Sanmina Corporation posted revenue of $1,757 million in its fiscal first quarter of 2022 and projected supply chain challenges.
With this, its income remained stable, growing 0.1% year-on-year.
For the second quarter of its fiscal year 2022 (ending on April 2), the company estimates that its revenues will be between 1,700 and 1,800 million dollars.
Sanmina is a leading global provider of integrated manufacturing solutions, components, products and repair, logistics and aftermarket services.
Primarily, the company provides these comprehensive offerings to original equipment manufacturers (OEMs) in the following industries: industrial, medical, defense and aerospace, automotive, communications networks, and cloud solutions.
According to the company itself, the combination of its advanced technologies, extensive manufacturing experience and economies of scale allows it to meet the specialized needs of its customers.
Sanmina
Although the statements above regarding the financial outlook for the second quarter of fiscal year 2022 are forward-looking, actual results may differ significantly due to various factors, primarily the ongoing impacts of the Covid-19 pandemic. These impacts include disruptions in supply chains, which have prevented the company from fulfilling all product demands.
Additional factors that may lead to discrepancies between projected and actual results include adverse changes in key target markets, uncertainties that could cause variability in future net sales and income, reliance on a small number of customers for a large portion of sales, and risks associated with international operations.
«I am pleased with our strong execution and the ability to expand our non-GAAP operating margin and non-GAAP earnings per share sequentially, while also generating free cash flow in the quarter,» said Jure Sola, President and CEO of Sanmina Corporation.
«Although demand remains strong, we anticipate that supply chain challenges will persist. Based on our first-quarter results and the outlook for the second quarter, we are optimistic about achieving our growth targets for fiscal 2022.»
Electronic Manufacturing Services (EMS) companies are the main beneficiaries of the increased use of outsourced manufacturing services by the electronics and other industries.
As the EMS industry has evolved, OEMs have increased their reliance on EMS companies for comprehensive services including product design and engineering, high-level manufacturing, assembly and testing, direct order fulfillment and logistics services, aftermarket products, service and support, and global supply chain management.