Circuits Assembly Online Magazine - UPDATED: Sanmina-SCI Reports Q4 Net Income Down 42.4% YoY

SAN JOSE – Electronics manufacturing services provider Sanmina-SCI Corp. reported fourth-quarter net income slid on heavy restructuring charges related to its acquisition of Breconridge last year.

Fourth-quarter profits were $18.1 million, down 42.4% year-over-year, and up 92.5% sequentially. Revenue was $1.7 billion, up 1.3% sequentially and nearly flat year-over-year. GAAP operating income was $53.5 million or 3.2% of revenue, up 1.13% sequentially, and down 8.1% year-over-year. Inventory turns fell to 7 from 7.2.

The company took $14 million in one-time charges, due partially to the move of all high-volume optical production from Canada to a factory in Guadalajara, Mexico. The pricing environment has been stable, CFO Bob Eulau said. Cash flow from operations for the quarter was $79 million and capital expenditures were $24 million. The company's largest customer is Nokia Siemens.

Revenue for fiscal 2011 was $6.6 billion, up 4.5% compared to the prior year. GAAP operating income was $212 million, up 3.5% year-over-year. GAAP net income was $68.9 million, down 43.7% compared to fiscal 2010.

“Despite headwinds in the market, we had a solid fourth quarter,” said Jure Sola, chairman and CEO. ”Our first quarter fiscal 2012 guidance represents uncertainty in the market, push-outs from customers and potential supply constraints related to the Thailand floods. Fiscal 2012 is difficult to forecast at this time, but I am cautiously optimistic we will deliver improvements.”

On a Nov. 1 conference call with analysts, Sola said the company's overall capacity utilization was 85% to 90% in terms of personnel and 75% in terms of equipment. Sanmina expects first fiscal quarter 2012 revenue between $1.5 billion to $1.6 billion.

For the quarter, computing was up 2.8%, bringing the spike to 14% for the year. Sola also indicated that the defense segment, which was down in 2011, is not expected to recover quickly in 2012. Growth is expected in other businesses, including multimedia.

The company's facility in Thailand, which makes up 3% to 4% of overall sales, has not been affected by the local floods and is still operating.

Sanmina is a top 40 PCB fabricator: http://pcdandf.com/cms/component/content/article/237-2011-issues/8280-nti-100.