Flextronics revenue falls; more weakness ahead

Reuters News
Posted: Apr 30, 2013 4:37 PM
Flextronics revenue falls; more weakness ahead

(Reuters) - Contract electronics maker Flextronics International Ltd reported a quarterly loss after the departure of key customer BlackBerry, and it warned earnings in the current quarter may fall below analysts' estimates.

Flextronics shares fell 2 percent in extended trading.

The company, which reported a charge of about $125 million in its fourth quarter related to factory closures and job cuts, said it expects an additional $25 million to $30 million in charges in the current quarter.

The Singapore-based company said in January it expected almost no revenue from BlackBerry, formerly a key customer, and it warned that the quarter's results would be below analysts expectations.

Flextronics, which recently completed its acquisition of Motorola Mobility's factories in China, forecast adjusted earnings from continuing operations of 12 cents to 16 cents per share on revenue of $5.3 billion to $5.6 billion for the current quarter.

Analysts on average were expecting a profit of 16 cents per share on revenue of $5.45 billion, according to Thomson Reuters I/B/E/S.

Flextronics produces the Xbox game console for Microsoft Corp and smartphones for Google Inc, as well as networking and other electronics gear.

BlackBerry contributed more than 10 percent of Flextronics' net sales of $29.4 billion for the year ended March 2012.

The quarterly net loss was $27 million, or 4 cents per share, compared with a profit of $143.3 million, or 20 cents per share, a year earlier.

Excluding items, the company earned 13 cents per share.

Revenue fell 17 percent to about $5.3 billion.

Analysts on average had expected adjusted earnings of 13 cents per share on revenue of $5.19 billion.

Shares of the company, which competes with Sanmina-SCI Corp and Jabil Circuit Inc, closed at $7.15 on the Nasdaq on Tuesday.

(Reporting By Aurindom Mukherjee and Supantha Mukherjee in Bangalore; Editing by Maju Samuel)