% for the nine months of fiscal 2000
to 5.4% for the first nine months of fiscal 2001. Selling, general and
administrative expenses as a percentage of sales are anticipated to remain
relatively constant or decrease slightly, depending upon sales volumes and our
ability to effectively scale back on operations to be in line with anticipated
customer demand. In addition, we expect to continue to achieve operating
synergies as a result of the integration of acquired businesses and Sanmina's
focus on controlling our operating expenses.

Amortization expense increased from $5.6 million in the third quarter of
fiscal 2000 to $6.7 million in the third quarter of fiscal 2001. For the nine
months ended June 30, 2001, amortization expense increased from $16.6 million
for the nine months of fiscal 2000 to $20.3 million for the nine months of
fiscal 2001. These amortization expenses reflect the amortization of intangibles
and goodwill related to those acquisitions which were accounted for as purchase
transactions.

Operating expenses decreased from $131.4 million in the third quarter of
fiscal 2000 to $51.7 million in the third quarter of 2001. As a percentage of
sales, operating expenses decreased from 12.1% to 6.7% in the

16
18

third quarter of 2001 compared to the third quarter of fiscal 2000. For the nine
months ended, operating expenses in absolute dollars decreased from $236.7
million in fiscal 2000 to $234.6 million in fiscal 2001 and operating expenses
as a percentage of sales decreased from 8.2% in fiscal 2000 to 6.8% in fiscal
2001. The decrease in operating expenses for the first nine months of fiscal
2001 as compared to the first nine months in fiscal 2000 was mainly attributable
to plant closing, relocation, merger and restructuring costs of $47.2 million
recorded in the third quarter of 2000 related to the Hadco and Essex
acquisitions, partially offset by plant closing, relocation, merger and
restructuring costs of $24.9 million and $3.0 million recorded in the second and
third quarters of 2001, respectively, related to the Segerstrom acquisition and
consolidation of certain facilities.

During the second quarter of fiscal 2001, Sanmina also recorded plant
closing, relocation, merger and restructuring costs of approximately $24.9
million related to the acquisition of Segerstrom. These 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 affecting Segerstrom's employees in
Europe, of which 241 were terminated as of June 30, 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 plant closing, relocation,
merger and restructuring costs:

<Table>
<Caption>
BALANCE AT PROVISION BALANCE AT
NATURE OF SEPTEMBER 30, CHARGED TO CHARGES JUNE 30,
CHARGES 2000 OPERATIONS UTILIZED 2001
--------- ------------- ---------- -------- ----------

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19

<Table>
<Caption>
BALANCE AT PROVISION BALANCE AT
NATURE OF OCTOBER 2, CHARGED TO CHARGES JUNE 30,
CHARGES 1999 OPERATIONS UTILIZED 2000
--------- ---------- ---------- -------- ----------

Due to the slowdown in the EMS industry, Sanmina anticipates that it will
take a restructuring charge of $175 million to $200 million related to
reductions in capacity, including a 15 percent to 20 percent reduction in PCB
fabrication capacity throughout North America, in the fourth quarter of fiscal
2001.

Excluding merger and restructuring charges, for the first nine months of
fiscal 2001, operating expenses as a percentage of sales remained flat at 6.0%,
as compared to the same period for fiscal 2000.

For the third quarter of fiscal 2001, Sanmina reported net other income of
$3.9 million compared to $1.5 million for the corresponding quarter of last
year. For the nine months of fiscal 2001, Sanmina reported net other income of
$16.9 million compared to net other expense of $5.0 million for the nine months
of fiscal 2000. The components of other income and expense, comprising the
overall net income or expense, are primarily interest income on cash balances
and short-term investments and interest expense on borrowings and convertible
subordinated notes. For the third quarter of fiscal 2001 and the first nine
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 third quarter of fiscal 2001
is based upon Sanmina's estimate of the effective tax rate for fiscal 2001 of
38.0%. For the third quarter of fiscal 2000, the effective tax rate was 36.0%.
For the first nine months of fiscal 2001, the effective tax rate was 38.0%.

LIQUIDITY AND CAPITAL RESOURCES

Cash, cash equivalents, and short-term investments as of June 30, 2001 and
September 30, 2000 were each $1.4 billion and $1.3 billion, respectively. For
the nine months ending June 30, 2001, cash provided by operations was $281.4
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 June 30, 2001 compared to $1.9 billion at September 30, 2000. This
increase in working capital was primarily due to decreases in accounts payable
and accrued liabilities.

Net cash used for investing activities for the first nine months of fiscal
2001 primarily related to the purchase of property, plant, and equipment of
$161.8 million and short and long-term investments of $1.7 billion. These
payments were offset by $1.2 billion in maturities of short-term investments.

Net cash provided by financing activities for the first nine 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 $46.6
million, offset by net payments of long-term liabilities of $9.0 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.

18
20

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

In July 2001, the Financial Accounting Standards Board issued SFAS No. 142,
"Goodwill and Other Intangible Assets" to be effective for all fiscal years
beginning after December 15, 2001. Early adoption of the statement is permitted
for entities with fiscal years beginning after March 15, 2001, provided that the
first interim period financial statements have not been issued previously. In
all cases, the provisions of SFAS No. 142 should be applied at the beginning of
a fiscal year. SFAS No. 142 establishes accounting and reporting standards for
goodwill and intangible assets acquired singly, as part of a group or in a
business combination and supersedes APB Opinion No. 17, "Intangible Assets." The
statement requires that goodwill will no longer be amortized, but should be
tested for impairment at least annually at the reporting unit level. Sanmina is
currently analyzing this statement and the impact of their adoption on Sanmina's
financial position, results of operations and cash flows.

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 and our Form
8-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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21

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 June 30, 2001
(in thousands):

<Table>
<Caption>
YEAR ENDED
----------------------------------------------------------------------
2001 2002 2003 2004 2005 THEREAFTER TOTAL
-------- -------- -------- ---- ---- ---------- ----------
(IN THOUSANDS)

Cash equivalents,
short-term, and long-term
investments.............. $491,236 $412,045 $155,545 -- -- -- $1,058,826
Average interest
rate................ 4.51% 5.69% 6.43% -- -- -- 5.25%
</Table>

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 June 30, 2001, Sanmina had
forward contracts to exchange various foreign currencies for U.S. dollars in the
gross amount of $17.0 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.

20
22

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.

On June 13, 2001, Sanmina filed a complaint against Metricom, Inc. in
California state court. The complaint arose out of a July 2, 1999 Agreement for
Electronic Manufacturing Services and seeks compensation for cancellation
charges arising under this agreement. Parent's damages consist of the cost of
certain materials and work-in-process. Metricom has filed for Chapter 11
bankruptcy, and as a result, Sanmina's claim has been stayed. Accordingly,
Sanmina has filed a claim for its damages in the bankruptcy proceedings. Based
on Sanmina's reserves allocated for the Metricom situation as well as current
estimates of funds that will be available to satisfy claims of trade creditors
in the Metricom bankruptcy proceeding, Sanmina currently estimates its potential
exposure on this matter will not exceed $10 million (after exhausting reserves).
The actual amount of exposure will depend on actions taken by the bankruptcy
court, and the amount realized from Metricom's assets in the bankruptcy
proceeding that are available to be distributed to unsecured creditors.
Accordingly, Sanmina's actual exposure in this matter could be in excess of the
estimated amount.

ITEM 2. CHANGES IN SECURITIES

None

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

(a) Exhibits

None

(b) Reports on Form 8-K

On May 14, 2001, Sanmina filed a report on Form 8-K relating to the
acquisition of AB Segerstrom & Svensson.

On May 18, 2001, Sanmina filed a report on Form 8-K relating to the
adoption of a Shareholders' Rights Plan.

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23

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: August 10, 2001

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

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