SAN JOSE -- Sanmina lowered its financial guidance for its December and March quarters, citing delayed new program ramps and an unfavorable program mix.
The contract manufacturer expects December (first) quarter revenue of $1.74 billion, down from its previous forecast for $1.75 billion to $1.8 billion. The company also expects a first quarter GAAP loss. due in part to tax expenses of $150 million to $170 million related to the reduction in carrying value of its net deferred tax assets.
For its fiscal second quarter ending in March, the company now expects revenues of $1.6 billion to $1.7 billion.
In response, Sanmina is closing three manufacturing plants, including its PCB fabrication plant in Owego, NY. It will take restructuring charges of approximately $25 million to $35 million through the first quarter of fiscal 2020.
"Our disappointing financial results are driven by slower than expected new program ramps and an unfavorable program mix," said Bob Eulau, chief executive of Sanmina. "Our GAAP financial results were mainly impacted by the non-cash charge to our deferred tax assets that resulted from the enactment of the Tax Cuts and Jobs Act. We are right-sizing our fixed cost structure and we remain confident that our pipeline is strong and our second half of fiscal 2018 will be stronger than our first half as we continue to execute on our strategy."