Flex Reports First Quarter Fiscal 2018 Results


Reading time ( words)

EMS firm Flex has announced net sales of just over $6 billion for the first quarter ended June 30, 2017, growing by 2% year-over-year and within the guidance range of $5.7 to $6.1 billion. GAAP income before income taxes was $146 million for the quarter and adjusted operating income was $178 million, within the range of guidance of $170 million to $200 million.

GAAP net income was approximately $125 million and adjusted net income for the quarter was $128 million. GAAP EPS was $0.23 for the quarter and non-GAAP EPS was $0.24 for the quarter.

"Our Sketch-to-Scale strategy remains firmly on track as reflected in our first quarter results which were within guidance ranges," said Mike McNamara, CEO at Flex. "While fiscal 2018 is an investment year, we continue to evolve our portfolio and enter and create new markets that will generate meaningful value and expand the company's total available market."

Cash Flow and Balance Sheet

For the three-month period ended June 30, 2017, Flex generated cash from operations of approximately $138 million and free cash flow of $19 million. Strong cash flow generation funded share repurchases of approximately $74 million. The company remains committed to return over 50% of annual free cash flow to its shareholders and in the first quarter it repurchased $74 million of its shares or roughly 1% of its outstanding shares. Flex ended the quarter with nearly $1.6 billion of cash on hand and total debt of $3.0 billion. The balance sheet remains strong and is well-positioned to support the business over the long term. 

Second Quarter Fiscal Year 2018 Guidance

For the second quarter ending September 29, 2017, revenue is expected to be in the range of $5.9 to $6.3 billion, GAAP EPS is expected to be in the range of $0.16 to $0.20 and includes stock-based compensation expense and intangible amortization. The company expects to sustain elevated levels of costs and investment, while maintaining its commitment to return value to shareholders. Adjusted EPS is expected to be in the range of $0.24 to $0.28 per diluted share and reflects the increased level of investment.

About Flex

Flex Ltd. (Reg. No. 199002645H) is the 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.

Share


Suggested Items

3D Printing and Additive Manufacturing in PCBA

05/28/2018 | Zohair Mehkri, David Geiger, Anwar Mohammed, and Murad Kurwa, Flex
There are several materials that are available for 3D printing for various engineering uses. Various vendors offer over hundreds of different materials that are either specific to an application or to a specific desired characteristic. For this study, eight materials that are regularly used for engineering applications were evaluated and characterized to determine which can be used in PCB processes.

A Not So Surprising Focus for Flex in the XR Realm

03/14/2018 | Dan Feinberg
Dan Feinberg has been covering augmented, virtual, and mixed-reality for I-Connect007 for the last few years. He recently met with Eric Braddom, VP of Extended Reality (XR) Product Management for Flex, a company that is involved in this disruptive technology. In this interview, Dan and Eric discuss the future of augmented, mixed and/or virtual reality, or as Flex calls it, "extended reality."

Equipment Matters in Solder Paste Printing

12/06/2017 | Stephen Las Marias, I-Connect007
The solder paste printing process has always been considered a major contributor to yield loss. According to many studies, solder paste printing accounts for up to 70% of all PCB assembly defects. For the December issue of SMT Magazine, we interviewed experts in the solder paste printing process to learn more about the key issues leading to this huge percentage of defects, and the technology developments that are addressing these challenges and improving yields in the process.



Copyright © 2018 I-Connect007. All rights reserved.