Solectron report sales up 22%

The company reported GAAP profit after tax from continuing operations of $6.6 million, or $0.01 per share, in the first quarter of fiscal 2007, compared with a GAAP profit after tax from continuing operations of $38.8 million, or $0.04 per share, in the fourth quarter of fiscal 2006. First quarter fiscal 2007 results include $34.6 million in charges related to a restructuring program announced in October 2006. In the first quarter of fiscal 2006, Solectron reported a GAAP profit after tax from continuing operations of $20.2 million, or $0.02 per share. Non-GAAP profit after tax was $47.6 million, or $0.05 per share, in the first quarter of fiscal 2007, compared with non-GAAP profit after tax of $54.8 million, or $0.06 per share, for the fourth quarter of fiscal 2006. In the first quarter of fiscal 2006, Solectron reported non-GAAP profit after tax of $28.1 million, or $0.03 per share. Non-GAAP financial results do not include restructuring costs, impairment charges, amortization of intangibles, stock-based compensation expenses, or other unusual or infrequent items. Please refer to “Non-GAAP Information" below for further information. “I am pleased with the strength of our revenue in the first quarter," said Mike Cannon, president and chief executive officer of Solectron. “While first quarter gross margin did not meet our expectations, we are committed to achieving the growth and profitability targets we have set for Fiscal 2007, and expect to show an improving trend in profitability in the second half of the year." Fiscal second quarter guidance is for sales of $2.80 billion to $3.00 billion, and for non-GAAP EPS from continuing operations in a range of 4 cents to 6 cents, on a fully diluted basis.