Aerosappy,
The bottom line is that everyone is right and everyone is wrong. If you want to look at one time NON CASH CHARGES then you can say these companies are losing money. But these non cash one time charges distort the day to day operations and cash flows that will determine weather these companies will survive this downturn or not. I like the last paragraph below. Take care.
Steve
Flextronics Announces Industry Leading Record Quarterly Revenues
Singapore, January 23, 2002 – Flextronics (NASDAQ: FLEX),
Third Quarter Ended December 31, Nine Months Ended December 31,
($ in millions, except EPS data)(1) 2001 2000 2001 2000
Net sales $3,453.0 $3,239.3 $9,808.6 $8,995.3
Cash net income $85.0 $122.7 $248.6 $307.0
Diluted cash EPS $0.17 $0.26 $0.49 $0.65
Note 1 The above earnings data is presented before amortization and one-time charges.
Net sales in the quarter ended December 31, 2001, were an all-time record $3.45 billion, up 6.6% from a year ago, and up 6.4% sequentially. Before amortization and one-time charges, cash operating profit was $117 million, a 14% sequential increase, cash net income was $85 million, an increase of 17% sequentially and diluted cash earnings per share was $0.17, a 13% increase sequentially. Diluted cash EPS in the prior year period was $0.26.
Flextronics continued to strengthen its balance sheet in the December quarter. Cash at the end of the quarter was $449 million, up from $400 million a quarter ago. Inventory dropped slightly, to $1.40 billion, as inventory turns improved to an industry leading 9.2 times and days sales outstanding improved to an industry leading 47 days. Finally, subsequent to the December quarter close, Flextronics raised approximately $505 million in additional cash through the issuance of 20 million ordinary shares in an overnight equity offering completed in January 2002.
With the December quarter results, Flextronics is now the leader of the EMS industry in terms of revenue, profitability, working capital management, return on invested capital and market capitalization. "We are absolutely thrilled to have arrived at the top of the heap in our industry after eight years as a publicly traded company. We take great pride in the accomplishment," stated Michael E. Marks, Chairman and Chief Executive Officer of Flextronics |
