Boston, MA 05/23/2014 (wallstreetpr) – Flextronics International Ltd. (NASDAQ:FLEX) reported solid results in its fiscal 2014 (FY2014) ended March 31, 2014 with increasing revenue from High Velocity Solutions (HVS), High Reliability Solutions (HRS) and Industrial & Emerging Industries (IEI) business.
Operating Highlights
In FY2014, net sales were $26.1 billion, increase by 11% from $23.6 billion in the past year (FY2013), primarily due to increased sales from Asia and Americas. The growth was mainly driven by year over year increase in HVS (+40%), HRS (+16%) and IEI (+1.4%) as a result of the acquisition of certain manufacturing operations of Motorola for HVS and the contribution of Saturn Electronics and Engineering to its HRS segment.
The increase in revenue across the three segments offset the declining revenue of Integrated Network Solutions (INS). The segment represented 39% of total revenues during FY2014 and was down by 5% due to the decreasing demand over home, telecom, server, storage and networking business compared to the previous year.
Adjusted operating income increased 9% to $665 million (FY2013: $611 million) due to year over year increase in adjusted gross profit (+9%) as well as revenue (+11%). Consequently, it improved the adjusted EPS by 6% to $0.89 from $0.84 in FY2013.
Financing Highlights
Flextronics has a strong cash flow generation during FY2014 with operating cash flow of $1.2 billion and capital expenditures of $515 million that resulted to a free cash flow of $701 million.
In addition, the Company repurchased shares 60 million shares for $475 million and ended up with the cash balance of $1.6 billion as of March 31, 2014.
Flextronics’ total debt as of March 31, 2014 was $2.1 billion, including $1.5 billion of borrowings under the revolving credit facility. So, the leverage ratio (debt/EBITDA-LTM) for the period was 1.9x.
Guidance
Flextronics International Ltd. (NASDAQ:FLEX) continues to improve its business performance with growing demand from medical, mobile devices and storage businesses. The Company sees growth opportunities from the emerging markets such as China, Mexico and Brazil and expects revenue of $6.0- $6.5 billion and adjusted EPS of $0.20-$0.24 per diluted share in 1Q2015.
