SAN JOSE – Sanmina reported fiscal second quarter revenue of $1.6 billion, down 25.2% year-over-year and 13.6% sequentially.

GAAP net income for the quarter ended Mar. 28 was $4.9 million, a decline of 88% compared to the same quarter in 2019 and down 87.3% sequentially. Operating income was $24.4 million, down 68.8% year-over-year and 57.4% sequentially.

IMS segment revenue was $1.3 billion, and components (including bare printed circuit boards), products and services revenues were $327 million.

"We started off the quarter strong and on track to meet our original outlook, said Kurt Adzema, CFO. "However, as the quarter progressed, we started to be impacted by Covid-19. We first saw this as our employees in China were delayed in returning from Chinese New Year. Secondly, there were delays in our Chinese supply chain, which have been shutdown as well and we supply to our operations worldwide as well as the operations of our customers. Thirdly, we saw the impact to the timing and cost associated with the logistics of the supply chain, especially freight. Finally, in March, we saw the impact of the shelter-in-place and similar restrictions, on both our operations as well as the operations of our customers.

"These are unprecedented times, and I am grateful to our employees for their strength and commitment to Sanmina and our customers, many of whom are providing essential products during this crisis,” said CEO Hartmut Liebel. “I am most impressed by how well our leadership team responded to these new challenges as we continue to navigate the evolving situation on the global supply chain. The health and safety of our employees is our top priority, and we continue to take precautionary measures. While the financial results for our second fiscal quarter were influenced significantly by Covid-19, I am pleased to report we were still able to generate $119 million of free cash flow and maintain a strong balance sheet with over $1.1 billion in cash."  

Ending cash and cash equivalents was $1.1 billion, including $650 million of borrowings on the firm’s cash flow revolver as of the end of the quarter. Cash flow from operations was $136 million, and free cash flow was $119 million. The company repurchased 2.4 million shares for approximately $61 million.

"Our strong balance sheet, continued focus on controlling our costs, generating cash, and our unwavering support for our customers providing innovative technologies and solutions gives me confidence we are ready and well positioned for the recovery."

Sanmina expects fiscal third quarter revenue between $1.5 billion and $1.6 billion.

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