01—Abstract
Summary
Summary of the 10-K filed May 16, 2017. Cited figures are marked; the original filing is the authoritative source.
Flex Ltd. reported revenue of $23.9 billiona and a net income of $319.6 million for the fiscal year ended March 31, 2017.
The company has evolved from a traditional Electronics Manufacturing Services (EMS) provider to a "Sketch-to-Scale" solutions provider, offering design, engineering, manufacturing, and supply chain services. While net sales saw a slight decrease of 2.3%b compared to the prior year, this was largely due to the closure of a dedicated China operation for a major smartphone customer. Flex continues to focus on expanding its higher-margin Industrial and High Reliability Solutions (HRS) segments, which showed growth.
Despite the slight dip in revenue, the company demonstrated resilience with consistent cash flow from operations and an improvement in free cash flow. Flex's strategy centers on its global operational capabilities, end-to-end solutions, and strong customer relationships. The company is actively managing its portfolio, investing in innovation, and expanding its service offerings to adapt to the evolving needs of its diverse customer base across various high-growth sectors.
02—Key points
Key Highlights
- For fiscal year 2017, Flex reported revenue of $23.9 billion and net income of $319.6 million.
- The company is transitioning to a "Sketch-to-Scale" service model, encompassing design, engineering, manufacturing, and supply chain solutions.
- Net sales decreased by 2.3% year-over-year, primarily attributed to the exit of a dedicated operation for a key customer in the Consumer Technologies Group (CTG) segment.
- The Industrial and Emerging Industries (IEI) and High Reliability Solutions (HRS) segments showed revenue growth, indicating a strategic shift towards higher-margin businesses.
- Flex generated $1.1 billion in cash from operations and $660.4 million in free cash flow for fiscal year 2017.
- The company has a diversified business across multiple end markets including Communications & Enterprise Compute (CEC), CTG, IEI, and HRS.
- Flex is actively managing its portfolio, with its ten largest customers accounting for 43% of net sales, and no single customer exceeding 10% of net sales in FY17.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2017filed May 16, 2017Financial Statements
FY2017 against FY2016
| Line item | FY2017FY2016 | Change |
|---|---|---|
| Revenue | $23.86B$24.42B | −2.3% |
| Cost of Revenue | $22.30B$22.81B | −2.2% |
| Gross Profit | $1.52B$1.61B | −5.4% |
| R&D Expenses | $65.60M$61.00M | +7.5% |
| SG&A Expenses | $937.34M$954.89M | −1.8% |
| Interest Expense | $108.00M$98.00M | +10.2% |
| Net Income | $319.56M$444.08M | −28.0% |
| EPS (Basic) | $0.59$0.80 | −26.3% |
| EPS (Diluted) | $0.59$0.79 | −25.3% |
| Shares Outstanding (Basic) | 540.50M557.67M | −3.1% |
| Shares Outstanding (Diluted) | 546.22M564.87M | −3.3% |
05—Questions
Frequently Asked Questions
What was Flex Ltd.'s financial performance for the fiscal year ended March 31, 2017?
For the fiscal year ended March 31, 2017, Flex Ltd. reported total revenue of $23.9 billion and a net income of $319.6 million. This represented a slight decrease in revenue from the prior year, primarily due to strategic customer-related operational changes.
How has Flex Ltd. evolved its business model?
Flex has evolved from a traditional Electronics Manufacturing Services (EMS) provider to a comprehensive "Sketch-to-Scale" solutions provider. This broader offering includes innovative design, engineering, manufacturing, and supply chain services, aiming to support customers throughout the entire product lifecycle.
What are the key business segments of Flex Ltd.?
Flex Ltd. operates across four main segments: Communications & Enterprise Compute (CEC), Consumer Technologies Group (CTG), Industrial and Emerging Industries (IEI), and High Reliability Solutions (HRS). The company is strategically focusing on growing its IEI and HRS segments, which are generally higher-margin businesses.
How does Flex Ltd. manage its financial resources and liquidity?
Flex Ltd. maintains a strong liquidity position, generating $1.1 billion in cash from operations and $660.4 million in free cash flow for the fiscal year ended March 31, 2017. The company utilizes a combination of cash flow from operations, debt financing, and share repurchase programs to manage its capital and liquidity.
06—Continue