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.

Deutsche Bank Equity Research analyst Carter Shoop called the performance “impressive,” adding, “Flextronics has been able to  do this through aggressive share gains, which should continue through fiscal 2008. 

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.






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