Flextronics CEO says buys 300,000 company shares
Thursday September 26, 3:44 pm ET
SAN FRANCISCO, Sept 26 (Reuters) - The chairman of Flextronics International said on Thursday that earlier this week he bought 300,000 shares in the electronics contract manufacturer, bringing his holdings to about 3.3 million shares.
Flextronics Chairman and Chief Executive Michael Marks told Reuters that Flextronics, which makes a variety of products including the Xbox game console for Microsoft, was not changing its near-term financial outlook.
Flextronics has said it expects September quarter earnings, excluding charges, to be in a range of 7 cents to 10 cents, with revenues in a range of $3.2 billion to $3.4 billion.
Shares in Flextronics, which have lost about 67 percent this year, have bounced higher this week, gaining about 6 percent from Friday's close.
The stock was trading at $7.42, down 36 cents, or almost 4.5 percent, just before the Nasdaq close on Thursday.
Marks, speaking to a Banc of America Securities conference, said Flextronics' overall business was "relatively stable" despite the sharp downturn for technology companies.
Marks said the company's telecommunications business was hurting and said he expected that business would remain hard in that market for up to another 18 months.
Marks said that Flextronics was not especially interested in new acquisitions and that outsourced manufacturing is gaining favor among tech companies.
"The model is very much intact," Marks told investors. "The customers will all tell you they're going to outsource more."
Flextronics last week said its Asian factories were running at high capacity as customers switched to lower-cost outsourced manufacturing. |
