SAN JOSE -- Sanmina-SCI today reported December quarter revenue of $2.78 billion, down 2.8% year-over-year and up 2.2% sequentially.

The results were in line with Sanmina's previous guidance of $2.70 billion to $2.85 billion. For the quarter ended Dec. 30, Sanmina-SCI reported GAAP net income of $28.2 million, up 62% year-over-year and reversing a September quarter net loss of $28.1 million.

Operating income was $70.6 million or 2.5% of revenue, compared to $32.1 million (1.2% of revenue) in the prior quarter and $76.1 million, or 2.7% of revenue, a year ago.

Gross profit was $169.9 million, up 29.8% over the fourth quarter. The company saw weak demand for communications, while set-top box demand was better than expected.

Inventory turns were 7.9 times, up 0.1 times sequentially and down 1.7 times year-over-year.

The company guided for March quarter revenue of $2.65 billion to $2.75 billion.

In a research note issued last night, Carter Shoop of Deutsche Bank Equity Research said, " While we acknowledge that Sanmina is taking some steps in the right direction -- exiting the PC and ODM businesses, reorganizing in components and further restructuring -- they have a long way to go. We believe Sanmina needs to get more aggressive in closing its high-cost capacity, discontinue unprofitable assemblies and invest in value-add offerings."

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