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SOLECTRON REPORTS RECORD THIRD QUARTER SALES AND EARNINGS

 MILPITAS, Calif., June 14 /PRNewswire/ -- Solectron Corp. (NYSE: SLR) a leading independent provider of integrated manufacturing services to electronic original equipment manufacturers (OEMs) announced record sales and earnings for the three- and nine-month periods ended May 28, 1993.
 Solectron Corp. reported net sales of $242 million for the third quarter
ended May 28, 1993. This represented an increase of


155 percent, when compared with net sales of $94.8 million for the comparable quarter of fiscal 1992. On a year-to-date basis, net sales of $565.9 million represented a 92-percent increase, when compared with $294.3 million of net sales for the comparable period a year ago.
 Net income for the third quarter was $8.7 million, an increase of 171 percent from last year's third quarter net income of $3.2 million. Net income for the nine-month period was $19.4 million, an increase of 86 percent, when compared with $10.4 million of net income for fiscal year 1992's nine-month period.
 Earnings per share on a primary basis for the third quarter ended May 28, 1993, were 42 cents, an increase of 121 percent from 19 cents for the comparable quarter one year ago. On a year-to-date basis, primary earnings per share of $1.04 increased 63 percent, when compared with 64 cents for last year's comparable period. Fully diluted earnings per share were 40 cents and $1.00 for the third quarter and nine-month period of fiscal year 1993, respectively. Fully diluted earnings per share reflect the effect of the company's zero coupon convertible debt.
 The company's year-to-date operating margin is 6.1 percent and its return on equity stands at 15.4 percent.
 Dr. Winston H. Chen, chairman, and Dr. Koichi (Ko) Nishimura, president and chief executive officer, jointly issued the following statement. "We are pleased with the overall performance of Solectron Corporation amid challenges attendant with substantial investment and rapid sales growth."
 Solectron Corp., founded in 1977, had total assets of $550.4 million at May 28, 1993.
 Solectron's manufacturing services primarily involve the assembly of electronics systems and subsystems using surface mount technology (SMT), pin-through-hole (PTH) interconnection and flexible circuit technologies. Solectron received the 1991 Malcolm Baldrige National Qualtiy Award and has accumulated a total of 49 quality and superior sevice awards, from its customers such as Apple Computer, Applied Materials, Conner Peripherals, Exabyte, Hewlett Packard, IBM and Sun Microsystems. Solectron's worldwide headquarters are at 777 Gibraltar Dr., Milpitas, CA 95035.
 SOLECTRON CORP.
 CONSOLIDATED BALANCE SHEETS
 (In thousands)
 May 28, Aug. 28,
 1993 1992
 (Unaudited)
 ASSETS
 Current assets:
 Cash and cash equivalents $ 16,822 $ 88,506
 Short-term investments 177,134 65,302
 Accounts receivable, net 102,802 48,467
 Inventories 130,332 62,361
 Prepaid expenses and other
 current assets 9,450 6,728
 Total current assets 436,540 271,364
 Net property and equipment 99,194 30,796
 Other assets 14,707 6,577
 Total assets $ 550,441 $ 308,737
 LIABILITIES AND SHAREHOLDERS' EQUITY
 Current liabilities:
 Current portion of long-term
 debt and capital lease
 obligations $ 6,314 $ 6,802
 Accounts payable 124,482 50,631
 Accrued employee compensation 15,041 9,649
 Accrued expenses 11,936 1,479
 Other current liabilities 3,679 3,549
 Total current liabilities 161,452 72,110
 Long-term debt and capital lease
 obligations 137,377 130,933
 Other long-term liabilities 896 1,449
 Total liabilities 299,725 204,492
 Shareholders' equity:
 Common stock 193,839 63,595
 Retained earnings 60,046 40,650
 Cumulative translation
 adjustment (3,169) -
 Total shareholders' equity 250,716 104,245
 Total liabilities and shareholders'
 equity $ 550,441 $ 308,737
 CONSOLIDATED STATEMENTS OF INCOME
 (Unaudited, in thousands except per share data)
 Three Months Ended Nine Months Ended
 May 28, May 29, May 28, May 29,
 1993 1992 1993 1992
 Net sales $241,953 $94,751 $565,868 $294,255
 Cost of sales 216,325 81,932 498,948 254,545
 Gross profit 25,628 12,819 66,920 39,710
 Operating expenses:
 Selling, general &
 administrative 10,317 6,110 30,000 17,400
 Research & development 899 662 2,569 2,015
 Operating Income 14,412 6,047 34,351 20,295
 Interest income 2,012 602 4,308 1,140
 Interest expense (2,626) (1,426) (7,825) (2,734)
 Income before
 income taxes 13,798 5,223 30,834 18,701
 Income tax expense 5,105 2,013 11,438 8,290
 Net income $ 8,693 $ 3,210 $ 19,396 $ 10,411
 Net income per share:
 Primary $ 0.42 $ 0.19 $ 1.04 $ 0.64
 Assuming full dilution $ 0.40 $ 0.19 $ 1.00 $ 0.63
 Weighted average number of shares of common stock
 and common stock equivalents:
 Primary 20,478 17,115 18,565 16,368
 Assuming full dilution 25,386 17,149 23,358 16,472
 -0- 6/14/93
 /CONTACT: Leonard Zanoni of Solectron, 408-956-6577/
 (SLR)


CO: Solectron Corp. ST: California IN: CPR SU: ERN

GT -- SJ007 -- 1781 06/14/93 16:15 EDT
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Date:Jun 14, 1993
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