Sanmina Corporation (NASDAQ:SANM) Q1 2015 Earnings Conference Call - Final Transcript
Jan 26, 2015 • 05:00 pm ET
At this time, I would like to welcome everyone to the Sanmina Corporation's first quarter fiscal year 2015 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks there will be a
question-and-answer session. (Operator instructions)
I will now turn the call over to Paige Bombino, vice president, investor relations. You may begin your conference.
Thank you, operator. Good afternoon, ladies and gentlemen and welcome to Sanmina's first quarter fiscal year 2015 earnings call. A copy of today's release is available on our website in the Investor Relations section. You can follow along with our prepared remarks in the slides posted on our website. Please turn to page two, the Safe Harbor statement.
(Forward-Looking Cautionary Statement)
I would now like to turn this call over to Jure Sola, chairman and chief executive officer.
Thanks, Paige. Good afternoon, ladies and gentlemen. Welcome. Thank you all for being here today. With me on today's conference call is Bob Eulau, our CFO.
Good afternoon, everyone.
For the agenda today, we have for you that Bob will review our financial results for the first quarter, and I will follow up with additional comments relative to Sanmina's results and future goals. Then Bob and I will open for question and answers.
And now, I'll turn this call over to Bob. Bob?
Thanks, Jure. Please turn to slide three. Overall, the first quarter was a good start to fiscal year 2015. Non-GAAP revenue of $1.67 billion was down 1% on
a sequential basis, but up 15.5% from the first quarter last year. Non-GAAP earnings per share was $0.61, which was above the high end of our guidance for the quarter. This was based on 86.7 million shares outstanding on a fully diluted basis. The disappointment for the quarter was cash flow from operations, which was negative $6 million. I'll discuss cash in more detail in a few minutes.
Please turn to slide four. From a GAAP perspective, revenue was down 0.9% or $15 million from Q4, to $1.671 billion. We reported net income of $22.7 million, which resulted in earnings per share of $0.26 for the first quarter. This was down relative to last quarter by $1.26. You may recall that last quarter, our GAAP results included an incremental release of our valuation allowance against deferred tax assets. The tax benefit recorded last quarter totaled $87.6 million, or $1.01 per share.
The restructuring costs for Q1 were $3 million. Going forward, the restructuring costs we expect are associated with the real estate that we have on the market to be sold. We expect those costs to be in the range of $2 million to $3 million next quarter. Currently, we have about $65 million in real estate on the market at list price, after having sold around $93 million of property in the last five years. There's one property which should be sold this quarter for net proceeds of around $5 million.
My remaining comments will focus on the