Tuesday, electronics manufacturing services company Sanmina-SCI Corp. (SANM), reported a swing to profit in the first quarter, compared to a loss year-ago, mainly on a one-time benefit related to certain legal proceedings as well as an increase in revenue.
Sanmina-SCI's GAAP net income in the first quarter was $59 million or $0.74 per share, compared with a net loss of $26 million or a loss of $0.29 per share in the year-ago quarter.
Non-GAAP net income in the first quarter was $18.46 million or earnings or $0.23 per share, compared with a non-GAAP net loss of $768 thousand or a loss of $0.01 per share in the same period a year ago.
On average, 9 analysts polled by Thomson Reuters expected the company to earn $0.13 per share for the quarter. Analysts' estimates typically exclude special items.
According to the San Jose, California-based company, GAAP net income in the first quarter 2010 included a one-time benefit of approximately $36 million in connection with certain legal proceedings.
The company's net sales for the first quarter was up 4% to $1.48 billion from $1.42 billion in the comparable period a year-ago. Nine Wall Street analysts estimated revenues of $1.40 billion for the quarter.
Sanmina-SCI's cost of sales for the quarter increased to $1.36 billion from $1.33 billion a year-ago.
Total operating expenses, including selling, general and administrative expenses, research and development expenses, the amortization of intangible assets, restructuring and integration costs and asset impairment charges declined to $70.02 million from $81.86 million in the year-ago period.
For the quarter, interest and other income, net, was $13.25 million, compared with expenses of $25.18 million a year-ago.
The company said that during the quarter it redeemed $176 million of debt that was scheduled to mature in June 2010. At January 2, 2010, cash and cash equivalents amounted to $727 million, compared with $899 million for the year ended October 3, 2009.
For the second quarter, the company said that it expects non-GAAP earnings in the range of $0.22 - $0.27 per share. Revenues are expected to range between $1.45 billion and $1.55 billion for the quarter. The Street currently estimates earnings of $0.09 per share for the quarter, on a revenue of $1.36 billion.
On December 21, Jabil Circuit, Inc. reported a profit for its first quarter, compared with a loss in the year-ago period when results were weighed down by hefty goodwill impairment charges.
SANM closed Tuesday's last trade at $12.30, up $0.65 or 5.58%, on a volume of 2.7 million shares on the Nasdaq. In after hours, the stock gained $1.55 or 12.60%.
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