Flextronics Reports First Quarter Fiscal 2016 Results
Flextronics’ net sales for the first quarter ended June 26, 2015 were just under $5.6 billion, slightly below its previously provided revenue guidance of $5.6 billion to $6.2 billion. Adjusted operating income was $159 million, above the lower end of the guidance range of $150 to $190 million.
Despite the lighter revenues, adjusted gross margin increased 60 basis points and adjusted operating margin increased 10 basis points compared to the same period last year.
“The first quarter of fiscal 2016 was exemplified by operating with discipline, driving a richer product mix and deploying capital thoughtfully,” said Mike McNamara, chief executive officer at Flextronics. “We continued to return meaningful capital to our shareholders this quarter as we repurchased almost 8 million shares for approximately $100 million.”
“We generated $362 million in cash flow from operations driving to a free cash flow of $225 million during the quarter,” said Chris Collier, chief financial officer at Flextronics. “Our consistent strong free cash flow reflects our deliberate discipline and execution over our net working capital and capital investments.”