Reuters Company News
Flextronics says to miss estimates this quarter, next
(Adds comments from conference call, after-hours price)
LOS ANGELES, June 3 (Reuters) - Contract manufacturer Flextronics International Ltd. (NasdaqNM:FLEX - News) on Monday said it will miss Wall Street earnings and revenue estimates this quarter and next because technology spending is still depressed.
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Flextronics shares fell $1.31 or 10.6 percent, to $11.01 in after-hours trade on Instinet after closing at $12.32 on Nasdaq.
The company said it expects earnings per share before restructuring charges in the current quarter, its fiscal first, of 5 cents to 8 cents on revenue of $3 billion.
For the next quarter, its fiscal second, the company said it expects pro forma earnings per share of 7 cents to 10 cents on revenue of $3.2 billion.
The average estimate of brokers surveyed by Thomson First Call had been for pro forma earnings of 11 cents on revenue of $3.14 billion, while the estimate for the second quarter had been for earnings of 13 cents on revenue of $3.27 billion.
For the current quarter, the company had said in the past it expected revenue of $3 billion to $3.3 billion and earnings per share before charges of 10 cents to 13 cents.
But at the same time, the company said it remains optimistic, with Chief Executive Michael Marks saying on a conference call, "We are seeing many clear signs in our business that the end of the bottom is near."
Marks said business in products for the data communications and telecom industries is weaker than expected, with two customers completely cutting their orders for the current quarter as a way to decrease inventory.
He said business for printed circuit boards is weaker than the company had planned, though it plans to generate cash flow and profits from that business in the December quarter for the first time in six quarters.
Showing stronger results are the company's consumer electronics and PC production, a sector he said was "more robust" than others, as well as the company's product enclosure business.
"Our enclosures business is doing well and we are struggling to keep up with demand," Marks said.
Marks also addressed the company's production of the Xbox video game console for Microsoft Corp. (NasdaqNM:MSFT - News), which it said last month it would partially relocate from Hungary to China.
Marks said Microsoft is helping with some of the costs associated with that production move and said Flextronics will continue to do all of the enclosure work for the Xbox, though he said Microsoft will begin using a smaller second partner for some product assembly in Asia later this year.
na dann gute Nacht
Flextronics says to miss estimates this quarter, next
(Adds comments from conference call, after-hours price)
LOS ANGELES, June 3 (Reuters) - Contract manufacturer Flextronics International Ltd. (NasdaqNM:FLEX - News) on Monday said it will miss Wall Street earnings and revenue estimates this quarter and next because technology spending is still depressed.
ADVERTISEMENT
Flextronics shares fell $1.31 or 10.6 percent, to $11.01 in after-hours trade on Instinet after closing at $12.32 on Nasdaq.
The company said it expects earnings per share before restructuring charges in the current quarter, its fiscal first, of 5 cents to 8 cents on revenue of $3 billion.
For the next quarter, its fiscal second, the company said it expects pro forma earnings per share of 7 cents to 10 cents on revenue of $3.2 billion.
The average estimate of brokers surveyed by Thomson First Call had been for pro forma earnings of 11 cents on revenue of $3.14 billion, while the estimate for the second quarter had been for earnings of 13 cents on revenue of $3.27 billion.
For the current quarter, the company had said in the past it expected revenue of $3 billion to $3.3 billion and earnings per share before charges of 10 cents to 13 cents.
But at the same time, the company said it remains optimistic, with Chief Executive Michael Marks saying on a conference call, "We are seeing many clear signs in our business that the end of the bottom is near."
Marks said business in products for the data communications and telecom industries is weaker than expected, with two customers completely cutting their orders for the current quarter as a way to decrease inventory.
He said business for printed circuit boards is weaker than the company had planned, though it plans to generate cash flow and profits from that business in the December quarter for the first time in six quarters.
Showing stronger results are the company's consumer electronics and PC production, a sector he said was "more robust" than others, as well as the company's product enclosure business.
"Our enclosures business is doing well and we are struggling to keep up with demand," Marks said.
Marks also addressed the company's production of the Xbox video game console for Microsoft Corp. (NasdaqNM:MSFT - News), which it said last month it would partially relocate from Hungary to China.
Marks said Microsoft is helping with some of the costs associated with that production move and said Flextronics will continue to do all of the enclosure work for the Xbox, though he said Microsoft will begin using a smaller second partner for some product assembly in Asia later this year.
na dann gute Nacht
