Sanmina Corporation

Reconciliation of GAAP to Non-GAAP Measures

(in thousands, except per share amounts)

(Unaudited)

Three Months Ended

Nine Months Ended

June 28,

June 29,

June 28,

June 29,

2014

2013

2014

2013

GAAP Operating Income

$ 53,328

$  35,681

$ 138,145

$ 112,941

GAAP operating margin

3.3%

2.4%

3.1%

2.6%

Adjustments

Stock compensation expense (1)

4,238

4,368

13,270

13,376

Amortization of intangible assets

1,074

474

2,799

1,422

Distressed customer charges (2)

-

-

383

5,412

Restructuring, acquisition and integration costs

2,302

9,391

8,571

20,263

Contingency item that may be recovered (3)

-

-

124

-

Gain on sales of long-lived assets

-

(176)

(530)

(23,361)

Asset impairments

-

-

-

1,100

Non-GAAP Operating Income

$ 60,942

$   49,738

$ 162,762

$131,153

Non-GAAP operating margin

3.8%

3.3%

3.6%

3.0%

GAAP Net Income

$20,721

$  18,738

$   64,662

$  40,550

Adjustments:

Operating income adjustments (see above)

7,614

14,057

24,617

18,212

Loss on repurchases of debt (4)

8,192

-

8,192

1,401

Loss on dedesignation of interest rate swap (5)

-

-

-

14,903

Litigation settlements (6)

(1,310)

-

(1,571)

-

Nonrecurring tax items

10,074

1,186

23,156

8,439

Non-GAAP Net Income

$ 45,291

$   33,981

$  119,056

$   83,505

GAAP Net Income Per Share:

Basic

$      0.25

$        0.23

$        0.78

$       0.49

Diluted

$      0.24

$        0.22

$        0.75

$       0.48

Non-GAAP Net Income Per Share:

Basic

$      0.55

$        0.41

$        1.43

$       1.01

Diluted

$      0.53

$        0.40

$        1.37

$       0.98

Weighted-average shares used in computing per share amounts:

Basic

82,467

83,082

82,988

82,515

Diluted

86,235

85,602

86,597

84,819

(1)

Stock compensation expense was as follows: 

Three Months Ended

Nine Months Ended

June 28,

June 29,

June 28,

June 29,

2014

2013

2014

2013

Cost of sales

$   1,298

$      1,471

$      3,864

$     4,102

Selling, general and administrative

2,916

2,876

9,369

9,175

Research and development

24

21

37

99

  Total

$   4,238

$      4,368

$    13,270

$   13,376

(2)

Relates to inventory and bad debt reserves / recoveries associated with distressed customers.

(3)

Represents a non-recurring contingency that the Company may resolve favorably in future periods.  However, there can be no assurance of the exact amount or timing of this recovery.

(4)

Represents a loss, including write-off of unamortized debt issuance costs, on debt redeemed or repurchased prior to maturity.

(5)

Represents a non-cash loss resulting from dedesignation of an interest rate swap.

(6)

Represents cash received in connection with a litigation settlement.