Press release -
Flextronics Reports Third Quarter Fiscal 2015 Results
- Adjusted EPS at $0.30, an increase of 15% Year-over-Year
- Adjusted Operating Profit Increased 11% Year-over-Year
- Free cash flow generation of $337 million
SAN JOSE, Calif., Jan. 28, 2015 /PRNewswire/ -- Flextronics (NASDAQ: FLEX), a leading end-to-end supply chain solutions company, today announced results for its third quarter ended December 31, 2014:
(US$ in millions, except EPS) | Three Month Periods Ended | ||||
December 31, | September 26, | December 31, | |||
2014 | 2014 | 2013 | |||
Net sales | $7,025 | $6,529 | $7,183 | ||
Adjusted operating income | 207 | 183 | 187 | ||
GAAP operating income | 193 | 172 | 174 | ||
Adjusted net income | 175 | 157 | 164 | ||
GAAP net income | 153 | 139 | 145 | ||
Adjusted EPS | 0.30 | 0.26 | 0.26 | ||
GAAP EPS | 0.26 | 0.23 | 0.23 |
An explanation and reconciliation of non-GAAP financial measures to GAAP financial measures is presented in Schedule II attached to this press release.
Third Quarter Results of Operations
Net sales for the third quarter ended December 31, 2014 were $7.0 billion, exceeding the Company's previously provided revenue guidance of $6.4 billion to $6.8 billion. The Company's adjusted earnings per diluted share of $0.30 for the third quarter ended December 31, 2014 also exceeded the Company's previously provided guidance of $0.24 to $0.28.
The Company's third quarter adjusted operating income increased 11% year-over-year to $207 million which exceeded its guidance range of $175 million to $205 million.
"The Flextronics team continues to deliver on our core innovation strategies and initiatives, allowing us to achieve our financial targets," said Mike McNamara, chief executive officer at Flextronics. "We reported solid results across our business groups which is evidenced by our 15% year-over-year growth in earnings per share." He added, "We will continue to provide the most innovative end-to-end supply chain solutions going from sketch to scale, increasing our customer's competitive advantage in the marketplace."
"Our commitment to return shareholder value was further demonstrated by repurchasing approximately 8 million shares during the quarter for $84 million," said Chris Collier, chief financial officer at Flextronics. "We continue to operate with discipline and delivered another strong quarter of free cash flow generation of $337 million."
Guidance
For the fourth quarter ending March 31, 2015, revenue is expected to be in the range of $6.0 to $6.4 billion and adjusted EPS is expected to be in the range of $0.23 to $0.27 per diluted share.
GAAP earnings per share is expected to be lower than the guidance provided herein by approximately $0.04 per diluted share for intangible amortization and stock-based compensation expense.
Conference Calls and Web Casts
A conference call hosted by Flextronics's management team will be held today at 2:00 PM (PT) / 5:00 PM (ET) to discuss the Company's financial results for the third quarter ended December 31, 2014. The conference call will be broadcast via the Internet and may be accessed by logging on to the Company's website at www.flextronics.com. Additional information in the form of a slide presentation may also be found on the Company's site. A replay of the broadcast will remain available on the Company's website afterwards.
Topics
- Finance, Stocks, Private savings
Categories
- flextronics quarterly report
About Flextronics
Flextronics International Ltd. (Reg. No. 199002645H) is a leading end-to-end supply chain solutions company that delivers innovative design, engineering, manufacturing and logistics services to a range of industries and end-markets, including data networking, telecom, enterprise computing and storage, industrial, capital equipment, appliances, automation, medical, automotive, aerospace and defense, energy, mobile, computing and other electronic product categories. Flextronics is an industry leader with $26 billion in sales, generated from helping customers design, build, ship, and service their products through an unparalleled network of facilities and innovations centers in approximately 30 countries and across four continents. Flextronics service offerings and vertically integrated component technologies optimize customer supply chains by lowering costs, increasing flexibility, and reducing time-to-market. For more information, visit www.flextronics.com or follow us on Twitter @flextronics.
This press release contains forward-looking statements within the meaning of U.S. securities law including statements related to the future expected revenues and earnings per share. These forward-looking statements involve risks and uncertainties that could cause the actual results to differ materially from those anticipated by these forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements. These risks include: that future revenues and earnings may not be achieved as expected; the challenges of effectively managing our operations, including our ability to control costs and manage changes in our operations; compliance with legal and regulatory requirements; the possibility that benefits of the Company's restructuring actions may not materialize as expected; that the expected revenue and margins from recently launched programs may not be realized; that recently proposed changes in tax laws in certain jurisdictions where we operate may materially impact our tax expense, and the effects that the current macroeconomic environment could have on our business and demand for our products as well as the effects that current credit and market conditions could have on the liquidity and financial condition of our customers and suppliers, including any impact on their ability to meet their contractual obligations. Additional information concerning these and other risks is described under "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our reports on Form 10-K and 10-Q that we file with the U.S. Securities and Exchange Commission. The forward-looking statements in this press release are based on current expectations and Flextronics assumes no obligation to update these forward-looking statements. Our share repurchase program does not obligate the Company to repurchase a specific number of shares and may be suspended or terminated at any time without prior notice.
Renee Brotherton | Kevin Kessel |
Corporate Communications | Investor Relations |
(408) 576-7189 | (408) 576-7985 |
renee.brotherton@flextronics.com | kevin.kessel@flextronics.com |