We refer you to our quarterly and annual report filed with the Securities and Exchange Commission. These documents contain and identify important factors that could cause the actual results to differ materially from our projections or forward-looking statements.You’ll note in our press release and slides issued today, that we have provided you with the statements of operation for the three months ended December 31, 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 slides posted on our website. In general, 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 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 our gross profit, gross margin, operating income, operating margin, net income and earnings per share, we are 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. Thank you for all of you being here today with us. On today’s call I have our CFO, Bob Eulau. Bob Eulau Hi everyone Jure Sola The agenda today we have is that Bob will review our financial results for the first quarter of fiscal year 2012. Then I will follow-up with additional comments relative to Sanmina-SCI’s results and future goals. Then Bob and I will open for questions-and-answers. And now I would like to turn this over to Bob. Bob. Bob Eulau Thanks Jure. It’s a pleasure for me to be joining you on today’s call. Please turn to slide three. Overall the first quarter was challenging, but not significantly different from what we had expected. Revenue of $1.5 billion was down 11% on a sequential basis and down 10% from the first quarter last year. This was at the low end of our guidance of $1.5 billion to $1.6 billion.
In some cases, like the communications network segment we suffered from week demand and in other cases we had reasonable demand, but we suffered from supply issues to the floods in Thailand.Our gross margin came in at 7.3%, which was down 50 basis points from the fourth quarter. Operating margin declined 80 basis points from last quarter to 3.3%. Non GAAP- EPS was $0.28. This was based on 82.7 million shares outstanding on our fully diluted basis. Finally, cash generation was a challenge this quarter with cash flow from operations at negative $13 million. I’ll discuss cash in more detail in a few minutes. Please turn to slide four. Revenue was down 11% or $195 million from Q4 to $1.5 billion. From a GAAP perspective we reported net income of approximately $9 million, which results in earnings per share of $0.10. This was down relative to last quarter by $0.12. Restructuring costs totaled about $4 million for Q1. The cost primarily reflects what we have been recognizing as expenses that are incurred related to real estate. Looking forward, we will continue to see some ongoing restructuring charges on our GAAP P&L of approximately $4 million to $5 million per quarter that primarily relate to real estate which is being held for sale. This real estate is listed on the market at over $100 million. Over the last two years we have sold over $50 million in real estate. My remaining comments will focus on the non-GAAP financials for the first quarter. At a $110 million, gross profit was down $23 million from the prior quarter. Gross margin came in at 7.3%, which was 50 basis points below the previous quarter. Gross margin was at the low end of the range we had anticipated for the quarter. Read the rest of this transcript for free on seekingalpha.com