caLogo

SAN JOSE – Flextronics reported a 23% rise in second-quarter net sales from continuing operations of $4.7 billion, a record. GAAP net income was a record $185 million for the second quarter ended Sept. 30, compared to a loss of $2 million a year ago.

Sales were up 16% sequentially. Operating margins at its EMS business improved by 10 basis points year-over-year and gross margin improved sequentially by 10 basis points.

Return on invested tangible capital rose two points to 29% and return on invested capital improved 1.5 points to 11%.

The company cut its net debt by $220 million sequentially to $701 million and ended the quarter with $1.04 billion in cash.

“There has been a reacceleration of significant growth in all elements of our business, including design, vertically-integrated manufacturing services, components and logistics,” said Mike McNamara, chief executive.

Flextronics guided for December quarter revenue of $5.1 billion to $5.3 billion, which would amount to 25 to 30% year-over-year growth. Earnings are expected to grow 10 to 15%.

For the fiscal year ending March 31, revenue from continuing operations is expected to grow 25% year-over-year basis to $19 billion and earnings are expected to grow 15.

 

Submit to FacebookSubmit to Google PlusSubmit to TwitterSubmit to LinkedInPrint Article
Don't have an account yet? Register Now!

Sign in to your account