Summary
Flex Ltd. reported revenue of $6.94 billion for the three-month period ended December 31, 2018, a 3% increase year-over-year, and $20.08 billion for the nine-month period, a 6% increase year-over-year. The company experienced a net loss of $45.17 million in the third quarter of fiscal year 2019, compared to a net income of $118.33 million in the prior year's comparable quarter. This decline was primarily driven by significant restructuring charges ($60.4 million) and a substantial impairment charge on an investment ($70.1 million). Despite the quarterly loss, the company saw revenue growth across its Communications & Enterprise Compute (CEC) and Industrial & Emerging Industries (IEI) segments, driven by cloud and data center solutions, 5G infrastructure, and new industrial programs. However, the Consumer Technologies Group (CTG) and High Reliability Solutions (HRS) segments saw revenue declines. The company also noted a change in its cash flow reporting due to the adoption of ASU 2016-15, reclassifying significant receivables from operating to investing activities, which impacted the presentation of cash from operations. The company continues to navigate a challenging market environment and is undertaking strategic actions to optimize its portfolio and improve profitability.
Financial Highlights
51 data points| Revenue | $6.92B |
| Cost of Revenue | $6.51B |
| Gross Profit | $357.32M |
| SG&A Expenses | $237.56M |
| Interest Expense | $38.83M |
| Net Income | -$45.17M |
| EPS (Basic) | $-0.09 |
| EPS (Diluted) | $-0.09 |
| Shares Outstanding (Basic) | 524.88M |
| Shares Outstanding (Diluted) | 524.88M |
Key Highlights
- 1Net sales increased by 3% to $6.94 billion for the three months ended December 31, 2018, and by 6% to $20.08 billion for the nine months ended December 31, 2018.
- 2The company reported a net loss of $45.17 million for the three months ended December 31, 2018, a significant drop from a net income of $118.33 million in the prior year's quarter.
- 3Restructuring charges of $60.4 million and an investment impairment charge of $70.1 million were significant contributors to the quarterly loss.
- 4Revenue growth was observed in the Communications & Enterprise Compute (CEC) and Industrial & Emerging Industries (IEI) segments, while Consumer Technologies Group (CTG) and High Reliability Solutions (HRS) experienced declines.
- 5The adoption of ASU 2016-15 led to a reclassification of cash collections on deferred purchase price from operating activities to investing activities.
- 6The company completed the wind-down of its NIKE operations in Mexico and is strategically managing underperforming accounts.
- 7As of December 31, 2018, the company had $1.5 billion in cash and cash equivalents and approximately $2.9 billion in bank and other borrowings.