-
- News
- Books
Featured Books
- smt007 Magazine
Latest Issues
Current IssueBox Build
One trend is to add box build and final assembly to your product offering. In this issue, we explore the opportunities and risks of adding system assembly to your service portfolio.
IPC APEX EXPO 2024 Pre-show
This month’s issue devotes its pages to a comprehensive preview of the IPC APEX EXPO 2024 event. Whether your role is technical or business, if you're new-to-the-industry or seasoned veteran, you'll find value throughout this program.
Boost Your Sales
Every part of your business can be evaluated as a process, including your sales funnel. Optimizing your selling process requires a coordinated effort between marketing and sales. In this issue, industry experts in marketing and sales offer their best advice on how to boost your sales efforts.
- Articles
- Columns
Search Console
- Links
- Events
||| MENU - smt007 Magazine
Flex Reports Net Sales of $6.2 Billion in 1Q19
July 30, 2019 | FlexEstimated reading time: 2 minutes
Flex has announced the results for its first quarter ended June 28, 2019.
First Quarter Fiscal 2020 Highlights:
- Net Sales: $6.2 billion, year over year revenue down 3%
- GAAP Income Before Income Taxes: $64 million
- Adjusted Operating Income: $208 million
- GAAP Net Income: $45 million
- Adjusted Net Income: $138 million
- GAAP Net Income Per Share: $0.09
- Adjusted EPS: $0.27
“For the first quarter, I am pleased that we achieved adjusted EPS within guidance range and 11% year-over-year growth in adjusted operating profit with free cash flow of $114 million. We are repositioning our portfolio to reduce exposure to high-volatility, low-margin business, while investing in design-led wins and higher-margin segments,” said Revathi Advaithi, CEO of Flex. “This acceleration of our strategy to reposition our mix and drive profitable growth combined with disciplined execution positions Flex well for the future.”
Financial Highlights
Flex ended the quarter with approximately $1.9 billion of cash on hand and total debt of approximately $3.2 billion.
Cash flow from operations was negative $657 million for the three-month period ended June 28, 2019, primarily due to cash collections of $899 million for certain receivables sold under the Company’s ABS programs reported as investing activities. Adjusted cash flow from operations and free cash flow were $237 million and $114 million, respectively, for the three-month period ended June 28, 2019.
The Company remains committed to using share buy-backs to enhance shareholder returns and repurchased approximately $52 million of ordinary shares during the three-month period ended June 28, 2019.
Second Quarter Fiscal 2020 Guidance
- Revenue: $6.1 billion to $6.5 billion
- GAAP Loss Before Income Taxes: $15 million to $110 million
- Adjusted Operating Income: $220 million to $250 million
- GAAP Loss Per Share: $0.05 to $0.25 which includes $0.07 for stock-based compensation expense and intangible amortization and $0.27 to $0.51 for estimated restructuring and other charges not reflected in adjusted EPS
- Adjusted EPS: $0.29 to $0.33.
As a result of recent geopolitical developments and uncertainties, primarily impacting one customer in China, we have seen a reduction in demand for products assembled for that customer. Due to these circumstances, the Company has decided to accelerate its strategic decision to reduce its exposure to certain high-volatility products in both China and India. The Company also initiated targeted activities to restructure its business to further reduce and streamline its cost structure.
The Company expects to incur additional restructuring and other charges throughout fiscal 2020 currently estimated in the range of $145 million to $265 million. Second quarter GAAP guidance includes the full impact of these charges although the timing of recognition may extend throughout fiscal 2020.
Looking Ahead
The Company is not providing detailed fiscal 2020 guidance but remains comfortable with the prior fiscal 2020 consensus adjusted EPS range that spanned from $1.20 to $1.30. When adjusting for restructuring and other charges of $0.37 to $0.57, stock-based compensation expenses and intangible amortization of $0.28, the Company’s GAAP EPS would range from $0.65 to $0.85 below adjusted EPS.
About Flex
Flex Ltd. is the Sketch-to-Scale solutions provider that designs and builds intelligent products globally. With approximately 200,000 employees across 30 countries, Flex provides innovative design, engineering, manufacturing, real-time supply chain insight and logistics services to companies of all sizes across industries and markets.
Suggested Items
GPV’s Q1 2024 Interim Financial Report Shows Strong Navigation in Uncertain Times
05/01/2024 | GPVDanish-based GPV recorded an expected drop in sales to DKK 2.3 billion for the first quarter of 2024. The decline also affected the operating profit, which was DKK 155 million compared to DKK 179 million in the same quarter last year, although the EBITDA margin was maintained. In general, demand has been softer in 2024, but GPV continues to invest for the long-term and expects the trend to turn in the second half of 2024.
Celestica Announces Q1 2024 Financial Results
05/01/2024 | CelesticaCelestica Inc., a leader in design, manufacturing, hardware platform and supply chain solutions for the world's most innovative companies, today announced financial results for the quarter ended March 31, 2024 (Q1 2024).
NASA’s Optical Comms Demo Transmits Data Over 140 Million Miles
04/30/2024 | NASA JPLNASA’s Deep Space Optical Communications experiment also interfaced with the Psyche spacecraft’s communication system for the first time, transmitting engineering data to Earth.
Plexus Announces Fiscal Q2 Financial Results
04/30/2024 | Plexus Corp.Plexus Corp. announced financial results for our fiscal second quarter ended March 30, 2024, and guidance for our fiscal third quarter ending June 29, 2024.
SCHWEIZER Confirms Group Figures and Outlook for 2024
04/29/2024 | SCHWEIZERSCHWEIZER announces the publication of the annual report for 2023 and confirms the preliminary figures. The SCHWEIZER-Group (according to IFRS) generated sales of EUR 139.4 million in 2023 (previous year: EUR 131.0 million).