Flextronics Falls Short
Flextronics International
on Tuesday posted a decline in sales and profit for the third quarter attributable to charges and higher expenses.
On a GAAP basis for the quarter ended Dec. 31, net income fell to $42 million, or 7 cents a share, from net income of $99 million, or 17 cents, in the year-earlier period.
Excluding items, the electronics manufacturing services company posted a profit of $118 million, or 20 cents a share compared with net income of $116 million and break-even on a per-share basis in the year-ago quarter.
That was a penny better than analysts' estimates gathered by Thomson First Call.
Sales were $4.19 billion in the latest quarter, down from $4.3 billion a year ago. Analysts had been forecasting third-quarter revenue of $4.06 billion.
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Investors sent shares down 30 cents, or 2.9%, to $10.16 in recent after-hours trading.
The Singapore-based company sees fourth-quarter earnings of 15 cents to 16 cents, compared with Street estimates of 16 cents, on revenue of $3.5 billion to $3.7 billion. Analysts were looking for $3.7 billion in sales for the quarter.
The guidance reflects the delay in transferring the
Nortel Networks
( NT) operations in Calgary to Flextronics.
Quarterly GAAP earnings share are expected to be lower than the guidance provided by roughly 2 cents reflecting quarterly amortization expense, and by approximately a penny to 6 cents, reflecting restructuring and other charges.
Shares of the company closed the regular session down 4 cents to $10.46.
