Flextronics Reports Q3 Sales Up 19% YoY
SINGAPORE – Flextronics reported fiscal third-quarter net sales up 19% to $7.8 billion compared to the same period in 2009.
Adjusted net income was $193 million, up 40% compared to the year-ago quarter. Adjusted operating income was $43 million, up 23% year-over-year.
During the period, inventory declined 3% sequentially to $116 million, and inventory turns improved to 8.3 turns from 8.1. The cash conversion cycle was 14 days.
For the fiscal fourth quarter, revenue is expected to be in the range of $7.1 billion to $7.4 billion.
Over the past year, by segment, industrial grew over 20%, computing will likely grow over 12%, medical, automotive and mobile are up over 20%, infrastructure may end up 15%, and consumer digital is probably up in the mid-20% range, CEO Mike McNamara said on a conference call with analysts Thursday. "They are all pretty broad-based growth this year. And I actually expect to see more of the same next year," he said. He said the company expects its overall organic growth to top 20% for the fiscal year ending in March.
Flextronics said its industrial, medical and automotive businesses make up about $6 billion in annual revenue, while computing is about $2 billion and is expected to reach $4 billion in fiscal 2012, which begins in April. Communications infrastructure for the quarter was $2.1 billion, or 27% of overall sales for the period.
