SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE
ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED FEBRUARY 28, 1995.
__ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM _________________ TO
_______________
COMMISSION FILE NUMBER 2-33228-40
SOLECTRON CORPORATION
(Exact Name of Registrant as specified in its Charter)
California 94-2447045
(State or other jurisdiction (IRS Employer Identification
of Incorporation or Organization) Number)
777 Gibraltar Drive, Milpitas, California 95035
(Address of principal executive offices and Zip Code)
Registrant's telephone number, including area code: (408) 957-8500
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No ___
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
At February 24, 1995, 41,505,889 shares of Common Stock of the Registrant were
outstanding.
<PAGE> 1
SOLECTRON CORPORATION
INDEX TO FORM 10-Q
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets
at February 28, 1995 and August 31, 1994..................... 3
Consolidated Statements of Income
for the Three Months and Six Months ended February 28, 1995 and
1994........................................................ 4
Consolidated Statements of Cash Flows
for the Six Months ended February 28, 1995 and
1994........................................................ 5
Notes to Interim Consolidated Financial
Statements.................................................. 6
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of
Operations.............................................. 7 - 10
PART II. OTHER INFORMATION
Item 1. Legal Proceedings........................................... 11
Item 2. Changes in Securities........................................11
Item 3. Defaults Upon Senior Securities..............................11
Item 4. Submission of Matters to a Vote of Security Holders.... 11 - 12
Item 5. Other Information....................................... 12
Item 6. Exhibits and Reports on Form 8-K........................12 - 13
Signatures.................................................. 14
<PAGE> 2
SOLECTRON CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
February 28, August 31,
1995 1994
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 61,988 $ 67,906
Short-term investments 75,745 94,070
Accounts receivable, net 217,818 188,794
Inventories 246,647 232,389
Prepaid expenses and other
current assets 15,838 18,977
------- -------
Total current assets 618,036 602,136
Net property and equipment 155,014 147,822
Other assets 15,892 16,437
------- -------
Total assets $ 788,942 $ 766,395
======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term debt $ 4,454 $ -
Current portion of long-term debt
and capital lease obligations 1,215 3,149
Accounts payable 222,159 241,930
Accrued employee compensation 21,070 21,598
Accrued expenses 15,642 16,257
Other current liabilities 4,126 9,999
------- -------
Total current liabilities 268,666 292,933
Long-term debt and capital
lease obligations 145,285 140,709
Other long-term liabilities 1,670 1,964
------- -------
Total liabilities 415,621 435,606
Shareholders' equity:
Common stock 208,913 206,257
Retained earnings 163,023 126,795
Cumulative translation adjustment 1,607 (2,263)
Unrealized loss on investments (222) -
------- -------
Total shareholders' equity 373,321 330,789
------- -------
Total liabilities and
shareholders' equity $ 788,942 $ 766,395
======= =======
See accompanying notes to interim consolidated financial statements
<PAGE> 3
SOLECTRON CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)
Three Months Ended Six Months Ended
February 28, February 28,
1995 1994 1995 1994
---- ---- ---- ----
Net sales $ 471,266 $ 327,208 $ 977,944 $ 649,048
Cost of sales 424,897 292,440 886,132 581,401
------- ------- ------- -------
Gross profit 46,369 34,768 91,812 67,647
Operating expenses:
Selling, general & administrative 16,806 13,515 32,337 26,062
Research & development 1,144 986 2,335 2,150
------- ------- ------- -------
Operating income 28,419 20,267 57,140 39,435
Interest income 1,673 1,335 3,215 3,177
Interest expense (2,768) (2,637) (5,465) (5,425)
------- ------- ------- -------
Income before income taxes 27,324 18,965 54,890 37,187
Income taxes 9,290 6,590 18,662 12,922
------- ------- ------- -------
Net income $ 18,034 $ 12,375 $ 36,228 $ 24,265
======= ======= ======= =======
Net income per share:
Primary $ 0.43 $ 0.29 $ 0.86 $ 0.58
------- ------- ------- -------
Fully diluted $ 0.38 $ 0.27 $ 0.76 $ 0.52
------- ------- ------- -------
Shares used in computation:
Primary 42,218 42,316 42,237 42,166
------- ------- ------- -------
Fully diluted 51,767 51,979 51,786 51,969
------- ------- ------- -------
See accompanying notes to interim consolidated financial statements
<PAGE> 4
SOLECTRON CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
( In thousands, unaudited)
Six Months
Ended February 28,
1995 1994
---- ----
Cash flows from operating activities:
Net income $ 36,228 $ 24,265
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 27,430 21,878
Interest accretion on zero-coupon subordinated notes 4,737 4,501
Additions to allowance for doubtful accounts 307 469
Other (274) 574
Changes in operating assets and liabilities:
Accounts receivable (27,414) (18,286)
Inventories (12,223) (13,630)
Prepaid expenses and other current assets 3,510 (4,541)
Accounts payable (22,935) (9,340)
Accrued expenses and other current liabilities (7,866) 7,105
------- -------
Net cash provided by operating activities 1,500 12,995
------- -------
Cash flows from investing activities:
Purchases of short-term investments (43,022) (202,285)
Sales of short-term investments 61,219 234,761
Purchase of facilities, equipment and other assets - (14,383)
Capital expenditures (32,161) (32,304)
------- -------
Net cash used in investing activities (13,964) (14,211)
------- -------
Cash flows from financing activities:
Proceeds from short-term debt 4,454 -
Repayments of long-term debt and capital lease
obligations (2,052) (2,072)
Net proceeds from sale of common stock 2,624 3,521
------- -------
Net cash provided by financing activities 5,026 1,449
------- -------
Effect of exchange rate changes on cash
and cash equivalents 1,520 (275)
------- -------
Net decrease in cash and cash equivalents (5,918) (42)
Cash and cash equivalents at beginning of period 67,906 35,232
------- -------
Cash and cash equivalents at end of period $ 61,988 $ 35,190
======= =======
SUPPLEMENTAL DISCLOSURES:
Cash paid during the period:
Interest $ 341 $ 747
======= =======
Income taxes $ 17,686 $ 11,997
======= =======
See accompanying notes to interim consolidated financial statements
<PAGE> 5
SOLECTRON CORPORATION AND SUBSIDIARIES
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 - Basis of Presentation
The accompanying consolidated balance sheets as of February 28, 1995
(unaudited) and August 31, 1994, the unaudited consolidated statements of income
for the three-month and six-month periods ended February 28, 1995 and 1994, and
the unaudited consolidated statements of cash flows for the six months ended
February 28, 1995 and 1994 have been prepared on substantially the same basis as
the annual consolidated financial statements. Management believes the financial
statements reflect all adjustments, consisting only of normal recurring
adjustments, necessary for a fair presentation of the financial position,
operating results and cash flows for the periods presented. The results of
operations for the three-month and six-month periods ended February 28, 1995 are
not necessarily indicative of results to be expected for the entire year. These
consolidated financial statements should be read in conjunction with the
consolidated financial statements and notes thereto for the year ended August
31, 1994 included in the Company's Annual Report to Shareholders.
For clarity of presentation, the Company has indicated its second quarter
as ending on February 28 and its fiscal year as ending on August 31, whereas in
fact, the Company's fiscal periods end on the last Friday of the respective
month.
NOTE 2 - Inventories
Inventories consisted of (in thousands):
February 28, August 31,
1995 1994
Raw materials $175,404 $164,817
Work-in-process 71,243 67,572
------- -------
$246,647 $232,389
======== ========
NOTE 3 - Net Income per Share
Primary net income per share is computed using the weighted average number
of common and dilutive common stock equivalent shares outstanding. Fully
diluted net income per share includes the dilutive effect from the assumed
conversion of the Company's outstanding convertible zero-coupon subordinated
notes.
<PAGE> 6
SOLECTRON CORPORATION & SUBSIDIARIES
ITEM 2 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
General
Solectron's net sales are derived from sales to electronics system original
equipment manufacturers. The majority of the Company's customers compete in the
telecommunications, computer peripherals, workstation and personal computer
segments of the electronics industry. The Company uses advanced manufacturing
technologies in assembly and manufacturing management of complex printed circuit
boards and electronics systems.
Operating results are affected by a number of factors, including the degree
of turnkey manufacturing, the material content and volume of products built,
manufacturing efficiencies, utilization of capacity, start-up costs associated
with new customer projects and price competition. Over the past several years,
the Company's strategy has been to increase the percentage of sales it derives
from turnkey manufacturing, which currently represents a substantial portion of
the Company's sales. Turnkey projects, in which the Company procures some or
all of the components necessary for production, typically generate higher net
sales and higher gross profits with lower gross margin percentages than
consignment projects due to the inclusion in the Company's operating results of
sales and costs associated with the purchase and sale of components. The
increase in gross profit and the decrease in gross margin over the past several
years has been due primarily to this shift toward turnkey manufacturing. More
recently, the Company has experienced changes in product mix relative to the
degree of material content associated with products delivered. These changes
have caused the Company's gross margin to fluctuate.
The Company has manufacturing operations in six locations, three of which
are overseas. As the Company manages its existing operations and expands
geographically, it may experience certain inefficiencies from the management of
geographically dispersed operations. In addition, the Company's results of
operations will be adversely affected if these new facilities do not achieve
revenue growth sufficient to offset increased expenditures associated with
geographic expansion.
Around the world, the Company is subject to a variety of environmental
regulations relating to the use, storage, discharge and disposal of hazardous
chemicals used during its manufacturing process. Any failure by the Company to
comply with present and future regulations could subject it to future
liabilities or the suspension of production. In addition, such regulations
could restrict the Company's ability to expand its facilities or could require
the Company to acquire costly equipment or to incur other significant expenses
to comply with environmental regulations.
The Company competes within the electronics manufacturing services (EMS)
segment of the electronics industry. The EMS segment is currently growing at a
faster rate than the overall electronics industry, but the EMS segment is also
comprised of a large number of companies, several of which have achieved
substantial market share. In addition to competing with other EMS companies,
the Company also faces competition from current and prospective customers which
evaluate Solectron's capabilities against the merits of manufacturing products
internally. Certain of the Company's competitors have substantially greater
geographic breadth. They also have greater manufacturing, financial, research
and development and marketing resources than the Company. The Company believes
that the primary basis of competition in its targeted markets is manufacturing
technology, quality, responsiveness, the provision of value-added services and
price. To remain competitive, the Company must continue to provide
technologically advanced manufacturing services, maintain quality levels, offer
flexible delivery schedules, deliver finished products on a reliable basis and
compete favorably on the basis of price. The Company currently may be at a
competitive disadvantage as to price when compared to manufacturers with lower
cost structures, particularly with respect to manufacturers with established
facilities where labor costs are lower.
<PAGE> 7
Results of Operations
The following table sets forth, for the three months and six months ended
February 28, 1995 and 1994, certain items as a percentage of net sales. The
table and the discussion below should be read in conjunction with the
consolidated financial statements and notes thereto that appear elsewhere in
this report.
Three Months Ended Six Months Ended
February 28, February 28,
1995 1994 1995 1994
------ ------ ------ ------
Net sales 100.0 % 100.0 % 100.0 % 100.0 %
Cost of sales 90.2 89.4 90.6 89.6
------ ------ ------ ------
Gross profit 9.8 10.6 9.4 10.4
Operating expenses:
Selling, general and
administrative 3.6 4.1 3.3 4.0
Research and development 0.2 0.3 0.3 0.3
------ ------ ------ ------
Operating income 6.0 6.2 5.8 6.1
Interest expense, net 0.2 0.4 0.2 0.4
------ ------ ------ ------
Income before income taxes 5.8 5.8 5.6 5.7
Income taxes 2.0 2.0 1.9 2.0
------ ------ ------ ------
Net income 3.8 % 3.8 % 3.7 % 3.7 %
====== ====== ====== ======
Net sales for the three months and six months ended February 28, 1995 were
$471 million and $978 million, respectively, representing increases of 44% and
51% over the comparable periods last year. These increases in net sales are due
primarily to increased orders from existing customers, the addition of new
customers and growth in the Company's turnkey business. Approximately $21
million of the year-to-date revenue increase (and $.9 million of the increased
income before income taxes) results from changes in foreign currency exchange
rates. The overall increase in revenues reflects the continuing trend toward
outsourcing within the electronics industry.
The Company's two largest customers during the first half of fiscal 1995
were International Business Machines Corporation (IBM) and Apple Computer, Inc.
(Apple). Net sales to IBM during this period accounted for 23% of consolidated
net sales, compared to 31% in the first half of fiscal 1994. Sales to Apple were
less than 10% of consolidated net sales in the first half of fiscal 1995,
compared to 10% in the first half of fiscal 1994. While net sales to both
customers increased in absolute amounts compared to the first half of fiscal
1994, the Company has focused its efforts on obtaining business from other
customers, thereby reducing its dependency on these accounts. Net sales to the
Company's top ten customers during the first half of fiscal 1995 accounted for
71% of consolidated net sales, compared to 74% in the first half of fiscal 1994.
The Company is substantially dependent upon continued revenues from IBM,
Apple and the rest of its top ten customers. Any material delay, cancellation
or reduction of orders from these or other customers could have a materially
adverse effect on the Company's results of operations. The Company has a
manufacturing services agreement with IBM at its Bordeaux, France facility that
expires in December 1995. While the Company expects to continue business with
IBM after the agreement expires, there can be no guarantee that such business
will be available at satisfactory terms to the Company.
<PAGE> 8
Net sales at the Company's foreign sites grew at faster rates over the last
year than net sales at the Company's domestic sites. Foreign locations
contributed 40% of consolidated net sales in the first half of fiscal 1995,
compared to 32% in the first half of fiscal 1994. As a result of the Company's
foreign sales and facilities, the Company's operations are subject to risks of
doing business abroad, including fluctuations in the value of currency, changes
to import and export regulations, possible restrictions on the transfer of
funds, and in certain parts of the world, political instability. While to date
these dynamics have not had a materially adverse impact on the Company's results
of operations, there can be no assurance that there will not be such an impact
in the future.
The Company's operations in Milpitas, California contributed a substantial
portion of the Company's net sales and operating income during the first half of
fiscal 1995 and 1994. The performance of this operation is expected to continue
as a significant factor in the overall financial results of the Company. Any
material change to the customer base, product mix, efficiency or other
attributes of this site could have a material effect on the Company's
consolidated results of operations.
Over the past few years the Company's revenues have grown substantially and
have exceeded the Company's own targeted growth rate. The Company believes that
its ability to continue to achieve rapid growth will depend upon growth in sales
to existing customers for their current and future product generations,
successful marketing to new customers and future geographic expansion. With the
exception of a manufacturing services agreement with IBM at the Bordeaux, France
site which expires in December 1995, the Company has no firm long-term volume
commitments from its customers and over the last few years has experienced
reduced lead-time in customer orders. Customer contracts can be canceled and
volume levels can be changed or delayed. The timely replacement of delayed,
canceled or reduced orders with new business cannot be assured. In addition,
there can be no assurance that any of the Company's current customers will
continue to utilize the Company's services. Because of these factors, there can
be no assurance that the Company's historical revenue growth rate will continue.
The Company currently serves the electronics industry, which is subject to
rapid technological change, product obsolescence and price competition. These
and other factors affecting the electronics industry, or any of the Company's
major customers in particular, could have a materially adverse effect on the
Company's results of operations.
Gross margin for the second quarter of fiscal 1995 was 9.8%, compared to
10.6% for the second quarter of fiscal 1994. Year-to-date gross margin for the
first six months of fiscal 1995 was 9.4%, compared to 10.4% for the comparable
period last year. These declines in gross margin are due primarily to growth in
the Company's turnkey business, manufacturing inefficiencies at the Charlotte,
North Carolina and Dunfermline, Scotland locations, and under-utilization of the
Bordeaux, France facility. The manufacturing inefficiencies are the result of
new customer projects and the continuing ramp-up in complexity of business in
Charlotte and Dunfermline. The Company has made progress at these sites and has
improved the management and logistical infrastructure. The Bordeaux facility is
expected to be under-utilized for at least the remainder of fiscal 1995. The
declines in gross margin from the factors mentioned above were partially offset
by improvements in product mix and better utilization at certain sites. Further
increases in turnkey business, additional costs associated with new projects,
and price erosion within the electronics industry could adversely affect the
Company's gross margin. Additionally, changes in product mix could cause the
Company's gross margin to fluctuate. While the availability of raw materials
appears adequate to meet the Company's current revenue projections through the
remainder of fiscal 1995, component availability to support revenue increases
beyond the Company's current plans is limited. Furthermore, availability of
customer-consigned parts and unforeseen shortages of components on the world
market are beyond the Company's control and could adversely affect revenue
levels and operating efficiencies.
<PAGE> 9
Selling, general and administrative (SG&A) expenses increased in absolute
amounts during the second quarter and first half of fiscal 1995 relative to the
comparable periods of fiscal 1994. The increases during these periods are due
primarily to growth in personnel and related departmental expenses at all
manufacturing locations to support the increased size and complexity of the
Company's business. SG&A expenses as a percentage of net sales have decreased
during the first half of fiscal 1995 compared to the comparable period of fiscal
1994 from increased leverage of fixed operating costs on a higher revenue base
and continued management and limitation of overhead expenses. The Company
anticipates SG&A expenses will increase in the future as the Company builds the
infrastructure necessary to support its current and prospective business.
Research and development (R&D) activities have been focused primarily on
fine pitch interconnection technologies (which include ball-grid array, tape-
automated bonding, multichip modules, chip-on-flex, and chip-on-board), high
reliability environmental stress test technology, and no-clean soldering
processes. R&D expenses did not change significantly in the second quarter or
first half of fiscal 1995 compared to the same periods one year ago and are not
expected to change significantly in the near future.
The effective income tax rate throughout the first half of fiscal 1995 was
approximately 34%, a slight decrease from the 34.7% effective tax rate for the
first half of fiscal 1994. The decrease reflects primarily increased earnings
from the Company's foreign operations which have lower statutory tax rates.
Liquidity and Capital Resources
Working capital was $349 million as of February 28, 1995, an increase of
$40 million from the end of fiscal 1994. This increase reflects primarily the
growth in net sales during the first half of fiscal 1995 and the required
investment in working capital by the Company to support this growth. The
increase in working capital was financed by cash generated from operations
during the first half of fiscal 1995. Cash provided by operating activities
during the current period was impacted by an unusually high reduction in
accounts payable from the timing of vendor payments. The Company anticipates
that further increases in working capital will be required to support
anticipated revenue growth.
Cash used in investing activities was $14.0 million for the first half of
fiscal 1995, essentially unchanged from the comparable period last year. During
fiscal 1994, the Company purchased facilities, equipment and other assets in
Dunfermline, Scotland and Everett, Washington for approximately $14.0 million,
with no comparable purchase in the current year. Although not a certainty,
future acquisitions of this nature or geographic expansion may be necessary to
meet the future needs of the Company's customers. Capital expenditures during
the first half of fiscal 1995 were $32.2 million and consisted primarily of
surface mount assembly and test equipment at the Penang, Malaysia and
Dunfermline, Scotland locations to meet current and expected production levels.
For the remainder of fiscal 1995, capital expenditures at existing facilities,
plus equipment and building costs for a new facility under construction at the
Dunfermline, Scotland location, are expected to be in the range of $35 million
to $50 million.
Cash provided by financing activities increased during the first half of
fiscal 1995 compared to the same period last year, due primarily to the
Company's use of short-term bank overdraft borrowings during the current year at
certain of its foreign locations. These credit facilities are utilized from
time to time to provide flexibility in the Company's cash management.
In addition to the Company's working capital as of February 28, 1995, which
includes cash and cash equivalents of $62 million and short-term investments of
$76 million, the Company also has available a $100 million unsecured domestic
revolving credit facility, subject to financial covenants and restrictions, and
$30 million in available foreign credit facilities. Beginning in September
1997, the Company will be required to pledge approximately $44 million of cash
or marketable securities as collateral for its obligation under the terms of the
Company's operating lease for the majority of its facilities in Milpitas,
California.
<PAGE> 10
SOLECTRON CORPORATION AND SUBSIDIARIES
Part II. OTHER INFORMATION
Item 1: Legal Proceedings
None
Item 2: Changes in Securities
None
Item 3: Defaults upon Senior Securities
None
Item 4: Submission of Matters to a Vote of Security Holders
a) The Company held its Annual Meeting of Shareholders on Tuesday,
January 17, 1995.
b) At the meeting, the following proposals received the votes listed
below:
i)Election of Directors:
Charles A. Dickinson Votes For: 34,704,277
Votes Withheld: 236,283
Dr. Koichi Nishimura Votes For: 34,732,505
Votes Withheld: 208,055
Dr. Winston H. Chen Votes For: 34,729,059
Votes Withheld: 211,501
Richard A. D'Amore Votes For: 34,731,827
Votes Withheld: 208,733
Dr. Kenneth E. Haughton Votes For: 34,731,157
Votes Withheld: 209,403
Dr. Paul R. Low Votes For: 34,712,978
Votes Withheld: 227,582
W. Ferrell Sanders Votes For: 34,731,608
Votes Withheld: 208,952
Osamu Yamada Votes For: 34,686,969
Votes Withheld: 253,591
<PAGE> 11
ii) Amendment to the Company's 1992 Votes For: 30,028,282
Stock Option Plan to increase the Votes Against: 4,525,794
number of shares of Common Stock Abstentions: 192,929
reserved for issuance thereunder Broker Non-Votes: 193,555
by 2,000,000 shares to an
aggregate of 6,000,000 shares.
iii) Amendment to the Company's 1992 Votes For: 34,486,876
Stock Option Plan to limit the Votes Against: 130,293
number of stock options that may Abstentions: 129,836
be issued to an employee in any Broker Non-Votes: 193,555
one fiscal year.
iv) Ratification of the appointment Votes For: 34,841,394
of KPMG Peat Marwick LLP as Votes Against: 50,702
independent accountants of the Abstentions: 48,464
Company for the fiscal year
ending August 31, 1995.
Item 5: Other Information
None
Item 6: Exhibits and Reports on Form 8-K
(a) Exhibits
11.1 Statement re: Computation of Net Income per Share
(b) Reports on Form 8-K
None
<PAGE> 12
SOLECTRON CORPORATION AND SUBSIDIARIES
STATEMENT REGARDING COMPUTATION OF NET INCOME PER SHARE
(in thousands, except per share data)
Three Months Ended Six Months Ended
February 28, February 28,
1995 1994 1995 1994
------ ------ ------ ------
Weighted average number of shares
of common stock and common stock
equivalents:
Primary:
Common stock 41,460 40,965 41,418 40,879
Common stock equivalents -
stock options 758 1,351 819 1,287
------- ------- ------- -------
42,218 42,316 42,237 42,166
Fully diluted:
Common shares issuable upon
assumed conversion of
convertible zero-coupon
subordinated notes 9,549 9,560 9,549 9,562
Incremental increase in common
stock equivalents using end of
period market price - 103 - 241
------- ------- ------- -------
51,767 51,979 51,786 51,969
======= ======= ======= =======
Net income - primary $18,034 $12,375 $36,228 $24,265
Interest accretion on convertible
zero-coupon subordinated notes,
net of taxes 1,600 1,460 3,147 2,886
------- ------- ------- -------
Net income - fully diluted $19,634 $13,835 $39,375 $27,151
======= ======= ======= =======
Net income per share - primary $0.43 $0.29 $0.86 $0.58
======= ======= ======= =======
Net income per share - fully diluted $0.38 $0.27 $0.76 $0.52
======= ======= ======= =======
<PAGE> 13
SOLECTRON CORPORATION
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
SOLECTRON CORPORATION
(Registrant)
Date: March 24, 1995 By: /s/ Koichi Nishimura
Dr. Koichi Nishimura
President &
Chief Executive Officer
Date: March 24, 1995 By: /s/ Susan S. Wang
Susan S. Wang
Senior Vice President, Chief
Financial Officer and Secretary
(Principal Financial and
Accounting Officer)
<PAGE> 14
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> AUG-31-1995
<PERIOD-END> FEB-28-1995
<CASH> 61,988
<SECURITIES> 75,745
<RECEIVABLES> 217,818
<ALLOWANCES> 0
<INVENTORY> 246,647
<CURRENT-ASSETS> 618,036
<PP&E> 155,014
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<TOTAL-ASSETS> 788,942
<CURRENT-LIABILITIES> 268,666
<BONDS> 140,501
<COMMON> 208,913
0
0
<OTHER-SE> 164,408
<TOTAL-LIABILITY-AND-EQUITY> 788,942
<SALES> 977,944
<TOTAL-REVENUES> 977,944
<CGS> 886,132
<TOTAL-COSTS> 886,132
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