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Author: JTinvest Big gold star, 5000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 553  
Subject: Earnings Rported Date: 1/29/2008 7:33 PM
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<b Flextronics Announces Third Quarter Results

Tuesday January 29, 4:01 pm ET
Net sales increase 67% to record $9.1 billion
Adjusted net income increases 84% to $250 million
Adjusted EPS increases 30% to $0.30

SINGAPORE, Jan. 29 /PRNewswire-FirstCall/ -- Flextronics (Nasdaq: FLEX - News) today announced results for its third quarter ended December 31, 2007 as follows:

(US$ in millions, except EPS)
Three Month Periods Nine Month Periods
Ended Ended
December December December December
31, 2007 31, 2006 31, 2007 31, 2006
Net sales $9,069 $5,415 $19,783 $14,177
GAAP operating income $22 $153 $317 $300
Adjusted operating income (1) $300 $161 $625 $429
GAAP net income $(774) $119 $(547) $388
Adjusted net income (1) $250 $136 $530 $356
GAAP EPS $(0.94) $0.20 $(0.80) $0.66
Adjusted EPS (1) $0.30 $0.23 $0.77 $0.60

(1) A reconciliation of non-GAAP financial measures to GAAP financial
measures is presented in Schedule II of this press release.


Third Quarter Results

Revenue increased $3.7 billion, or 67%, from the year ago quarter to a record high $9.1 billion in the December 2007 quarter. Adjusted operating profit increased $139 million, or 86%, from the year ago quarter to $300 million in the December 2007 quarter while adjusted operating margin improved 30 basis points from 3.0% to 3.3% over the same time period. Adjusted net income increased $114 million, or 84%, from the year ago quarter to $250 million in the December 2007 quarter while adjusted EPS increased 30% from $0.23 to $0.30 over the same time period.

Cash amounted to $1.8 billion at December 31, 2007. Operating cash flow generated $534 million and $1.05 billion in the three and nine month periods ended December 31, 2007, respectively. Free cash flow (operating cash flow less net capital expenditures) amounted to $470 million and $840 million in the three and nine month periods ended December 31, 2007, respectively.

"Overall demand in the December quarter was exceptionally strong as revenues and earnings exceeded the high end of our guidance," said Thomas Smach, chief financial officer of Flextronics. "Actual revenue in the quarter was $9.1 billion versus our guidance of $8.5 billion and adjusted EPS was $0.30 versus our guidance of $0.26."

"Our strong financial position provides us with substantial flexibility to make synergistic investments to enhance our competitiveness, expand our capabilities, drive revenue growth and enhance profitability," said Mike McNamara, chief executive officer of Flextronics. "We remain intensely focused on generating a higher return on capital while growing our business, as evidenced by the return on invested capital of 11.9%, which increased 70 basis points from the previous quarter."

McNamara concluded by stating, "I am very proud of the dedication and hard work of our employees and management across the globe in making this a record quarter for Flextronics while successfully integrating Solectron, the largest acquisition in our company's history."

Guidance

The Company reiterated its previously provided March 2008 quarter guidance of revenue in the range of $7.5 - $7.9 billion and adjusted EPS in the range of $0.22 - $0.24.

GAAP earnings per share are expected to be lower than the guidance provided herein by approximately $0.05 for quarterly intangible amortization and stock-based compensation expense and by approximately $0.19 - $0.27 per share for the previously announced remaining restructuring and other charges relating to the Solectron acquisition.


Shares were up a bit in after-hours trading.

JT :-)
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