Flex Q3 FY2018 Net Sales Up 10% YoY

Reading time ( words)

Flex has announced net sales of $6.75 billion for the third quarter ended December 31, 2017, growing 10% year-over-year and above the high end of the guidance range of $6.3 to $6.7 billion. GAAP income before income taxes was $141 million for the quarter and adjusted operating income was $220 million, at the mid-point of the guidance range of $205 million to $235 million. GAAP net income was approximately $118 million and adjusted net income for the quarter was $164 million.

"Our third quarter displayed continued revenue growth acceleration and the advancement of our portfolio evolution," said Mike McNamara, CEO at Flex. "This marked our fourth straight quarter of accelerating year-over-year revenue growth, with all four of our business groups beating the mid-point of their revenue guidance ranges. In addition, both our HRS and IEI businesses set new records for quarterly revenue and adjusted operating profits."

Cash Flow and Balance Sheet

Flex generated cash from operations of $150 million and $431 million for the three and nine-month periods ended December 31, 2017, respectively. The company remains committed to return over 50% of annual free cash flow to its shareholders as it repurchased ordinary shares for approximately $35 million and $180 million during the three and nine-month periods ended December 31, 2017, respectively.

Flex ended the quarter with approximately $1.3 billion of cash on hand and total debt of approximately $2.9 billion. The balance sheet remains strong and is well-positioned to support the business over the long-term.  

Fourth Quarter Fiscal Year 2018 Guidance

The company plans to initiate targeted restructuring activities during its fourth quarter of fiscal 2018. The objective of the activities is to make Flex a faster, more responsive company, and one that will continuously adapt to the incredible marketplace opportunities ahead. While a detailed action plan has not been finalized, the company expects to incur a minimum charge of $50 million in the fourth quarter and will substantially complete all the associated activities by the end of this fiscal year.

For the fourth quarter ending March 31, 2018, revenue is expected to be in the range of $6.1 to $6.5 billion. Adjusted EPS is expected to be in the range of $0.28 to $0.32 per diluted share. GAAP EPS is expected to be in the range of $0.10 to $0.15 and includes stock-based compensation expense, intangible amortization, and restructuring charges.

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. For more information, visit flex.com.


Suggested Items

Tackling the Challenges in Flex Assembly

07/06/2018 | Stephen Las Marias, I-Connect007
Apart from the design and manufacturing of flex printed circuits, a critical challenge that needs attention is assembly. Their flexible nature requires specific strategies for paste printing, chip mounting, soldering—whether reflow, wave, or hand—and rework/repair processes. Which is why the June 2018 issue of SMT007 Magazine looks into the many challenges in flex circuit assembly and highlight some of the strategies, techniques and best practices to help assemblers deal with flex circuit issues.

Seeing Clearly: XR Headsets and Flex’s Reference Design at AWE

06/26/2018 | Dan Feinberg, Technology Editor, I-Connect007
At this year’s CES, they announced the launch of an extended reality (XR) reference design for the next generation of XR headsets. As the “sketch-to-scale” solutions provider, as they describe themselves, that designs and builds “intelligent products for a connected world,” they have now introduced an augmented reality (AR or, as we now call it, XR) reference design to reduce time to market for companies wishing to make and market XR devices.

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.

Copyright © 2018 I-Connect007. All rights reserved.