Flextronics reports strong sales

Net sales for the third quarter ended December 31, 2010 increased 19% to $7.8 billion compared to net sales for the quarter ended December 31, 2009 of $6.6 billion. Adjusted operating income increased $43 million or 23% to $232 million, compared to adjusted operating income of $189 million for the year ago quarter.  Adjusted net income for the third quarter endedDecember 31, 2010 was $193 million, an increase of $55 million or 40%, and adjusted EPS increased $0.08 or 47% to $0.25, compared to $138 million and $0.17, respectively, for the year ago quarter. GAAP operating income, net income, and EPS were all up significantly year-over-year. "The breadth and strength of our competitive position continues to improve and is reflected in our value-added supply chain services and solutions being in high-demand," said Mike McNamara, CEO of Flextronics. "We continue to improve quarter-over-quarter with sales increasing to $7.8 billion. Flextronics' asset management continues to be outstanding and has driven substantial improvements in our return on invested capital (ROIC).  For the quarter, ROIC increased to a record 33.6%, above the 30.1% of a year ago, and up from 31.9% last quarter, and profit improvement continues on a strong, consistent pace." For the fourth quarter ending March 31, 2011, revenue is expected to be in the range of $7.1 billion to $7.4 billion and adjusted EPS is expected to be in the range of $0.21 to $0.23 per share. GAAP earnings per share are expected to be lower than the guidance provided herein by approximately $0.04 per diluted share for quarterly intangible amortization and stock-based compensation expense.