SAN JOSE -- Flextronics International last night reported a lower quarterly profit and said its long-planned takeover of several Nortel manufacturing plants would be delayed.

For the December quarter, net income fell 58% to $42 million, from a year ago, on a 2% drop in revenue to $4.19 billion.

Flextronics said the shortfalls were due to the divestiture of its semiconductor and network services divisions and the sale by two large customers of their cellphone business to Asian companies, which brought the manufacturing in-house.

A company official said the firm is rebounding from the loss of those businesses, however.

The transfer of Nortel's manufacturing operations in Calgary have been pushed out to the June quarter due to needed changes to several major computer systems. Due to the delay, Flextronics cut its revenue estimates for the March quarter by $100 million and lowered its profit outlook as well.

Flextronics, the world's largest EMS company, guided for March quarter revenue of $3.5 billion to $3.7 billion.

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