News
Following a scheduled mid-quarter conference call, Flextronics CFO Bob Dykes said, "Growth continues very strongly and our business is looking very solid."
Flextronics reiterated July guidance for Q2 earnings of 15 to 18 cents per share before items.
In recent weeks several analysts had expresssed concern over rising inventories, particularly among makers of telecom and communications gear. On the call, chief executive Michael Marks pooh-poohed the negative sentiment, saying "concerns about inventories were way overblown in our industry."
Later, to a news service, Dykes said, "The September and December quarters are strong ones for us and therefore inventories will rise along with that."
For the quarter ended June 27, total net earnings grew 135%, also to $2.5 million.
The results include net sales of $11.9 million from the company's Pittsburgh operation, acquired in February.
For the year, net sales rose 28% to $131.5 million. Net earnings from continuing operations rose 110% to $7 million. Total net earnings grew 205% to $6.9 million. The net loss from discontinued operations was $102,000.
Gross margins improved to 23.1%, up from 20.3% in 2003, the result of product mix, operating productivity gains and higher sales volume.
Selling and administrative expenses declined one point, to 14% of sales.
The company has debt of $37.7 million, up from $7.1 million last year, and cash and cash equivalents of $793,000, versus $4 million in 2003.
LaBarge guided for fiscal 2005 first-quarter net sales to increase at least 36%, to $41 million to $42 million and fiscal 2005 sales and earnings to increase 25%.
Prunier, 43, was senior director for the company's medical products business. He also held management posts at Plexus, SCI Systems and other smaller manufacturers.
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