Flextronics Announces Fourth Quarter and Fiscal Year End Earnings

Fiscal Year Revenues Up Record 74% and Cash Net Income Up 97% Over

The Prior Year



Apr 24, 2001, 01:00 ET from Flextronics

    SINGAPORE, April 24 /PRNewswire Interactive News Release/ --
 Flextronics (Nasdaq: FLEX), a world-class electronics manufacturing services
 provider focused on delivering end to end solutions to original equipment
 manufacturers, today announced results for its fourth quarter and fiscal year
 ended March 31, 2001, as follows:
 
     ($ in millions,          Fourth Quarter      Fiscal Year Ended March 31
     except EPS               Ended March 31            Ended March 31
     data) (A)
                        2001       2000   Growth      2001       2000   Growth
     Net sales       $3,114.4   $2,228.7    40%   $12,109.7   $6,959.1     74%
     Cash operating
      income           $136.9      $95.7    43%      $551.7     $303.9     82%
     Cash net income   $108.9      $72.6    50%      $415.9     $210.9     97%
     Diluted cash EPS   $0.22      $0.17    29%       $0.87      $0.55     58%
 
     Note A     The above earnings data is presented before amortization and
                one-time charges.
 
     Net sales for the fourth quarter ended March 31, 2001, reached
 $3.1 billion, up 40% from $2.2 billion the same quarter a year ago.  Before
 amortization and one-time charges, cash operating income for the quarter was
 $137 million, a 43% increase; cash net income was $109 million, an increase of
 50%; and diluted cash EPS was $0.22, up 29% from a year ago.  For fiscal year
 2001, net sales were a record $12.1 billion, up 74% from the previous year.
 Cash net income before amortization and one-time charges for the year
 increased 97% to $416 million, and diluted cash EPS improved by 58%.
     In order to restructure operations primarily located in high cost regions,
 the Company took a one-time, after-tax charge in the fourth quarter of fiscal
 year 2001 of $276 million, of which less than $40 million were cash charges.
 The plan permanently reduces overall capacity by approximately 15%, and
 reduces headcount by approximately 10%.  These reductions took place primarily
 in North America.  A small charge in the range of $10 - $20 million will
 finalize the plans in the first quarter of fiscal year 2002. "We are taking
 the steps that we believe strong companies take, and that is to rapidly bring
 capacity in line with revenue expectations in order to maintain
 profitability," said Michael E. Marks, Chairman and Chief Executive Officer of
 Flextronics.
     Mr. Marks provided his outlook for Flextronics:  "Because of our diverse
 customer base, global presence, strength in low cost regions, diverse service
 offering and pipeline of new opportunities, we believe our revenue over the
 next couple quarters will be in line with that of the immediately preceding
 quarters.  Thus, our outlook is much stronger than that of many of our
 competitors.  This strength is a validation of the business model that we have
 been expounding since Flextronics became publicly traded.  Looking forward,
 there continues to be consolidation of business to the top tier companies in
 the electronic manufacturing services industry, which includes Flextronics.
 This is driven by OEMs' desire to outsource, which is now accelerating because
 of the market downturn.  With the resulting number of outsourcing programs
 under review, we continue to believe that calendar 2002 will be robust for our
 industry."
     A conference call hosted by Flextronics' management will be held today at
 2:15 p.m. PDT to further discuss the financial results of the Company and its
 future outlook.  This call will be broadcast via the Internet and may be
 accessed by logging on to the Company's Web site at www.flextronics.com.
 Additional information in the form of a slide presentation and Chairman's
 Letter that summarizes and discusses the quarterly results may also be found
 on the site.
     This news release, the Chairman's Letter to the Shareholders and the
 earnings slide presentation contain forward-looking statements within the
 meaning of federal securities laws and is subject to the safe harbor under
 those laws.  These forward-looking statements include statements related to
 expected future revenue and profitability, Ericsson mobile phone business, new
 program wins, outlook and profitability of various business services,
 consolidation of business to top tier companies, accelerating outsourcing by
 OEMs, and company growth and momentum.  These forward-looking statements
 involve risks and uncertainties that could cause the actual results to differ
 materially from those anticipated by these forward-looking statements.  These
 risks include the challenges of integrating acquired companies, economic
 trends and fluctuations in demand for customer's products and changes in
 customers' product sources, competition in our industry, the difficulties of
 managing during uncertain economic conditions, including the challenges of
 implementing the restructuring plan, and the other risks described under
 "Management Discussion and Analysis of Financial Conditions and Results of
 Operations - Certain Factors Affecting Future Operating Results" in the most
 recent Annual Report on Form 10-K and quarterly report on Form 10-Q, filed
 with the SEC.  The forward-looking statements in this news release and
 Chairman's Letter to the Shareholders are based on current expectations, and
 Flextronics assumes no obligation to update these forward-looking statements.
 
 
                                                                     Schedule 1
                  FLEXTRONICS INTERNATIONAL LTD. AND SUBSIDIARIES
                  CONDENSED CONSOLIDATED STATEMENTS OF CASH INCOME
                      BEFORE AMORTIZATION AND ONE-TIME CHARGES
                      (In thousands, except per share amounts)
                                    (Unaudited)
 
                               Three months                Fiscal year
                             ended March 31,             ended March 31,
                             2001          2000         2001          2000
 
     Net sales           $3,114,434    $2,228,696  $12,109,699    $6,959,122
 
     Cost of sales        2,864,048     2,041,323   11,127,896     6,335,242
 
      Gross profit
       before one-time
       charges              250,386       187,373      981,803       623,880
 
     Selling, general
      and administrative
      expenses              113,524        91,689      430,109       319,952
 
      Cash operating income
       before amortization
       and one-time
       charges              136,862        95,684      551,694       303,928
 
     Interest expense and
      other, net             26,863        12,889       89,546        69,912
 
      Cash income before
       income taxes,
       amortization and
       one-time charges     109,999        82,795      462,148       234,016
 
     Provision for income
      taxes                   1,073        10,199       46,215        23,080
 
     Cash net income
      before amortization
      and one-time
      charges              $108,926       $72,596     $415,933      $210,936
 
     Diluted cash earnings
      per share               $0.22         $0.17        $0.87         $0.55
 
     Weighted average
      ordinary shares
      and equivalents       502,811       427,521      479,859       383,119
 
 
                                  Schedule 1a
                  FLEXTRONICS INTERNATIONAL LTD. AND SUBSIDIARIES
                                 SUPPLEMENTAL DATA
                                   (In thousands)
                                    (Unaudited)
 
                                 Three months                Fiscal year
                                ended March 31             ended March 31
                              2001          2000        2001          2000
 
     Cash net income before
      amortization and
      one-time charges     $108,926       $72,596     $415,933      $210,936
 
     Goodwill and
      intangibles
      amortization, net
      of tax                 26,525        12,050       63,541        41,326
 
     Merger related costs
      and other one-time
      charges, net of
      tax (A)               275,567         7,519      798,411        11,042
 
     Net income (loss)
      after amortization
      and one-time
      charges            $(193,166)       $53,027   $(446,019)      $158,568
 
     (A)The Company recorded one-time after-tax charges of $798.4 million
        during the fiscal year ended March 31, 2001.Of this amount,
        $440.7 million was recorded in the first quarter and comprised (i)
        $286.5 million related to the issuance of an equity instrument to
        Motorola and (ii) $176.6 million related to the Dii Group and Palo Alto
        Products International mergers which were completed in April 2000,
        offset by (iii) a gain of $22.4 million on the sale of marketable
        equity securities.  One-time after-tax charges of $42.4 million were
        recorded in the second quarter for the Chatham Technologies and
        Lightning Metal Specialties mergers that were completed in August 2000.
        One-time after-tax charges of $39.8 million were recorded in the
        third quarter primarily for the JIT Holdings Ltd merger completed in
        November 2000.One-time after tax charges of $275.6 million were
        recorded in the fourth quarter for facility closures and integration
        costs of several of the Company's facilities around the world.
        Approximately 10% of the Company's headcount and 15% of its square
        footage was eliminated by these fourth quarter actions.
 
       The Company also recorded one-time charges of $11.0 million in the
       fiscal year ended March 31, 2000.  Of this amount, $3.5 million related
       to the second quarter merger with Kyrel and $7.5 million related to
       facility closures and integration costs in the fourth quarter of an
       acquired company prior to its merger with Flextronics.
 
 
                                                                     Schedule 2
                  FLEXTRONICS INTERNATIONAL LTD. AND SUBSIDIARIES
                       CONDENSED CONSOLIDATED BALANCE SHEETS
                                   (In thousands)
                                    (Unaudited)
 
                                                    March 31,       March 31,
                                                      2001            2000
     ASSETS
     Current assets
      Cash and cash equivalents                      $631,588       $747,049
      Accounts receivable, net                      1,651,252      1,057,949
      Inventories                                   1,787,055      1,142,594
      Other current assets                            398,063        275,152
       Total current assets                         4,467,958      3,222,744
 
     Property and equipment, net                    1,828,441      1,323,732
     Other non-current assets                       1,285,267        588,467
 
     TOTAL ASSETS                                  $7,581,666     $5,134,943
 
     LIABILITIES AND SHAREHOLDERS' EQUITY
 
     Current liabilities
      Bank borrowings & current portion
       of long-term debt                             $298,052       $487,773
      Current portion of capital lease obligations     27,602         24,037
      Accounts payable                              1,480,468      1,227,142
      Other accrued expenses                          735,184        322,257
       Total current liabilities                    2,541,306      2,061,209
 
     Long-term debt and capital leases,
      net of current portion                          917,313        645,267
     Other long-term liabilities                       92,686         58,133
 
     Shareholders' equity                           4,030,361      2,370,334
 
     TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY    $7,581,666     $5,134,943
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X27435721
 
 

SOURCE Flextronics
    SINGAPORE, April 24 /PRNewswire Interactive News Release/ --
 Flextronics (Nasdaq: FLEX), a world-class electronics manufacturing services
 provider focused on delivering end to end solutions to original equipment
 manufacturers, today announced results for its fourth quarter and fiscal year
 ended March 31, 2001, as follows:
 
     ($ in millions,          Fourth Quarter      Fiscal Year Ended March 31
     except EPS               Ended March 31            Ended March 31
     data) (A)
                        2001       2000   Growth      2001       2000   Growth
     Net sales       $3,114.4   $2,228.7    40%   $12,109.7   $6,959.1     74%
     Cash operating
      income           $136.9      $95.7    43%      $551.7     $303.9     82%
     Cash net income   $108.9      $72.6    50%      $415.9     $210.9     97%
     Diluted cash EPS   $0.22      $0.17    29%       $0.87      $0.55     58%
 
     Note A     The above earnings data is presented before amortization and
                one-time charges.
 
     Net sales for the fourth quarter ended March 31, 2001, reached
 $3.1 billion, up 40% from $2.2 billion the same quarter a year ago.  Before
 amortization and one-time charges, cash operating income for the quarter was
 $137 million, a 43% increase; cash net income was $109 million, an increase of
 50%; and diluted cash EPS was $0.22, up 29% from a year ago.  For fiscal year
 2001, net sales were a record $12.1 billion, up 74% from the previous year.
 Cash net income before amortization and one-time charges for the year
 increased 97% to $416 million, and diluted cash EPS improved by 58%.
     In order to restructure operations primarily located in high cost regions,
 the Company took a one-time, after-tax charge in the fourth quarter of fiscal
 year 2001 of $276 million, of which less than $40 million were cash charges.
 The plan permanently reduces overall capacity by approximately 15%, and
 reduces headcount by approximately 10%.  These reductions took place primarily
 in North America.  A small charge in the range of $10 - $20 million will
 finalize the plans in the first quarter of fiscal year 2002. "We are taking
 the steps that we believe strong companies take, and that is to rapidly bring
 capacity in line with revenue expectations in order to maintain
 profitability," said Michael E. Marks, Chairman and Chief Executive Officer of
 Flextronics.
     Mr. Marks provided his outlook for Flextronics:  "Because of our diverse
 customer base, global presence, strength in low cost regions, diverse service
 offering and pipeline of new opportunities, we believe our revenue over the
 next couple quarters will be in line with that of the immediately preceding
 quarters.  Thus, our outlook is much stronger than that of many of our
 competitors.  This strength is a validation of the business model that we have
 been expounding since Flextronics became publicly traded.  Looking forward,
 there continues to be consolidation of business to the top tier companies in
 the electronic manufacturing services industry, which includes Flextronics.
 This is driven by OEMs' desire to outsource, which is now accelerating because
 of the market downturn.  With the resulting number of outsourcing programs
 under review, we continue to believe that calendar 2002 will be robust for our
 industry."
     A conference call hosted by Flextronics' management will be held today at
 2:15 p.m. PDT to further discuss the financial results of the Company and its
 future outlook.  This call will be broadcast via the Internet and may be
 accessed by logging on to the Company's Web site at www.flextronics.com.
 Additional information in the form of a slide presentation and Chairman's
 Letter that summarizes and discusses the quarterly results may also be found
 on the site.
     This news release, the Chairman's Letter to the Shareholders and the
 earnings slide presentation contain forward-looking statements within the
 meaning of federal securities laws and is subject to the safe harbor under
 those laws.  These forward-looking statements include statements related to
 expected future revenue and profitability, Ericsson mobile phone business, new
 program wins, outlook and profitability of various business services,
 consolidation of business to top tier companies, accelerating outsourcing by
 OEMs, and company growth and momentum.  These forward-looking statements
 involve risks and uncertainties that could cause the actual results to differ
 materially from those anticipated by these forward-looking statements.  These
 risks include the challenges of integrating acquired companies, economic
 trends and fluctuations in demand for customer's products and changes in
 customers' product sources, competition in our industry, the difficulties of
 managing during uncertain economic conditions, including the challenges of
 implementing the restructuring plan, and the other risks described under
 "Management Discussion and Analysis of Financial Conditions and Results of
 Operations - Certain Factors Affecting Future Operating Results" in the most
 recent Annual Report on Form 10-K and quarterly report on Form 10-Q, filed
 with the SEC.  The forward-looking statements in this news release and
 Chairman's Letter to the Shareholders are based on current expectations, and
 Flextronics assumes no obligation to update these forward-looking statements.
 
 
                                                                     Schedule 1
                  FLEXTRONICS INTERNATIONAL LTD. AND SUBSIDIARIES
                  CONDENSED CONSOLIDATED STATEMENTS OF CASH INCOME
                      BEFORE AMORTIZATION AND ONE-TIME CHARGES
                      (In thousands, except per share amounts)
                                    (Unaudited)
 
                               Three months                Fiscal year
                             ended March 31,             ended March 31,
                             2001          2000         2001          2000
 
     Net sales           $3,114,434    $2,228,696  $12,109,699    $6,959,122
 
     Cost of sales        2,864,048     2,041,323   11,127,896     6,335,242
 
      Gross profit
       before one-time
       charges              250,386       187,373      981,803       623,880
 
     Selling, general
      and administrative
      expenses              113,524        91,689      430,109       319,952
 
      Cash operating income
       before amortization
       and one-time
       charges              136,862        95,684      551,694       303,928
 
     Interest expense and
      other, net             26,863        12,889       89,546        69,912
 
      Cash income before
       income taxes,
       amortization and
       one-time charges     109,999        82,795      462,148       234,016
 
     Provision for income
      taxes                   1,073        10,199       46,215        23,080
 
     Cash net income
      before amortization
      and one-time
      charges              $108,926       $72,596     $415,933      $210,936
 
     Diluted cash earnings
      per share               $0.22         $0.17        $0.87         $0.55
 
     Weighted average
      ordinary shares
      and equivalents       502,811       427,521      479,859       383,119
 
 
                                  Schedule 1a
                  FLEXTRONICS INTERNATIONAL LTD. AND SUBSIDIARIES
                                 SUPPLEMENTAL DATA
                                   (In thousands)
                                    (Unaudited)
 
                                 Three months                Fiscal year
                                ended March 31             ended March 31
                              2001          2000        2001          2000
 
     Cash net income before
      amortization and
      one-time charges     $108,926       $72,596     $415,933      $210,936
 
     Goodwill and
      intangibles
      amortization, net
      of tax                 26,525        12,050       63,541        41,326
 
     Merger related costs
      and other one-time
      charges, net of
      tax (A)               275,567         7,519      798,411        11,042
 
     Net income (loss)
      after amortization
      and one-time
      charges            $(193,166)       $53,027   $(446,019)      $158,568
 
     (A)The Company recorded one-time after-tax charges of $798.4 million
        during the fiscal year ended March 31, 2001.Of this amount,
        $440.7 million was recorded in the first quarter and comprised (i)
        $286.5 million related to the issuance of an equity instrument to
        Motorola and (ii) $176.6 million related to the Dii Group and Palo Alto
        Products International mergers which were completed in April 2000,
        offset by (iii) a gain of $22.4 million on the sale of marketable
        equity securities.  One-time after-tax charges of $42.4 million were
        recorded in the second quarter for the Chatham Technologies and
        Lightning Metal Specialties mergers that were completed in August 2000.
        One-time after-tax charges of $39.8 million were recorded in the
        third quarter primarily for the JIT Holdings Ltd merger completed in
        November 2000.One-time after tax charges of $275.6 million were
        recorded in the fourth quarter for facility closures and integration
        costs of several of the Company's facilities around the world.
        Approximately 10% of the Company's headcount and 15% of its square
        footage was eliminated by these fourth quarter actions.
 
       The Company also recorded one-time charges of $11.0 million in the
       fiscal year ended March 31, 2000.  Of this amount, $3.5 million related
       to the second quarter merger with Kyrel and $7.5 million related to
       facility closures and integration costs in the fourth quarter of an
       acquired company prior to its merger with Flextronics.
 
 
                                                                     Schedule 2
                  FLEXTRONICS INTERNATIONAL LTD. AND SUBSIDIARIES
                       CONDENSED CONSOLIDATED BALANCE SHEETS
                                   (In thousands)
                                    (Unaudited)
 
                                                    March 31,       March 31,
                                                      2001            2000
     ASSETS
     Current assets
      Cash and cash equivalents                      $631,588       $747,049
      Accounts receivable, net                      1,651,252      1,057,949
      Inventories                                   1,787,055      1,142,594
      Other current assets                            398,063        275,152
       Total current assets                         4,467,958      3,222,744
 
     Property and equipment, net                    1,828,441      1,323,732
     Other non-current assets                       1,285,267        588,467
 
     TOTAL ASSETS                                  $7,581,666     $5,134,943
 
     LIABILITIES AND SHAREHOLDERS' EQUITY
 
     Current liabilities
      Bank borrowings & current portion
       of long-term debt                             $298,052       $487,773
      Current portion of capital lease obligations     27,602         24,037
      Accounts payable                              1,480,468      1,227,142
      Other accrued expenses                          735,184        322,257
       Total current liabilities                    2,541,306      2,061,209
 
     Long-term debt and capital leases,
      net of current portion                          917,313        645,267
     Other long-term liabilities                       92,686         58,133
 
     Shareholders' equity                           4,030,361      2,370,334
 
     TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY    $7,581,666     $5,134,943
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X27435721
 
 SOURCE  Flextronics