Sanmina-SCI emerges from recession

"We delivered a solid first quarter of revenue growth and margin expansion. These results reflect our strong operational execution and an increase in demand which we expect to continue into the second quarter. With visibility improving, new market opportunities and a healthy pipeline, we are optimistic that 2010 will be a year of growth for Sanmina-SCI," stated Jure Sola, Chairman and Chief Executive Officer. Revenue was also up 4 percent compared to $1.42 billion in the same period a year ago. GAAP net income in the first quarter was $59 million compared to a net loss of $33 million. GAAP net loss for the same period a year ago was $26 million, a diluted loss per share of $0.29. GAAP net income in the first quarter 2010 included a one-time benefit of approximately $36 million in connection with certain legal proceedings. Non-GAAP gross profit in the first quarter was $112 million, up 50 basis points, compared to gross profit of $96 million, or 7.1 percent of revenue in the prior quarter. Non-GAAP gross profit for the same period a year ago was $96 million, or 6.7 percent of revenue. Non-GAAP operating income was $49 million, an increase of 41 percent, compared to $35 million in the prior quarter and up 57 percent compared to $31 million in the same period a year ago. Operating margin for the first quarter was 3.3 percent, up 70 basis points, compared to 2.6 percent in the prior quarter and a 110 basis point improvement compared to 2.2 percent in the first quarter fiscal 2009. Non-GAAP net income in the first quarter was $18 million, compared to a net income of $94 thousand in the prior quarter. Non-GAAP net loss for the same period a year ago was $768 thousand, a diluted loss per share.