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Flextronics Announces Q2 Results

SINGAPORE — {complink 2085|Flextronics Corp.} today announced results for its second quarter ended October 1, 2010 as follows:

Net sales for the second quarter ended October 1, 2010 increased 27% to $7.4 billion compared to net sales for the quarter ended October 2, 2009 of $5.8 billion. Adjusted operating income increased $64 million or 43% to $213 million, compared to adjusted operating income of $149 million for the year ago quarter. Adjusted net income for the second quarter ended October 1, 2010 was $179 million, an increase of $75 million or 72%, and adjusted EPS increased $0.10 or 77% to $0.23, compared to $104 million and $0.13, respectively, for the year ago quarter. GAAP operating income, net income, and EPS were all up significantly year-over-year.

“We are very pleased with the results and the continued improvement achieved sequentially and year-over-year,” said Mike McNamara, CEO of Flextronics. “We continue to improve quarter-over-quarter with sales increasing 13% to $7.4 billion. Every market segment and business unit also grew sequentially and year-over-year. Flextronics' asset management has been outstanding which has driven substantial improvements and consistency in our return on invested capital (ROIC). For the quarter, ROIC increased to a record 31.9%, well above the 22.2% of a year ago, and up from 28.8% last quarter.”

Paul Read, CFO of Flextronics added, “We improved on our industry leading cash conversion cycle by two days to 12 days, generated $509 million in cash flow from operations, and $385 million of free cash flow during the quarter. This allowed us to repurchase an additional $195 million of our shares for a total of $300 million repurchased year-to-date while still increasing our strong cash position to $1.8 billion.”

Guidance
For the third quarter ending December 31, 2010, revenue is expected to increase to a range of $7.5 billion to $7.7 billion and adjusted EPS is expected to be in the range of $0.23 to $0.25 per share.

GAAP earnings per share are expected to be lower than the guidance provided herein by approximately $0.04 per diluted share for quarterly intangible amortization and stock-based compensation expense.

{complink 2085|Flextronics Corp.}

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