Rich, Patroller,
For the record, here are details of the report:
Flextronics International Announces Record
Results
51% Increase in Net Income
SAN JOSE, Calif., July 15 /PRNewswire/ -- Flextronics International Ltd. (Nasdaq: FLEX - news), a world-class
electronics manufacturing services (EMS) provider offering global multinational companies complex manufacturing
services throughout the world, today announced its results for the fiscal quarter ended June 25, 1999, as follows:
Quarter Ending June 25, 1999 June 26, 1998 Growth
Revenue $529.8 $376.1 41%
Operating Income 23.5 17.8 32%
Net Income 17.6 11.7 51%
Diluted EPS .34 .27 26%
Adjusted EPS(a) .36 .29 24%
(millions except per share amounts)
(a)EPS excluding tax-effected Goodwill and Intangible Amortization
For the first quarter of fiscal year 2000, Flextronics had an increase in revenue of 41%, a net income increase of
51%, and an EPS improvement of 26%, compared to the period a year ago.
''We are pleased with our continued strong results,'' said Michael Marks, Chairman and CEO of Flextronics.
''Revenue growth was excellent and margins were somewhat higher than we expected.'' Mr. Marks explained that
this was the result of revenue mix, and that a number of new program ramps, and their associated costs, were moved
from the June to the September quarter.
Gross margin in the quarter was 8.7%, up from 8.2% in the previous quarter, and approximately the same as the
8.8% in the same quarter of the previous year. S, G & A was 4.0%, up just slightly from the previous quarter. Net
income remained at 3.3% of revenues.
Over half of Flextronics revenues are generated from sales to OEMs in the networking and telecommunications
end-markets and this has been enhanced with the recent acquisition of Ericsson's GSM infrastructure factory in
Visby, Sweden and the acquisition of Kyrel in Finland. Both acquisitions occurred after the close of the June quarter.
Today, Flextronics has a broad geographic reach and Flextronic's industrial park strategy allows it to generate
significant supply chain efficiencies both in terms of cost and time that it can pass along to its customers.
Further discussion of the Company's results can be obtained from the Company Web site,
flextronics.com . This includes the Chairman's letter to shareholders for the June quarter.
This news release and Chairman's letter to the Shareholders contain forward-looking information within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject
to the safe harbor created by those sections. These forward-looking statements include statements related to future
sales and operating results, new product ramps and associated costs and company and industry growth. These
forward-looking statements involve risks and uncertainties, including those described from time to time in
Flextronics' filings with the Securities and Exchange Commission (SEC) that could cause the actual results to differ
materially from those anticipated by these forward-looking statements. In particular, see ''Management Discussion
and Analysis of Financial Conditions and Research of Operations -- Certain Factors Affecting Future Operating
Results'' in the most recent Annual Report on Form-10-K filed with the SEC. Flextronics assumes no obligation to
update the information contained in these documents.
FLEXTRONICS INTERNATIONAL LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
June 25, March 31,
1999 1999
ASSETS (Unaudited)
Current assets
Cash and cash equivalent $134,573 $172,984
Accounts receivable, net 261,087 225,790
Inventories 269,034 192,766
Other current assets 69,922 62,492
Total current assets 734,616 654,032
Property and equipment, net 393,835 367,507
Other non-current assets 73,653 72,840
Total non-current assets 467,488 440,347
TOTAL ASSETS $1,202,104 $1,094,379
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Bank borrowings $66,461 $49,382
Current portion of capital lease and
long-term debt 20,088 14,511
Accounts payable 309,988 251,796
Other accrued expenses 98,837 97,198
Total current liabilities 495,374 412,887
Long term debt and capital leases, less
current portion 207,204 197,179
Other long term liabilities 16,688 18,062
Shareholders' equity 482,838 466,251
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $1,202,104 $1,094,379
FLEXTRONICS INTERNATIONAL LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
Quarter Ended Quarter Ended
June 25, June 26,
1999 1998
Net sales $529,827 $376,079
Cost of sales 483,884 343,023
Gross Margin 45,943 33,056
Operating Expenses:
Selling, general and administrative expenses 21,073 14,355
Goodwill & intangibles amortization 1,414 880
Total Operating Expenses 22,487 15,235
Operating income 23,456 17,821
Interest expense and other, net 3,454 4,577
Income before income taxes 20,002 13,244
Provision for income taxes 2,410 1,588
Net income $17,592 $11,656
Diluted net income per share $0.34 $0.27
Basic net income per share $0.36 $0.28
Memo: Adjusted E.P.S. (diluted net income
per share before tax-effected goodwill and
intangible amortization) $0.36 $0.29
Weighted average ordinary
shares and equivalents - Diluted 52,413 43,496
Weighted average ordinary
shares and equivalents - Basic 48,291 41,338
SOURCE: Flextronics International Ltd. |
