Singapore /PRNewswire-FirstCall/ -- Flextronics announced results for its first quarter ended July 2, 2010.

Net sales for the first quarter ended July 2, 2010 increased 14 percent to $6.6 billion compared to net sales for the quarter ended July 3, 2009 of $5.8 billion. Adjusted operating income increased $100 million or 111 percent to $190 million, compared to adjusted operating income of $90 million for the year ago quarter. Adjusted net income for the first quarter ended July 2, 2010 was $154 million, an increase of $91 million or 144 percent, and adjusted EPS increased $0.11 or 138 percent to $0.19, compared to $63 million and $0.08, respectively, for the year ago quarter. GAAP operating income, net income, and EPS were all up significantly year-over-year.

 

Sequentially, revenue growth and profitability both exhibited strong improvement. Net sales were at the high end of the guidance range, rising 11 percent sequentially, resulting from growth across the entire portfolio of businesses. Adjusted operating income increased 12 percent sequentially, slightly outpacing net sales growth. Adjusted EPS of $0.19 was above the $0.16 reported last quarter and at the high-end of the $0.16-$0.19 guidance range. GAAP EPS increased 100 percent to $0.14 from $0.07 in the prior quarter.

 

"Our business environment remains healthy. Despite what appears to be an uncertain macro-environment, our orders and forecast continue to improve and we are again forecasting sequential growth in the upcoming quarter across all the markets we serve," said Mike McNamara, CEO of Flextronics.

 

Paul Read, CFO of Flextronics added, "Our cash position remains strong at $1.7 billion for the quarter. We continue to expect positive cash flow from operations driven by revenue growth and improving profitability, allowing us to further invest in our business and execute strategic uses of cash. During the quarter we repurchased $135 million of stock on our $200 million authorization."

 

For the second quarter ending October 1, 2010, revenue is expected to be in the range of $6.8 billion to $7.2 billion and adjusted EPS is expected to be in the range of $0.19 to $0.21 per share.

 

GAAP earnings per share are expected to be lower than the guidance provided herein by approximately $0.04 per diluted share for quarterly intangible amortization, stock-based compensation expense and non-cash interest expense.

 

A conference call hosted by Flextronics's management will be held today at 5:30 p.m. EDT / 2:30 p.m. PDT to discuss the company's financial results for the first quarter ended July 2, 2010. For more information, visit www.flextronics.com.