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Flextronics (NASDAQ: FLEX), a leading end-to-end supply chain solutions company, today announced results for its fourth quarter and fiscal year ended March 31, 2014.
Fiscal Year 2014 Results of Operations
Net sales for the fiscal year ended March 31, 2014 were $26.1 billion, an increase of $2.5 billion from the $23.6 billion recognized in fiscal year 2013. Adjusted operating income increased 9% from $611 million to $665 million in the fiscal year ended March 31, 2014. Adjusted earnings per diluted share also increased 6% to $0.89 year-over-year.
"Fiscal 2014 marked a year of continuous improvement and execution," said Mike McNamara, chief executive officer of Flextronics. "We consistently grew revenue, adjusted operating profit dollars, and adjusted EPS sequentially every quarter from our March trough a year ago through our December quarter. And while we are very pleased to have exceeded expectations for all three metrics this quarter, we remain focused on providing industry-leading, end-to-end supply chain solutions, driving growth and executing our strategy."
"We continued to deliver strong cash flow generation with fiscal 2014 cash flow from operations of $1.2 billion and free cash flow of $701 million," said Chris Collier, chief financial officer of Flextronics. "During fiscal 2014 we repurchased 60 million shares or 9% of our shares outstanding, further demonstrating our continued commitment to deliver shareholder value."
Fourth Quarter Results of Operations
Net sales for the fourth quarter ended March 31, 2014 were $6.7 billion, higher than the Company's previously provided revenue guidance of $5.9 billion to $6.3 billion. The Company's adjusted earnings per diluted share of $0.24 in the fourth quarter ended March 31, 2014 was also higher than the Company's previously provided guidance of $0.18 to $0.22.
Flextronics's adjusted operating income increased $76 million or 72%, compared to the same quarter last year, to $182 million.
Adjusted net income excludes $55 million of other charges recorded in the quarter ended March 31, 2014 to recognize a contractual obligation. The Company and the customer are finalizing an amendment to the manufacturing agreement, which includes a waiver of the $55 million obligation. The Company believes the amendment will be executed in the current June quarter, upon which the Company will reverse this charge in the period the amendment is executed with no impact to cash.
Guidance
For the first quarter ending June 27, 2014, revenue is expected to be in the range of $6.0 to $6.5 billion and adjusted EPS is expected to be in the range of $0.20 to $0.24 per diluted share.
GAAP earnings per share is expected to be higher than the guidance provided herein by approximately $0.06 per diluted share reflecting $0.09 other income for the reversal of the $55.0 million other charge less approximately $0.03 for intangible amortization and stock-based compensation expense.
ded March 31, 2014: