Sanmina Corporation

Reconciliation of GAAP to Non-GAAP Measures

(in thousands, except per share amounts)

(Unaudited)

Three Months Ended

Six Months Ended

March 28,

Dec. 27,

March 29,

March 28,

March 29,

2015

2014

2014

2015

2014

GAAP Operating Income

$      49,652

$      53,480

$      45,297

$    103,132

$      84,817

GAAP operating margin

3.3%

3.2%

3.1%

3.2%

2.9%

Adjustments

Stock compensation expense (1)

5,488

5,717

4,757

11,205

9,032

Amortization of intangible assets

885

1,035

1,251

1,920

1,725

Distressed customer charges (2)

-

3,102

(290)

3,102

383

Restructuring costs

1,740

3,000

2,565

4,740

6,269

Contingency item (3)

-

-

124

-

124

Gain on sales of long-lived assets

(1,196)

-

(530)

(1,196)

(530)

Asset impairments

-

1,954

-

1,954

-

Non-GAAP Operating Income

$      56,569

$      68,288

$      53,174

$    124,857

$    101,820

Non-GAAP operating margin

3.7%

4.1%

3.6%

3.9%

3.5%

GAAP Net Income

$      14,748

$      22,656

$      20,840

$      37,404

$      43,941

Adjustments:

Operating income adjustments (see above)

6,917

14,808

7,877

21,725

17,003

Loss on repurchases of debt (4)

-

2,913

-

2,913

-

Litigation settlements (5)

-

(273)

(261)

(273)

(261)

Deferred and non-recurring tax adjustments

21,698

13,028

9,823

34,726

13,082

Non-GAAP Net Income

$      43,363

$      53,132

$      38,279

$      96,495

$      73,765

GAAP Net Income Per Share:

Basic

$          0.18

$          0.27

$          0.25

$          0.45

$          0.53

Diluted

$          0.17

$          0.26

$          0.24

$          0.43

$          0.51

Non-GAAP Net Income Per Share:

Basic

$          0.52

$          0.64

$          0.46

$          1.17

$          0.89

Diluted

$          0.50

$          0.61

$          0.44

$          1.11

$          0.85

Weighted-average shares used in computing per share amounts:

Basic

82,977

82,548

82,728

82,762

83,247

Diluted

86,897

86,682

86,144

86,797

86,723

(1)

Stock compensation expense was as follows: 

Three Months Ended

Six Months Ended

March 28,

Dec. 27,

March 29,

March 28,

March 29,

2015

2014

2014

2015

2014

Cost of sales

$        1,491

$        1,576

$        1,364

$        3,067

$        2,566

Selling, general and administrative

3,959

4,103

3,382

8,062

6,453

Research and development

38

38

11

76

13

  Total

$        5,488

$        5,717

$        4,757

$      11,205

$        9,032

(2)

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

(3)

Represents a non-recurring contingency that the Company ultimately resolved favorably in Q4 FY14.

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

(5)

Represents cash received in connection with certain litigation settlements.