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SOLECTRON REPORTS RECORD FIRST QUARTER SALES AND EARNINGS

 SOLECTRON REPORTS RECORD FIRST QUARTER SALES AND EARNINGS
 SAN JOSE, Calif., Dec. 19 /PRNewswire/ -- Solectron Corp. (NASDAQ: SLTN), the nation's second largest, public, independent provider of customized, integrated manufacturing services to electronic original equipment manufacturers (OEMs) announced record sales and earnings for the three-month period ended Nov. 29, 1991.
 Solectron Corp. reported net sales of $105.5 million for the first quarter of fiscal year 1992. This represented an increase of 97 percent when compared to net sales of $53.6 million for the comparable quarter of fiscal year 1991.
 Income before income taxes for the three-month period ended Nov. 29, 1991, also increased 124 percent to $7.1 million from $3.2 million for the comparable quarter of fiscal year 1991. Net income for the first quarter of fiscal year 1992 was $3.8 million, an increase of 112 percent from last year's first quarter net income of $1.8 million.
 Earnings per share for the first quarter of fiscal year 1992 were 52 cents compared with 28 cents for the comparable period a year ago. Earnings per share increased 24 cents or 86 percent despite an increase in weighted average outstanding shares. Solectron recently completed a public equity offering of 1,725,000 shares, common stock on Oct. 22, 1991.
 Solectron's first quarter 1992 operating margin was 7.2 percent and return on equity was 20.1 percent.
 Solectron Corp., founded in 1977, has total assets of $183.5 million at Nov. 29, 1991.
 Dr. Winston H. Chen, chairman and co-chief executive officer, and Dr. Koichi (Ko) Nishimura, president and co-chief executive officer, jointly issued the following statement. "We are extremely pleased with the continuing business increases from significant new projects initiated in the second half of fiscal 1991.
 "Solectron also benefited in the first quarter from unexpected demand from a broad cross-section of our customers. However, due to continued sluggishness in the computer and related industries, and given the weak general economic conditions, we believe that our performance in the first quarter 1992 should be viewed as exceptional.
 "We remain cautious with respect to the next two fiscal quarters and anticipate that net sales for each of these fiscal quarters may not be as strong as net sales for the first quarter of fiscal 1992."
 Solectron emphasizes high quality, customized manufacturing, providing surface mount and turnkey assembly. Solectron received the 1991 Malcolm Baldrige National Quality Award and has accumulated a total of 39 superior service and quality awards, from customers such as Apple Computer, Applied Materials, Conner Peripherals, Exabyte, Hewlett Packard, IBM and SunMicrosystems. Solectron employs approximately 2,300 people and is headquartered at 2001 Fortune Drive, San Jose, Calif. 95131.
 Consolidated statements of income and balance sheets follow:
 SOLECTRON CORP.
 CONSOLIDATED BALANCE SHEETS
 (In thousands)
 Nov. 29, Aug. 31,
 1991 1991
 (Unaudited)
 ASSETS
 Current assets:
 Cash and cash equivalents $ 13,766 $ 5,801
 Short-term investments 30,915 2,294
 Accounts receivable, net 49,207 40,635
 Inventories 54,520 52,093
 Prepaid expenses and other
 current assets 8,279 6,147
 Total current assets 156,687 106,970
 Net property and equipment 26,274 27,582
 Other assets 565 565
 Total assets $ 183,526 $ 135,117
 LIABILITIES AND SHAREHOLDERS' EQUITY
 Current liabilities:
 Short-term debt $ 518 $ 554
 Current portion of long-term debt
 and capital lease obligations 6,870 5,639
 Accounts payable 49,174 49,833
 Accrued employee compensation 9,760 8,701
 Accrued expenses 4,670 5,641
 Other current liabilities 2,595 1,289
 Total current liabilities 73,587 71,657
 Long-term debt and capital lease
 obligations 15,047 12,479
 Other long-term liabilities 3,582 3,835
 Total liabilities 92,216 87,971
 Shareholders' equity:
 Common stock 61,382 20,984
 Retained earnings 29,928 26,162
 Total shareholders' equity 91,310 47,146
 Total liabilities and shareholders'
 equity $ 183,526 $ 135,117
 SOLECTRON CORP.
 CONSOLIDATED STATEMENTS OF INCOME
 (In thousands except per share data)
 (Unaudited)
 Quarter Ended
 Nov. 29, Nov. 30,
 1991 1990
 Net sales $105,522 $ 53,587
 Cost of sales 91,651 46,014
 Gross profit 13,871 7,573
 Operating expenses:
 Selling, general &
 administrative 5,595 3,796
 Research and development 697 386
 Operating Income 7,579 3,391
 Interest income 167 218
 Interest expense (620) (434)
 Income before income taxes 7,126 3,175
 Income tax expense 3,360 1,397
 Net income $ 3,766 $ 1,778
 Net income per share $ 0.52 $ 0.28
 Shares used in computation 7,201 6,416
 -0- 12/19/91
 /CONTACT: Susan Wang of Solectron Corp., 408-942-2903/
 (SLTN) CO: Solectron Corp. ST: California IN: CPR SU: ERN


DB -- SJ004 -- 4061 12/19/91 16:05 EST
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Date:Dec 19, 1991
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