Adjusted Operating Margin Expands 100 bps; $483 Million in Net Debt
Reduction; Record Cash Balance $2 Billion SINGAPORE, Oct. 26
/PRNewswire-FirstCall/ -- Flextronics (NASDAQ:FLEX) today announced
results for its second quarter ended October 2, 2009 as follows:
(US$ in millions, except EPS) Three Month Periods Ended
------------------------- October 2, July 3, 2009 2009 ---- ----
Net sales $5,832 $5,783 GAAP operating income $123 $10 Adjusted
operating income (1) $149 $90 GAAP net income (loss) $20 $(154)
Adjusted net income (1) $104 $63 GAAP EPS $0.02 $(0.19) Adjusted
EPS (1) $0.13 $0.08 (1) A reconciliation of non-GAAP financial
measures to GAAP financial measures is presented in Schedule II
attached to this press release. Second Quarter Results Net sales
for the second quarter ended October 2, 2009 were $5.8 billion, an
increase of 1%, compared to net sales for the first quarter ended
July 3, 2009. Adjusted operating income for the second quarter was
$149 million, an increase of 66%, compared to the first quarter
adjusted operating income of $90 million. Adjusted operating margin
for the second quarter was 2.6% compared to 1.6% for the first
quarter. Adjusted net income for the second quarter was $104
million and adjusted EPS was $0.13 compared to $63 million and
$0.08, respectively, for the prior quarter. Cash and cash
equivalents totaled $2.0 billion at October 2, 2009, an increase of
$289 million from the prior quarter end. During the second quarter,
Flextronics generated $312 million of operating cash flow and $270
million of free cash flow (defined as net cash provided by
operating activities, less purchases of property & equipment,
net of dispositions). Net debt, which is total debt less total
cash, was further reduced in the current quarter by $483 million to
$587 million. Net debt has decreased by approximately $1.1 billion
from one year ago. Adjusted ROIC improved to 22.2% for the quarter.
"During the second quarter, Flextronics posted solid financial
progress across all aspects of our business, reflecting our efforts
to re-size our business to adapt to current market conditions. We
are very pleased with the healthy expansion of our adjusted gross
margin, which rose by 90 basis points sequentially," said Paul
Read, chief financial officer of Flextronics. "In addition, we
achieved a cash conversion cycle of 15 days, generated free cash
flow of $270 million and our significantly reduced net debt
position of $587 million is comparable with the period prior to our
Solectron acquisition." In connection with its previously announced
restructuring plans, during the second quarter, Flextronics
recognized $13 million of pretax restructuring charges comprised of
$9 million of cash charges primarily related to employee severance
costs and $4 million of non-cash asset impairment charges. The
Company remains confident that it is on track to realize the
expected annualized savings between $230 million and $260 million
upon the completion of its restructuring activities, which will be
completed by the end of Fiscal 2010. During the second quarter the
Company received proceeds of $255 million from the sale of a
non-core investment and note receivable and recorded non-cash
charges to impair certain other non-core investments and notes
receivable amounting to $92 million. Also during the quarter, the
Company recognized approximately $60 million of non-cash tax
benefits as a result of settlements in various tax jurisdictions.
"The improvement of our financial performance this quarter was a
real positive and we are seeing signs of strengthening in the
economy and a general improvement in business conditions," said
Mike McNamara, chief executive officer, Flextronics. Guidance For
the third quarter ending December 31, 2009, revenue is expected to
be in the range of $6.0 billion to $6.4 billion and adjusted EPS is
expected to be in the range of $0.14 to $0.16 per share. GAAP
earnings per share are expected to be lower than the guidance
provided herein by approximately $0.07 per diluted share for
estimated restructuring activities, quarterly intangible
amortization, stock-based compensation expense and non-cash
interest expense. 2004 Award Plan for New Employees Flextronics
granted restricted stock units representing 20,000 shares on August
31, 2009 from the 2004 Award Plan for New Employees. The restricted
stock units will generally vest over a three to five year period.
Conference Calls and Web Casts A conference call hosted by
Flextronics's management will be held today at 5:00 p.m. EST / 2:00
p.m. PST to discuss the Company's financial results for the second
quarter ended October 2, 2009. The conference call will be
broadcast via the Internet and may be accessed by logging on to the
Company's website at http://www.flextronics.com/. Additional
information in the form of a slide presentation may also be found
on the Company's site. A replay of the broadcast will remain
available on the Company's website afterwards. Minimum requirements
to listen to the broadcast are Microsoft Windows Media Player
software (free download at
http://www.microsoft.com/windows/windowsmedia/download/default.asp)
and at least a 28.8 Kbps bandwidth connection to the Internet.
About Flextronics Headquartered in Singapore (Singapore Reg. No.
199002645H), Flextronics is a leading Electronics Manufacturing
Services (EMS) provider focused on delivering complete design,
engineering and manufacturing services to automotive, computing,
consumer, industrial, infrastructure, medical and mobile OEMs.
Flextronics helps customers design, build, ship, and service
electronics products through a network of facilities in 30
countries on four continents. This global presence provides design
and engineering solutions that are combined with core electronics
manufacturing and logistics services, and vertically integrated
with components technologies, to optimize customer operations by
lowering costs and reducing time to market. For more information,
please visit http://www.flextronics.com/. This press release
contains forward-looking statements within the meaning of U.S.
securities laws, including statements related to future expected
revenues and earnings per share. These forward-looking statements
involve risks and uncertainties that could cause the actual results
to differ materially from those anticipated by these
forward-looking statements. These risks include that future
revenues and earnings may not be achieved as expected; the risks to
our particular electronics and technology sector of economic
instability and a slowdown in consumer spending, particularly given
the current economic conditions; the effects of customer or
supplier bankruptcies or insolvency; the effects that current
credit and market conditions could have on the liquidity and
financial condition of customers or suppliers, including any impact
on their ability to meet contractual obligations to us on terms and
conditions previously negotiated; the effects that the current
macroeconomic environment could have on our liquidity and ability
to access credit markets; our dependence on industries that
continually produce technologically advanced products with short
life cycles; our ability to respond to changes in economic trends,
to fluctuations in demand for customers' products and to the
short-term nature of customers' commitments; competition in our
industry, particularly from ODM suppliers in Asia; our dependence
on a small number of customers for the majority of our sales and
our reliance on strategic relationships with major customers; the
challenges of effectively managing our operations, including our
ability to manage manufacturing processes, control costs and manage
changes in our operations; the challenges of integrating acquired
companies and assets; not obtaining anticipated new customer
programs, or that if we do obtain them, that they may not
contribute to our revenue or profitability as expected or at all;
our ability to utilize available manufacturing capacity; the risk
of future restructuring charges that could be material to our
financial condition and results of operations; our ability to
design and quickly introduce world-class components products that
offer significant price and/or performance advantages over
competitive products; the impact on our margins and profitability
resulting from substantial investments and start-up and integration
costs in our components, design and ODM businesses; production
difficulties, especially with new products; changes in government
regulations and tax laws, including any effects related to the
expiration of tax holidays; our exposure to potential litigation
relating to intellectual property rights, product warranty and
product liability; our dependence on the continued trend of
outsourcing by OEMs; supply shortages of required electronic
components; the challenges of international operations, including
fluctuations in exchange rates beyond hedged boundaries leading to
unexpected charges; our dependence on our key personnel; and our
ability to comply with environmental laws. Additional information
concerning these and other risks is described under "Risk Factors"
and "Management's Discussion and Analysis of Financial Condition
and Results of Operations" in our reports on Form 10-K, 10-Q and
8-K that we file with the U.S. Securities and Exchange Commission.
The forward-looking statements in this press release are based on
current expectations and Flextronics assumes no obligation to
update these forward-looking statements. SCHEDULE I FLEXTRONICS
INTERNATIONAL LTD. AND SUBSIDIARIES UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per
share amounts) Three Month Periods Ended -------------------------
October 2, July 3, 2009 2009 ----- ----- GAAP: Net sales $5,831,761
$5,782,679 Cost of sales 5,519,778 5,506,575 Restructuring charges
12,403 52,109 ------ ------ Gross profit 299,580 223,995 Selling,
general and administrative expenses 176,246 201,692 Restructuring
charges 187 12,730 --- ------ Operating income 123,147 9,573
Intangible amortization 22,710 23,334 Other expense, net 91,999
107,399 Interest and other expense, net 38,091 36,886 ------ ------
Loss before income taxes (29,653) (158,046) Provision for (benefit
from) income taxes (49,312) (4,003) ------- ------ Net income
(loss) $19,659 $(154,043) ======= ========= EPS: GAAP $0.02 $(0.19)
===== ====== Non-GAAP $0.13 $0.08 ===== ===== Shares used in
computing GAAP per share amounts 817,260 810,174 ======= =======
Diluted Shares used in computing Non-GAAP per share amounts 817,260
814,922 ======= ======= See Schedule II for the reconciliation of
GAAP to non-GAAP financial measures. SCHEDULE II FLEXTRONICS
INTERNATIONAL LTD. AND SUBSIDIARIES RECONCILIATION OF GAAP TO
NON-GAAP FINANCIAL MEASURES (1) (In thousands, except per share
amounts) (unaudited) Three Month Periods Ended
------------------------- October % of July % of 2, Sales 3, Sales
2009 ----- 2009 ------ ---- ---- Net Sales $5,831,761 $5,782,679
GAAP gross profit $299,580 5.1% $223,995 3.9% Stock-based
compensation expense 2,440 2,733 Distressed customer charges (2) -
(18,142) Restructuring and other charges (3) 12,403 52,109 ------
------ Non-GAAP gross profit $314,423 5.4% $260,695 4.5% ========
======== GAAP SG&A expenses $176,246 3.0% $201,692 3.5%
Stock-based compensation expense 10,962 13,052 Distressed customer
charges (2) - 18,142 -- ------ Non-GAAP SG&A expenses $165,284
2.8% $170,498 2.9% ======== ======== GAAP operating income $123,147
2.1% $9,573 0.2% Stock-based compensation expense 13,402 15,785
Restructuring and other charges (3) 12,590 64,839 ------ ------
Non-GAAP operating income $149,139 2.6% $90,197 1.6% ========
======= GAAP net income (loss) $19,659 0.3% $(154,043) -2.7%
Stock-based compensation expense 13,402 15,785 Restructuring and
other charges (3) 12,590 64,798 Investment and notes impairment (4)
91,999 107,440 Non-cash convertible debt interest expense (5) 5,488
8,049 Intangible amortization 22,710 23,334 Adjustment for taxes
(61,859) (2,253) ------- ------ Non-GAAP net income $103,989 1.8%
$63,110 1.1% ======== ======= GAAP provision for income taxes
$(49,312) -0.8% $(4,003) -0.1% Restructuring and other charges 351
410 Settlement of tax contingencies (6) 59,669 - Intangible
amortization 1,839 1,843 ----- ----- Non-GAAP provision for income
taxes $12,547 0.2% $(1,750) 0.0% ======= ======= EPS: GAAP $0.02
$(0.19) ===== ====== Non-GAAP $0.13 $0.08 ===== ===== GAAP net cash
flows provided by operating activities $311,538 $106,866 Purchase
of property & equipment, net of dispositions (41,528) (38,635)
------- ------- Non-GAAP free cash flow $270,010 $68,231 ========
======= See the accompanying notes on Schedule IV attached to this
press release. SCHEDULE III FLEXTRONICS INTERNATIONAL LTD. AND
SUBSIDIARIES UNAUDITED GAAP CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands) October 2, March 31, 2009 2009 (5) ----------
----------- ASSETS Current Assets: Cash and cash equivalents
$1,966,494 $1,821,886 Accounts receivable, net 2,323,329 2,316,939
Inventories 2,692,077 2,996,785 Other current assets 731,838
799,396 ------- ------- 7,713,738 7,935,006 Property and equipment,
net 2,180,670 2,333,781 Goodwill and other intangibles, net 277,435
291,491 Other assets 381,747 756,662 ------- ------- $10,553,590
$11,316,940 =========== =========== LIABILITIES AND SHAREHOLDERS'
EQUITY Current Liabilities: Bank borrowings, current portion of
long-term debt and capital lease obligations $27,116 $19,358 Zero
Coupon Convertible Junior Subordinated Notes due 2009 - 189,045 1%
Convertible Subordinated Notes due 2010 226,156 - Accounts payable
3,993,899 4,049,534 Other current liabilities 1,910,092 2,150,834
--------- --------- Total current liabilities 6,157,263 6,408,771
Long-term debt, net of current portion: Acquisition Term Loan due
2012 and 2014 1,683,439 1,692,024 6 1/2 % Senior Subordinated Notes
due 2013 299,806 399,622 6 1/4 % Senior Subordinated Notes due 2014
302,172 402,090 1 % Convertible Subordinated Notes due 2010 -
218,391 Other long-term debt and capital lease obligations 14,181
21,553 Other liabilities 295,738 313,321 Total shareholders' equity
1,800,991 1,861,168 --------- --------- $10,553,590 $11,316,940
=========== =========== See the accompanying notes on schedule IV
attached to this press release. SCHEDULE IV FLEXTRONICS
INTERNATIONAL LTD. AND SUBSIDIARIES NOTES TO SCHEDULES I, II, &
III (1) To supplement Flextronics's unaudited selected financial
data presented on a basis consistent with Generally Accepted
Accounting Principles ("GAAP"), the Company discloses certain
non-GAAP financial measures that exclude certain charges, including
non-GAAP gross profit, non-GAAP selling, general and administrative
expenses, non-GAAP operating income, non-GAAP net income and
non-GAAP net income per diluted share. These supplemental measures
exclude, among other items, stock-based compensation expense,
restructuring charges, intangible amortization, financially
distressed customer charges, non-cash convertible debt interest
expense and certain other items. These non-GAAP measures are not in
accordance with or an alternative for GAAP, and may be different
from non-GAAP measures used by other companies. We believe that
these non-GAAP measures have limitations in that they do not
reflect all of the amounts associated with Flextronics's results of
operations as determined in accordance with GAAP and that these
measures should only be used to evaluate Flextronics's results of
operations in conjunction with the corresponding GAAP measures. The
presentation of this additional information is not meant to be
considered in isolation or as a substitute for the most directly
comparable GAAP measures. We compensate for the limitations of
non-GAAP financial measures by relying upon GAAP results to gain a
complete picture of Company performance. In calculating non-GAAP
financial measures, we exclude certain items to facilitate a review
of the comparability of the Company's operating performance on a
period-to-period basis because such items are not, in our view,
related to the Company's ongoing operational performance. We use
non-GAAP measures to evaluate the operating performance of our
business, for comparison with forecasts and strategic plans, for
calculating return on investment, and for benchmarking performance
externally against competitors. In addition, management's incentive
compensation is determined using certain non-GAAP measures. Also,
when evaluating potential acquisitions, we exclude certain of the
items described below from consideration of the target's
performance and valuation. Since we find these measures to be
useful, we believe that investors benefit from seeing results
"through the eyes" of management in addition to seeing GAAP
results. We believe that these non-GAAP measures, when read in
conjunction with the Company's GAAP financials, provide useful
information to investors by offering: -- the ability to make more
meaningful period-to-period comparisons of the Company's on-going
operating results; -- the ability to better identify trends in the
Company's underlying business and perform related trend analyses;
-- a better understanding of how management plans and measures the
Company's underlying business; and -- an easier way to compare the
Company's operating results against analyst financial models and
operating results of competitors that supplement their GAAP results
with non-GAAP financial measures. The following are explanations of
each of the adjustments that we incorporate into non-GAAP measures,
as well as the reasons for excluding each of these individual items
in the reconciliations of these non-GAAP financial measures:
Stock-based compensation expense consists of non-cash charges for
the estimated fair value of stock options and unvested share bonus
awards granted to employees and assumed in business acquisitions.
The Company believes that the exclusion of these charges provides
for more accurate comparisons of its operating results to peer
companies due to the varying available valuation methodologies,
subjective assumptions and the variety of award types. In addition,
the Company believes it is useful to investors to understand the
specific impact the application of SFAS 123R has on its operating
results. Restructuring charges include severance, impairment, lease
termination, exit costs and other charges primarily related to the
closures and consolidations of various manufacturing facilities.
These costs may vary in size based on the Company's acquisition and
restructuring activities, are not directly related to ongoing or
core business results, and do not reflect expected future operating
expenses. These costs are excluded by the Company's management in
assessing current operating performance and forecasting its
earnings trends, and are therefore excluded by the Company from its
non-GAAP measures. Distressed customer charges are comprised of
additional provisions for doubtful accounts receivable, inventory
and related obligations for customers that are experiencing
significant financial difficulties. These costs are excluded by the
Company's management in assessing its current operating performance
and forecasting its earnings trends, and accordingly, are excluded
by the Company from its non-GAAP measures. Intangible amortization
consists of non-cash charges that can be impacted by the timing and
magnitude of acquisitions. The Company considers its operating
results without these charges when evaluating its ongoing
performance and forecasting its earnings trends, and therefore
excludes such charges when presenting non-GAAP financial measures.
The Company believes that the assessment of its operations
excluding these costs is relevant to its assessment of internal
operations and comparisons to the performance of its competitors.
Other charges or gains consists of various other types of items
that are not directly related to ongoing or core business results,
such as impairment charges associated with non-core investments and
notes receivable and gains on the extinguishment of debt. We
exclude these items because they are not related to the Company's
ongoing operations performance or do not affect core operations.
Excluding these amounts provide investors with a basis to compare
Company performance against the performance of other companies
without this variability. Non-cash convertible debt interest
expense consists of interest expense recorded as a result of the
adoption of FSP APB14-1 "Accounting for Convertible Debt
Instruments That May Be Settled in Cash upon Conversion". The
Company considers its operating results without these charges when
evaluating its ongoing performance and forecasting its earnings
trends, and therefore excludes such charges when presenting
non-GAAP financial measures. The Company believes that the
assessment of its operations excluding theses costs is relevant to
its assessment of internal operations and comparisons to the
performance of its competitors. Adjustment for taxes relates to the
tax effects of the various adjustments that we incorporate into
non-GAAP measures in order to provide a more meaningful measure on
non-GAAP net income. (2) During the three-month period ended July
3, 2009, the Company revised its initial fiscal 2009 prior quarters
estimates between charges associated with the write-off of
inventory and provisions for doubtful accounts receivable with no
net operating income impact. (3) During the three month periods
ended October 2, 2009 and July 3, 2009, the Company recognized
restructuring charges as a result of the difficult macroeconomic
conditions. The global economic crisis and related decline in the
Company's customers' products across all of the industries it
serves, has caused the Company's OEM customers to reduce their
manufacturing and supply chain outsourcing negatively impacting the
Company's capacity utilization levels. The Company's restructuring
activities, which include employee severance, costs related to
owned and leased facilities and equipment that are no longer in use
and are to be disposed of, and other costs associated with the exit
of certain contractual arrangements due to facility closures, are
intended to improve its operational efficiencies by reducing excess
workforce and capacity. In addition to the cost reductions, these
activities will result in further shift of manufacturing capacity
to locations with higher efficiencies and, in most instances, lower
costs. (4) During the three month periods ended October 2, 2009 and
July 3, 2009, the Company impaired its carrying value in a certain
non-core investment and notes receivable due to a reduction in
estimated recoverability. (5) On April 1, 2009, the Company adopted
FASB Staff Position No. APB 14-1, "Accounting for Convertible Debt
Instruments That May Be Settled in Cash upon Conversion (Including
Partial Cash Settlement)" ("FSP APB 14-1"), which was required to
be applied retrospectively. The adoption of FSP APB 14-1 affected
the accounting for the Company's 1% Convertible Subordinated Notes
and Zero Coupon Convertible Junior Subordinated Notes by requiring
the initial proceeds from their sale to be allocated between a
liability component and an equity component in a manner that
results in interest expense on the debt component at the Company's
nonconvertible debt borrowing rate on the date of issuance. Upon
adoption of FSP APB 14-1, the Company recorded the change in
accounting principle from adopting FSP APB 14-1 as a cumulative
effect adjustment to the opening balance of Accumulated deficit as
of March 31, 2009 totaling approximately $225 million and a
discount to the carrying value of the convertible debt notes of
$27.5 million. The corresponding increase in the recorded value of
Ordinary shares was approximately $252 million. The adoption of FSP
APB 14-1 had no impact on the Company's consolidated cash flows.
Below is a summary of the financial statement effects of
implementing FSP APB 14-1 on the affected notes and interest
expense for the periods presented. Zero 1% Convertible Coupon
Convertible Subordinated Junior Subordinated Notes Notes
----------------- ------------------ Balance Sheet: October March
October March 2, 31, 2, 31, 2009 2009 2009 2009 ---- ---- ---- ----
(In thousands) Principal amount of Notes $239,993 $239,993 $-
$195,000 Unamortized discount (13,837) (21,602) - (5,955) -------
------- -- ------ Net carrying amount of Notes $226,156 $218,391 $-
$189,045 ======== ======== == ======== Three-Month Periods
Three-Month Periods Ended Ended -----------------
------------------ Income Statement: October July October July 2,
3, 2, 3, 2009 2009 2009 2009 ---- ---- ---- ---- (In thousands)
Amortization of discount net of adjustments to deferred financing
costs $3,829 $3,732 $1,659 $4,317 ====== ====== ====== ====== The
adoption of FSP APB 14-1 had a negative $0.01 impact on basic and
diluted GAAP earnings per share in both the three-month periods
ended October 2, 2009 and July 3, 2009. (6) During the three-month
period ended October 2, 2009, the Company recognized non-cash tax
benefits as a result of settlements in various tax jurisdictions.
Free Cash Flow consists of GAAP net cash flows from operating
activities less purchase of property and equipment, net of
dispositions. We believe free cash flow is an important liquidity
metric because it measures, during a given period, the amount of
cash generated that is available to repay debt obligations, make
investments, fund acquisitions and for certain other activities.
Since Free Cash Flow includes investments in operating assets, we
believe this non-GAAP liquidity measure is useful in addition to
the most directly comparable GAAP measure - "net cash flows
provided by operating activities." Return on Invested Capital
(ROIC) is calculated by annualizing the Company's current quarter
after-tax non-GAAP operating income and dividing that by a two
quarter average net invested capital asset base. After-tax non-GAAP
operating income excludes charges for financially distressed
customers, stock-based compensation expense, restructuring and
other charges. Net invested capital is defined as total assets less
current liabilities and other long-term liabilities further
adjusted for non-operating assets and liabilities. Non-operating
assets and liabilities are not included in the net invested capital
asset base because they do not affect non-GAAP operating income.
Non-operating assets and liabilities include, but are not limited
to, cash and cash equivalents, short-term investments, notes
receivable, restructuring liabilities, accrued interest, short-term
bank borrowings and current and non-current debt. We believe ROIC
is a useful measure in providing investors with information
regarding our performance. ROIC is a widely accepted measure of
earnings efficiency in relation to total capital employed. We
believe that increasing the return on total capital employed, as
measured by ROIC, is an effective method to sustain and increase
shareholder value. ROIC is not a measure of financial performance
under generally accepted accounting principles in the U.S., and may
not be defined and calculated by other companies in the same
manner. ROIC should not be considered in isolation or as an
alternative to net income or loss as an indicator of performance.
The following table reconciles ROIC as calculated using after-tax
non-GAAP operating income to the same performance measure
calculated using the nearest GAAP measure, which is GAAP operating
income adjusted for taxes: ROIC Q2 FY 2010 ---- ---------- GAAP
ROIC 18.0% Adjustments noted above 4.2% --- Non-GAAP ROIC 22.2%
==== We define our Cash Conversion Cycle (CCC) as the sum of
non-GAAP inventory turns in days and days sales outstanding in
accounts receivable less non-GAAP days payable outstanding in
accounts payable. We calculate non-GAAP inventory turns as
annualized non-GAAP cost of sales (before adjustments for
financially distressed customers, stock-based compensation expense,
restructuring and other charges) divided by average inventory for
the quarter. We calculate our days sales outstanding as annualized
revenues divided by average accounts receivable for the quarter. We
calculate non-GAAP days payable outstanding as annualized non-GAAP
cost of sales (before adjustments for financially distressed
customers, stock-based compensation expense, restructuring and
other charges) divided by average accounts payable. We believe the
Cash Conversion Cycle is a useful measure in providing investors
with information regarding our cash management performance and is a
widely accepted measure of working capital management efficiency.
These are measures of financial performance under generally
accepted accounting principles in the U.S. when calculated using
GAAP operating measures, but may not be defined and calculated by
other companies in the same manner. These should not be considered
in isolation or as an alternative to other GAAP metrics as an
indicator of performance. For the Quarter ended October 2, 2009,
Cash Conversion Cycle of 15 days calculated using the non-GAAP
measures described above was the same as that calculated using cost
of sales in accordance with GAAP. DATASOURCE: Flextronics CONTACT:
Warren Ligan, Senior Vice President, Investor Relations,
+1-408-576-7172, , or Renee Brotherton, Vice President, Corporate
Communications, +1-408-576-7189, , both of Flextronics Web Site:
http://www.flextronics.com/
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