Sanmina Corporation (SANM) has reported 65.32 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $44.86 million, or $0.58 a share in the quarter, compared with $27.14 million, or $0.33 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $57.73 million, or $0.75 a share compared with $46.81 million or $0.58 a share, a year ago. Revenue during the quarter grew 12.07 percent to $1,719.98 million from $1,534.71 million in the previous year period. Gross margin for the quarter contracted 37 basis points over the previous year period to 7.68 percent. Total expenses were 96.59 percent of quarterly revenues, up from 96.48 percent for the same period last year. That has resulted in a contraction of 11 basis points in operating margin to 3.41 percent.
Operating income for the quarter was $58.66 million, compared with $54.05 million in the previous year period.
However, the adjusted operating income for the quarter stood at $71.73 million compared to $61.02 million in the prior year period. At the same time, adjusted operating margin improved 19 basis points in the quarter to 4.17 percent from 3.98 percent in the last year period.
"Solid execution and growth in our end-markets were key drivers for our improved financial results in the quarter. Revenue was up 3 percent sequentially and 12 percent year over year," stated Jure Sola, chairman and chief executive officer of Sanmina Corporation. "Our value-added services, diversified markets and innovative technologies are key differentiators for Sanmina which allow us to capitalize on opportunities with new and existing customers. Based on our results for the first quarter and our outlook for the second quarter, we are optimistic that fiscal 2017 will be another growth year," concluded Mr. Sola.
For the second-quarter, Sanmina-Sci Corp projects revenue to be in the range of $1,675 million to $1,725 million. On an adjusted basis, the company forecasts diluted earnings per share to be in the range of $0.67 to $0.72 for the second-quarter.
Working capital increases marginallySanmina Corporation has recorded an increase in the working capital over the last year. It stood at $982.34 million as at Dec. 31, 2016, up 1.42 percent or $13.77 million from $968.57 million on Jan. 02, 2016. Current ratio was at 1.68 as on Dec. 31, 2016, down from 1.74 on Jan. 02, 2016. Cash conversion cycle (CCC) has decreased to 15 days for the quarter from 48 days for the last year period. Days sales outstanding went down to 51 days for the quarter compared with 55 days for the same period last year.
Days inventory outstanding has decreased to 28 days for the quarter compared with 59 days for the previous year period. At the same time, days payable outstanding went down to 63 days for the quarter from 66 for the same period last year.
Debt comes down
Sanmina Corporation has recorded a decline in total debt over the last one year. It stood at $436.71 million as on Dec. 31, 2016, down 14.96 percent or $76.80 million from $513.52 million on Jan. 02, 2016. Total debt was 11.91 percent of total assets as on Dec. 31, 2016, compared with 14.97 percent on Jan. 02, 2016. Debt to equity ratio was at 0.26 as on Dec. 31, 2016, down from 0.34 as on Jan. 02, 2016. Interest coverage ratio improved to 11.14 for the quarter from 9.20 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
