Sanmina Corp (SANM, Financial), a leading integrated manufacturing solutions company, released its unaudited financial results for the fourth quarter and fiscal year ended September 30, 2023, on November 6, 2023. Despite a 7% sequential decline in Q4 revenue, primarily due to ongoing customer inventory adjustments in the communications end-market, the company delivered strong fiscal 2023 financial results.
Fiscal 2023 Financial Highlights
For the fiscal year 2023, Sanmina Corp (SANM, Financial) reported revenue of $8.9 billion, a 13% increase from the previous year. The GAAP operating margin was 5.1%, and the GAAP diluted EPS was $5.18. The non-GAAP operating margin was 5.8%, and the non-GAAP diluted EPS was $6.26. The company also reported a cash flow from operations of $235 million and free cash flow of $45 million for FY23.
Q4 Fiscal 2023 Financial Highlights
In the fourth quarter of fiscal 2023, the company reported revenue of $2.05 billion. The GAAP operating margin was 4.8%, and the GAAP diluted EPS was $1.04. The non-GAAP operating margin was 5.7%, and the non-GAAP diluted EPS was $1.42. The company also reported a cash flow from operations of $77 million and free cash flow of $39 million in Q4.
Company's Performance and Future Outlook
Despite lower revenue in the fourth quarter, Sanmina Corp (SANM, Financial) delivered a consistent non-GAAP operating margin sequentially and a 40 basis point improvement compared to the same quarter a year ago. The company has made significant investments over the last year to support new programs, diversify within its end-markets, and expand its capabilities. However, the company expects headwinds for the next couple of quarters due to ongoing customer inventory adjustments and macroeconomic uncertainty.
Financial Statements Summary
As of September 30, 2023, Sanmina Corp (SANM, Financial) reported total assets of $4.87 billion, with cash and cash equivalents amounting to $667.57 million. The total liabilities were $2.55 billion, with accounts payable being the largest contributor at $1.61 billion. The company's net income attributable to common shareholders for the fiscal year 2023 was $309.97 million, with a diluted income per share of $5.18.
Share Repurchases and Cash Position
Sanmina Corp (SANM, Financial) repurchased 603,776 shares for $33 million in Q4 and 1.58 million shares for $84 million in FY23. The company ended the fourth quarter with cash and cash equivalents of $668 million.
Explore the complete 8-K earnings release (here) from Sanmina Corp for further details.
