We refer you to our quarterly and annual reports filed with the Securities & Exchange Commission. These documents contain and identify important factors that could cause actual results to differ materially from our projections or forward-looking statements.You'll note in our press release issued today that we have provided you with the statements of operations for the three months ending January 1, 2011, on a GAAP basis, as well as certain non-GAAP financial information. A reconciliation between the GAAP and non-GAAP financial information is also provided in the press release and is posted on our website. In general, on our non-GAAP information excludes restructuring costs, acquisition and integration costs, non-cash stock-based compensation expense, amortization expense and other infrequent or unusual items to the extent material. Any comments we may make on this call as they relate to the income statement measures will be directed at our non-GAAP financial results. Accordingly, unless otherwise stated in this conference call, when we refer to gross profit, gross margin, operating income, operating margin, net income and earnings per share, we're referring to our non-GAAP information. I would now like to turn the call over to Jure Sola, Chairman and Chief Executive Officer. Jure Sola Thanks, Paige. Good afternoon, ladies and gentlemen. Welcome to Sanmina's Conference Call. Here with me today I have Bob Eulau, our Executive Vice President and CFO. Robert Eulau Good afternoon, everyone. Jure Sola Also, Hari Pillai , our President and Chief Operating Officer. Hari Pillai Hello, everybody. Jure Sola So agenda is that Bob Eulau will review our financial results for the first quarter and fiscal year 2011. Then I will follow additionally with some comments relative to Sanmina-SCI results and future growth. Then Bob, Hari and I will be open to answer all the questions that you might have. And now, I would like to turn over to Bob. Bob?
Robert EulauThanks, Jure. It is a pleasure for me to be joining you on today's call. Please turn to Slide 3. Overall, this was our seventh consecutive quarter of improved operating margin. Revenue of $1.66 billion was down 1% on a sequential basis and up 12% over the first quarter last year. This was at the high end of our guidance of $1.625 billion to $1.675 billion. Gross margin was unchanged from Q4 at 7.8%. This was below what we had planned primarily due to the mix of business or revenue decline. Operating margin improved 10 basis points from last quarter to 4.2%, which is a good outcome since this was achieved in spite of slightly lower revenue than Q4. Non-GAAP EPS was $0.45 per share. This was based on 82.8 million shares outstanding on a fully diluted basis. Non-GAAP EPS was above the range of our guidance primarily because of lower operating expenses. Please turn to Slide 4. I'll start by making a few comments on the GAAP numbers. For the first quarter, we reported a GAAP net income of approximately $28 million, which result in earnings per share of $0.34. This is down slightly from Q4 and up significantly from last year once you adjust for last year's one-time events totaling $48 million, which consisted of proceeds from a legal settlement and the resolution of a tax matter. Restructuring costs totaled $5 million for Q1. The restructuring costs were significantly below what we had planned due to lower cost than expected for the strategic acquisition of an optical business last year. The integration of this business is now complete and the business is ahead of our plan from a margin standpoint. For Q2, we expect restructuring cost to be in the range of $5 million to $6 million. After the second quarter, we will continue to see some minimal restructuring expenses on our GAAP P&L of approximately $3 million to $4 million per quarter that relate to cost for past restructuring actions that are booked as incurred in accordance with GAAP. These excesses primarily relate to real estate which is being held for sale. We expect these expenses to decline over time as properties are sold. These properties are listed on the market at over $130 million. Read the rest of this transcript for free on seekingalpha.com