Summary
Flextronics International Ltd. (FLEX) reported total revenues of $23.6 billion for the fiscal year ended March 31, 2013. The company experienced a significant revenue decline of 19.7% compared to the prior year, primarily due to exiting the high-volume, low-margin Original Design and Manufacturing (ODM) PC business and a reduction in services provided to a major smartphone OEM. Despite this revenue decrease, the company generated $1.1 billion in cash from operations and $680.1 million in free cash flow, demonstrating strong operational cash generation. Flex responded to challenging macroeconomic conditions with restructuring activities, including workforce reductions and facility consolidations, which resulted in $227.4 million in pre-tax restructuring charges. The company's strategic focus remains on providing end-to-end global supply chain solutions, with continued investments in design and engineering capabilities, aiming to leverage its scale and global presence to serve leading OEMs across diverse markets such as High Reliability Solutions (medical, automotive, defense), High Velocity Solutions (mobile, consumer electronics), Industrial and Emerging Industries, and Integrated Network Solutions (telecom, data networking).
Financial Highlights
52 data points| Revenue | $23.57B |
| Cost of Revenue | $22.19B |
| Gross Profit | $1.17B |
| SG&A Expenses | $805.24M |
| Operating Income | $302.50M |
| Interest Expense | $68.90M |
| Net Income | $277.05M |
| EPS (Basic) | $0.42 |
| EPS (Diluted) | $0.41 |
| Shares Outstanding (Basic) | 662.87M |
| Shares Outstanding (Diluted) | 675.03M |
Key Highlights
- 1Revenue declined by 19.7% to $23.6 billion in FY2013, largely attributed to exiting the ODM PC business and reducing services for a key smartphone client.
- 2Generated strong operating cash flow of $1.1 billion and free cash flow of $680.1 million in FY2013.
- 3Incurred significant restructuring charges totaling $227.4 million in FY2013 to improve operational efficiency and rationalize global capacity.
- 4The company's largest customers accounted for 47% of net sales in FY2013, with no single customer exceeding 10% of net sales.
- 5Flex has an extensive global operational footprint with manufacturing facilities in over 30 countries across four continents.
- 6The company is strategically focused on higher-margin business groups such as High Reliability Solutions (HRS), Industrial and Emerging Industries (IEI), and Integrated Network Solutions (INS).