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FLEX LTD. Quarterly Report for Q3 Ended Dec 31, 2010

Filing Date
Filed February 2, 2011
Period End
December 31, 2010
Security
FLEX
In the record · 2016–202610-K1210-Q328-K144

FLEX filed 12 annual reports (10-K), 32 quarterly reports (10-Q) and 144 current reports (8-K) between 2016 and 2026.

  1. Leadership change8-K · Aug ’17Aug ’17
  2. Restructuring8-K · Jul ’19Jul ’19
  3. Leadership change8-K · Jan ’22Jan ’22
  4. Material agreement8-K · Nov ’25Nov ’25

01—Abstract

Summary

Summary of the 10-Q filed February 2, 2011. Cited figures are marked; the original filing is the authoritative source.

Flextronics International Ltd. (FLEX) reported a strong recovery in its third fiscal quarter ended December 31, 2010, with net sales surging by 19% year-over-year to $7.8 billiona.

This growth was driven by an improving macroeconomic environment and market share gains across all major markets and geographic regions, indicating a rebound from the prior year's economic downturn. The company demonstrated a significant improvement in profitability, with net income more than doubling to $198.3 millionb, translating to diluted earnings per share of $0.26, a substantial increase from $0.11 in the prior year. This performance was supported by improved gross margins, driven by increased capacity utilization and the completion of restructuring activities.

The company also successfully managed its selling, general, and administrative expenses, which as a percentage of net sales decreased year-over-year, reflecting operational leverage. Flextronics continues to manage its debt effectively, with ongoing redemptions and a focus on maintaining liquidity, ending the quarter with $1.6 billionc in cash and cash equivalents.

02—Key points

Key Highlights

  1. Net sales increased by 19% to $7.8 billion for the three-month period ended December 31, 2010, compared to $6.6 billion in the prior year, driven by market share gains and an improved macroeconomic environment.
  2. Net income more than doubled to $198.3 million from $92.9 million in the prior year's comparable period, with diluted EPS rising to $0.26 from $0.11.
  3. Gross profit margin improved to 5.5% of net sales from 5.7% in the prior year, primarily due to increased capacity utilization and the absence of restructuring charges, which had impacted the prior year.
  4. The company reduced its debt significantly, including the redemption of 6.25% Senior Subordinated Notes for $308.5 million in December 2010.
  5. Cash provided by operating activities was $582.8 million for the nine-month period ended December 31, 2010, reflecting strong operational performance.
  6. Flextronics ended the quarter with $1.6 billion in cash and cash equivalents, demonstrating a healthy liquidity position.
  7. The company repurchased approximately 60.9 million shares for $368.0 million during the nine-month period, indicating a commitment to returning capital to shareholders.

03—Questions

Frequently Asked Questions

  1. What was Flextronics' revenue performance in the quarter ended December 31, 2010?

    Flextronics International Ltd. reported a significant increase in net sales for the three-month period ended December 31, 2010, reaching $7.8 billion. This represents a 19% increase compared to $6.6 billion in the same period of the prior year. The growth was attributed to an improved macroeconomic environment and market share gains across various industries and geographical regions.

  2. How did the company's profitability change during the quarter?

    Profitability saw a substantial improvement. Net income more than doubled to $198.3 million for the quarter ended December 31, 2010, up from $92.9 million in the prior year. Diluted earnings per share also increased to $0.26 from $0.11 year-over-year, reflecting enhanced operational efficiency and revenue growth.

  3. What is the company's current liquidity position and how is it managing its debt?

    Flextronics maintained a strong liquidity position, ending the quarter with $1.6 billion in cash and cash equivalents. The company continued its deleveraging efforts by redeeming 6.25% Senior Subordinated Notes for approximately $308.5 million in December 2010 and has paid down other debt throughout the period. The company also repurchased $368.0 million of its ordinary shares during the nine-month period.

  4. Are there any significant changes in the company's operational segments or markets driving the performance?

    The revenue growth was broad-based, with increases reported across all served markets, including infrastructure, mobile communications, computing, consumer digital devices, and industrial/automotive/medical/other. Geographically, Asia, Europe, and the Americas all contributed to the sales increase. The company noted progress in improving operating losses for its component product solution services, which comprise less than 10% of consolidated revenue.

04—Continue

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