DOW JONES NEWSWIRES
Sanmina-SCI Corp. (SANM) swung to a fiscal first-quarter profit
as earnings smashed analysts' expectations amid strong margin
gains.
The forecast for the current quarter was also strong, with
Chairman and Chief Executive Jure Sola saying Sanmina expects 2010
to be a year of growth. Shares jumped 14% to $14 in after-hours
trading.
Sanmina, which makes electronics products for brand-name
companies, expects second-quarter earnings, excluding items, of 22
cents to 27 cents a share on revenue between $1.45 billion and
$1.55 billion. Analysts had been expecting earnings of 9 cents on
revenue of $1.36 billion, according to a survey of analysts by
Thomson Reuters.
Sanmina had been reporting a string of losses as weakened demand
dented sales. It responded by focusing on cost reduction, inventory
management and other efforts to increase profit margins.
For the quarter ended Dec. 31, Sanmina posted a profit of $59.4
million, or 74 cents a share, compared with a year-earlier loss of
$25.7 million, or 29 cents a share. Excluding items, including a
$36 million legal settlement in the latest quarter, profit was 23
cents compared with a prior-year loss of 1 cent.
Revenue rose 4.2% to $1.48 billion.
Analysts polled by Thomson Reuters expected earnings of 13 cents
on revenue of $1.4 billion.
Gross margin rose to 7.4% from 5.9%.
The company also said it redeemed $176 million in debt that was
scheduled to mature in June, though its cash and cash equivalent
balance was down to $727 million from $899 million in the previous
quarter.
-By Yogita Patel and David Benoit, Dow Jones Newswires;
212-416-2458; david.benoit@dowjones.com