| Flextronics Ups Margin Outlook |
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| Written by Mike Buetow | |||
| Wednesday, 18 November 2009 10:07 | |||
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SAN JOSE -- Flextronics yesterday maintained its December quarter guidance while boosting its outlook for future operating margins. At its semiannual Analyst Day, the EMS company reiterated its plans to grow its notebook business. The company previously announced plans to hire up to 2,000 workers to staff its laptop design and manufacturing operations in Taiwan, and reportedly has been qualified by HP, Dell and Lenovo. As its share of this market is miniscule -- an estimated 2% -- analysts believe Flextronics has tremendous upside potential in notebooks -- perhaps as much as $19 billion. While maintaining its fiscal 2010 third-quarter guidance, management declined to provide longer guidance. However, the company did share its goal to reach 3.5% operating margins, a departure from past sessions. Flextronics said it expects to outpace the IDC market forecast of 9.7% CAGR from 2010-13, thanks to its investment in the notebook and solar markets.
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