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SOLECTRON REPORTS SECOND QUARTER SALES AND EARNINGS

 Milpitas, Calif., March 11 /PRNewswire/ -- Solectron Corp. (NYSE: SLR), a leading provider of integrated manufacturing services to electronic original equipment manufacturers (OEMs) announced sales and earnings for the three- and six-month periods ended Feb. 26, 1993. These results are consistent with the preliminary second quarter results reported on March 3, 1993.
 Solectron Corp. reported net sales of $187.4 million for the second quarter ended Feb. 26, 1993. This represented an increase of 99 percent when compared with net sales of $94 million for the comparable quarter of fiscal 1992. On a year-to-date basis, net sales of $323.9 million represented a 62-percent increase when compared with $199.5 million of net sales for the comparable period a year ago.
 Net income for the second quarter was $6.6 million, an increase of 92 percent from last year's second quarter net income of $3.4 million. Net income for the six-month period was $10.7 million, an increase of 49 percent when compared with $7.2 million of net income for fiscal year 1992's first half.
 Earnings per share on a primary basis for the second quarter of fiscal year 1993 were 38 cents, an increase of 90 percent from 20 cents for the comparable quarter one year ago. On a year-to-date basis, primary earnings per share of 62 cents increased 38 percent when compared with 45 cents for last year's comparable period. Fully diluted earnings per share were 36 cents and 60 cents for the second quarter and six 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 6.2 percent and its return on equity stands at 20.9 percent.
 Dr. Winston H. Chen, chairman, and Dr. Koichi (Ko) Nishimura, president and chief executive officer, jointly issued the following statement. "We are very pleased with these strong second quarter results during a period of considerable investments in support of our geographic expansion and revenue growth. We continue to be pleased with the operational progress at our new sites in Bordeaux, France and Charlotte, North Carolina recently acquired from IBM."
 Solectron Corp., founded in 1977, has total assets of $390.6 million at Feb. 26, 1993.
 On March 8, 1993, Solectron Corp. announced that it had commenced the public offering of 3,000,000 shares of its Common Stock at a price of $40.25 per share.
 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 Quality Award and has accumulated a total of 44 quality and superior service 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.
 Consolidated statements of income and balance sheets follow.
 SOLECTRON CORP.
 CONSOLIDATED BALANCE SHEETS
 (In thousands)
 Feb. 26 Aug. 31,
 1993 1992
 (Unaudited)
 ASSETS
 Current assests:
 Cash and cash equivalents $ 9,256 $ 88,506
 Short-term investments 54,136 65,302
 Accounts receivable, net 93,979 48,467
 Inventories 123,366 62,361
 Prepaid expenses and other
 current assets 9,615 6,728
 Total current assets 290,352 271,364
 Net property and equipment 85,483 30,796
 Other assets 14,786 6,577
 Total assets $ 390,621 $ 308,737
 LIABILITIES AND SHAREHOLDERS' EQUITY
 Current liabilities:
 Current portion of long-term debt
 and capital lease obligations $ 5,723 $ 6,802
 Accounts payable 113,862 50,631
 Accrued employee compensation 11,534 9,649
 Accrued expenses 8,288 1,479
 Other current liabilities 3,081 3,549
 Total current liabilities 142,488 72,110
 Long-term debt and capital lease
 obligations 135,953 130,933
 Other long-term liabilities 1,124 1,449
 Total liabilities 279,565 204,492
 Shareholders' equity:
 Common stock 65,297 63,595
 Retained earnings 51,353 40,650
 Cumulative translation
 adjustment (5,594) ---
 Total shareholders' equity 111,056 104,245
 Total liabilities and shareholders'
 equity $ 390,621 $ 308,737
 CONSOLIDATED STATEMENTS OF INCOME
 (In thousands except per share data)
 (Unaudited)
 Quarter Ended Six months Ended
 Feb. 26 Feb. 28 Feb. 26 Feb.28
 1993 1992 1993 1992
 Net sales $187,426 $ 93,982 $323,915 $199,504
 Cost of sales 164,757 80,962 282,623 172,613
 Gross profit 22,669 13,020 41,292 26,891
 Operating expenses:
 Selling, general &
 administrative 10,045 5,695 19,683 11,290
 Research & development 972 656 1,670 1,353
 Operating Income 11,652 6,669 19,939 14,248
 Interest income 1,290 371 2,296 538
 Interest expense (2,600) (688) (5,199) (1,308)
 Income before income taxes 10,342 6,352 17,036 13,478
 Income tax expense 3,744 2,917 6,333 6,277
 Net income $ 6,598 $ 3,435 $10,703 $ 7,201
 Net income per share:
 Primary $ 0.38 $ 0.20 $ 0.62 $ 0.45
 Fully diluted $ 0.36 $ 0.20 $ 0.60 $ 0.45
 Shares used in computation:
 Primary 17,385 17,035 17,311 15,914
 Fully diluted 22,293 17,139 22,173 16,120
 -0- 3/11/93
 /CONTACT: Leonard Zanoni of Solectron, 408-956-6577/
 (SLR)
 CO: Solectron Corp.
 ST: California
 IN: CPR
 SU: ERN


SG -- SJ006 -- 5231 03/11/93 16:14 EST
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