Flextronics Top Line Falls 34% and Guides Fiscal Q3 Inline (FLEX)

Mon. October 26, 2009; Posted: 04:27 PM

Oct 26, 2009 (SmarTrend(R) News Watch via COMTEX) -- FLEX | Quote | Chart | News | PowerRating -- 10/26/2009-Flextronics International (NASDAQ:FLEX) reported fiscal Q2 EPS of 13 cents, topping consensus estimates of 9 cents. Revenues in the quarter rose 1% on a sequential basis, but fell 34.2% year-over-year to $5.83 billion, coming in ahead of consensus estimates of $5.77 billion. The company said it expects Q3 EPS of $0.14 - $0.16 (vs. consensus estimates of $0.13). Flextronics also said that that it expects revenues in the range of $6.00 billion to $6.40 billion (vs. consensus estimates of $6.24 billion). Flextronics reported adjusted Q2 operating margin was 2.6% compared to 1.6% in the sequential quarter.

"During the second quarter, Flextronics posted solid financial progress across all aspects of our business, reflecting our efforts to re-size our business to adapt to current market conditions. We are very pleased with the healthy expansion of our adjusted gross margin, which rose by 90 basis points sequentially," said Paul Read, chief financial officer of Flextronics. "In addition, we achieved a cash conversion cycle of 15 days, generated free cash flow of $270 million and our significantly reduced net debt position of $587 million is comparable with the period prior to our Solectron acquisition."

Write to Chip Brian at cbrian@tradethetrend.com

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For full details on Flextronics Internat Ltd (FLEX) click here. Flextronics Internat Ltd (FLEX) has Short Term PowerRatings of 4. Details on Flextronics Internat Ltd (FLEX) Short Term PowerRatings is available at This Link.

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