SAN JOSE, Calif., Oct. 27, 2016 /PRNewswire/ -- Flex (NASDAQ:
FLEX), the leading Sketch-to-Scale™ solutions company that designs
and builds intelligent products for a connected world, today
announced results for its second quarter ended September 30, 2016:
|
|
Three Month
Periods Ended
|
|
|
September 30,
2016
|
|
September 25,
2015
|
Net sales
|
$
|
6,009
|
$
|
6,317
|
GAAP income before
income taxes
|
$
|
15
|
$
|
140
|
Adjusted operating
income
|
$
|
197
|
$
|
196
|
GAAP net income
(loss)
|
$
|
(3)
|
$
|
123
|
Adjusted net
income
|
$
|
152
|
$
|
153
|
GAAP EPS
|
$
|
0.00
|
$
|
0.22
|
Adjusted
EPS
|
$
|
0.28
|
$
|
0.27
|
|
|
|
|
|
An explanation and reconciliation of non-GAAP financial measures
to GAAP financial measures is presented in Schedule II attached to
this press release.
"Our Sketch-to-Scale strategy remains firmly on track as
reflected in our second quarter performance which is inline with
guidance," said Mike McNamara, Chief
Executive Officer at Flex. "We remain focused on value creating
activities such as a structural mix shift to a higher margin
business, generating sustainable free cash flow and consistently
returning value to our shareholders."
Second Quarter Fiscal 2017 Results of Operations
Net sales for the second quarter ended September 30, 2016 were over $6.0 billion, which was at the mid-point of the
guidance range of $5.8 to $6.2
billion.
GAAP income before income taxes was $15
million for the quarter and adjusted operating income was
$197 million, above the mid-point of
the guidance range of $180 million to $210
million.
GAAP gross margin decreased approximately 110 basis points and
adjusted gross margin increased over 60 basis points on a
year-over-year basis.
Net loss on a GAAP basis was under $3
million and adjusted net income for the quarter was
$152 million. GAAP EPS was
$0.00 for the quarter. Non-GAAP EPS
was $0.28 for the quarter, increasing
$0.01 from the same quarter last
year.
Guidance
For the third quarter ending December 31, 2016, revenue is expected to be in
the range of $6.0 to $6.4 billion,
GAAP EPS is expected to be in the range of $0.18 to $0.22 and includes estimated
restructuring charges ($0.06),
stock-based compensation expense ($0.04), and intangible amortization ($0.03). Adjusted EPS is expected to be in
the range of $0.31 to $0.35 per
diluted share.
Conference Calls and Web Casts
A conference call
hosted by the Flex management team will be held today at
2:00 PM (PT) / 5:00 PM (ET) to discuss the Company's financial
results for the second quarter ended September 30, 2016. The conference call will be
broadcast via the Internet and may be accessed by logging on to the
Company's website at www.flextronics.com. Additional information in
the form of a slide presentation may also be found on the Company's
site. A replay of the broadcast will remain available on the
Company's website afterwards.
About Flex
Flex Ltd., formerly Flextronics
International Ltd. (Reg. No. 199002645H), is the leading
Sketch-to-Scale™ solutions provider that designs and builds
intelligent products for a connected world. With approximately
200,000 professionals across 30 countries, Flex
provides innovative design, engineering, manufacturing,
real-time supply chain insight and logistics services to companies
of all sizes in various industries and end-markets. For more
information, visit www.flextronics.com or follow us on Twitter
@Flextronics.
This press release contains forward-looking statements within
the meaning of U.S. securities law including statements related to
future expected revenues and earnings per share. 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. Readers are
cautioned not to place undue reliance on these forward-looking
statements. These risks include: that future revenues and earnings
may not be achieved as expected; the challenges of effectively
managing our operations, including our ability to control costs and
manage changes in our operations; compliance with legal and
regulatory requirements; that we may encounter difficulties with
acquisitions and divestitures; that the expected revenue and
margins from recently launched programs may not be realized; that
recently proposed changes in tax laws in certain jurisdictions
where we operate may materially impact our tax expense, and the
effects that the current macroeconomic environment could have on
our business and demand for our products as well as the effects
that current credit and market conditions could have on the
liquidity and financial condition of our customers and suppliers,
including any impact on their ability to meet their contractual
obligations. Additional information concerning these and other
risks is described under "Risk Factors" and "Management's
Discussion and Analysis of Financial Condition and Results of
Operations" in our reports on Forms 10-K and 10-Q that we file with
the U.S. Securities and Exchange Commission. The forward-looking
statements in this press release are based on current expectations
and Flex assumes no obligation to update these forward-looking
statements. Our share repurchase program does not obligate the
Company to repurchase a specific number of shares and may be
suspended or terminated at any time without prior notice.
|
SCHEDULE
I
|
|
FLEX
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
Three Month
Periods Ended
|
|
|
|
September 30,
2016
|
|
September 25,
2015
|
GAAP:
|
|
|
|
|
|
Net sales
|
$
|
6,008,525
|
$
|
6,316,762
|
|
Cost of
sales
|
|
5,694,834
|
|
5,919,846
|
|
Gross
profit
|
|
313,691
|
|
396,916
|
|
Selling, general and
administrative expenses
|
|
243,943
|
|
216,796
|
|
Intangible
amortization
|
|
21,986
|
|
16,127
|
|
Interest and other,
net
|
|
24,632
|
|
22,035
|
|
Other charges,
net
|
|
8,388
|
|
1,678
|
|
Income before income
taxes
|
|
14,742
|
|
140,280
|
|
Provision for income
taxes
|
|
17,250
|
|
17,303
|
|
Net income (loss)
|
$
|
(2,508)
|
$
|
122,977
|
|
|
|
|
|
|
Earnings (losses)
per share:
|
|
|
|
|
|
GAAP
(2)
|
$
|
0.00
|
$
|
0.22
|
|
Non-GAAP
(2)
|
$
|
0.28
|
$
|
0.27
|
|
|
|
|
|
|
|
Basic shares used in
computing per share amounts
|
|
544,055
|
|
563,333
|
|
Diluted shares used
in computing per share amounts
|
|
544,055
|
|
569,655
|
|
|
|
|
|
|
|
See Schedule II for
the reconciliation of GAAP to non-GAAP financial measures. See the
accompanying notes on Schedule V attached to this press
release.
|
|
|
|
|
|
|
FLEX
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
|
(In thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
Six Month Periods
Ended
|
|
|
|
September 30,
2016
|
|
September 25,
2015
|
GAAP:
|
|
|
|
|
|
Net sales
|
$
|
11,885,338
|
$
|
11,883,010
|
|
Cost of
sales
|
|
11,165,652
|
|
11,133,753
|
|
Gross
profit
|
|
719,686
|
|
749,257
|
|
Selling, general and
administrative expenses
|
|
483,489
|
|
426,181
|
|
Intangible
amortization
|
|
43,584
|
|
23,798
|
|
Interest and other,
net
|
|
49,031
|
|
38,540
|
|
Other charges,
net
|
|
11,917
|
|
1,842
|
|
Income before income
taxes
|
|
131,665
|
|
258,896
|
|
Provision for income
taxes
|
|
28,444
|
|
25,069
|
|
Net income
|
$
|
103,221
|
$
|
233,827
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
GAAP
|
$
|
0.19
|
$
|
0.41
|
|
Non-GAAP
|
$
|
0.55
|
$
|
0.50
|
|
|
|
|
|
|
|
Basic shares used in
computing per share amounts
|
|
544,353
|
|
564,417
|
|
Diluted shares used
in computing per share amounts
|
|
549,934
|
|
573,288
|
|
|
|
|
|
|
|
See Schedule II for
the reconciliation of GAAP to non-GAAP financial measures. See the
accompanying notes on Schedule V attached to this press
release.
|
|
|
|
|
|
|
|
SCHEDULE
II
|
|
FLEX
|
RECONCILIATION OF
GAAP TO NON-GAAP FINANCIAL MEASURES (1)
|
(In thousands,
except per share amounts)
|
|
|
|
|
|
|
|
Three Month
Periods Ended
|
|
|
September 30,
2016
|
|
September 25,
2015
|
GAAP gross
profit
|
$
|
313,691
|
$
|
396,916
|
Stock-based compensation
expense
|
|
2,636
|
|
2,015
|
Inventory impairment and
other (3)
|
|
92,915
|
|
-
|
Restructuring
(4)
|
|
6,824
|
|
-
|
Non-GAAP gross
profit
|
$
|
416,066
|
$
|
398,931
|
|
|
|
|
|
GAAP SG&A
Expenses
|
$
|
243,943
|
$
|
216,796
|
Stock-based compensation
expense
|
|
(20,097)
|
|
(14,185)
|
Restructuring
(4)
|
|
(4,715)
|
|
-
|
Non-GAAP SG&A
Expenses
|
$
|
219,131
|
$
|
202,611
|
|
|
|
|
|
GAAP income before
income taxes
|
$
|
14,742
|
$
|
140,280
|
Stock-based compensation
expense
|
|
22,733
|
|
16,200
|
Inventory impairment and
other (3)
|
|
92,915
|
|
-
|
Restructuring
(4)
|
|
11,539
|
|
-
|
Intangible
amortization
|
|
21,986
|
|
16,127
|
Interest and other,
net
|
|
24,632
|
|
22,035
|
Other charges, net
(5)
|
|
8,388
|
|
1,678
|
Non-GAAP operating
income
|
$
|
196,935
|
$
|
196,320
|
|
|
|
|
|
GAAP provision for
income taxes
|
$
|
17,250
|
$
|
17,303
|
Intangible amortization
benefit
|
|
1,825
|
|
2,355
|
Tax benefit on
restructuring
|
|
196
|
|
-
|
Non-GAAP provision
for income taxes
|
$
|
19,271
|
$
|
19,658
|
|
|
|
|
|
GAAP net income
(loss)
|
$
|
(2,508)
|
$
|
122,977
|
Stock-based compensation
expense
|
|
22,733
|
|
16,200
|
Inventory impairment and
other (3)
|
|
92,915
|
|
-
|
Restructuring
(4)
|
|
11,539
|
|
-
|
Intangible
amortization
|
|
21,986
|
|
16,127
|
Other charges, net
(5)
|
|
7,388
|
|
-
|
Adjustments for
taxes
|
|
(2,021)
|
|
(2,355)
|
Non-GAAP net
income
|
$
|
152,032
|
$
|
152,949
|
Diluted earnings
(losses) per share:
|
|
|
|
|
GAAP
(2)
|
$
|
0.00
|
$
|
0.22
|
Non-GAAP
(2)
|
$
|
0.28
|
$
|
0.27
|
|
|
FLEX
|
RECONCILIATION OF
GAAP TO NON-GAAP FINANCIAL MEASURES (1)
|
(In thousands,
except per share amounts)
|
|
|
|
|
|
|
|
Six Month Periods
Ended
|
|
|
September 30,
2016
|
|
September 25,
2015
|
GAAP gross
profit
|
$
|
719,686
|
$
|
749,257
|
Stock-based compensation
expense
|
|
5,069
|
|
4,033
|
Inventory impairment and
other (3)
|
|
92,915
|
|
-
|
Restructuring
(4)
|
|
6,824
|
|
-
|
Non-GAAP gross
profit
|
$
|
824,494
|
$
|
753,290
|
|
|
|
|
|
GAAP SG&A
Expenses
|
$
|
483,489
|
$
|
426,181
|
Stock-based compensation
expense
|
|
(41,461)
|
|
(28,293)
|
Restructuring
(4)
|
|
(4,715)
|
|
-
|
Non-GAAP SG&A
Expenses
|
$
|
437,313
|
$
|
397,888
|
|
|
|
|
|
GAAP income before
income taxes
|
$
|
131,665
|
$
|
258,896
|
Stock-based compensation
expense
|
|
46,530
|
|
32,326
|
Inventory impairment and
other (3)
|
|
92,915
|
|
-
|
Restructuring
(4)
|
|
11,539
|
|
-
|
Intangible
amortization
|
|
43,584
|
|
23,798
|
Interest and other,
net
|
|
49,031
|
|
38,540
|
Other charges, net
(5)
|
|
11,917
|
|
1,842
|
Non-GAAP operating
income
|
$
|
387,181
|
$
|
355,402
|
|
|
|
|
|
GAAP provision for
income taxes
|
$
|
28,444
|
$
|
25,069
|
Intangible amortization
benefit
|
|
3,675
|
|
2,613
|
Tax benefit on intangible
assets
|
|
638
|
|
-
|
Tax benefit on
restructuring
|
|
196
|
|
-
|
Non-GAAP provision
for income taxes
|
$
|
32,953
|
$
|
27,682
|
|
|
|
|
|
GAAP net
income
|
$
|
103,221
|
$
|
233,827
|
Stock-based compensation
expense
|
|
46,530
|
|
32,326
|
Inventory impairment and
other (3)
|
|
92,915
|
|
-
|
Restructuring
(4)
|
|
11,539
|
|
-
|
Intangible
amortization
|
|
43,584
|
|
23,798
|
Other charges, net
(5)
|
|
7,388
|
|
-
|
Adjustments for
taxes
|
|
(4,509)
|
|
(2,613)
|
Non-GAAP net
income
|
$
|
300,668
|
$
|
287,338
|
Diluted earnings
per share:
|
|
|
|
|
GAAP
|
$
|
0.19
|
$
|
0.41
|
Non-GAAP
|
$
|
0.55
|
$
|
0.50
|
|
SCHEDULE
III
|
|
FLEX
|
UNAUDITED
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(In
thousands)
|
|
|
|
|
|
As of September
30, 2016
|
|
As of March 31,
2016
|
ASSETS
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
1,537,056
|
|
$
|
1,607,570
|
|
Accounts receivable,
net of allowance for doubtful accounts
|
|
2,341,393
|
|
|
2,044,757
|
|
Inventories
|
|
3,562,217
|
|
|
3,491,656
|
|
Other current
assets
|
|
1,017,954
|
|
|
1,171,143
|
Total current
assets
|
|
8,458,620
|
|
|
8,315,126
|
|
|
|
|
|
|
Property and
equipment, net
|
|
2,335,959
|
|
|
2,257,633
|
Goodwill and other
intangible assets, net
|
|
1,395,763
|
|
|
1,345,820
|
Other
assets
|
|
470,792
|
|
|
466,402
|
Total
assets
|
$
|
12,661,134
|
|
$
|
12,384,981
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
|
Bank borrowings and
current portion of long-term debt
|
$
|
65,969
|
|
$
|
65,166
|
|
Accounts
payable
|
|
4,514,566
|
|
|
4,248,292
|
|
Accrued
payroll
|
|
410,587
|
|
|
353,547
|
|
Other current
liabilities
|
|
1,862,545
|
|
|
1,905,200
|
Total current
liabilities
|
|
6,853,667
|
|
|
6,572,205
|
|
|
|
|
|
|
Long-term debt, net
of current portion:
|
|
2,678,115
|
|
|
2,709,389
|
Other
liabilities
|
|
525,044
|
|
|
497,857
|
|
|
|
|
|
|
Total shareholders'
equity
|
|
2,604,308
|
|
|
2,605,530
|
|
|
|
|
|
|
Total liabilities and
shareholders' equity
|
$
|
12,661,134
|
|
$
|
12,384,981
|
|
|
|
|
|
|
|
SCHEDULE
IV
|
|
FLEX
|
UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
|
|
|
Six-Month Periods
Ended
|
|
September
30,
2016
|
|
September 25,
2015
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
Net income
|
$
|
103,221
|
|
$
|
233,827
|
|
Depreciation,
amortization and other impairment charges
|
|
337,387
|
|
|
230,894
|
|
Changes in working
capital and other
|
|
102,944
|
|
|
197,274
|
|
Net cash provided by operating activities
|
|
543,552
|
|
|
661,995
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
Purchases of property
and equipment
|
|
(305,936)
|
|
|
(296,401)
|
|
Proceeds from the
disposition of property and equipment
|
|
26,561
|
|
|
2,383
|
|
Acquisition of
businesses, net of cash acquired
|
|
(189,895)
|
|
|
(641,913)
|
|
Proceeds from
divestiture of business, net of cash held in divested
business
|
|
36,073
|
|
|
-
|
|
Other investing
activities, net
|
|
20,357
|
|
|
(10,516)
|
|
Net cash used in investing activities
|
|
(412,840)
|
|
|
(946,447)
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
|
|
Proceeds from bank
borrowings and long-term debt
|
|
75,035
|
|
|
595,553
|
|
Repayments of bank
borrowings and long-term debt
|
|
(110,592)
|
|
|
(21,090)
|
|
Payments for
repurchases of ordinary shares
|
|
(184,698)
|
|
|
(241,978)
|
|
Net proceeds from
issuance of ordinary shares
|
|
11,344
|
|
|
49,074
|
|
Other financing
activities, net
|
|
(6,836)
|
|
|
(37,872)
|
|
Net cash provided by (used in) financing activities
|
|
(215,747)
|
|
|
343,687
|
Effect of exchange
rates on cash and cash equivalents
|
|
14,521
|
|
|
(19,216)
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
(70,514)
|
|
|
40,019
|
|
Cash and cash
equivalents, beginning of period
|
|
1,607,570
|
|
|
1,628,408
|
|
Cash and cash
equivalents, end of period
|
$
|
1,537,056
|
|
$
|
1,668,427
|
SCHEDULE
V
|
|
FLEX AND
SUBSIDIARIES
|
NOTES TO SCHEDULES
I, II, III, & IV
|
|
(1)
|
To supplement Flex's
unaudited selected financial data presented on a basis consistent
with Generally Accepted Accounting Principles ("GAAP"), the Company
discloses certain non-GAAP financial measures that exclude certain
charges, including non-GAAP gross profit, non-GAAP selling, general
and administrative expenses, non-GAAP operating income, non-GAAP
net income and non-GAAP net income per diluted share. These
supplemental measures exclude stock-based compensation expense,
restructuring charges, intangible amortization, other discrete
events as applicable and the related tax effects. These non-GAAP
measures are not in accordance with or an alternative for GAAP, and
may be different from non-GAAP measures used by other
companies. We believe that these non-GAAP measures have
limitations in that they do not reflect all of the amounts
associated with Flex's results of operations as determined in
accordance with GAAP and that these measures should only be used to
evaluate Flex's results of operations in conjunction with the
corresponding GAAP measures. The presentation of this
additional information is not meant to be considered in isolation
or as a substitute for the most directly comparable GAAP
measures. We compensate for the limitations of non-GAAP
financial measures by relying upon GAAP results to gain a complete
picture of the Company's performance.
|
|
|
|
In calculating
non-GAAP financial measures, we exclude certain items to facilitate
a review of the comparability of the Company's operating
performance on a period-to-period basis because such items are not,
in our view, related to the Company's ongoing operational
performance. We use non-GAAP measures to evaluate the operating
performance of our business, for comparison with forecasts and
strategic plans, for calculating return on investment, and for
benchmarking performance externally against competitors. In
addition, management's incentive compensation is determined using
certain non-GAAP measures. Also, when evaluating potential
acquisitions, we exclude certain of the items described below from
consideration of the target's performance and valuation.
Since we find these measures to be useful, we believe that
investors benefit from seeing results "through the eyes" of
management in addition to seeing GAAP results. We believe
that these non-GAAP measures, when read in conjunction with the
Company's GAAP financials, provide useful information to investors
by offering:
|
|
|
|
•
|
the ability to make
more meaningful period-to-period comparisons of the Company's
on-going operating results;
|
•
|
the ability to better
identify trends in the Company's underlying business and perform
related trend analyses;
|
|
•
|
a better
understanding of how management plans and measures the Company's
underlying business; and
|
|
•
|
an easier way to
compare the Company's operating results against analyst financial
models and operating results of competitors that supplement their
GAAP results with non-GAAP financial measures.
|
|
|
|
The following are
explanations of each of the adjustments that we incorporate into
non-GAAP measures, as well as the reasons for excluding each of
these individual items in the reconciliations of these non-GAAP
financial measures:
|
|
|
|
|
Stock-based
compensation expense consists of non-cash charges for the
estimated fair value of stock options and unvested restricted share
unit awards granted to employees and assumed in business
acquisitions. The Company believes that the exclusion of
these charges provides for more accurate comparisons of its
operating results to peer companies due to the varying available
valuation methodologies, subjective assumptions and the variety of
award types. In addition, the Company believes it is useful
to investors to understand the specific impact stock-based
compensation expense has on its operating results.
|
|
|
|
|
|
Restructuring
includes primarily severance related to the rationalization at
existing sites and corporate SG&A functions. These costs may
vary in size based on the Company's restructuring activities, and
are not directly related to ongoing or core business results, and
do not reflect expected future operating expenses. These costs are
excluded by the Company's management in assessing current operating
performance and forecasting its earnings trends, and are therefore
excluded by the Company from its non-GAAP
measures.
|
|
|
|
|
|
Inventory
impairment and other consists primarily of non-cash inventory
impairment of certain solar panel inventory on hand no longer
deemed recoverable. These costs are excluded by the Company's
management in assessing current operating performance and
forecasting its earnings trends, and are therefore excluded by the
Company from its non-GAAP measures.
|
|
|
|
|
|
Intangible
amortization consists primarily of non-cash charges that can be
impacted by, among other things, the timing and magnitude of
acquisitions. The Company considers its operating results
without these charges when evaluating its ongoing performance and
forecasting its earnings trends, and therefore excludes such
charges when presenting non-GAAP financial measures. The
Company believes that the assessment of its operations excluding
these costs is relevant to its assessment of internal operations
and comparisons to the performance of its competitors.
|
|
|
|
|
|
Adjustment for
taxes relates to the tax effects of the various adjustments
that we incorporate into non-GAAP measures in order to provide a
more meaningful measure on non-GAAP net income and certain
adjustments related to non-recurring settlements of tax
contingencies when applicable.
|
|
|
|
|
|
Other charges,
net consists of various other types of items that are not
directly related to ongoing or core business results, such as
impairment charges associated with non-core investments. We
exclude these items because they are not related to the Company's
ongoing operating performance or do not affect core
operations. Excluding these amounts provide investors with a
basis to compare Company performance against the performance of
other companies without this variability.
|
|
|
|
|
For the three-month
period ended September 30, 2016, Free Cash Flow was $144 million
consisting of GAAP net cash flows from operating activities of $280
million less purchases of property and equipment net of proceeds
from dispositions of $136 million. We believe Free Cash Flow is an
important liquidity metric because it measures, during a given
period, the amount of cash generated that is available to repay
debt obligations, make investments, fund acquisitions and for
certain other activities. Since Free Cash Flow includes investments
in operating assets, we believe this non-GAAP liquidity measure is
useful in addition to the most directly comparable GAAP measure –
"net cash flows provided by operating activities."
|
|
|
(2)
|
Basic shares were
used in calculating diluted GAAP EPS for the quarter ended
September 30, 2016 due to the net loss recognized during the
period. Diluted shares for Q2 fiscal 2017 were 548,358 thousand
which were used in calculating diluted Non-GAAP EPS for the
quarter.
|
|
|
(3)
|
On April 21, 2016,
SunEdison, Inc. (SunEdison) filed a petition for reorganization
under bankruptcy law, and as a result, the Company recognized a bad
debt reserve of $61.0 million as of March 31, 2016, associated with
its outstanding SunEdison receivables. As of the end of Fiscal
2016, the Company also retained solar panel module inventory and
assets associated with our SunEdison production, which we had
anticipated on selling.
|
|
|
|
During the
three-month period ended September 30, 2016, prices for solar panel
modules have declined significantly due to global oversupply and
continued de-regulation. The Company determined that certain solar
panel inventory on hand as of September 30, 2016 was not fully
recoverable and recorded a charge of $60.0 million to reduce the
carrying costs to market in the three and six month periods ended
September 30, 2016. The Company also recognized a $16.0 million
impairment charge for solar module equipment and $16.9 million of
other associated solar panel direct costs incurred during the same
periods. The total charge of $92.9 million is included in cost of
sales for the three and six month periods ended September 30,
2016.
|
|
|
(4)
|
The Company has
initiated a plan to rationalize the current footprint at existing
sites including corporate SG&A functions and to continue to
shift the talent base in support of our sketch to scale
initiatives. As part of this plan, approximately $11.5
million was recognized in the quarter ended September 30, 2016. The
Company expects to finalize the plan by the end of fiscal
2017.
|
|
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(5)
|
Includes $7.4 million
of loss attributable to a non-strategic facility we sold in the
second quarter of fiscal 2017.
|
Renee
Brotherton
|
Kevin
Kessel
|
Corporate
Communications
|
Investor
Relations
|
(408)
576-7189
|
(408)
576-7985
|
renee.brotherton@flextronics.com
|
kevin.kessel@flextronics.com
|
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SOURCE Flex