Flex Posts $6.3B Net Sales for 2Q FY2016

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Flex's net sales for the second quarter ended September 25, 2015 were just over $6.3 billion, above the mid-point of its previously provided revenue guidance of $5.9 billion to $6.5 billion. The company's adjusted earnings per diluted share of $0.27 was towards the high-end of the company's previously provided guidance of $0.22 to $0.28.

Second quarter adjusted operating income increased 7% year-over-year to $196 million and was above the midpoint of the guidance range of $165 to $205 million. Adjusted operating margin expanded 30 basis points year-over-year to 3.1%.

"Our strong performance this quarter was reflected in our quarterly revenue growth, improved operating margins and our continued ability to operate with discipline," said Mike McNamara, chief executive officer at Flex. "We remain committed to our strategy of expanding our sketch-to-scale offering to include exciting new partnerships such as NIKE and others that clearly demonstrate Flex's ability to  provide innovative solutions for many product categories that go beyond electronics."

"We generated $300 million in cash flow from operations and $143 million in free cash flow during the quarter," said Chris Collier, chief financial officer at Flex. "Our consistent free cash flow generation reflects our strong discipline and execution and enables our shareholder return commitment. During the quarter, we invested $142 million to repurchase almost 13 million shares, or over 2% of our ordinary shares."

Guidance

For the third quarter ending December 31, 2015, revenue is expected to be in the range of $6.2 to $6.8 billion and adjusted EPS is expected to be in the range of $0.28 to $0.34 per diluted share.

GAAP earnings per share is expected to be lower than the adjusted EPS guidance provided herein by approximately $0.06 per diluted share for estimated intangible amortization and stock-based compensation expense.

Conference Calls and Web Casts

A conference call hosted by Flex's management team will be held today at 2:00 PM (PT) / 5:00 PM (ET) to discuss the Company's financial results for the second quarter ended September 25, 2015. The conference call will be broadcast via the Internet and may be accessed by logging on to the Company's website at www.flextronics.com. Additional information in the form of a slide presentation may also be found on the company's site. A replay of the broadcast will remain available on the Company's website afterwards.

About Flex

Flextronics International Ltd ("Flex" or the "Company"), Reg. No. 199002645H, is a leading sketch-to-scale solutions company that designs and builds intelligent products for a connected world. With approximately 200,000 professionals across 30 countries and a promise to help the world Live smarter, the company 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.