Summary
Flex Ltd. reported revenue of $23.9 billion 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% 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.
Financial Highlights
53 data points| Revenue | $23.86B |
| Cost of Revenue | $22.30B |
| Gross Profit | $1.52B |
| R&D Expenses | $65.60M |
| SG&A Expenses | $937.34M |
| Interest Expense | $108.00M |
| Net Income | $319.56M |
| EPS (Basic) | $0.59 |
| EPS (Diluted) | $0.59 |
| Shares Outstanding (Basic) | 540.50M |
| Shares Outstanding (Diluted) | 546.22M |
Key Highlights
- 1For fiscal year 2017, Flex reported revenue of $23.9 billion and net income of $319.6 million.
- 2The company is transitioning to a "Sketch-to-Scale" service model, encompassing design, engineering, manufacturing, and supply chain solutions.
- 3Net 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.
- 4The Industrial and Emerging Industries (IEI) and High Reliability Solutions (HRS) segments showed revenue growth, indicating a strategic shift towards higher-margin businesses.
- 5Flex generated $1.1 billion in cash from operations and $660.4 million in free cash flow for fiscal year 2017.
- 6The company has a diversified business across multiple end markets including Communications & Enterprise Compute (CEC), CTG, IEI, and HRS.
- 7Flex 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.