SAN JOSE -- Sanmina-SCI's recent printed circuit board margins issues were tied to cost problems, not processes, the company's chairman says.

Speaking to analysts this week, longtime Sanmina CEO Jure Sola said "a small misstep" in one of its plants in Asia pushed margins down during the recently concluded quarter.

"It's more [of a] cost issue, not a quality issue," he said. "Cost and execution. If we had a better cost, we'd have executed better. So it's really more around the cost." Pressed by an analyst on whether the problem was tied to purchasing, Sola declined to answer.

Sanmina-SCI seeks gross margins in its component businesses of 50%-plus margin, with operating margins around 10%, Sola said. The margins currently are not at those levels, he said.

While not identifying the plant, Sola acknowledged that it has been around "for many, many years." The issue was a one-time problem, he insisted on the call.

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