SmallCapReview - Stocks to Watch Wednesday - SANM, GILD, KTCC

Sanmina-SCI Corporation (Nasdaq: SANM) $12.30. Announced after market close financial results for the first fiscal quarter ended January 2, 2010. Revenue of $1.48 billion, exceeded outlook of $1.35 - $1.45 billion. GAAP gross margin of 7.4 percent, a 40 basis point sequential improvement. GAAP operating margin of 2.7 percent, a 210 basis point sequential improvement. Non-GAAP gross margin of 7.6 percent, a 50 basis point sequential improvement. Non-GAAP operating margin of 3.3 percent, a 70 basis point sequential improvement. Early redemption of $176 million of outstanding debt.

Revenue for the first quarter was $1.48 billion, up 9 percent compared to $1.35 billion in the prior quarter ended October 3, 2009 and up 4 percent compared to $1.42 billion in the same period a year ago. GAAP net income in the first quarter was $59 million, a diluted earnings per share of $0.74, compared to a net loss of $33 million, a diluted loss per share of $0.42 in the prior quarter. 

What They Do: Sanmina-SCI Corporation is a leading electronics contract manufacturer serving the fastest-growing segments of the global Electronics Manufacturing Services (EMS) market. Recognized as a technology leader, Sanmina-SCI provides end-to-end manufacturing solutions, delivering superior quality and support to OEMs primarily in the communications, defense and aerospace, industrial and medical instrumentation, multimedia, enterprise computing and storage, renewable energy and automotive technology sectors.

To read more about Sanmina-SCI Corporation visit http://www.smallcapreview.com/sanm.htm.

Gilead Sciences (Nasdaq: GILD) $33.87. Announced after market close its results of operations for the fourth quarter and full year of 2009. Total revenues for the fourth quarter of 2009 were $2.03 billion, up 42 percent compared to total revenues of $1.43 billion for the fourth quarter of 2008. Net income for the fourth quarter of 2009 was $802.2 million, or $0.87 per diluted share, compared to net income for the fourth quarter of 2008 of $560.0 million, or $0.59 per diluted share. 

Full year 2009 total revenues were $7.01 billion, up 31 percent compared to total revenues of $5.34 billion for 2008. Full year 2009 net income was $2.64 billion, or $2.82 per diluted share, compared to full year 2008 net income of $1.98 billion, or $2.06 per diluted share. Full year 2009 non-GAAP net income, which excludes after-tax acquisition-related expenses, restructuring expenses and stock-based compensation expenses, was $2.86 billion, or $3.06 per diluted share. 

Key Tronic Corporation (Nasdaq KTCC) Announced after market close its results for the quarter ended December 26, 2009. The results exceeded the sales and earnings estimates announced in the Company’s revised guidance on December 2, 2009. 

For the second quarter of fiscal 2010, Key Tronic reported total revenue of $44.8 million, compared to $41.3 million in the previous quarter and $47.0 million in the same period of fiscal 2009. For the first six months of fiscal 2010, total revenue was $86.1 million, compared to $95.2 million in the same period of fiscal 2009.

Net income for the second quarter of fiscal 2010 was $1.7 million or $0.17 per diluted share, up from $0.3 million or $0.03 per diluted share in the previous quarter and up from $0.1 million or $0.01 per diluted share for the same period of fiscal 2009. For the first six months of fiscal 2010, net income was $2.0 million or $0.19 per diluted share, up from $0.5 million or $0.05 per diluted share for the same period of fiscal 2009.