sanm-20210403

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 3, 2021


☐			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, 2021, there were 65,095,728 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 (Loss)	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	32
Item 4.	Controls and Procedures	33
	PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	34
Item 1A.	Risk Factors	35
Item 6.	Exhibits	47
Signatures		48

SANMINA CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS


	As of
	April 3, 2021		October 3, 2020
	(Unaudited)
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	575,176	$	480,526
Accounts receivable, net of allowances of $8,148 and $8,570 as of April 3, 2021 and October 3, 2020, respectively	1,122,962		1,043,334
Contract assets	334,957		396,583
Inventories	785,406		861,281
Prepaid expenses and other current assets	38,584		37,718
Total current assets	2,857,085		2,819,442
Property, plant and equipment, net	529,651		559,242
Deferred tax assets	259,943		273,470
Other	123,550		120,502
Total assets	$	3,770,229	$	3,772,656
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	1,108,994	$	1,210,049
Accrued liabilities	176,148		171,761
Accrued payroll and related benefits	114,704		122,029
Short-term debt, including current portion of long-term debt	18,750		18,750
Total current liabilities	1,418,596		1,522,589
Long-term liabilities:
Long-term debt	320,405		329,249
Other	296,121		290,902
Total long-term liabilities	616,526		620,151
Contingencies (Note 7)
Stockholders' equity	1,735,107		1,629,916
Total liabilities and stockholders' equity	$	3,770,229	$	3,772,656

See accompanying notes to condensed consolidated financial statements.

SANMINA CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME


	Three Months Ended				Six Months Ended
	April 3, 2021		March 28, 2020		April 3, 2021		March 28, 2020
	(Unaudited)
	(In thousands, except per share data)
Net sales	$	1,699,677	$	1,590,550	$	3,454,926	$	3,430,721
Cost of sales	1,556,579		1,483,129		3,170,593		3,188,418
Gross profit	143,098		107,421		284,333		242,303

Operating expenses:
Selling, general and administrative	61,142		62,257		120,109		125,408
Research and development	5,353		5,767		10,158		10,967
Restructuring and other	11,880		15,028		13,784		24,378
Total operating expenses	78,375		83,052		144,051		160,753

Operating income	64,723		24,369		140,282		81,550

Interest income	244		418		474		728
Interest expense	(4,880)		(6,040)		(9,834)		(11,917)
Other income (expense), net	6,143		(7,660)		8,010		(6,342)
Interest and other, net	1,507		(13,282)		(1,350)		(17,531)

Income before income taxes	66,230		11,087		138,932		64,019
Provision for income taxes	19,193		6,205		43,874		20,792
Net income	$	47,037	$	4,882	$	95,058	$	43,227

Net income per share:
Basic	$	0.72	$	0.07	$	1.46	$	0.61
Diluted	$	0.70	$	0.07	$	1.42	$	0.60

Weighted average shares used in computing per share amounts:
Basic	65,249		70,584		65,244		70,377
Diluted	66,957		72,245		66,887		72,429

See accompanying notes to condensed consolidated financial statements.

SANMINA CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)


	Three Months Ended				Six Months Ended
	April 3, 2021		March 28, 2020		April 3, 2021		March 28, 2020
	(Unaudited)
	(In thousands)
Net income	$	47,037	$	4,882	$	95,058	$	43,227
Other comprehensive income (loss), net of tax:
Change in foreign currency translation adjustments	(1,561)		(2,887)		78		(2,170)
Derivative financial instruments:
Change in net unrealized amount	291		(8,306)		3,647		(4,926)
Amount reclassified into net income	2,530		538		1,029		343
Defined benefit plans:
Changes in unrecognized net actuarial losses and unrecognized transition costs	680		415		(45)		228
Amortization of actuarial losses and transition costs	460		102		966		646
Total other comprehensive income (loss)	2,400		(10,138)		5,675		(5,879)
Comprehensive income (loss)	$	49,437	$	(