Sanmina Corporation (SANM), an integrated manufacturing solutions company, has announced a 10.58 percent rise in profit for the quarter ended Jun. 28, 2014, helped by growth in sales and margins.
The company earned $20.72 million or $0.24 a share in the third-quarter compared with $18.74 million or $0.22 a share a year ago. Non-GAAP earnings per share came in at $0.53, when analysts expected $0.48.
Revenue during the third-quarter climbed 7.76 percent to $1604.73 million from $1489.21 million in the last year period.
Gross margin expanded by 24 basis points over the last year period to 7.91 percent. Total expenses as a percentage of revenues decreased to 96.68 percent from 97.60 percent in the same period last year. That has resulted in improvement of 92 basis points in operating margins to 3.32 percent.
The company reported operating income of $53.33 million, compared with operating income of $35.68 million in the previous year period.
As on Jun. 28, 2014, the company's cash balance stood at $552.01 million, up 32.57% or $135.62 million from Jun. 29, 2013.
"We delivered a solid third quarter. Revenue was up 9% sequentially and 8% year over year. Each of our end-market segments grew on a sequential basis, with notable performance from our industrial, medical and defense segment," said Jure Sola, chairman and chief executive officer of Sanmina Corporation.
"Our investments in leading technology and capabilities offer differentiation in the market and value for our customers. We continue to benefit from new programs and stable demand with key customers. Our previous expectation of modest growth in fiscal 2014 is achievable and solid execution of our strategy supports a promising future," added Sola.
The company expects fourth quarter revenue to be in the range of $1.60 billion to $1.65 billion. It anticipates non-GAAP diluted earnings per share to be in the range of $0.50 to $0.55 for the fourth quarter.
Working Capital
Sanmina Corp has witnessed an increase in the working capital over the last one year. The company's working capital stood at $1016.15 million as at Jun. 28, 2014, up $78.06 million or 8.32% from $938.09 million on Jun. 29, 2013. It registered a decrease in current ratio to 1.68 as at Jun. 28, 2014 from 1.75 on Jun. 29, 2013.
Debt Position
Sanmina Corp has witnessed an increase in the total debt over the last one year. As on Jun. 28, 2014, total debt stood at $700.45 million, up 3.77% or $25.43 million, from Jun. 29, 2013.
The company's total debt was 21.29% of total assets as on Jun. 28, 2014, compared with 22.66% on Jun. 29, 2013. It has witnessed a decline in debt to equity ratio to 0.62 on Jun. 28, 2014 compared with 0.65 on Jun. 29, 2013.
Interest coverage ratio, which determines how easily a company can pay interest expenses on outstanding debt, has improved to 6.32 from 3.99 in the same period last year.
Shares of Sanmina Corp fell $0.20 or 0.89 percent to close at $22.35 on Monday.
