The following is a summary of the Sanmina Corporation (SANM) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Sanmina reported Q2 revenue of $1.835 billion, aligned with company guidance and a decrease of 2% sequentially.

• Non-GAAP gross margin stood at 8.9%, due to favorable mix and operating discipline.

• Non-GAAP operating expenses rose, mainly due to incremental expenses related to a deferred compensation plan.

• Non-GAAP EPS was $1.30, within the higher end of company outlook.

• Sanmina has good liquidity, with $651 million in cash and equivalents, and a total liquidity of over $1.5 billion.

• Q2 non-GAAP pre-tax ROIC was strong at 22%, indicating the company's robust financial position.

Business Progress:

• Despite a slight sequential drop, Sanmina observed a 67% growth in the industrial, medical, defense, aerospace, and automotive sectors.

• Communications network and cloud infrastructures contributed 33% of the total revenue.

• Sanmina is investing in high-growth markets like AI, defense and aerospace, medical, automotive, and renewable energy.

• Q3 revenue is expected to grow sequentially, with a projected range of $1.8 billion to $1.9 billion.

• Strong cash flow recorded in the first half is expected to continue for the rest of the year.

• The company is planning to improve cash conversion cycle through working capital initiatives.

• Encountered supply chain constraints and test capacity issues are expected to be resolved by the end of the quarter.

More details: Sanmina IR

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