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Electronics Production | April 30, 2010

Infrastructure stays largest single segment for Flextronics

“Our largest single segment, Infrastructure, grew 1% sequentially off of a strong December quarter, but would have posted stronger growth had it not been for component shortages that constrained revenue in this segment by about $75 million”, states Mike McNamara.

Infrastructure sales amounted to USD 1.76 billion for the quarter, representing 30% of total sales. The EMS-provider believes in an ‘encouraging outlook’ for the coming quarter and predicts mid single-digit sequential revenue growth. “Industrial displayed strong sequential growth, which was ahead of our earlier forecast. We had another very successful quarter of new program wins, with new wins totalling USD 250 million to USD 300 million across a diversified base of customers”, the CEO states. This graph has a zoom-function. For its Medical segment, the EMS-providers stated a modest growth on a sequential basis, expecting a sequential growth in line with this years result. “We continue to see more large healthcare OEMs looking to outsource more, and to that point, we booked roughly USD 450 million in new medical programs over the past year, including one program that we believe to be the largest ever in the medical instrumentation field”, Mr McNamara continues. “Our Automotive business saw continued momentum during the March quarter and grew sequentially. The overall order and demand environment has continued to improve. In addition, we booked new wins for interior lighting and roof modules, as well as in-car connectivity solutions as ODM investments in these areas are paying off”, the Flextronics-boss explained. More than half of its Automotive revenue is said to be ODM, showing a tendency to increase to almost 65% by the end of fiscal 2012. The segment’s main focus will continue to be on European premium automotive OEMs. This graph has a zoom-function. Mobile sales for the EMS-provider declined 18% sequentially to USD 1.16 billion or 19% of sales. “We continue to see customer diversification efforts strengthening in this segment, and we remain focused on expanding our relationship with our largest strategic customers”, Mr McNamara continues. Consumer Digital declined 30% sequentially in the March quarter—attributed to a typical seasonality—only modestly exacerbated by some component shortages (mainly in the LCD panel area). The segment reported sales of USD 624 million or 10% of total sales.
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October 11 2019 3:09 pm V14.5.0-1