Electronics manufacturing services (EMS) provider Flextronics (Singapore) has announced results for its fourth quarter and fiscal year ended March 31, 2004. Net sales for the quarter were a record $3.8 billion, a 23% increase over the March 2003 quarter. Net sales for the fiscal year reached $14.5 billion, up $1.2 billion, or 9%, from 2003.

Proforma net income was $72.8 million, or $0.13 per diluted share for Q4, up $47.4 million from Q4 2003. Including after-tax amortization expense of $8.8 million and restructuring costs of $48.0 million, net income was $16.0 million, or $0.03 per diluted share, down from $19.5 million, or $0.04 per diluted share, year-on-year..

"Our financial results continue to improve as we realize the earnings leverage embedded in our business, said Michael E. Marks, chief executive officer of Flextronics. "Quarterly revenues grew 23% on a year-over-year basis, while proforma profits nearly tripled.  Both operating margin and revenues were stronger than expected, as the quarter ended less seasonal than expected for handsets and other consumer related products."

Flextronics also announced that it intends to convert all of the outstanding 0% Convertible Junior Subordinated Notes issued in March 2003 into approximately 19 million shares of common stock. The company filed a Registration Statement on Form S-3 to register the shares, and the conversion will be completed after the Securities and Exchange Commission declares the Form S-3 effective. The conversion will not impact Flextronics' diluted EPS, as the stock equivalents have always been included in the diluted EPS calculation.

www.flextronics.com

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