SAN JOSE – Flextronics on Thursday reported fiscal first-quarter net sales of $7.55 billion, up 15% year-over-year.

GAAP net income increased 12% to $132 million for the period ended June 30.

“Every one of our four core business groups grew double digits year-over-year, and our revenue marked the second highest June quarter in our history. We expect our revenue growth to continue next quarter,” said Mike McNamara, CEO of the electronics manufacturing services provider.

During the quarter, the company's PC ODM business tallied a $19 million operating loss on $653 million in revenue. Flextronics expects to completely exit the PC business by the end of December quarter due to the low margins.

During the June quarter, the company completed its third $200 million dollar share buyback program.

For the second quarter, revenue is expected to be in the range of $7.6 billion to $8 billion. Flextronics sees strength ahead in telecom infrastructure and storage. Softness is expected in capital equipment and office equipment. Medical, automotive, aerospace and defense are forecast to grow in the mid single-digits sequentially.

The company said labor costs rose about 20% on average this year.