A recharged focus on its electronics manufacturing services business helped boost fiscal third-quarter sales and profits at Flextronics International Ltd., the company announced today.
Flextronics (Singapore) said net sales for the third quarter ended Dec. 31, 2006 reached $5.4 billion, a 31 percent increase over the same period a year ago. GAAP net income increased 183 percent year-over-year to $119 million, or 20 cents per diluted share.
"Last year we initiated our strategy to accelerate revenue and profit growth in our core EMS business, which is realizing success for our company and our customers," said Mike McNamara, Flextronics CEO, in a statement. "A central part of this strategy is the organization of our resources around a market focused approach, which allows us to better serve our customers."
Flextronics said third-quarter return on invested capital improved 120 basis points from the year ago quarter to 11.5 percent, while the cash conversion cycle was reduced to 12 days, down from 14 in the prior quarter. Inventory was also reduced by $79 million from the second quarter.
Looking ahead, Flextronics expects revenue and profits for the March-ending quarter to be lower on a sequential basis. Revenue is expected to be approximately $4.8 billion and earnings per share should be in the range of 17 to 20 cents, the company said.