Solectron swings to profit in Q3

The company reported GAAP profit after tax from continuing operations of $42.4 million, or $0.05 per share, in the third quarter of fiscal 2006, compared with a GAAP profit after tax from continuing operations of $17.1 million, or $0.03 per share, in the second quarter of fiscal 2006. In the third quarter of fiscal 2005, Solectron reported a GAAP loss after tax from continuing operations of $66.7 million, or a loss of $0.07 cents per share. Non-GAAP profit after tax was $38.9 million, or $0.04 per share, in the third quarter of fiscal 2006, compared with non-GAAP profit after tax of $29.7 million, or $0.03 per share, for the second quarter of fiscal 2006. In the third quarter of fiscal 2005, Solectron reported non-GAAP profit after tax of $38.8 million, or $0.04 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 non-GAAP 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. "I am pleased that Solectron delivered a third consecutive quarter of revenue growth and that we continue to deliver on our commitment to return to growth in fiscal 2006," said Mike Cannon, president and chief executive officer, Solectron. "We are also pleased that profitability improved sequentially in the quarter. We believe we have not yet tapped the full potential of the company, and are committed to delivering greater levels of profitability as we move ahead."