Sanmina Corporation

Reconciliation of GAAP to Non-GAAP Measures

(in thousands, except per share amounts)

(Unaudited)

Three Months Ended

Dec. 27,

Dec. 28,

2014

2013

GAAP Operating Income

$        53,480

$       39,520

GAAP operating margin

3.2%

2.7%

Adjustments

Stock compensation expense (1)

5,717

4,275

Amortization of intangible assets

1,035

474

Distressed customer charges (2)

3,102

673

Restructuring costs

3,000

3,704

Asset impairments

1,954

-

Non-GAAP Operating Income

$        68,288

$       48,646

Non-GAAP operating margin

4.1%

3.4%

GAAP Net Income

$        22,656

$       23,101

Adjustments:

Operating income adjustments (see above)

14,808

9,126

Loss on repurchases of debt (3)

2,913

-

Litigation settlements (4)

(273)

-

Deferred and non-recurring tax adjustments

13,028

3,259

Non-GAAP Net Income

$        53,132

$       35,486

GAAP Net Income Per Share:

Basic

$            0.27

$           0.28

Diluted

$            0.26

$           0.26

Non-GAAP Net Income Per Share:

Basic

$            0.64

$           0.42

Diluted

$            0.61

$           0.41

Weighted-average shares used in computing per share amounts:

Basic

82,548

83,766

Diluted

86,682

87,259

(1)

Stock compensation expense was as follows: 

Three Months Ended

Dec. 27,

Dec. 28,

2014

2013

Cost of sales

$          1,576

$         1,202

Selling, general and administrative

4,103

3,071

Research and development

38

2

  Total

$          5,717

$         4,275

(2)

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

Represents a loss, including write-off of unamortized debt issuance costs, on debt redeemed or repurchased prior to maturity.

(4)

Represents cash received in connection with certain litigation settlements.