Flextronics Provides Business Update Following Nortel Announcement
January 14 2009 - 9:50AM
PR Newswire (US)
SINGAPORE, Jan. 14 /PRNewswire-FirstCall/ -- Flextronics
(NASDAQ:FLEX) today provided a business update as a result of
Nortel Networks Corporation's (NYSE/TSX: NT) announced bankruptcy
protection filing. Flextronics will provide more specific financial
details associated with today's news on its previously scheduled
third quarter earnings call on Wednesday, January 28, 2009 at 2:00
p.m. PST. Flextronics has been proactively engaged in executing a
risk mitigation plan with respect to its relationship with Nortel
for a period of several months. In December 2008, Flextronics
engaged The Blackstone Group as its financial advisor to assist
with evaluating the Nortel relationship and planning for any Nortel
restructuring strategy. As part of its risk mitigation plan,
Flextronics entered into an amendment to its relationship agreement
with Nortel to address Flextronics's status as a strategic
supplier. "Flextronics has been working to reduce its exposure to
Nortel for some time now. During our November 2008 Analyst and
Investor Meeting, I discussed in detail that Flextronics has
organizationally aligned its operating and capital resources in
such a way to mitigate the impact of business changes of any one
customer," said Mike McNamara, Flextronics CEO. "We believe that
Flextronics's strategy of customer and market diversification will
continue to allow us to be in a position to weather economic
volatility. We will be addressing the specific financials related
to the Nortel business on our upcoming earnings call, and I want to
emphasize that one of our strengths has been and continues to be
our ability to adjust to market and customer changes such as those
we've realized today." As a reminder, Flextronics's third quarter
conference call will be available via the internet and may be
accessed by logging on to the Company's Web site at
http://www.flextronics.com/. A replay of the broadcast will also be
available on the Company's Web site after the call. About
Flextronics Headquartered in Singapore (Singapore Reg. No.
199002645H), Flextronics is a leading Electronics Manufacturing
Services (EMS) provider focused on delivering complete design,
engineering and manufacturing services to automotive, computing,
consumer digital, industrial, infrastructure, medical and mobile
OEMs. With the acquisition of Solectron, pro forma fiscal year 2008
revenues from continuing operations are more than US$33.6 billion.
Flextronics helps customers design, build, ship, and service
electronics products through a network of facilities in 30
countries on four continents. This global presence provides design
and engineering solutions that are combined with core electronics
manufacturing and logistics services, and vertically integrated
with components technologies, to optimize customer operations by
lowering costs and reducing time to market. For more information,
please visit http://www.flextronics.com/. DATASOURCE: Flextronics
CONTACT: Investor Relations, Warren Ligan, or Cindy Klimstra,
+1-408-576-7722, , or Renee Brotherton, Vice President, Corporate
Communications, +1-408-576-7189, , all of Flextronics Web site:
http://www.flextronics.com/
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