SAN JOSE -- Michael E. Marks will step down early next year as chief executive of Flextronics International Ltd. He will be replaced by Michael McNamara, the company's chief operating officer.

Marks told analysts in San Francisco on Thursday that he will become chairman of the company on Jan. 31, 2006.

Flextronics, the world's largest EMS provider, also announced several charges associated with restructuring and refinancing the balance sheet. 

Marks, who joined the company in 1994, will replace Richard Sharp as chairman. Sharp will remain a member of the board.

The move isn't expected to diminsh the company's outlook. "While Flextronics will miss Marks' prescient vision and salesmanship, McNamara is regarded as one of the industry's best operators," Deutsche Bank analyst Chris Whitmore said in a research note Friday.

Separately, the company said it will sell a majority stake in its Flextronics Network Services for an undisclosed cash payment plus contingent payments and a 30% stake in the merged company.

Flextronics Network Services will merge with Telavie AS, a Scandanavian network services unit.

Flextronics also is selling its semiconductor unit, but has not disclosed a buyer.

The company expects to receive $550 million to $600 million total in the sales.

Speaking to analysts Thursday, Marks said the company will close factories in Europe, and sell some other small and non-core operations and pay down debt. The company will take restructuring charges amounting to less than $100 million.

Flextronics also reiterated its guidance for the June quarter and fiscal 2006.