Sanmina Corporation reported unaudited consolidated earnings results for the first quarter ended December 27, 2014. For the period, the company reported net sales of $1,671,162,000 against $1,447,498,000 for the same period in the last year. Operating income was $53,480,000 against $39,520,000 for the same period in the last year. Income before income taxes was $45,804,000 against $33,731,000 for the same period in the last year. Net income was $22,656,000 or $0.26 per diluted share against $23,101,000 or $0.26 per diluted share for the same period in the last year. Non-GAAP operating income was $68,288,000 against $48,646,000 for the same period in the last year. Non-GAAP net income was $53,132,000 or $0.61 per diluted share against $35,486,000 or $0.41 per diluted share for the same period in the last year. Cash flow from operations for the quarter was disappointing at negative $6 million, and net capital expenditures for the quarter were $28 million. This led to $34 million in negative free cash flow for the quarter.

The company provided earnings guidance for the second quarter ending March 28, 2015. For the second quarter, the company expects revenue between $1.575 billion to $1.625 billion and non-GAAP diluted earnings per share between $0.50 to $0.55. The company expects that gross margin will be in the range of 7.7% to 8.1%. Operating expense should be $65 million to $67 million. This leads to an operating margin in the range of 3.6% to 4%. The company expects the tax rate to be around 16.0%. Finally, for cash flow modeling, the company expects to sell real estate of approximately $5 million during the quarter, which will result in net capital expenditures of approximately $20 million, while depreciation and amortization will be around $25 million. The outlook for the second quarter is slightly down sequentially primarily due to seasonality, and the company believes demand will improve in the second half of the year. 

For fiscal year 2015, the company is optimistic in its ability to drive profitable growth, and has the opportunity to deliver more financial improvements during the rest of the year. The company expects to return to positive free cash flow during the remainder of fiscal year 2015.