Solectron reports sales increase

The company reported GAAP profit after tax from continuing operations of $17.1 million, or $0.02 per share, in the second quarter of fiscal 2006, compared with a GAAP profit after tax from continuing operations of $20.2 million, or $0.02 per share, in the first quarter of fiscal 2006. In the second quarter of fiscal 2005, Solectron reported a GAAP loss after tax from continuing operations of $3.1 million, or $(0.00) cents per share. The company reported GAAP profit after tax of $30.4 million, or $0.03 per share, in the second quarter of fiscal 2006, including a gain of approximately $13.3 million from discontinued operations, primarily related to a working capital settlement in connection with a past divestiture. Non-GAAP profit after tax was $29.7 million, or $0.03 per share, in the second quarter of fiscal 2006, compared with non-GAAP profit after tax of $28.1 million, or $0.03 per share, for the first quarter of fiscal 2006. In the second quarter of fiscal 2005, Solectron reported non-GAAP profit after tax of $44.7 million, or $0.05 per share. Non-GAAP financial results do not include restructuring costs, impairment charges, amortization of intangibles, stock-based compensation expenses, or other infrequent or unusual items. The financial results of prior periods have been adjusted to exclude the impact of stock compensation charges and amortization of intangibles. Please refer to "Non-GAAP Information" below for further information. "We are pleased to see that revenue growth has resumed over the past two quarters and that we are delivering on our commitment to return to growth in fiscal 2006," said Mike Cannon, president and chief executive officer, Solectron. "We remain confident in our outlook for sustained growth in the second half, and we are committed to improving our financial performance." Click here to read the ful report (www.solectron.com).