Flextronics Beats Guidance, Announces Layoffs PDF Print E-mail
Written by Mike Buetow   
Wednesday, 29 January 2014 16:45

SAN JOSE -- Flextronics today announced fiscal third-quarter net income slipped 3.6% to $145.2 million. For the period ended Dec. 31, the EMS company had net sales of $7.2 billion, up 16.7% and exceeding previous company guidance of $6.5 billion to $6.9 billion.

Adjusted operating income increased $28 million or 18% sequentially to $187 million. GAAP operating income of $174 million increased $24 million from $150 million in the prior quarter.

During the quarter Flextronics generated over $760 million of cash from operations.

For its fourth quarter ending March 31, Flextronics expects revenue in the range of $5.9 billion to $6.3 billion. That's up from March 2013, when the company reported $5.3 billion in sales. Still, the company plans to reduce its workforce and initiate other cost-reduction activities, and will take $30 million to $35 million in pretax cash charges. When complete, Flextronics expects annualized savings of approximately $60 million.

The cuts will be to the company's sales and administrative workforce, and not tied to operations, the company said. "We’ve made some adjustments just over a year ago with our footprint. We think it’s the right footprint," said CEO Michael McNamara.

Also today, Motorola Mobility, a major customer of Flextronics, announced it would be acquired by Lenovo. On a call this afternoon with analysts, Flextronics chief financial officer Christopher Collier said the company does not expect any near-term negative impact from the deal. Motorola Mobility accounted for more than 10% of Flextronics' revenue in the December quarter, while Lenovo's PC unit is also a Top 10 customer of Flextronics, with quarterly sales of about $500 million.

Another top 10 customer, IBM, is estimated to make up 7 to 8% of Flextronics' sales.



Last Updated on Thursday, 30 January 2014 14:17


Eastern-US: China’s New Competitor?

Parity emerges among EMS Factories from Asia, Mexico and the US.

For the first time in years we see parity in the Eastern US among EMS factories from Asia, Mexico and the US. This EMS market condition will permit American OEMs (the EMS industry refers to OEMs as customers) to have more EMS pathways to choose from. Now more than ever, such EMS assignments will require deeper investigation relating to the OEMs’ evaluation of manufacturing strategies.

The Human Touch

For those who count on the electronics industry for big feats, it’s been a remarkable couple of years.



Advances in Concentration Monitoring and Closed-Loop Control

Contaminated bath water skews refractive index results. New technology can accurately measure aqueous cleaning agent concentration.

Circuits Disassembly: Materials Characterization and Failure Analysis

A systematic approach to nonconventional methods of encapsulant removal.





CB Login



English French German Italian Portuguese Russian Spanish


Panasonic Debuts PanaCIM Maintenance with Augmented Reality
PanaCIM Maintenance with Augmented Reality software provides instant communication and information to factory technicians -- when and where it is needed -- so they can respond to factory needs more...