Sanmina Corporation

Reconciliation of GAAP to Non-GAAP Measures

(in thousands, except per share amounts)

(Unaudited)

Three Months Ended

Six Months Ended

Mar. 29,

Mar. 30,

Mar. 29,

Mar. 30,

2014

2013

2014

2013

GAAP Operating Income

$      45,297

$      45,798

$      84,817

$      77,260

GAAP operating margin

3.1%

3.2%

2.9%

2.6%

Adjustments

Stock compensation expense (1)

4,757

4,342

9,032

9,008

Amortization of intangible assets

1,251

474

1,725

948

Distressed customer charges (2)

(290)

321

383

5,412

Restructuring, acquisition and integration costs

2,565

6,925

6,269

10,872

Contingency item expected to reverse in a future period (3)

124

-

124

-

Gain on sales of long-lived assets

(530)

(18,967)

(530)

(23,185)

Asset impairments

-

1,100

-

1,100

Non-GAAP Operating Income

$      53,174

$      39,993

$    101,820

$      81,415

Non-GAAP operating margin

3.6%

2.8%

3.5%

2.8%

GAAP Net Income

$      20,840

$      21,191

$      43,941

$      21,812

Adjustments:

Operating income adjustments (see above)

7,877

(5,805)

17,003

4,155

Loss on repurchases of debt (4)

-

1,401

-

1,401

Loss on dedesignation of interest rate swap (5)

-

-

-

14,903

Litigation settlements (6)

(261)

-

(261)

-

Nonrecurring tax items

9,823

8,498

13,082

7,253

Non-GAAP Net Income

$      38,279

$      25,285

$      73,765

$      49,524

GAAP Net Income Per Share:

Basic

$          0.25

$          0.26

$          0.53

$          0.27

Diluted

$          0.24

$          0.25

$          0.51

$          0.26

Non-GAAP Net Income Per Share:

Basic

$          0.46

$          0.31

$          0.89

$          0.60

Diluted

$          0.44

$          0.30

$          0.85

$          0.59

Weighted-average shares used in computing per share amounts:

Basic

82,728

82,543

83,247

82,226

Diluted

86,144

84,683

86,723

84,369

Stock compensation expense was as follows: 

Three Months Ended

Six Months Ended

Mar. 29,

Mar. 29,

Mar. 30,

2014

2013

2014

2013

Cost of sales

$        1,364

$        1,291

$        2,566

$        2,631

Selling, general and administrative

3,382

3,004

6,453

6,299

Research and development

11

47

13

78

  Total

$        4,757

$        4,342

$        9,032

$        9,008

(2)

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

(3)

Represents a non-recurring contingency that the Company expects to resolve favorably in future periods.  However, there can be no assurance of the exact amount or timing of this recovery.

(4)

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

(5)

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

(6)

Represents cash received in connection with a litigation settlement.