SINGAPORE – Flextronics International today reported second-quarter net sales of $5.8 billion, down 35% year-over-year, and up 1% sequentially.

Adjusted operating income was $149 million, down 49% compared to the second quarter of 2008, and up 66% sequentially.
 
Net debt was reduced in the current quarter by $483 million, to $587 million. Net debt has decreased approximately $1.1 billion from one year ago.
 
The company remains confident it is on track to realize the expected annualized savings between $230 million and $260 million upon completion of its restructuring activities, which will be completed by the end of fiscal 2010.
 
For its fiscal third quarter, revenue is expected to be in the range of $6 billion to $6.4 billion, the firm says.

During the quarter, Flextronics improved its cash conversion cycle by four days, to 15 days. Inventory days dropped by three days, to 44 days, and inventory turns are now at 8.2 times, the company's highest level since December 2005. Days sales outstanding improved one day to 34 days and DPO remained consistent at 63 days.

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