Electronics contract manufacturer Sanmina-SCI Corp. on Wednesday said it swung to a fiscal third-quarter profit following the sale of its personal computing business.
For the three months ended June 28, Sanmina-SCI posted a profit of $15.3 million, or 3 cents per share. In the corresponding period last year, the company lost $27.6 million, or 5 cents per share.
On an adjusted basis, excluding certain costs and including only continuing operations, Sanmina-SCI said it earned 5 cents per share.
Wall Street, on average, was expecting a profit of 4 cents per share, according to a Thomson Financial survey of analysts. Analyst estimates typically exclude one-time charges and gains.
Revenue rose 14 percent to $1.9 billion, from $1.67 billion in the year-ago quarter, ahead of Wall Street's forecast of $1.82 billion in sales.
In February, Sanmina-SCI struck a deal to sell some of its personal computing business operations and associated logistics services in Australia, Hungary, Mexico and the U.S. to Foxteq Holdings Inc. The sales closed in June and early July.
Jure Sola, Sanmina-SCI's chief executive, said in a statement that "with the completion of the sale of our personal computing business and our restructuring initiatives largely behind us, I believe we will be able to sustain our financial improvements despite the challenging economic environment."
For the current fiscal fourth quarter, Sanmina-SCI said it expects to post an adjusted profit of 5 cents to 7 cents per share from continuing operations on revenue of $1.8 billion to $1.9 billion.
Analysts will be looking for earnings of 5 cents per share on $1.87 billion in sales.
Shares rose 8 cents, or 5.8 percent, to $1.45 in after-hours trading after losing 5 cents to close the regular session at $1.37.
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