MILPITAS, CA -- Flex expects revenues from its High Reliability Solutions and Industrial and Emerging Industries segments to increase to about 45% of sales by 2020, from 35% today.

The EMS company said the shift in product mix and focus on so-called sketch-to-scale programs would also drive higher operating margins.

Over the past three years, Flex has moved away from computing and communications devices toward higher growth and higher margin fare. The HRS and IEI units, which form the background of the company's shifting focus, are expected to make up more than 60% of the overall operating profit by fiscal 2020, up from 51% last year.

Sketch-to-scale (STS) capabilities now represent 21% of sales and are driving significant manufacturing pull in, company executives added at its annual investor and analyst day this week. 

Flex said its Communications and Enterprise Compute (CEC) segment revenue would be flat to down 5% through fiscal 2020, versus its prior target of flat. It lowered its operating margin forecast for the segment to 2.5% to 3.5%, vs. a prior target of 3% to 4%.

The HRS unit, however, is expected to see operating margins of 6% to 9% during the forecast period, vs. a prior target of 5% to 7%. Flex also raised its Consumer Technology Group (CTG) targets to 2% to 4%, up 100 basis points.

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