Sanmina Corporation

Reconciliation of GAAP to Non-GAAP Measures

(in thousands, except per share amounts)

(Unaudited)

Three Months Ended

Dec. 28,

Sept. 28,

Dec. 29,

2013

2013

2012

GAAP Operating Income

$      39,520

$      44,688

$      31,462

GAAP operating margin

2.7%

3.0%

2.1%

Adjustments

Stock compensation expense (1)

4,275

4,148

4,666

Amortization of intangible assets

474

474

474

Distressed customer charges (2)

673

768

5,091

Restructuring, acquisition and integration costs

3,704

4,647

3,947

Gain on sales of long-lived assets

-

-

(4,218)

Asset impairments

-

1,000

-

Non-GAAP Operating Income

$      48,646

$      55,725

$      41,422

Non-GAAP operating margin

3.4%

3.7%

2.8%

GAAP Net Income

$      23,101

$      38,801

$           621

Adjustments:

Operating income adjustments (see above)

9,126

11,037

9,960

Loss on dedesignation of interest rate swap (3)

-

-

14,903

Litigation settlements (4)

-

(2,421)

-

Nonrecurring tax items

3,259

(7,537)

(1,245)

Non-GAAP Net Income

$      35,486

$      39,880

$      24,239

GAAP Net Income Per Share:

Basic

$          0.28

$          0.46

$          0.01

Diluted

$          0.26

$          0.44

$          0.01

Non-GAAP Net Income Per Share:

Basic

$          0.42

$          0.48

$          0.30

Diluted

$          0.41

$          0.46

$          0.29

Weighted-average shares used in computing per share amounts:

Basic

83,766

83,790

81,920

Diluted

87,259

87,201

84,011

(1)

Stock compensation expense was as follows: 

Three Months Ended

Dec. 28,

Sept. 28,

Dec. 29,

2013

2013

2012

Cost of sales

$        1,202

$        1,362

$        1,340

Selling, general and administrative

3,071

2,767

3,295

Research and development

2

19

31

  Total

$        4,275

$        4,148

$        4,666

(2)

Relates to inventory and bad debt reserves / recoveries associated with distressed customers.

(3)

Represents a non-cash loss resulting from dedesignation of an interest rate swap.

(4)

Represents cash received in connection with a litigation settlement.