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Sanmina Reports Fourth Quarter and Fiscal 2024 Financial Results

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SAN JOSE, Calif., Nov. 4, 2024 /PRNewswire/ — Sanmina Corporation (“Sanmina” or the “Company”) (NASDAQ: SANM), a leading integrated manufacturing solutions company, today reported financial results for the fourth quarter and fiscal year ended September 28, 2024 and outlook for its fiscal first quarter ending December 28, 2024.

Fourth Quarter Fiscal 2024 Financial Highlights

•    Revenue: $2.02 billion

•    GAAP operating margin: 4.4%

•    GAAP diluted EPS: $1.09

•    Non-GAAP(1) operating margin: 5.3%

•    Non-GAAP(1) diluted EPS: $1.43

Fiscal Year 2024 Financial Highlights

•    Revenue: $7.57 billion

•    GAAP operating margin: 4.4%

•    GAAP diluted EPS: $3.91

•    Non-GAAP(1) operating margin: 5.4%

•    Non-GAAP(1) diluted EPS: $5.28

Additional Highlights

•    Cash flow from operations: Q4 $52 million and FY’24 $340 million

•    Free cash flow(2): $29 million in Q4 and $231 million in FY’24

•    Share repurchases: 0.9 million shares for $65 million in Q4 and approximately 4.0 million shares for $227 million in FY’24 

•    Q4 ending cash and cash equivalents: $626 million

(1)

See Schedule 1 below for information regarding the items excluded from and our use of non-GAAP financial measures. A reconciliation of the non-GAAP financial information contained in this release to their most directly comparable GAAP measures is included in the financial statements furnished with this release.

(2)

See Condensed Consolidated Cash Flow Statement included in the financial statements furnished with this release.

“We finished the year with solid momentum. Our fourth quarter revenue was up 9.6 percent sequentially, and non-GAAP diluted earnings per share was up 14.3 percent over the prior quarter and exceeded our outlook. We saw growth in the majority of our end-markets, primarily with strength from the communications networks and cloud infrastructure,” stated Jure Sola, Chairman and Chief Executive Officer of Sanmina Corporation.

“Our fiscal year 2024 results were in line with our expectations as we managed a challenging first half with improvements in the second half of the year. While our revenue was impacted for the year, we delivered another solid year of cash flow from operations. Furthermore, we demonstrated our commitment to return value to our shareholders by repurchasing 4 million shares for $227 million in fiscal 2024.” 

“The team has done an excellent job navigating the market dynamics and the Company continues to demonstrate resilience. Based on the forecasts from our customers and currently healthy demand levels, we expect fiscal 2025 to be a growth year,” concluded Sola.

First Quarter Fiscal 2025 Outlook
The following outlook is for the fiscal first quarter ending December 28, 2024. These statements are forward-looking and actual results may differ materially. 

Revenue between $1.925 billion to $2.025 billionGAAP diluted earnings per share between $1.03 to $1.13Non-GAAP diluted earnings per share between $1.30 to $1.40

Safe Harbor Statement
The statements above including our financial outlook for the first quarter fiscal 2025 and expectations for growth in fiscal 2025 generally, constitute forward-looking statements within the meaning of the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934. Actual results could differ materially from those projected in these statements as a result of a number of factors, including adverse changes to the key markets we target; significant uncertainties that can cause our future sales and net income to be variable; reliance on a small number of customers for a substantial portion of our sales; risks arising from our international operations; geopolitical uncertainty, including from the war in Ukraine and conflict in the Middle East; and the other risk factors set forth in the Company’s annual and quarterly reports filed with the Securities Exchange Commission.

The Company is under no obligation to (and expressly disclaims any such obligation to) update or alter any of the forward-looking statements made in this earnings release, the conference call or the Investor Relations section of our website whether as a result of new information, future events or otherwise, unless otherwise required by law.

Company Conference Call Information
Sanmina will hold a conference call to review its financial results for the fourth quarter and fiscal year 2024 and outlook for the first quarter of fiscal 2025 on Monday, November 4, 2024 at 4:30 p.m. ET (1:30 p.m. PT). The access numbers are: domestic 800-836-8184 and international 646-357-8785. The conference will also be webcast live over the Internet. You can log on to the live webcast at Q4’24 Earnings. Additional information in the form of a slide presentation is available on Sanmina’s website at www.sanmina.com. A replay of the conference call will be available for 48-hours. The access numbers are: domestic 888-660-6345 and international 646-517-4150, access code is 88946#.

About Sanmina
Sanmina Corporation, a Fortune 500 company, is a leading integrated manufacturing solutions provider serving the fastest growing segments of the global Electronics Manufacturing Services (EMS) market. Recognized as a technology leader, Sanmina provides end-to-end manufacturing solutions, delivering superior quality and support to Original Equipment Manufacturers (OEMs) primarily in the industrial, medical, defense and aerospace, automotive, communications networks and cloud infrastructure markets. Sanmina has facilities strategically located in key regions throughout the world. More information about the Company is available at www.sanmina.com.

Sanmina Contact
Paige Melching
SVP, Investor Communications
408-964-3610

 

Sanmina Corporation

Condensed Consolidated Balance Sheets

(in thousands)

(GAAP)

(Unaudited)

September 28,
2024

September 30,
2023

ASSETS

Current assets:

Cash and cash equivalents

$          625,860

$          667,570

Accounts receivable, net

1,337,562

1,230,771

Contract assets

384,077

445,757

Inventories

1,335,744

1,477,223

Prepaid expenses and other current assets

79,301

58,249

Total current assets

3,762,544

3,879,570

Property, plant and equipment, net

616,067

632,836

Deferred tax assets

160,703

177,597

Other

175,646

183,965

Total assets

$       4,714,960

$       4,873,968

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

$       1,485,484

$       1,612,833

Accrued liabilities

196,681

267,148

Accrued payroll and related benefits

133,129

127,406

Short-term debt, including current portion of long-term debt

17,500

25,945

Total current liabilities

1,832,794

2,033,332

Long-term liabilities:

Long-term debt

299,823

312,327

Other

220,835

209,684

Total long-term liabilities

520,658

522,011

Stockholders’ equity

2,361,508

2,318,625

Total liabilities and stockholders’ equity

$       4,714,960

$       4,873,968

 

Sanmina Corporation

Condensed Consolidated Statements of Income

(in thousands, except per share amounts)

(GAAP)

(Unaudited)

Three Months Ended

Twelve Months Ended

September 28,
2024

September 30,
2023

September 28,
2024

September 30,
2023

Net sales

$     2,017,505

$     2,052,019

$     7,568,328

$     8,935,048

Cost of sales

1,846,212

1,878,591

6,927,899

8,191,837

Gross profit

171,293

173,428

640,429

743,211

Operating expenses:

Selling, general and administrative

70,490

62,124

266,194

255,072

Research and development

8,243

7,715

28,514

26,427

Restructuring

2,970

4,323

10,227

6,054

Total operating expenses

81,703

74,162

304,935

287,553

Operating income

89,590

99,266

335,494

455,658

Interest income

2,799

3,910

12,440

13,595

Interest expense

(5,047)

(8,257)

(29,183)

(36,290)

Other expense

(564)

(8,168)

(1,216)

(20,156)

Interest and other, net

(2,812)

(12,515)

(17,959)

(42,851)

Income before income taxes

86,778

86,751

317,535

412,807

Provision for income taxes

19,438

21,396

79,784

85,294

Net income before noncontrolling interest

67,340

65,355

237,751

327,513

     Less: Net income attributable to noncontrolling interest

5,959

3,514

15,215

17,543

Net income attributable to common shareholders

$          61,381

$          61,841

$        222,536

$        309,970

Net income attributable to common shareholders per share:

Basic

$               1.12

$               1.08

$               4.00

$               5.36

Diluted

$               1.09

$               1.04

$               3.91

$               5.18

Weighted-average shares used in computing per share amounts:

Basic

54,783

57,406

55,592

57,847

Diluted

56,235

59,178

56,970

59,815

 

Sanmina Corporation

Reconciliation of GAAP to Non-GAAP Measures

(in thousands, except per share amounts)

(Unaudited)

Three Months Ended

Twelve Months Ended

September 28,
2024

June 29,
2024

September 30,
2023

September 28,
2024

September 30,
2023

GAAP Operating income

$           89,590

$           82,367

$          99,266

$         335,494

$         455,658

GAAP Operating margin

4.4 %

4.5 %

4.8 %

4.4 %

5.1 %

Adjustments:

Stock compensation expense (1)

15,489

14,682

12,942

57,407

50,402

Amortization of intangible assets

1,342

2,493

Distressed customer charges (recoveries)
(2)

(2,500)

1,799

Legal and other (3)

(720)

500

1,130

5,170

Restructuring

2,970

1,793

4,323

10,227

6,054

Non-GAAP Operating income

$         107,329

$           96,842

$        117,873

$        406,057

$        519,777

Non-GAAP Operating margin

5.3 %

5.3 %

5.7 %

5.4 %

5.8 %

GAAP Net income attributable to common
shareholders

$           61,381

$           51,602

$          61,841

$         222,536

$         309,970

Adjustments:

Operating income adjustments (see above)

17,739

14,475

18,607

70,563

64,119

Legal and other (3)

(4,967)

(3,630)

Adjustments for taxes (4)

1,175

4,751

3,526

12,736

3,771

Non-GAAP Net income attributable to
common shareholders

$           80,295

$           70,828

$          83,974

$        300,868

$        374,230

GAAP Net income attributable to common
shareholders per share:

Basic

$               1.12

$               0.93

$               1.08

$               4.00

$               5.36

Diluted

$               1.09

$               0.91

$               1.04

$               3.91

$               5.18

Non-GAAP Net income attributable
to common shareholders per share:

Basic

$               1.47

$               1.28

$               1.46

$               5.41

$               6.47

Diluted

$               1.43

$               1.25

$               1.42

$               5.28

$               6.26

Weighted-average shares used in
computing per share amounts:

Basic

54,783

55,466

57,406

55,592

57,847

Diluted

56,235

56,711

59,178

56,970

59,815

(1)

Stock compensation expense

Cost of sales

$             4,700

$             4,327

$            3,978

$           17,493

$           16,763

Selling, general and administrative

10,461

10,082

8,747

38,867

32,781

Research and development

328

273

217

1,047

858

Total

$           15,489

$           14,682

$          12,942

$          57,407

$          50,402

(2)

Relates to accounts receivable and inventory write-downs (recoveries) associated with distressed
customers.

(3)

Represents expenses, charges and recoveries associated with certain legal and other matters.

(4)

GAAP provision for income taxes

$           19,438

$           19,900

$          21,396

$           79,784

$           85,294

Adjustments:

Tax impact of operating income adjustments

1,550

1,303

2,645

7,415

7,736

Discrete tax items

2,925

1,462

1,210

3,425

12,930

Deferred tax adjustments

(5,650)

(7,516)

(7,381)

(23,576)

(24,437)

Subtotal – adjustments for taxes

(1,175)

(4,751)

(3,526)

(12,736)

(3,771)

Non-GAAP provision for income taxes

$           18,263

$           15,149

$          17,870

$          67,048

$          81,523

 

Q1 FY25 Earnings Per Share Outlook*:

Q1 FY25 EPS Range

Low

High

GAAP diluted earnings per share

$                  1.03

$                  1.13

Stock compensation expense

$                  0.27

$                  0.27

Non-GAAP diluted earnings per share

$                  1.30

$                  1.40

* Due to uncertainty regarding the timing of recognition of restructuring charges, impairment charges and other unusual or infrequent items, if any, that could be incurred during the first quarter of FY25, an estimate of such items is not included in the outlook for Q1 FY25 GAAP EPS.

 

Sanmina Corporation

Condensed Consolidated Cash Flow

(in thousands)

(GAAP)

(Unaudited)

Three Month Periods

Twelve Month Periods

Q4’24

Q3’24

Q2’24

Q1’24

Q4’23

FY24

FY23

Net income before noncontrolling interest

$    67,340

$    54,738

$    55,309

$    60,364

$    65,355

$  237,751

$  327,513

Depreciation and amortization

31,654

29,764

30,274

30,726

30,521

122,418

118,237

Other, net

30,110

19,708

18,634

18,185

21,947

86,637

80,923

Net change in net working capital

(77,229)

(14,211)

(31,900)

16,750

(40,966)

(106,590)

(291,505)

Cash provided by operating activities

51,875

89,999

72,317

126,025

76,857

340,216

235,168

Purchases of long-term investments

(3,300)

(600)

(700)

(600)

(500)

(5,200)

(2,500)

Net purchases of property & equipment

(22,597)

(22,772)

(29,611)

(34,216)

(37,803)

(109,196)

(189,958)

Cash used in investing activities

(25,897)

(23,372)

(30,311)

(34,816)

(38,303)

(114,396)

(192,458)

Holdback paid in connection with previous
business combination

(8,558)

Net share repurchases

(60,412)

(54,629)

(17,477)

(115,619)

(30,397)

(248,137)

(103,681)

Net borrowing activities

(4,375)

(4,375)

(12,820)

4,070

(21,570)

(9,055)

Proceeds from sale of non-controlling
interest

215,799

Cash used for financing activities

(60,412)

(59,004)

(21,852)

(128,439)

(26,327)

(269,707)

94,505

Effect of exchange rate changes

2,585

(772)

(886)

1,250

(1,245)

2,177

498

Net change in cash & cash equivalents

$  (31,849)

$      6,851

$    19,268

$  (35,980)

$    10,982

$  (41,710)

$  137,713

Free cash flow:

Cash provided by operating activities

$    51,875

$    89,999

$    72,317

$  126,025

$    76,857

$  340,216

$  235,168

Net purchases of property & equipment

(22,597)

(22,772)

(29,611)

(34,216)

(37,803)

(109,196)

(189,958)

$    29,278

$    67,227

$    42,706

$    91,809

$    39,054

$  231,020

$    45,210

Schedule 1

The statements above and financial information provided in this earnings release include non-GAAP measures of operating income, operating margin, net income and earnings per share. Management excludes from these measures stock-based compensation, restructuring, acquisition and integration expenses, impairment charges, amortization charges and other unusual or infrequent items, as adjusted for taxes, as more fully described below.

Management excludes these items principally because such charges or benefits are not directly related to the Company’s ongoing core business operations. We use such non-GAAP measures in order to (1) make more meaningful period-to-period comparisons of the Company’s operations, both internally and externally, (2) guide management in assessing the performance of the business, internally allocating resources and making decisions in furtherance of Company’s strategic plan, (3) provide investors with a better understanding of how management plans and measures the business and (4) provide investors with a better understanding of our ongoing, core business. The material limitations to management’s approach include the fact that the charges, benefits and expenses excluded are nonetheless charges, benefits and expenses required to be recognized under GAAP and, in some cases, consume cash which reduces the Company’s liquidity. Management compensates for these limitations primarily by reviewing GAAP results to obtain a complete picture of the Company’s performance and by including a reconciliation of non-GAAP results to GAAP results in its earnings releases.

Additional information regarding the economic substance of each exclusion, management’s use of the resultant non-GAAP measures, the material limitations of management’s approach and management’s methods for compensating for such limitations is provided below.

Stock-based Compensation Expense, which consists of non-cash charges for the estimated fair value of equity awards granted to employees and directors, is excluded in order to permit more meaningful period-to-period comparisons of the Company’s results since the Company grants different amounts and value of equity awards each quarter. In addition, given the fact that competitors grant different amounts and types of equity awards and may use different valuation assumptions, excluding stock-based compensation permits more accurate comparisons of the Company’s core results with those of its competitors.

Restructuring, Acquisition and Integration Expenses, which consist of employee severance, lease termination costs, exit costs, environmental investigation, remediation and related employee costs and other charges primarily related to closing and consolidating manufacturing facilities and those associated with the acquisition and integration of acquired businesses, are excluded because such charges (1) can be driven by the timing of acquisitions and exit activities which are difficult to predict, (2) are not directly related to ongoing business results and (3) generally do not reflect expected future operating expenses. In addition, given the fact that the Company’s competitors complete acquisitions and adopt restructuring plans at different times and in different amounts than the Company, excluding these charges or benefits permits more accurate comparisons of the Company’s core results with those of its competitors. Items excluded by the Company may be different from those excluded by the Company’s competitors and restructuring and integration expenses include both cash and non-cash expenses. Cash expenses reduce the Company’s liquidity. Therefore, management also reviews GAAP results including these amounts.

Impairment Charges for Goodwill and Other Assets, which consist of non-cash charges, are excluded because such charges are non-recurring and do not reduce the Company’s liquidity. In addition, given the fact that the Company’s competitors may record impairment charges at different times, excluding these charges permits more accurate comparisons of the Company’s core results with those of its competitors.

Amortization Charges, which consist of non-cash charges impacted by the timing and magnitude of acquisitions of businesses or assets, are also excluded because such charges do not reduce the Company’s liquidity. In addition, such charges can be driven by the timing of acquisitions, which is difficult to predict. Excluding these charges permits more accurate comparisons of the Company’s core results with those of its competitors because the Company’s competitors complete acquisitions at different times and for different amounts than the Company.

Other Unusual or Infrequent Items, such as charges or benefits associated with distressed customers, expenses, charges and recoveries relating to certain legal matters, and gains and losses on sales of assets, are excluded because such items are typically non-recurring, difficult to predict or not directly related to the Company’s ongoing or core operations and are therefore not considered by management in assessing the current operating performance of the Company and forecasting earnings trends. However, items excluded by the Company may be different from those excluded by the Company’s competitors. In addition, these items include both cash and non-cash expenses. Cash expenses reduce the Company’s liquidity. Management compensates for these limitations by reviewing GAAP results including these amounts.

Adjustments for Taxes, which consist of the tax effects of the various adjustments that we exclude from our non-GAAP measures, and adjustments related to deferred tax and discrete tax items. Including these adjustments permits more accurate comparisons of the Company’s core results with those of its competitors. We determine the tax adjustments based upon the various applicable effective tax rates. In those jurisdictions in which we do not expect to realize a tax cost or benefit (due to a history of operating losses or other factors), a reduced tax rate is applied.

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SOURCE Sanmina Corporation

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Media advisory – Minister Champagne to confirm an investment in the Canadian telecommunications sector

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OTTAWA, ON, Nov. 6, 2024 /CNW/ – The Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry, will confirm an investment in 5G and advanced network technologies.

Date: Thursday, November 7, 2024

Time: 4 pm (EST)

Location: Ottawa, Ontario

Members of the media are asked to contact ISED Media Relations at media@ised-isde.gc.ca to receive event location details and confirm their attendance. Media representatives are asked to arrive 15 minutes before the start of the event.

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Miami-Dade Voters Overwhelmingly Support Countywide Free Public Wi-Fi Expansion Led by Commissioner Kionne L. McGhee

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MIAMI, Nov. 6, 2024 /PRNewswire/ — In a landmark vote, over 776,000 Miami-Dade residents, or 76.72% of voters, voiced strong support for expanding free public Wi-Fi access across the county. Spearheaded by Miami-Dade Commissioner Kionne L. McGhee, this non-binding initiative signals widespread public backing for efforts to bridge the digital divide and create greater internet access for all residents.

Commissioner McGhee, who has a distinguished background in public service as an assistant prosecutor, author, adjunct professor, and former Minority Leader of the Florida House, has made digital equity a priority. “This initiative is about ensuring that every family, student, farmer, and senior citizen in Miami-Dade has access to the internet—a critical resource in today’s world,” McGhee said. “Expanding free public Wi-Fi would help close the gap for marginalized communities and create opportunities for economic mobility and generational wealth.”

Many families in Miami-Dade, especially in low-income and underserved areas, still lack reliable internet access. According to Miami-Dade County Public Schools, approximately 25% of students—about 88,000 children—do not have access to high-speed internet at home, a gap that impacts their ability to complete homework, attend virtual classes, and use online resources critical for educational success.

The county’s senior citizens are also among the most digitally underserved. AARP reports that 34% of seniors in the U.S. do not have internet access at home. For older adults, reliable internet is vital to accessing health information, staying in touch with family, and connecting with social services. As Miami-Dade’s population ages, ensuring that seniors have access to free public Wi-Fi will help combat social isolation and improve quality of life.

“From schoolchildren to seniors, every resident in Miami-Dade deserves equal access to the digital tools that define our daily lives,” McGhee said. “This isn’t just a technology issue—it’s a matter of equity and opportunity.”

Rural communities in Miami-Dade also face unique connectivity challenges. Farmers, for example, rely on the internet for essential agricultural technologies like precision farming, weather tracking, and market data. Yet, 22% of farms across the U.S. still lack reliable internet access, according to the USDA.

“Expanding public Wi-Fi to rural areas would allow our farmers to access the latest technologies and remain competitive,” McGhee explained. “A digitally connected agricultural sector benefits everyone in Miami-Dade County.”

Cities like New York, San Francisco, and Kansas City have already adopted free public Wi-Fi to promote digital inclusion and foster innovation. By expanding public Wi-Fi, Miami-Dade can join these pioneering communities, moving closer to becoming a world-class county where no resident is left behind in the digital age.

Miami-Dade can’t reach its full potential as a world-class community without ensuring that every resident has the tools to thrive in the 21st century,” said McGhee. “Expanding free public Wi-Fi is about more than just convenience—it’s about giving families, students, seniors, and farmers the digital resources they need to succeed.”

Contact: Juanita Olvera, Juanita.olvera@miamidade.gov

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Statement – Government of Canada orders the wind up of TikTok Technology Canada, Inc. following a national security review under the Investment Canada Act

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OTTAWA, ON, Nov. 6, 2024 /CNW/ – Today, the Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry, made the following statement:

“As a result of a multi-step national security review process, which involves rigorous scrutiny by Canada’s national security and intelligence community, the Government of Canada has ordered the wind up of  the Canadian business carried on by TikTok Technology Canada, Inc. The government is taking action to address the specific national security risks related to ByteDance Ltd.’s operations in Canada through the establishment of TikTok Technology Canada, Inc. The decision was based on the information and evidence collected over the course of the review and on the advice of Canada’s security and intelligence community and other government partners.

“The government is not blocking Canadians’ access to the TikTok application or their ability to create content. The decision to use a social media application or platform is a personal choice. It is important for Canadians to adopt good cyber security practices and assess the possible risks of using social media platforms and applications, including how their information is likely to be protected, managed, used and shared by foreign actors, as well as to be aware of which country’s laws apply. The government encourages Canadians to consult the guidance issued by Communications Security Establishment Canada’s Canadian Centre for Cyber Security to help them assess these risks.

“The government’s decision was made in accordance with the Investment Canada Act, which allows for the review of foreign investments that may be injurious to Canada’s national security. The government applies enhanced scrutiny to investments that fall within the jurisdiction of the Investment Canada Act for a number of business sectors and activities, including the interactive digital media sector as outlined in the March 2024 Policy Statement on Foreign Investment Review in the Interactive Digital Media Sector.

“While Canada continues to welcome foreign direct investment, the government will act decisively when investments threaten our national security.”

Associated links

Policy Statement on Foreign Investment Review in the Interactive Digital Media SectorGuidelines on the National Security Review of InvestmentsProtect how you connect

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