SINGAPORE-Contract electronics manufacturer Flextronics posted shrinking revenues but a higher net income in its fourth quarter, news that helped send its stock up around 4 percent to around $11 per share.
“While our quarterly revenue and operating profits were less than expected due to a more-than-expected decline in handset customer demand, we are extremely pleased that we were able to increase our gross margins for the sixth consecutive quarter,” said Michael Marks, the company’s chief executive officer. “Many of our fourth-quarter and fiscal year operating metrics, such as sales, gross profit, GAAP net income, cash conversion cycle, fixed assets to sales, cash and liquidity, and ROITC (return on invested tangible capital) are at record levels.”
Flextronics recorded $3.6 billion in net sales, down slightly from the same quarter last year, while its net income increased to $95.3 million from $72.8 million in the same quarter a year ago. Flextronics’ net income excludes intangibles amortization, restructuring and other charges.
In other Flextronics news, Nortel Networks Ltd. announced its manufacturing operations will now be transferred to Flextronics by early next year, rather than this year as previously expected.
