Flextronics International (FLEX) Message Board

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Technology Stocks : Flextronics International (FLEX)

FLEX 62.64

-1.1%

Nov 7 9:30 AM EST

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To: 18acastra who wrote (426)	12/4/1997 2:35:00 PM
From: kolo55	Read Replies (2) of 1422

FLEXF sell-off due to Ericsson news and sector sell-off, but... the Ericsson call was based primarily on reduced cellular handset sales. From what I understand, Karlskrona makes primarily PBX and business telecom equipment for offices. I don't think Flextronics makes the cellular handsets (although as the result of new deals, they might). Furthermore the Neutronics purchase reduces the percentage of business that Flextronics does with Ericsson significantly. In the current quarter, it is possible that if Flextronics includes their share of Neutronics sales for the entire quarter (approx $45M), then Flextronics could report $390M to $400M revenues for the quarter (possibly even more than $400M). Ericsson sales should be about $85-90M, so Ericsson sales will be less than 25%. Again, this depends on whether Flextronics is picking up additional business from Ericsson, as you have indicated. Agree Neutronics deal is excellent strategic move. This stock remains my favorite ECM stock for the year ahead and largest stockholding. Paul

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