Sanmina-SCI Corporation, a leading global EMS company, today reported financial results for the third fiscal quarter ended July 3, 2010.

Third Quarter Fiscal 2010 Highlights

• Revenue of $1.63 billion, in line with outlook of $1.55 - $1.65 billion.
• GAAP gross margin of 7.6%, 130 bps Y/Y improvement.
• GAAP operating margin of 3.8%, 390 bps Y/Y improvement.
• Non-GAAP gross margin of 7.9%, 150 bps Y/Y improvement.
• Non-GAAP operating margin of 3.9%, 250 bps Y/Y improvement Y/Y compared to the same quarter a year ago.

GAAP Financial Results

GAAP revenue for the third quarter was $1.63 billion, up 6.4% compared to $1.53 billion in the prior quarter ended April 3, 2010 and up 34.4% compared to $1.21 billion in the same period a year ago. Net income in the third quarter was $22 million, a diluted earnings per share of $0.26, compared to net income of $10 million, a diluted earnings per share of $0.12 in the prior quarter. GAAP net loss for the same period a year ago was $42 million, a diluted loss per share of $0.52.

Non-GAAP Financial Results

Non-GAAP revenue for the third quarter was $1.63 billion, up 6.4% compared to $1.53 billion in the prior quarter ended April 3, 2010 and up 34.5% compared to $1.21 billion in the same period a year ago. Gross profit in the third quarter was $129 million, or 7.9% of revenue, up 10 basis points, compared to gross profit of $120 million, or 7.8% of revenue in the prior quarter. Non-GAAP gross profit for the same period a year ago was $77 million, or 6.4% of revenue.

Non-GAAP operating income was $64 million, up 14.6%, compared to $56 million in the prior quarter and up 274.4% compared to $17 million in the same period a year ago. Operating margin for the third quarter was 3.9%, up 20 basis points, compared to 3.7% in the prior quarter and a 250 basis point improvement compared to 1.4% in the third quarter fiscal 2009.

Non-GAAP net income in the third quarter was $27 million, a diluted earnings per share of $0.32, compared to a net income of $24 million, a diluted earnings per share of $0.29 in the prior quarter. Non-GAAP net loss for the same period a year ago was $11 million, a diluted loss per share of $0.14.

Balance Sheet Results

As of July 3, 2010, cash and cash equivalents amounted to $665 million, compared to $673 million for the quarter ended April 3, 2010. Cash cycle days were 43 days and inventory turns were 7.2x for the quarter.