SAN JOSE -- Sanmina's PCB business unit saw gross margins fall despite higher sales in its fiscal third quarter.
Sales rose 2.1% sequentially and 4.4% year-opver-year to $357 million for the period ended Jul. 1. Gross margin declinedm, however, falling to 7.3% from 10.2% sequentially and 8.8% a year aogo.
On a conference call with analysts, Sanmina CFO Bob Eulau said, "The declining gross margin was driven by several onetime events, including costs and lower production yields associated with new program ramps, increases in inventory reserves and other operational inefficiencies."
Eulau, who will take over as CEO following the retirement of Jure Sola in October, added, "We expect CPS gross margins to recover to a more normalized double-digit level in the fourth quarter."
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