UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
-----------------------------------------------
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended December 26, 1999
or
[ ] 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 0-2251
SCI SYSTEMS, INC.
(Exact name of registrant as specified in its charter)
Delaware 63-0583436
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
SCI Systems, Inc.
2101 West Clinton Avenue
Huntsville, Alabama 35805
(Address of principal executive offices) (Zip Code)
----------------------------------------------
(256) 882-4800
(Registrant's telephone number, including area code)
----------------------------------------------
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. [X] Yes [ ] No
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Common Stock, $.10 par value - 144,744,274
Outstanding at January 17, 2000
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements.
SCI Systems, Inc.
Condensed Consolidated Balance Sheets
<TABLE>
<S> <C> <C>
December 26, June 30,
1999 1999
(In thousands of dollars) (Unaudited) (*)
- --------------------------------------------------------------------------------
Assets
Current Assets
Cash and cash equivalents $ 162,095 $ 216,085
Accounts receivable 655,093 821,925
Inventories 1,126,372 719,008
Refundable and deferred federal and
foreign income taxes 12,382 12,522
Other current assets 75,105 62,159
--------------------------------------
Total Current Assets 2,031,047 1,831,699
Property, Plant, and Equipment
(Less accumulated depreciation and
amortization of $532,458 at
December 26, 1999, and $492,098
at June 30, 1999) 535,102 447,985
Goodwill
(Less accumulated amortization of
$12,567 at December 26, 1999,
and $5,444 at June 30, 1999) 317,770 21,033
Other Noncurrent Assets 43,282 21,943
--------------------------------------
Total Assets $2,927,201 $2,322,660
======================================
</TABLE>
* Derived from audited financial statements, but does not include all the
information and footnotes required by generally accepted accounting principles
for complete financial statements.
See notes to condensed consolidated financial statements.
<PAGE>
SCI Systems, Inc.
Condensed Consolidated Balance Sheets
<TABLE>
<S> <C> <C>
December 26, June 30,
1999 1999
(In thousands of dollars except share data) (Unaudited) (*)
- --------------------------------------------------------------------------------
Liabilities and Shareholders' Equity
Current Liabilities
Accounts payable and accrued expenses $1,127,101 $ 874,709
Accrued payroll and related expenses 49,588 44,142
Federal, foreign and state income taxes 23,500 36,117
Current maturities of long-term debt 1,866 341
--------------------------------------
Total Current Liabilities 1,202,055 955,309
Deferred Income Taxes 38,612 34,587
Noncurrent Employee Benefits 38,632 27,094
Long-term Debt - Note E
Industrial revenue bonds 19,854 21,119
Long-term notes 367,986 119,734
--------------------------------------
Total Long-term Debt 387,840 140,853
Shareholders' Equity
Preferred stock, 500,000 shares authorized
but unissued -0- -0-
Common stock, $.10 par value: authorized
200,000,000; issued 29,746,395
144,714,274 shares at December 26, 1999,
and 144,276,474 shares at June 30, 1999 14,471 14,428
Capital in excess of par value 469,772 462,179
Retained earnings 793,802 703,796
Currency translation adjustment (13,350) (11,288)
Shares held in Rabbi trusts, at cost,
264,148 shares at December 26, 1999,
and 272,592 at June 30, 1999 (4,292) (3,957)
Treasury stock of 118,732 shares, at cost (341) (341)
--------------------------------------
Total Shareholders' Equity 1,260,062 1,164,817
--------------------------------------
Total Liabilities and Shareholders' Equity $2,927,201 $2,322,660
======================================
</TABLE>
* Derived from audited financial statements, but does not include all the
information and footnotes required by generally accepted accounting principles
for complete financial statements.
See notes to condensed consolidated financial statements.
<PAGE>
SCI Systems, Inc.
Condensed Consolidated Statements of Income
(Unaudited)
<TABLE>
<S> <C> <C>
Quarter Ended:
December 26, December 27,
(In thousands of dollars except share data) 1999 1998
- --------------------------------------------------------------------------------
Net sales $2,155,367 $1,735,930
Costs and expenses 2,069,844 1,678,438
Goodwill and contract intangibles
amortization expense 5,808 552
--------------------------------------
Operating Income 79,715 56,940
Other income (expense):
Interest expense (net of interest
income of $1,278 in fiscal year 2000
and $1,655 fiscal year 1999) (6,337) (4,884)
Other, net 242 (220)
--------------------------------------
Income Before Income Taxes 73,620 51,836
Income taxes - Note C 24,295 19,179
--------------------------------------
Net Income $ 49,325 $ 32,657
======================================
Earnings per share - Note F:
Basic $.34 $.27
Diluted $.34 $.24
Weighted average number of shares used in computation:
Basic 144,031,126 120,047,554
Diluted 146,444,864 145,257,622
</TABLE>
See notes to condensed consolidated financial statements.
<PAGE>
SCI Systems, Inc.
Condensed Consolidated Statements of Income
(Unaudited)
<TABLE>
<S> <C> <C>
Six Months Ended:
December 26, December 27,
(In thousands of dollars except share data) 1999 1998
- --------------------------------------------------------------------------------
Net sales $3,819,373 $3,305,507
Costs and expenses 3,668,157 3,194,952
Goodwill and contract intangibles
amortization expense 8,786 915
--------------------------------------
Operating Income 142,430 109,640
Other income (expense):
Interest expense (net of interest
income of $3,190 in fiscal year 2000
and $3,542 in fiscal year 1999) (8,331) (10,027)
Other, net 238 (206)
--------------------------------------
Income Before Income Taxes 134,337 99,407
Income taxes - Note C 44,331 36,781
--------------------------------------
Net Income $ 90,006 $ 62,626
======================================
Earnings per share - Note F:
Basic $.63 $.52
Diluted $.62 $.46
Weighted average number of shares used in computation:
Basic 143,986,726 119,946,964
Diluted 146,196,601 145,086,690
</TABLE>
See notes to condensed consolidated financial statements.
<PAGE>
SCI Systems, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
<TABLE>
<S> <C> <C>
Six Months Ended:
December 26, December 27,
(In thousands of dollars) 1999 1998
- --------------------------------------------------------------------------------------------
Operating Activities
Net income $ 90,006 $ 62,626
Adjustments to reconcile net income to net cash
provided by operations:
Depreciation and amortization 66,380 56,128
Changes in current assets and liabilities:
Accounts receivable 166,199 (108,594)
Inventories (409,457) (69,227)
Other current assets (12,945) (23,460)
Accounts payable and accrued expenses 259,907 175,957
Income taxes (7,583) (10,542)
Other non cash items - net 5,039 (522)
----------------------------------------
Net Cash Provided by Operating Activities 157,546 82,366
----------------------------------------
Investing Activities
Purchase of property, plant, and equipment (153,639) (56,576)
Acquisition costs in excess of underlying
asset values (303,860) -0-
Other (4,810) (3,604)
----------------------------------------
Net Cash Used for Investing Activities (462,309) (60,180)
----------------------------------------
Financing Activities
Net increase in commercial paper and
other short-term notes 148,289 -0-
Payments on long-term debt (300,164) (20,620)
Proceeds from long-term debt 400,689 2,344
Issuance of common stock 2,743 2,796
----------------------------------------
Net Cash Provided by (Used for) Financing Activities 251,557 (15,480)
----------------------------------------
Effect of exchange rate changes on cash (784) 569
----------------------------------------
Net increase (decrease) in cash and cash equivalents (53,990) 7,275
Cash and cash equivalents at beginning of period 216,085 184,346
----------------------------------------
Cash and Cash Equivalents at End of Period $ 162,095 $ 191,621
========================================
</TABLE>
Cash equivalents consist of short-term deposits and liquid marketable securities
which are stated at cost that approximates market value.
See notes to condensed consolidated financial statements.
<PAGE>
Notes to Condensed Consolidated Financial Statements
December 26, 1999
(Unaudited)
Note A - Basis of Presentation
The accompanying unaudited condensed consolidated financial statements include
the accounts of the Company and its wholly-owned subsidiaries after elimination
of significant intercompany accounts and transactions. The financial statements
have been prepared in accordance with instructions to Form 10-Q and do not
include all the information and footnotes required by generally accepted
accounting principles for complete financial statements. Independent auditors
have not examined the statements (and all other information in this report), but
in the opinion of the Company all adjustments, which consist of normal recurring
accruals necessary for a fair presentation of the results for the period, have
been made. The results of operations for the period ended December 26, 1999, are
not necessarily indicative of the results of operations for the year ending June
30, 2000. For further information, refer to the consolidated financial
statements and footnotes included in the Company's Annual Report on Form 10-K
for the year ended June 30, 1999.
Note B - Stock Split in the Form of a Stock Dividend
Subsequent to December 26, 1999, the Company's Board of Directors declared a
two-for-one stock split in the form of a stock dividend to shareholders of
record on February 4, 2000, payable February 18, 2000. The number of shares
outstanding, and that held in treasury and in rabbi trusts, together with all
earnings per share data presented in the accompanying financial statements have
been restated for all periods presented to give effect to this stock split.
Note C - Income Taxes
U.S. income taxes in excess of estimated foreign income tax credits have not
been provided on certain undistributed earnings of foreign subsidiaries
aggregating $83 million at December 26, 1999, which are considered to be
permanently invested. Otherwise, approximately $20 million of cumulative
deferred income taxes (net of related estimated foreign income tax credits)
would have been provided. The estimated income tax provision for fiscal 2000
differs from the U.S. statutory income tax rate due to state income taxes offset
by lower taxed foreign earnings considered permanently invested.
Note D - Acquisitions
In August 1999, the Company acquired Nortel Network's Brockville, Ontario,
Canada, plant and certain other manufacturing assets, and entered into a
multiyear manufacturing agreement. This Plant supplies optical network
subassemblies to Nortel. In December 1999, the Company purchased the
manufacturing assets of TAG Manufacturing, Inc. of San Jose, California. TAG
makes fabricated sheet metal products and assemblies (which are generally
referred to as enclosures) for Original Equipment Manufacturers (OEMs) and
Electronic Manufacturing Services (EMS) providers supporting the computing,
networking, communications and medical electronic equipment industries. These
acquisitions are accounted for under the purchase method of accounting and their
current and past operations are not considered significant to the Company's
operations; accordingly, no pro forma information is presented. The excess of
the purchase price over the acquired underlying tangible assets for these two
acquisitions is being amortized primarily over 15 years, since they represent
substantial market and product expansions. Considerable future growth is
expected from these two acquisitions. The Company intends to expand TAG's
enclosure operation into other geographic areas.
Subsequent to December 26, 1999, the Company purchased ECI Telecom's Shemer
Manufacturing Plant located in Petah Tikva, Israel and entered into a multiyear
supply agreement. This plant provides printed circuit board assemblies to ECI
for use in their telecommunications products.
Note E - Changes in Amount Outstanding of Securities or Indebtedness
Total unused credit facilities available to the Company at December 26, 1999,
approximated $185 million. At December 26, 1999, the Company had sold $250
million of accounts receivable under its asset securitization agreement.
Additionally, $148 million of commercial paper was outstanding at December 26,
1999, and $100 million under the revolving credit line.
<PAGE>
Note F - Earnings per Share
Basic earnings per share are computed by dividing reported net income for the
period by the weighted average number of shares of common stock outstanding
during the period. A reconciliation of the net income and weighted average
number of shares used for the diluted earnings per share computations, after
adjustment for the announced stock split, follows:
<TABLE>
<S> <C> <C> <C> <C>
Quarter Ended: Six Months Ended:
-------------------------------------------------------------------
(In thousands of dollars, December 26, December 27, December 26, December 27,
except share data )
1999 1998 1999 1998
-------------------------------------------------------------------
Net income $49,325 $32,657 $90,006 $62,626
Add back after-tax interest expense for
convertible subordinated notes -0- 2,371 -0- 4,741
------- ------- ------- -------
Adjusted net income $49,325 $35,028 $90,006 $67,367
======= ======= ======= =======
Weighted average number of shares
outstanding during period 144,031,126 120,047,554 143,986,726 119,946,964
Applicable number of shares for
stock options outstanding for period 2,413,738 1,620,324 2,209,875 1,549,982
Number of shares if outstanding convertible
subordinated notes were converted -0- 23,589,744 -0- 23,589,744
------------- ------------ ------------- -------------
Weighted average number of shares 146,444,864 145,257,622 146,196,601 145,086,690
============= ============ ============= =============
Diluted earnings per share $.34 $.24 $.62 $.46
==== ==== ==== ====
</TABLE>
Note G - Comprehensive Income Comprehensive income consists of the following:
<TABLE>
<S> <C> <C> <C> <C>
Quarter Ended: Six Months Ended:
-------------------------------------------------------------------
December 26, December 28, December 26, December 28,
(In thousands of dollars) 1999 1998 1999 1998
--------------------------------------------------------------------------------------------------------------------
Net income $49,325 $32,657 $90,006 $62,626
Currency translation adjustment loss (815) (506) (2,062) (507)
-------------------------------------------------------------------
Comprehensive income $48,510 $32,151 $87,944 $62,119
===================================================================
</TABLE>
<PAGE>
Item 2. Management's Discussion and Analysis of Results of Operations and
Financial Condition
From time to time the Company may publish or express forward-looking statements,
including those herein, relating to such matters as anticipated financial
performance, business prospects and outlook, plant expansions, foreign sales and
currency risks, technological developments, price competition, operating
margins, liquidity, and similar matters. Such statements generally contain the
words "may", "believes", "anticipates", "estimates", "expects", and words of
similar import. The Private Securities Litigation Reform Act of 1995 provides a
safe harbor for forward-looking statements. In compliance with such safe harbor
terms, the Company notes that a variety of factors could cause the Company's
actual results and experience to differ materially from past performance or from
anticipated results or other expectations expressed in the Company's
forward-looking statements. The risks and uncertainties that may cause actual
results to differ materially include component availability and pricing,
management of growth, customer concentration, customer order flow, competition,
technological change, trends in selling prices for the Company's customers'
products, foreign currency fluctuations, projected capital expenditures,
qualitative market risk disclosures, and other similar statements and risks
described in the Company's Annual Report on Form 10-K for the fiscal year ended
June 30, 1999.
Results of Operations
Sales for the second quarter were $2.155 billion compared with $1.736 billion in
the same period a year earlier. Net income was $49.3 million in the quarter
compared with $32.7 million in the same quarter of fiscal 1999, a 51% increase.
After giving effect to the announced stock split, basic and diluted earnings per
share for the quarter were $.34 each, compared with $.27 and $.24 per share,
respectively, for the year earlier period, an increase of 42% on diluted
earnings per share. Diluted earnings per share excluding the after-tax effect of
Goodwill amortization, referred to as "Cash EPS", were $.36 per share compared
with $.24 a year earlier. Favorable new business development results, strategic
global capacity expansions, and successful integration of the recent Nortel
acquisition contributed to the record quarterly results.
Sales for the first six months were $3.819 billion compared with $3.306 billion
in last fiscal year's first six months. Net income was $90.0 million for this
period compared with $62.6 million in fiscal 1999's first six months, a 44%
increase. Basic and diluted earnings per share for the first six months, after
giving effect to the announced stock split, were $.63 and $.62 per share,
respectively, compared with $.52 and $.46 per share a year earlier. Diluted
earnings per share excluding the after-tax effect of Goodwill amortization, or
"Cash EPS", were $.66 per share compared with $.47 a year earlier.
Substantial growth is occurring in the Company's foreign operations which now
represent approximately 49% of total sales for the first six months of fiscal
2000 compared to approximately 42% for all of fiscal 1999. Foreign operation
sales are expected to continue to grow faster than domestic sales, especially in
Mexico, Canada and Central Europe. Lower average selling prices were offset by a
substantial volume increase and sales generated by the Company's recent
acquisitions. Finished product sales continue to approximate 50% of the Company
sales.
Operating margins improved to 3.70% in fiscal 2000's second quarter from 3.28%
for the same period a year earlier. For the first six months, operating margins
increased to 3.73% from 3.32% in fiscal 1999's first six months. These increases
resulted largely from increased sales volumes, especially in operations that
were in a startup phase in fiscal 1999, which improved factory cost absorption.
Such operations are quickly coming up to existing full production capacity.
Production capacity is being increased at several locations coming out of their
startup phase, especially those in Mexico. Mexico represents the fastest growing
geographic area for the Company. Its low production costs and geographic
proximity to U.S. markets makes it extremely attractive to the Company's
customers. Several major programs previously executed at the Company's domestic
facilities have been transferred to the Mexican plants. Improved operating
results in the Company's Brazilian plant contributed to the improved operating
margin. Goodwill and contract intangible amortization increased to $5.8 million
in the second quarter or .3% of sales, compared to $.6 million in fiscal 1999's
second quarter. For fiscal 2000's first six months, such costs amounted to $8.8
million (.2% of sales) compared with $.9 million for the first six months last
fiscal year. Quarterly operating margins declined sequentially because of a
higher proportion of PC box build sales to total sales, and because of increased
amortization expense associated with intangibles. Depreciation and amortization
expense amounted to $36 million (1.7% of sales) in the second quarter compared
with $31 million (1.8% of sales) in the first quarter. Fiscal 1999's second
quarter depreciation and amortization expense was $28 million (1.6% of sales).
For the first six months, depreciation and amortization expense was $66 million
in fiscal 2000 (1.7% of sales), and $56 million in fiscal 1999 (1.7% of sales).
Planned fiscal 2000 production capacity expansions should not adversely impact
operating margins as much as startup operations did in fiscal 1999. Fiscal 2000
planned expansions represent capacity increases to existing facilities that are
currently at or near full production levels.
Comparative quarterly growth rates have accelerated, supported by strong new
business bookings. Growth is occurring in a broad range of industry areas as the
Company continues its focus on broadening and balancing its product and industry
activities on a global basis. Long lead times and shortages are currently being
experienced on certain components. While the Company believes sufficient
component purchase contracts exist to enable it to meet its planned sales for
the next several quarters, any potential upswing could be impacted by these
component market conditions.
Net interest expense for fiscal 2000's second quarter represented .3% of sales,
the same ratio as in fiscal 1999's second quarter. The conversion of Convertible
Subordinated Notes in May 1999 largely generated the net interest expense
decline to 0.2% of sales for the first six months of fiscal 2000 from 0.3% in
the same period for fiscal 1999. Net interest expense amount is expected to
increase in coming quarters as additional funds are borrowed to finance
anticipated growth. The Company expects to be able to maintain the same or near
the same net interest expense to sales ratio as it has in the past.
The estimated effective income tax rate differs from the U.S. statutory rate
primarily due to the effects of state income taxes, offset by lower taxes on
foreign earnings considered permanently invested. Increased lower taxed foreign
earnings account for the reduced estimated effective income tax rate in fiscal
2000.
Second quarter net income increased to 2.3% of sales in fiscal 2000 compared
with 1.9% in fiscal 1999, and to 2.4% of sales for the first six months of
fiscal 2000 compared with 1.9% in fiscal 1999, as a result of the aforementioned
items.
Capital Resources and Liquidity
Working capital declined marginally to $829 million at December 26, 1999, from
$876 million at June 30, 1999. Current ratio also declined marginally to 1.7
from 1.9 at June 30, 1999. Inventories and property, plant, and equipment
balances increased at December 26, 1999, from June 30, 1999, in support of
greater sales volume. Quarterly days of sales in inventory declined to 47.6 days
at December 26, 1999, from 50.7 days at September 26, 1999. December 26, 1999's
quarterly days of sales in property, plant, and equipment remained fairly
consistent with June 30, 1999's (22.6 days at December 26, 1999, compared with
23.4 days at June 30, 1999). The increase in Goodwill relates to the acquisition
of Nortel Networks' Brockville, Ontario, Canada, plant and certain other
manufacturing assets in August 1999, and the acquisition of the manufacturing
operations of TAG Manufacturing in December 1999. The substantial growth the
Company experienced in the second quarter necessitated the $247 million increase
in long-term debt from June 30, 1999's balance.
Available liquidity at December 26, 1999, was $347 million, which consisted of
$185 million in unused credit facilities and $162 million in cash and cash
equivalents. The Company has filed with the Securities and Exchange Commission
(SEC) an $800 million Shelf Registration Statement which became effective
February 8, 2000. The Company intends to obtain funds under this Registration
Statement in the near term for general corporate purposes, including capital
expenditures, the repayment or refinancing of debt and to meet working capital
needs. In addition, a portion of any proceeds may be used to fund the
acquisition of businesses, products and technologies. The Company believes it
can adequately fund its expected growth in the intermediate term.
Capital expenditures (including acquisition intangibles) could exceed $600
million in fiscal 2000 under existing plans. Changes in market conditions and
acquisition opportunities can impact actual capital expenditures substantially.
The current acquisitions, including those made subsequently to December 26,
1999, have been funded using existing liquidity. The Company has an ongoing
program of actively investigating business opportunities generated by other
companies' divestitures.
Year 2000 Readiness
To date, no computer systems or manufacturing equipment have experienced
material difficulties from the transition to Year 2000.
Item 3. Quantitative and Qualitative Disclosure about Market Risk.
Short-term interest rate changes can impact the Company's interest expense on
its variable interest rate debt, as well as the discount (reflected as interest
expense) on its accounts receivable sold under an asset securitization
agreement. Outstanding variable interest rate debt and accounts receivable sold
approximates $620 million at December 26, 1999. A one percentage point change in
short-term interest rates would have a current impact of increasing interest
expense by approximately $6 million on an annual basis. Interest rates are
expected to increase in the near future. The Company expects changing interest
rates to have a greater impact in the future as it expects to increase its
outstanding borrowings to finance anticipated growth.
The Company predominantly conducts its foreign sales and purchase transactions
in U.S. dollars or under customer contract provisions that protect against most
major currency risks. The largest currency risk at December 26, 1999, was that
associated with the Brazilian operations. Unlike most other foreign operations
of SCI, this plant is directly subjected to the effects of currency devaluation
on certain customers' contracts until forward pricing is adjusted accordingly
(normally monthly). During fiscal 1999, the Brazilian currency experienced
severe devaluations. This devaluation adversely impacted the fiscal 1999 results
of the Brazilian operation. At December 26, 1999, the Company had approximately
$30 million of net current assets and a similar amount in long-term intercompany
advances subject to this currency exposure. Approximately $20 million of
inventory is subject to repricing arrangements for currency fluctuations. The
Company considers the Brazilian economic outlook, while improving, too uncertain
to predict.
<PAGE>
PART II. OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security Holders.
At the Company's annual meeting of shareholders held on October 22, 1999, the
following individuals were elected as Class II Directors:
<TABLE>
<S> <C> <C>
Votes Against
Votes in Favor and Withheld
-------------- -------------
A. Eugene Sapp, Jr. 66,642,853 94,201
G. Robert Tod 66,640,447 96,607
</TABLE>
The only other matter voted on at the meeting was:
<TABLE>
<S> <C> <C> <C> <C>
Votes Against
Votes in Favor and Withheld Abstentions Broker Nonvotes
-------------- ------------- ----------- ---------------
Selection of Ernst & Young
LLP as the Company's inde-
pendent auditors for the
fiscal year ending June 30, 2000 66,672,974 22,440 41,640 Not applicable
</TABLE>
The above listed votes have not been restated for February 2000's two-for-one
stock split in the form of a stock dividend.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
(1) Exhibit 27 - Financial Data Schedule for December 26, 1999.
(b) Reports
The Company filed no reports on Form 8-K during the period of
September 27, 1999, to December 26, 1999.
<PAGE>
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.
SCI Systems, Inc.
-----------------
(Registrant)
SCI SYSTEMS, INC.
Date: February 9, 2000 By: /s/ James E. Moylan, Jr.
----------------- ------------------------
James E. Moylan, Jr.
Senior Vice President and
Chief Financial Officer
(Principal Financial Officer)
Date: February 9, 2000 By: /s/ John M. Noll
----------------- ----------------
John M. Noll
Assistant Vice President,
Corporate Controller
(Principal Accounting Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
DECEMBER 26, 1999'S BALANCE SHEET AND THE INCOME STATEMENT FOR THE 6 MONTHS THEN
ENDED AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUN-30-2000
<PERIOD-START> JUL-01-1999
<PERIOD-END> DEC-26-1999
<CASH> 162,095
<SECURITIES> 0
<RECEIVABLES> 665,379
<ALLOWANCES> 10,286
<INVENTORY> 1,126,372
<CURRENT-ASSETS> 2,031,047
<PP&E> 1,067,560
<DEPRECIATION> 532,458
<TOTAL-ASSETS> 2,927,201
<CURRENT-LIABILITIES> 1,202,055
<BONDS> 387,840
0
0
<COMMON> 14,471<F1>
<OTHER-SE> 1,245,591
<TOTAL-LIABILITY-AND-EQUITY> 2,927,201
<SALES> 3,819,373
<TOTAL-REVENUES> 3,819,373
<CGS> 3,668,157
<TOTAL-COSTS> 3,676,943
<OTHER-EXPENSES> (3,428)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 11,521
<INCOME-PRETAX> 134,337
<INCOME-TAX> 44,331
<INCOME-CONTINUING> 90,006
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 90,006
<EPS-BASIC> 0.63<F1>
<EPS-DILUTED> 0.62<F1>
<FN>
<F1> After retroactive treatment of February 2000's two-for-one stock split in
the form of a stock dividend
</FN>
</TABLE>
