SAN JOSE – Sanmina reported fiscal fourth quarter revenue of $1.9 billion, up 0.85% year-over-year and down 6.6% sequentially. The company also said it would take measures to reduce headcount as headwinds appear and soft demand is expected over the next few quarters.

For the quarter ended Sept. 28, the firm posted GAAP net income of $19.8 million, up 243% compared to the same period last year and down 54% sequentially.

GAAP operating income was $63.1 million, an increase of 542% year-over-year, a decrease of 6.4% sequentially.

Cash flow from operations for the fiscal fourth quarter was $190.2 million.

“We delivered good financial results per our plan for the fourth quarter,” said Jure Sola, executive chairman. “The team did an excellent job driving operational efficiency and mix improvements, which led to better than expected operating margin, non-GAAP earnings per share and free cash flow.”

For the fiscal year 2019, Sanmina reported revenue of $8.2 billion, up 15.8% compared to fiscal 2018. 2019 net income was $141.5 million, compared to a net loss of $95.5 million last year. Cash flow from operations for the fiscal year was $383 million.

"Our focus on operational execution and financial excellence is evident in our strong fiscal 2019 results.  Revenue grew 16%; operating margin expanded 110 basis points to 4.1%; non-GAAP earnings per share increased 60% to $3.40 compared to fiscal 2019, and we delivered strong free cash flow of $256 million."

The firm expects fiscal first quarter revenue between $1.725 billion and $1.825 billion.

"We expect demand to be soft in the first half of the fiscal year as a result of excess inventory in the channel, slower than anticipated 5G deployment and global economic uncertainty,” said CEO Hartmut Liebel. “As a result, we have initiated a plan to right-size the organization to further improve operational efficiencies and optimize our cost structure. This right-sizing, coupled with our focus on the quality of our revenue, will support our ongoing operating margin, non-GAAP earnings per share and cash generation objectives."

The company expects to incur restructuring charges of approximately $10 million to $20 million, primarily cash severance costs.