sanm-20220702

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 July 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 July 27, 2022, there were 57,804,334 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	22
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	31
Item 4.	Controls and Procedures	32
	PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	33
Item 1A.	Risk Factors	34
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	45
Item 6.	Exhibits	46
Signatures		47

SANMINA CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS


	As of
	July 2, 2022		October 2, 2021
	(Unaudited)
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	493,305	$	650,026
Accounts receivable, net of allowances of approximately $7 million as of July 2, 2022 and October 2, 2021	1,228,435		1,192,434
Contract assets	459,306		348,741
Inventories	1,591,111		1,036,511
Prepaid expenses and other current assets	63,827		53,952
Total current assets	3,835,984		3,281,664
Property, plant and equipment, net	545,673		532,985
Deferred tax assets	212,407		235,117
Other	149,608		156,953
Total assets	$	4,743,672	$	4,206,719
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	1,976,533	$	1,464,693
Accrued liabilities	303,076		161,896
Accrued payroll and related benefits	133,319		117,648
Short-term debt, including current portion of long-term debt	18,750		18,750
Total current liabilities	2,431,678		1,762,987
Long-term liabilities:
Long-term debt	298,345		311,572
Other	209,716		253,532
Total long-term liabilities	508,061		565,104
Contingencies (Note 7)
Stockholders’ equity	1,803,933		1,878,628
Total liabilities and stockholders’ equity	$	4,743,672	$	4,206,719

See accompanying notes to condensed consolidated financial statements.

SANMINA CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME


	Three Months Ended				Nine Months Ended
	July 2, 2022		July 3, 2021		July 2, 2022		July 3, 2021
	(Unaudited)
	(In thousands, except per share data)
Net sales	$	2,019,059	$	1,657,741	$	5,687,914	$	5,112,667
Cost of sales	1,853,870		1,521,151		5,225,789		4,691,744
Gross profit	165,189		136,590		462,125		420,923

Operating expenses:
Selling, general and administrative	61,506		57,438		184,798		177,547
Research and development	5,071		5,269		15,320		15,427
Restructuring and other	3,994		(382)		8,340		13,402
Gain on sale of long-lived assets	—		—		(4,610)		—
Total operating expenses	70,571		62,325		203,848		206,376

Operating income	94,618		74,265		258,277		214,547

Interest income	540		217		1,198		691
Interest expense	(5,615)		(4,823)		(15,362)		(14,657)
Other income (expense), net	(7,774)		29,258		(7,110)		37,268
Interest and other, net	(12,849)		24,652		(21,274)		23,302

Income before income taxes	81,769		98,917		237,003		237,849
Provision for (benefit from) income taxes	2,226		(18,458)		45,606		25,416
Net income	$	79,543	$	117,375	$	191,397	$	212,433

Net income per share:
Basic	$	1.33	$	1.79	$	3.07	$	3.25
Diluted	$	1.29	$	1.74	$	2.98	$	3.17

Weighted average shares used in computing per share amounts:
Basic	59,970		65,427		62,404		65,306
Diluted	61,702		67,352		64,292		67,055

See accompanying notes to condensed consolidated financial statements.

SANMINA CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME


	Three Months Ended				Nine Months Ended
	July 2, 2022		July 3, 2021		July 2, 2022		July 3, 2021
	(Unaudited)
	(In thousands)
Net income	$	79,543	$	117,375	$	191,397	$	212,433
Other comprehensive income (loss), net of tax:
Change in foreign currency translation adjustments	(3,819

SEC Form 10-Q filed by Sanmina Corporation