Flextronics Swings to Profit in Q2

Eighteen Wall Street analysts' consensus revenue estimate came in at $4.80 billion. Excluding items, net income for the second quarter increased 15% to $117 million, from $101 million, in the year ago quarter. GAAP net income amounted to $185 million, in the second quarter, compared to a loss of $2 million. For the third quarter, revenue from continuing operations is expected to grow 25-30% on a year-over-year basis to a range of $5.1 - $5.3 billion and earnings are expected to grow 10-15% on a year-over-year basis. For the fiscal year 2007, revenue from continuing operations is expected to grow in the range of 25% on a year-over-year basis to approximately $19 billion and earnings are expected to grow in the range of 15% on a year-over-year basis. "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 officer of Flextronics. "Revenue from continuing operations was an all-time record high, increasing 23% on a year-over-year basis and 16% on a sequential basis. Operating margin improved in the core-EMS business by 10 basis points on a year-over-year basis and gross margin improved sequentially by 10 basis points."