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SOLECTRON CORP. REPORTS RECORD FOURTH QUARTER AND FISCAL YEAR SALES AND EARNINGS

 MILPITAS, Calif., Sept. 13 /PRNewswire/ -- Solectron Corp. (NYSE: SLR) a leading independent provider of integrated manufacturing services to electronic original equipment manufacturers announced record sales and earnings for the three- and 12-month periods ended Aug. 31, 1993.
 Solectron Corp. reported net sales of $270.5 million for the fourth quarter ended Aug. 31, 1993. This represented an increase of 140 percent when compared with net sales of $112.6 million for the comparable quarter of fiscal 1992. For fiscal 1993, net sales of $836.3 million represented a 106 percent increase over net sales of $406.9 million in fiscal 1992.
 Net income for the fiscal 1993 fourth quarter was $11.2 million, an increase of 175 percent from last year's fourth quarter net income of $4.1 million. For fiscal 1993, net income was $30.6 million an increase of 111 percent when compared with $14.5 million of net income for fiscal year 1992.
 Earnings per share on a primary basis for the fourth quarter ended Aug. 31, 1993, were 54 cents, an increase of 125 percent from 24 cents for the comparable quarter one year ago. For fiscal 1993, primary earnings per share of $1.60 increased 82 percent when compared with 88 cents for last year's comparable period. Fully diluted earnings per share were 49 cents and $1.50 for the fourth quarter and fiscal year 1993, respectively. Fully diluted earnings per share reflect the effect of the company's zero coupon convertible debt.
 The company's fiscal 1993 operating margin was 6.4 percent and its return on equity was 16.8 percent.
 Winston H. Chen, chairman and Koichi (Ko) Nishimura, president and chief executive officer, jointly issued the following statement. "We are very proud of Solectron's accomplishments in fiscal 1993. We look forward to accepting the challenges presented to us during fiscal 1994."
 Solectron Corp. founded in 1977, has total assets of $603.3 million at Aug. 31, 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. The company also provides design, prototype, materials management, software manufacturing, packaging, remanufacturing and test services. Solectron received the 1991 Malcolm Baldrige National Quality Award, and has accumulated a total of 52 quality and superior service awards from customers such as Apple Computer, Applied Materials, Conner Peripherals, Exabyte, Hewlett Packard, IBM and Sun Microsystems. The company's worldwide headquarters are located at 777 Gibraltar Dr., Milpitas, Calif., 95035.
 Consolidated statements of income and balance sheets follow.
 SOLECTRON CORPORATION
 CONSOLIDATED BALANCE SHEETS
 (In thousands)
 August 31, August 31,
 1993 1992
 ASSETS
 Current assets:
 Cash and cash equivalents $ 35,232 $ 88,506
 Short-term investments 135,245 65,302
 Accounts receivable, net 128,268 48,467
 Inventories 158,493 62,361
 Prepaid expenses and other
 current assets 11,928 6,728
 Total current assets 469,166 271,364
 Net property and equipment 118,386 30,796
 Other assets 15,733 6,577
 Total assets $ 603,285 $ 308,737
 LIABILITIES AND SHAREHOLDERS' EQUITY
 Current liabilities:
 Current portion of long-term debt $ 6,613 $ 6,802
 and capital lease obligations
 Accounts payable 164,469 50,631
 Accrued employee compensation 15,249 9,649
 Accrued expenses 14,413 1,479
 Other current liabilities 3,397 3,549
 Total current liabilities 204,141 72,110
 Long-term debt and capital lease
 obligations 137,011 130,933
 Other long-term liabilities 1,153 1,449
 Total liabilities 342,305 204,492
 Shareholders' equity:
 Common stock 197,739 63,595
 Retained earnings 71,250 40,650
 Cumulative translation adjustment (8,009) -
 Total shareholders' equity 260,980 104,245
 Total liabilities and shareholders'
 equity $ 603,285 $ 308,737
 SOLECTRON CORP.
 Consolidated Statements Of Income
 (In thousands except per share data)
 Quarter Ended Fiscal Year Ended
 Aug. 31, Aug. 31,
 1993 1992 1993 1992
 Net sales $270,458 $112,628 $836,326 $406,883
 Cost of sales 238,510 98,282 737,458 352,827
 Gross profit 31,948 14,346 98,868 54,056
 Operating expenses:
 Selling, general &
 administrative 11,965 6,372 41,965 23,772
 Research & development 1,194 1,116 3,763 3,131
 Operating Income 18,789 6,858 53,140 27,153
 Interest income 1,743 1,237 6,051 2,377
 Interest expense (2,753) (2,652) (10,578) (5,386)
 Income before income taxes 17,779 5,443 48,613 24,144
 Income tax expense 6,575 1,366 18,013 9,656
 Net income $ 11,204 $ 4,077 $ 30,600 $ 14,488
 Net income per share:
 Primary $ 0.54 $ 0.24 $ 1.60 $ 0.88
 Fully Diluted $ 0.49 $ 0.24 $ 1.50 $ 0.87
 Weighted average number of
 shares of common stock and
 common stock equivalents:
 Primary 20,840 17,160 19,066 16,550
 Fully diluted 25,598 17,145 23,908 16,614
 /CONTACT: Leonard Zanoni of Solectron, 408-956-6577/
 (SCR)


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

LH -- SJ009 -- 1441 09/13/93 16:15 EDT
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