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 SAN JOSE, Calif., Oct. 27 /PRNewswire/ -- Sanmina Corp. (NASDAQ-NMS: SANM) today reported record sales and earnings for the three months and fiscal year ended Sept. 30, 1993. "Continued strong demand for more sophisticated, higher margin backplane assemblies and subassemblies pushed sales and earnings to record levels," said Jure Sola, Sanmina's president and chief executive officer. "For the quarter, backplane assemblies and subassemblies rose to 67 percent of sales, illustrating further progress in our strategic transition to higher value added interconnect products and manufacturing services."
 Income from Operations Climbs Five-Fold for the Year
 For the year, sales increased 36 percent to $88.5 million, up from $65.1 million in fiscal 1992 due primarily to increased sales of backplane assemblies and subassemblies to two of the company's principal customers. Higher sales volume, improved manufacturing efficiencies and the sales mix shift to high-margin backplane assemblies contributed to an increase in Sanmina's gross margin to 23.6 percent, up from 15.6 percent in fiscal 1992. As a result, gross profit more than doubled to $20.9 million, up from $10.2 million in the prior year.
 "Despite Sanmina's growth over the last year, we held the growth in selling, general and administrative expenses below that of sales," said Sola. "As a result, although selling, general and administrative expenses rose to $7.8 million in fiscal 1993, up from $5.9 million a year ago, it declined as a percentage of sales to 8.9 percent, down from 9.1 percent a year ago." Total operating expenses were $8.5 million for the year compared with $7.5 million in fiscal 1992, representing 9.6 percent and 11.5 percent of sales respectively.
 The result of both higher sales and improved margins was a five-fold growth in operating income to $12.4 million, up from $2.6 million in the prior year.
 Fiscal 1993 income before an extraordinary item increased to $5.9 million, or $1.03 per share on 5.7 million shares, compared with a loss of $1.5 million, or 32 cents on 4.5 million shares, in the prior year. During the second quarter of 1993, Sanmina recognized an extraordinary charge of $824,000 (net of income taxes) to account for the write-off of certain deferred charges in connection with the repayment of debt with the proceeds of the company's initial public offering. After the extraordinary charge, Sanmina reported net income of $5.1 million, or 89 cents per share for the twelve months ended Sept. 30, 1993.
 Sales and Net Income for the Fourth Quarter Show Substantial
 For the fourth quarter, sales increased 29 percent to a record $24.7 million, up from $19.1 million in the same quarter a year ago. Sanmina reported net income for the quarter of $2.3 million, or 32 cents per share on 7.1 million weighted average shares outstanding, compared with net income in the same quarter a year ago of $182,000, or 4 cents per share on 4.5 million weighted average shares outstanding.
 Gross and operating margins improved from the same quarter a year ago reflecting the ongoing trends in sales volume and mix and ongoing improvements in manufacturing and operations. For the quarter, the gross margin increased to 24.8 percent, up from 21.1 percent in the fourth quarter of fiscal 1992. As a result, gross profit increased to $6.1 million, up from $4.0 million in the comparable quarter last year.
 Operating expenses decreased to $2.3 million for the quarter, down from $2.7 million a year ago as fourth quarter fiscal 1992 included a $952,000 one-time charge for closing an idle facility. Excluding the charge, operating expenses increased 28.8 percent, but declined as a percentage of sales to 9.3 percent versus 9.4 percent a year ago. Operating income for the quarter was $3.8 million, up 198 percent from $1.3 million in the same period a year ago.
 The fourth quarter of fiscal 1993 was the first quarter in which Sanmina realized the full benefit of the repayment of debt after the initial public offering in April 1993. As a result, interest and other related expenses dropped to $85,000 for the quarter, down from $928,000 in the same quarter a year ago.
 Headquartered in San Jose, Sanmina Corp. is a leading manufacturer of custom-designed backplane assemblies and subassemblies, and multilayer, high density printed circuit boards used in sophisticated electronic equipment. Sanmina manufactures in the telecommunications, data communications, industrial and medical instrumentation, and computer sectors of the electronics industry including Alcatel, DSC Communications, Northern Telecom, Sun Microsystems, SynOptics and Xerox. The company has manufacturing operations in San Jose, Milpitas, Santa Clara and Fremont, Calif., Richardson, Texas, and Redmond, Wash. Sanmina's common stock trades on the NASDAQ National Market System under the symbol SANM.
 -0- 10/27/93
 /CONTACT: Randy Furr of Sanmina, 408-435-8444, or Lise Needham (general info) or Sue Caulton (investors), 415-986-1591, both of Financial Relations Board/

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

PK -- SF009 -- 7295 10/27/93 12:30 EDT
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Publication:PR Newswire
Date:Oct 27, 1993

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