Sanmina Corporation Reports Decrease in Revenue for the Latest Quarter
Segments of revenue
Sanmina Corporation reported net sales of $1.87 billion for the three months ended December 30, 2023, compared to $2.36 billion in the same period last year. This represents a decrease of approximately 20% in revenue.
Despite the decrease in revenue, Sanmina Corporation demonstrated resilience in managing its cost of sales, resulting in a gross profit of $160.8 million. The company's ability to control operating expenses, including selling, general and administrative expenses, and research and development costs, contributed to maintaining a positive operating income of $87.6 million.
The decline in net sales indicates a challenge for Sanmina Corporation in generating revenue. The company experienced a decrease in demand or faced competitive pressures in its market segments, leading to lower sales figures. The management should closely analyze the factors contributing to this decline and develop strategies to address the challenges.
Sanmina Corporation generated $126 million in cash from operations during the latest quarter, indicating effective cash management. The company's primary sources of liquidity include cash and cash equivalents of $632 million, a Credit Agreement with $787 million available, and foreign short-term borrowing facilities of $71 million. These sources provide Sanmina Corporation with the necessary liquidity to support its operations and potential investments.
Sanmina Corporation faced a decline in revenue during the latest quarter, reporting net sales of $1.87 billion compared to $2.36 billion in the same period last year. Despite this challenge, the company demonstrated strengths in managing its cost of sales and controlling operating expenses, resulting in a positive operating income. Sanmina Corporation's effective cash management and available sources of liquidity provide stability for its operations. However, the management should address the factors contributing to the decline in revenue and develop strategies to improve sales performance in the future.