© Sanmina Electronics Production | October 30, 2019
Jure Sola: ‘I’m proud of our team for delivering solid results’
EMS provider Sanmina recorded fourth quarter revenues of USD 1.89 billions - on the low end of the company’s outlook.
Revenue in the fourth quarter was down 6.6% sequentially or USD 134.8 million and up 0.8% or USD 15.9 million from the fourth quarter of last year. "We delivered good financial results per our plan for the fourth quarter. The team did an excellent job driving operational efficiency and mix improvements which led to better than expected operating margin, non-GAAP earnings per share and free cash flow," says Jure Sola, Executive Chairman of Sanmina, ina press release. non-GAAP operating income amounted to USD 79.6 million during the company’s fourth quarter, down from USD 81.1 million sequentially and up from USD 58.75 million from the same quarter last year. Net income for the fourth quarter ended up at USD 60.6 million, up from USD 59.17 million during the quarter before and up from USD 42.54 million during the same quarter 2018. For the full fiscal year of 2019 revenue ended at USD 8.23 billion, up 15.8% from fiscal 2018 with USD 7.10 billion. 2019 full year non-GAAP operating income amounted to USD 333.9 million compared to USD 2012.8 million for the year before. Net income for 2019 was USD 243.99 million, up from USD 155.91 million for 2018. "Our focus on operational execution and financial excellence is evident in our strong fiscal 2019 results. Revenue grew 16 percent, operating margin expanded 110 basis points to 4.1 percent, non-GAAP earnings per share increased 60 percent to $3.40 compared to fiscal 2019 and we delivered strong free cash flow of $256 million. I am proud of our team for delivering solid results in fiscal 2019," concluded Sola. Going into the first quarter of the fiscal year of 2020, the company is expecting revenue between USD 1.725 billion to USD 1.825 million. "We expect demand to be soft in the first half of the fiscal year as a result of excess inventory in the channel, slower than anticipated 5G deployment and global economic uncertainty. As a result, we have initiated a plan to right size the organization to further improve operational efficiencies and optimize our cost structure. This right-sizing, coupled with our focus on the quality of our revenue, will support our ongoing operating margin, non-GAAP earnings per share and cash generation objectives," says Hartmut Liebel, Chief Executive Officer.