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SOLECTRON REPORTS THIRD QUARTER SALES AND EARNINGS

 SOLECTRON REPORTS THIRD QUARTER SALES AND EARNINGS
 MILPITAS, Calif., June 18 /PRNewswire/ -- Solectron Corp.


(NYSE: SLR) a leading independent provider of integrated manufacturing services to electronic original equipment manufacturers (OEMs) announced sales and earnings for the three- and nine-month periods ended May 31, 1992.
 Solectron Corp. reported net sales of $94.8 million for the third quarter ended May 31, 1992. This represented an increase of 23 percent when compared with net sales of $76.9 million for the comparable quarter of fiscal 1991. On a year-to-date basis, net sales of $294.3 million represented a 62 percent increase when compared with $181.2 million of net sales for the comparable period a year ago.
 Net income for the third quarter was $3.2 million, an increase of 27 percent from last year's third quarter net income of $2.5 million. Net income for the nine-month period was $10.4 million, an increase of 70 percent when compared with $6.1 million of net income for fiscal year 1991's nine-month period.
 Earnings per share for the third quarter ended May 31, 1992, were $0.19, and is the same as the $0.19 for the comparable quarter one year ago. On a year-to-date basis, earnings per share of $0.64 increased 36 percent when compared with $0.47 for last year's comparable period. The 1992 periods reflect higher weighted outstanding shares.
 The company's year-to-date operating margin in 6.9 percent and its return on equity stands at 18.3 percent.
 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 pleased to report these strong results, in line with expectations. Most importantly, we have demonstrated again the ability of Solectron to effectively manage its business while handling significant projects. These projects include the first phase of campus move, ramp-up of production in Penang, Malaysia, Liquid Yield Option Notes (LYON's) debt financing, and ongoing discussions with IBM."
 Solectron Corp., founded in 1977, had total assets of $295.1 million at May 31, 1992.
 Solectron emphasizes high quality, customized manufacturing, providing surface mount and turnkey assembly. Solectron received the 1991 Malcolm Baldridge National Quality Award, and has accumulated a total of 43 quality and superior service awards, from customers such as Apple Computer, Applied Materials, Conner Peripherals, Exabyte, Hewlett Packard, IBM and Sun Microsystems.
 SOLECTRON CORP.
 Consolidated Balance Sheets
 (In thousands)
 May 31, Aug. 31,
 1992 1991
 (Unaudited)
 ASSETS
 Current assets:
 Cash and cash equivalents $5,354 $5,801
 Short-term investments 156,430 2,294
 Accounts receivable, net 45,400 40,635
 Inventories 48,089 52,093
 Prepaid expenses and other
 current assets 6,722 6,147
 Total current assets 261,995 106,970
 Net property and equipment 28,434 27,582
 Other assets 4,703 565
 Total assets $295,132 $135,117
 LIABILITIES AND SHAREHOLDERS' EQUITY
 Current liabilities:
 Short-term debt $2,260 $554
 Current portion of long-term
 debt and capital lease
 obligations 8,542 5,639
 Accounts payable 39,510 49,833
 Accrued employee compensation 9,443 8,701
 Accrued expenses 1,868 5,641
 Other current liabilities 3,473 1,289
 Total current liabilities 65,096 71,657
 Long-term debt and capital
 lease obligations 130,250 12,479
 Other long-term liabilities 883 3,835
 Total liabilities 196,229 87,971
 Shareholders' equity:
 Common stock 62,330 20,984
 Retained earnings 36,573 26,162
 Total shareholders' equity 98,903 47,146
 Total liabilities and
 shareholders' equity $295,132 $135,117
 SOLECTRON CORP.
 Consolidated Statements of Income
 (In thousands except per share data)
 (Unaudited)
 Quarter Ended Nine Months Ended
 May 31, May 31,
 1992 1991 1992 1991
 Net sales $94,751 $76,921 $294,255 $181,193
 Cost of sales 81,932 66,631 253,945 156,006
 Gross profit 12,819 10,290 40,310 25,187
 Operating expenses:
 Selling, general &
 administrative 6,110 4,492 18,000 11,785
 Research & development 662 386 2,015 1,158
 Operating Income 6,047 5,412 20,295 12,244
 Interest income 602 141 1,140 617
 Interest expense (1,426) (758) (2,734) (1,625)
 Income before income
 taxes 5,223 4,795 18,701 11,236
 Income tax expense 2,013 2,262 8,290 5,096
 Net income $3,210 $2,533 $10,411 $6,140
 Net income per share $0.19 $0.19 $0.64 $0.47
 Shares used in
 computation 17,115 13,240 16,368 13,054
 -0- 6/18/92
 /CONTACT: Susan Wang, 408-956-6571, or Leonard J. Zanoni, 408-956-6577, both of Solectron/
 (SLR) CO: Solectron Corp. ST: California IN: CPR SU: ERN


MM-RM -- SJ004 -- 1628 06/18/92 16:10 EDT
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Date:Jun 18, 1992
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