SAN JOSE – Sanmina-SCI Corp. today reported second-quarter fiscal 2011 net income of $13 million, up 30% year-over-year.

The electronics manufacturing services provider reported revenue of $1.57 billion, up 2.7% year-over-year, as defense contractors pushed out certain programs. GAAP operating income was $45 million, or 2.8% percent of revenue, flat with 2010. 

Cash and cash equivalents increased $106 million over the prior quarter to $655 million. The company reduced inventory for the third quarter in a row.  

The company said it was displeased with the results. "We are disappointed in our revenue and margin performance for the second quarter fiscal year 2011," said Jure Sola, chairman and CEO.

"Softness was broad-based, with a significant impact coming from weakness in the communications market and the delay in defense spending. We believe demand is improving and the second half will be stronger than the first half." 

The EMS firm expects third-quarter revenue between $1.6 billion and $1.7 billion. 

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