Q2 Revenues Down, Reports Sanmina-SCI
Published: 25 April 2007
by Staff
SAN JOSE, CA – Global EMS company Sanmina-SCI Corporation today reported revenue of $2.61 billion for the second quarter ended March 31, down from $2.78 billion in the previous quarter, also down from $2.67 billion in the second quarter of 2006.
Operating income was $40.2 million or 1.5% of revenue, compared to $70.6 million, or 2.5% of revenue in the prior quarter and $66.3 million, or 2.5% of revenue in the same period a year ago. Gross profit was $139.2 million or 5.3% of revenue, compared to $169.9 million, or 6.1% in the prior quarter.
For the second quarter 2007, the company reported a net loss of $26.1 million, versus net income of $28.3 million for the first quarter, and a net loss of $76.1 million year-over year.
Deutsche Bank Equity Research states the company continues to lose share in the EMS industry. The research company also said they are encouraged by Sanmina’s focus on restructuring and decision to divest non-core operations, but believe operational miscues, restructuring charges and market share losses will likely continue indefinitely.
The research firm adds that demand from Sanmina’s communications and high-end computing customers were weak in the quarter (-12% and -11%, respectively), while demand for Sanmina-SCI higher margin PCBs and enclosures also disappointed (both down 20%).
