sanm-20220402

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q


(Mark one)
☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended April 2, 2022


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to .

Commission File Number 0-21272

Sanmina Corporation

(Exact name of registrant as specified in its charter)

77-0228183

(State or other jurisdiction of

(I.R.S. Employer

incorporation or organization)

Identification Number)

2700 N. First St.,

San Jose,

95134

(Address of principal executive offices)

(Zip Code)

(408)

964-3500

(Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [x] No [ ]

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes [x] No [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company”, and "emerging growth company" in Rule 12b-2 of the Exchange Act:

Large Accelerated Filer

[X]

Accelerated filer [ ]

Non-accelerated filer [ ]

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☒

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common Stock	SANM	NASDAQ Global Select Market

As of April 27, 2022, there were 60,844,138 shares outstanding of the issuer's common stock, $0.01 par value per share.

SANMINA CORPORATION

INDEX


		Page
	PART I. FINANCIAL INFORMATION
Item 1.	Interim Financial Statements (Unaudited)	3
	Condensed Consolidated Balance Sheets	3
	Condensed Consolidated Statements of Income	4
	Condensed Consolidated Statements of Comprehensive Income	5
	Condensed Consolidated Statements of Stockholders' Equity	6
	Condensed Consolidated Statements of Cash Flows	7
	Notes to Condensed Consolidated Financial Statements	8
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	21
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	30
Item 4.	Controls and Procedures	31
	PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	32
Item 1A.	Risk Factors	33
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	45
Item 6.	Exhibits	46
Signatures		48

SANMINA CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS


	As of
	April 2, 2022		October 2, 2021
	(Unaudited)
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	559,893	$	650,026
Accounts receivable, net of allowances of approximately $7 million as of April 2, 2022 and October 2, 2021	1,270,494		1,192,434
Contract assets	417,286		348,741
Inventories	1,437,955		1,036,511
Prepaid expenses and other current assets	61,525		53,952
Total current assets	3,747,153		3,281,664
Property, plant and equipment, net	525,362		532,985
Deferred tax assets	220,532		235,117
Other	156,867		156,953
Total assets	$	4,649,914	$	4,206,719
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	1,817,465	$	1,464,693
Accrued liabilities	314,648		161,896
Accrued payroll and related benefits	116,794		117,648
Short-term debt, including current portion of long-term debt	18,750		18,750
Total current liabilities	2,267,657		1,762,987
Long-term liabilities:
Long-term debt	302,751		311,572
Other	241,416		253,532
Total long-term liabilities	544,167		565,104
Contingencies (Note 7)
Stockholders' equity	1,838,090		1,878,628
Total liabilities and stockholders' equity	$	4,649,914	$	4,206,719

See accompanying notes to condensed consolidated financial statements.

SANMINA CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME


	Three Months Ended				Six Months Ended
	April 2, 2022		April 3, 2021		April 2, 2022		April 3, 2021
	(Unaudited)
	(In thousands, except per share data)
Net sales	$	1,911,530	$	1,699,677	$	3,668,855	$	3,454,926
Cost of sales	1,759,083		1,556,579		3,371,919		3,170,593
Gross profit	152,447		143,098		296,936		284,333

Operating expenses:
Selling, general and administrative	61,817		61,142		123,292		120,109
Research and development	5,472		5,353		10,249		10,158
Restructuring and other	2,932		11,880		4,346		13,784
Gain on sale of long-lived assets	—		—		(4,610)		—
Total operating expenses	70,221		78,375		133,277		144,051

Operating income	82,226		64,723		163,659		140,282

Interest income	349		244		658		474
Interest expense	(4,870)		(4,880)		(9,747)		(9,834)
Other income (expense), net	(1,408)		6,143		664		8,010
Interest and other, net	(5,929)		1,507		(8,425)		(1,350)

Income before income taxes	76,297		66,230		155,234		138,932
Provision for income taxes	23,077		19,193		43,380		43,874
Net income	$	53,220	$	47,037	$	111,854	$	95,058

Net income per share:
Basic	$	0.85	$	0.72	$	1.76	$	1.46
Diluted	$	0.83	$	0.70	$	1.71	$	1.42

Weighted average shares used in computing per share amounts:
Basic	62,845		65,249		63,622		65,244
Diluted	64,271		66,957		65,365		66,887

See accompanying notes to condensed consolidated financial statements.

SANMINA CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME


	Three Months Ended				Six Months Ended
	April 2, 2022		April 3, 2021		April 2, 2022		April 3, 2021
	(Unaudited)
	(In thousands)
Net income	$	53,220	$	47,037	$	111,854	$	95,058
Other comprehensive income (loss), net of tax:
Change in foreign currency translation adjustments	(1,069)		(1,561)		(3,116)		78
Derivative financial instruments:
Change in net unrealized amount	7,776		291		9,740		3,647
Amount reclassified into net income	337		2,530		2,400		1,029
Defined benefit plans:
Changes in unrecognized net actuarial losses and unrecognized transition costs	183		680		661		(45)
Amortization of actuarial losses and transition costs	242		460		480		966
Total other comprehensive income	7,469		2,400		10,165		5,675
Comprehensive income	$	60,689	$	49,437	$	122,019	$

SEC Form 10-Q filed by Sanmina Corporation