Flextronics’ Fiscal 1Q16 Sales Slightly Below Target

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Flextronics' net sales for the first quarter ended June 26, 2015 were just under $5.6 billion, slightly below its previously provided revenue guidance of $5.6 billion to $6.2 billion. Adjusted operating income was $159 million, above the lower end of the guidance range of $150 to $190 million.

Despite the lighter revenues, adjusted gross margin increased 60 basis points and adjusted operating margin increased 10 basis points compared to the same period last year.

"The first quarter of fiscal 2016 was exemplified by operating with discipline, driving a richer product mix and deploying capital thoughtfully," said Mike McNamara, chief executive officer at Flextronics. "We continued to return meaningful capital to our shareholders this quarter as we repurchased almost 8 million shares for approximately $100 million."

"We generated $362 million in cash flow from operations driving to a free cash flow of $225 million during the quarter," said Chris Collier, chief financial officer at Flextronics. "Our consistent strong free cash flow reflects our deliberate discipline and execution over our net working capital and capital investments."

Guidance

For the second quarter ending September 25, 2015, revenue is expected to be in the range of $5.9 to $6.5 billion and adjusted EPS is expected to be in the range of $0.22 to $0.28 per diluted share.

GAAP earnings per share is expected to be lower than the adjusted EPS guidance provided herein by approximately $0.05 per diluted share for estimated intangible amortization and stock-based compensation expense.

About Flextronics

Flextronics (Reg. No. 199002645H) is a leading end-to-end supply chain solutions company that delivers innovative design, engineering, manufacturing and logistics services to a range of industries and end-markets, including data networking, telecom, enterprise computing and storage, industrial, capital equipment, appliances, automation, medical, automotive, aerospace and defense, energy, mobile, computing and other electronic product categories. Flextronics is an industry leader with $26 billion in sales, generated from helping customers design, build, ship, and service their products through an unparalleled network of facilities and innovations centers in approximately 30 countries and across four continents. Flextronics' service offerings and vertically integrated component technologies optimize customer supply chains by lowering costs, increasing flexibility, and reducing time-to-market. For more information, visit www.flextronics.com.