Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Flextronics International (FLEX) -- Ignore unavailable to you. Want to Upgrade?

To: John Morelli who wrote (624)	4/3/1998 4:53:00 PM
From: Marantz	Respond to of 1422

Flextronics International Announces the Acquisitions of Altatron, a U.S. Based Electronics Manufacturing Services Provider and Conexao, a Leading Contract Manufacturer in Brazil SAN JOSE, Calif., April 2 /PRNewswire/ -- Flextronics International Ltd. (Nasdaq: FLEXF - news), a global full-service supplier of innovative design, engineering and electronics manufacturing solutions, today announced the acquisitions of Altatron, an electronics manufacturing services provider headquartered in Fremont, California and Conexao Informatica Ltda., a privately held contract manufacturer headquartered in Sao Paulo, Brazil. Altatron, a privately held company, employs 800 people with facilities in Fremont, California; Richardson, Texas; and Hamilton, Scotland. As a full-service company, Altatron offers engineering services, advanced manufacturing technology, logistics management and distribution services. Conexao, founded in 1979, is one of the oldest and largest contract manufacturers in Brazil, employing 300 people with three ISO 9002 certified manufacturing facilities totaling 110,000 square feet. The company offers a broad range of services, including printed circuit board assembly, systems integration, full system build and test for a number of domestic and foreign customers. These acquisitions will be accounted for as poolings of interest. There will be a one-time charge in the March quarter totaling approximately $12 million pre-tax for both acquisitions. This accounts for commissions, legal and accounting expense, goodwill write-off, and plant consolidation. The charge is higher than previously indicated to accommodate a change in plans regarding the consolidation of facilities in the UK. Expenses that previously were to be absorbed by Altatron for a shutdown of Scotland in our UK rationalization are now being reflected on Flextronics' Income Statement as a proposed shut down of the Wales operation. The charge for the plant-closing is approximately $8 million, half of which is a goodwill write-down. This change in plans gives the company the opportunity to increase the competitiveness of its UK operations, which have not been financially healthy. The Scottish location is new, is in the heart of the Silicon Glen and is currently producing for Motorola. Michael Marks stated, ''The completion of these two important acquisitions positions Flextronics with facilities and capacity in all strategic areas we have targeted in the world. The change in plans in the UK will further strengthen our already strong European offering. We are not presently anticipating further acquisitions, and will instead concentrate on achieving growth through our existing customers and the addition of new customers. We have been very successful in this process, posting 83% revenue growth and even higher E.P.S. growth last quarter,'' he added.