Flex Reports 2Q FY2017 Sales of $6B

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Flex, the leading Sketch-to-Scale solutions company that designs and builds intelligent products for a connected world, today announced results for its second quarter ended September 30, 2016.

Net sales for the second quarter ended September 30, 2016 were over $6 billion, which was at the mid-point of the guidance range of $5.8 to $6.2 billion.

GAAP income before income taxes was $15 million for the quarter and adjusted operating income was $197 million, above the mid-point of the guidance range of $180 million to $210 million.

GAAP gross margin decreased approximately 110 basis points and adjusted gross margin increased over 60 basis points on a year-over-year basis.

Net loss on a GAAP basis was under $3 million and adjusted net income for the quarter was $152 million. GAAP EPS was $0.00 for the quarter. Non-GAAP EPS was $0.28 for the quarter, increasing $0.01 from the same quarter last year.

"Our Sketch-to-Scale strategy remains firmly on track as reflected in our second quarter performance which is inline with guidance," said Mike McNamara, Chief Executive Officer at Flex. "We remain focused on value creating activities such as a structural mix shift to a higher margin business, generating sustainable free cash flow and consistently returning value to our shareholders."

Guidance

For the third quarter ending December 31, 2016, revenue is expected to be in the range of $6.0 to $6.4 billion, GAAP EPS is expected to be in the range of $0.18 to $0.22 and includes estimated restructuring charges ($0.06), stock-based compensation expense ($0.04), and intangible amortization ($0.03).  Adjusted EPS is expected to be in the range of $0.31 to $0.35 per diluted share.

About Flex

Flex Ltd., formerly Flextronics International Ltd. (Reg. No. 199002645H), is the leading Sketch-to-Scale solutions provider that designs and builds intelligent products for a connected world. With approximately 200,000 professionals across 30 countries, Flex provides innovative design, engineering, manufacturing, real-time supply chain insight and logistics services to companies of all sizes in various industries and end-markets. For more information, visit www.flextronics.com.