New book by Larry Connors Click here Improve your trading - See how
The Singapore-based company reported GAAP net income for the second quarter of $19.7 million or $0.02 per share, compared to $38.5 million or $0.05 per share for the year-ago quarter.
During the current year second quarter, Flextronics recognized $13 million of pretax restructuring charges, in connection with its previously announced restructuring plans, comprised of $9 million of cash charges mainly related to employee severance costs and $4 million of non-cash asset impairment charges.
The company said Monday it remains confident that it is on track to realize the expected annualized savings of $230 million to $260 million upon the completion of its restructuring activities, which will be completed by the end of Fiscal 2010.
Excluding items, adjusted net income for the second quarter was $104.0 million or $0.13 per share, compared to $229.5 million or $0.28 per share in the prior year quarter.
On average, 14 analysts polled by Thomson Reuters expected the company to earn $0.09 per share for the second quarter. Analysts' estimates typically exclude special items.
GAAP gross margin for the second quarter improved to 5.1% from 4.7% a year ago, while non-GAAP gross margin fell to 5.4% from 5.8% last year.
GAAP operating income for the quarter dropped to $123.1 million from $158.8 million a year ago, while adjusted operating income for the quarter fell to $149.1 million from $294.8 million last year.
Net sales for the second quarter fell 34% to $5.83 billion from $8.86 billion in the same quarter last year. Twelve analysts had a consensus revenue estimate of $5.77 billion for the second 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.
During the second quarter, the company received proceeds of $255 million from the sale of a non-core investment and note receivable and recorded non-cash charges to impair certain other non-core investments and notes receivable amounting to $92 million. Also during the quarter, the company recognized about $60 million of non-cash tax benefits as a result of settlements in various tax jurisdictions.
Flextronics said it granted restricted stock units representing 20,000 shares on August 31 from the 2004 Award Plan for New Employees. The restricted stock units will generally vest over a three to five year period.
Looking forward to the third quarter, the company said it expects revenue of $6.0 billion to $6.4 billion and adjusted earnings of $0.14 to $0.16 per share, which exclude $0.07 per share for estimated restructuring activities, quarterly intangible amortization, stock-based compensation expense and non-cash interest expense.
Analysts currently expect the company to earn $0.13 per share on revenue of $6.24 billion for the third quarter.
Among others in the industry, Jabil Circuit Inc. (JBL | Quote | Chart | News | PowerRating) last month reported a 90% drop in its fourth quarter profit, hurt by lower revenues as well as higher restructuring and impairment charges. Jabil's quarterly earnings, excluding items, however, came in above analysts' expectations. Looking ahead, the company forecast first quarter earnings above analysts' estimates.
Flextronics shares closed Monday's regular trading session on the Nasdaq at $7.11, down 13 cents or 1.80%. The stock is currently gaining 14 cents or 1.97% in after hours trading.
For comments and feedback: contact editorial@rttnews.com Copyright(c) 2009 RTTNews.com, Inc. All Rights Reserved
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302
© Copyright 2009 The Connors Group, Inc.
