Flextronics International Announces Record Third Quarter Results
103% Increase in Revenue and 117% Increase in Net Income
SAN JOSE, Calif., Jan. 20 /PRNewswire/ -- Flextronics International Ltd. (Nasdaq: FLEX - news) today announced its results for the fiscal quarter ended December 31, 1999 as follows:
Quarter Ending Dec. 1999 Dec. 1998 Yr-Yr Sept 1999 Qtr-Qtr
Revenue $1,179.5 $580.4 103.2% $870.8 35.4%
Operating Income 44.7 25.7 74.3% 32.7 36.8%
Net Income 34.3 15.8 117.3% 23.2 47.8%
Free Cash Flow(a) 53.8 30.5 76.3% 41.5 29.7%
E.P.S.(b) 0.29 0.16 81.3% 0.21 38.1%
Cash E.P.S.(c) 0.30 0.17 76.5% 0.23 30.4%
(millions except per share amounts)
(a) Net Income Plus Amortization and Depreciation
(b) Restated for two for one stock split in December
(c) Cash E.P.S. excludes Goodwill and Intangible Amortization
``We are extremely pleased with these financial results,' said Michael Marks, CEO. ``While financial momentum at Flextronics has been strong for several years now, we are seeing even better results in the past quarter and very healthy prospects for the future.'
Mr. Marks added, ``We have continued to win major new programs from our largest customers and at the same time, we are growing our business with previously announced major companies like Motorola, Compaq, Alcatel, Nokia and others. Plant acquisitions such as Fujitsu Siemens and Cabletron also continue to play a factor in our rapid growth while the merger with Dii Group remains on track for an April 3 close. As a result, we are expecting continued growth in revenues and EPS in 2000.'
Flextronics continues to broaden its geographic reach and service offerings by strategically acquiring operations that compliment its existing organization to meet the growing needs of its multinational OEM customers. Flextronics' global industrial park strategy allows the company to generate significant supply chain efficiencies both in terms of cost and time that can be passed 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 programs, growth in business from customers, the merger with Dii Group, revenue, EPS and company 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 Form10-K and quarterly report on Form 10-Q, 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
(In thousands)
Dec. 31, March 31,
1999 1999
ASSETS (Unaudited)
Current assets
Cash and cash equivalent $472,380 $184,860
Accounts receivable, net 462,572 273,203
Inventories 469,791 221,352
Other current assets 174,916 66,109
Total current assets 1,579,659 745,524
Property and equipment, net 550,671 397,167
Other non-current assets 122,661 75,178
Total non-current assets 673,332 472,345
TOTAL ASSETS $2,252,991 $1,217,869
LIABILITIES AND
SHAREHOLDERS' EQUITY
Current liabilities
Bank borrowings $156,204 $49,383
Current portion of capital
lease and long-term debt 21,227 46,068
Accounts payable 610,050 292,757
Other accrued expenses 125,610 105,718
Total current liabilities 913,091 493,926
Long term debt and capital
leases, less current portion 233,230 219,995
Other long term liabilities 16,296 19,010
Shareholders' equity 1,090,374 484,938
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $2,252,991 $1,217,869
FLEXTRONICS INTERNATIONAL LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
Three months ended Nine months ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1999 1998 1999 1998
Net sales $1,179,488 $580,395 $2,661,578 $1,448,558
Cost of sales 1,098,587 534,053 2,469,479 1,329,241
Gross Margin 80,901 46,342 192,099 119,317
Operating Expenses:
Selling, general and
administrative expenses 34,700 19,783 85,653 52,742
Goodwill & intangibles
amortization 1,470 893 4,344 2,667
Total Operating Expenses 36,170 20,676 89,997 55,409
Operating income 44,731 25,666 102,102 63,908
Interest expense and
other, net 5,726 7,791 15,628 17,953
Income before
income taxes 39,005 17,875 86,474 45,955
Provision for
income taxes 4,680 2,079 10,473 5,381
Net income before
one-time charges $34,325 $15,796 $76,001 $40,574
Diluted EPS before
one-time charges $0.29 $0.16 $0.67 $0.44
Basic EPS before
one-time charges $0.31 $0.18 $0.73 $0.46
Memo: Cash E.P.S.
(diluted net income
per share before
one-time charges and
goodwill and intangible
amortization) $0.30 $0.17 $0.71 $0.47
Merger expenses and
other one-time charges -- -- 3,459 --
Net income $34,325 $15,796 $72,542 $40,574
Diluted EPS $0.29 $0.16 $0.64 $0.44
Weighted average ordinary
Shares and
equivalents - Diluted 119,983 95,766 112,654 92,142
Weighted average ordinary
Shares and
equivalents - Basic 110,286 90,178 103,927 87,898 |
