Electronics Production |
Flextronics with mixed figures for fiscal 4Q
Net sales for the 4Q (ended March 31, 2010) were USD 5.9 billion, compared to net sales of USD 6.6 billion for the 3Q, states the Singapore-based EMS-giant Flextronics.
Adjusted operating income for the fourth quarter was USD 170 million with an adjusted operating margin of 2.9%, compared to adjusted operating income of USD 189 million and an adjusted operating margin of 2.9% in the prior quarter. Adjusted net income for the fourth quarter was USD 130 million and adjusted EPS was USD 0.16 compared to USD 138 million and USD 0.17, respectively, for the prior quarter.
Paul Read, CFO of Flextronics, states "This marks the 7th consecutive quarter of positive cash flow generation. For the fiscal year, Flextronics generated USD 800 million in cash flow from operations which includes the absorption of USD 190 million in cash restructuring charges. This solid cash flow generation is supported by our industry leading 11 day cash conversion cycle and provides flexibility for the company to continue to invest in its business. Flextronics' asset management coupled with our improving margins has driven a strong adjusted ROIC of 28.8%."
Cash and cash equivalents were approximately USD 1.9 billion down USD 314 million versus the prior quarter principally reflecting the redemption of the USD 300 million 6.5% Senior Subordinated Notes. As a result, total debt declined USD 294 million to USD 2.26 billion at quarter end and has been reduced by approximately USD 700 million since March 2009. Net debt, which is total debt less total cash, ended the quarter at USD 329 million and has decreased by approximately USD 800 million from one year ago.
Guidance
For the first quarter ending July 2, 2010, revenue is expected to be in the range of USD 6.1 billion to USD6.6 billion. GAAP earnings per share are expected to be lower than the guidance provided herein by approximately USD 0.04 per diluted share for quarterly intangible amortization, stock-based compensation expense and non-cash interest expense.
Cash and cash equivalents were approximately USD 1.9 billion down USD 314 million versus the prior quarter principally reflecting the redemption of the USD 300 million 6.5% Senior Subordinated Notes. As a result, total debt declined USD 294 million to USD 2.26 billion at quarter end and has been reduced by approximately USD 700 million since March 2009. Net debt, which is total debt less total cash, ended the quarter at USD 329 million and has decreased by approximately USD 800 million from one year ago.
Guidance
For the first quarter ending July 2, 2010, revenue is expected to be in the range of USD 6.1 billion to USD6.6 billion. GAAP earnings per share are expected to be lower than the guidance provided herein by approximately USD 0.04 per diluted share for quarterly intangible amortization, stock-based compensation expense and non-cash interest expense.
