Summary
Flextronics International Ltd. (FLEX) reported significant growth in fiscal year 2008, primarily driven by its acquisition of Solectron Corporation, which expanded its global reach and service capabilities. The company operates as a leading vertically-integrated provider of advanced design and electronics manufacturing services (EMS) across diverse markets including infrastructure, computing, consumer electronics, and medical devices. Despite a substantial increase in net sales to $27.6 billion, the company's gross margin contracted to 4.3% from 4.9% in the prior year, largely due to a significant increase in restructuring charges related to the Solectron integration. The company incurred a net loss of $639.4 million, impacted by substantial restructuring costs and a significant non-cash tax expense related to the re-evaluation of deferred tax assets. Investors should note the company's ongoing efforts to streamline operations, expand design capabilities, and manage a substantial debt load following the Solectron acquisition.
Financial Highlights
27 data points| Revenue | $27.56B |
| Cost of Revenue | $25.97B |
| Gross Profit | $1.18B |
| SG&A Expenses | $807.03M |
| Net Income | -$681.38M |
| EPS (Basic) | $-0.95 |
| EPS (Diluted) | $-0.95 |
| Shares Outstanding (Basic) | 720.52M |
| Shares Outstanding (Diluted) | 720.52M |
Key Highlights
- 1Net sales increased by 46% to $27.6 billion in fiscal year 2008, largely driven by the acquisition of Solectron.
- 2The acquisition of Solectron significantly expanded the company's scale and market diversification, particularly in infrastructure and computing segments.
- 3Gross margin decreased to 4.3% in fiscal year 2008 from 4.9% in fiscal year 2007, impacted by increased restructuring charges.
- 4The company reported a net loss of $639.4 million for fiscal year 2008, compared to a net income of $508.6 million in fiscal year 2007.
- 5Restructuring charges totaled $447.7 million in fiscal year 2008, primarily related to the integration of Solectron.
- 6Long-term debt increased substantially to $3.4 billion due to debt financing for the Solectron acquisition.
- 7The top ten customers represented 55% of net sales in fiscal year 2008, a decrease from 64% in fiscal year 2007, indicating some customer diversification.