SAN JOSE – Flextronics reported fiscal first-quarter sales rose 27% to $5.16 billion, at the high end of analyst estimates. Net income was $107 million, up 27% from a year ago.
Operating margins were 2.5%. Inventory days fell five days
sequentially to 47 days.
Although sales from key customers Motorola (handsets) and Microsoft (Xbox), and the consumer digital end-market were weaker, they were more than offset by a 35% sequential increase in demand sales for infrastructure products from companies such as Northern Telecom.
Demand for telecom-related products jumped 40%, and cellphones were up 30%. Telecom makes up about 30% of the company’s revenue, mobile products make up 30%.
The company guided for second-quarter revenue to grow 10 to 20% to between $5.3 billion and $5.6 billion.
Regarding the company’s merger with Solectron, the company said it will begin to see savings in 12 to 18 months instead of the 18 to 24 months it previously stated.