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UPDATE 2-Lower PC, mobile sales hurt Flextronics revenue view
May 1, 2012 / 9:01 PM / in 5 years

UPDATE 2-Lower PC, mobile sales hurt Flextronics revenue view

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* Q4 sales $6.38 bln vs est $6.44 bln

* Q4 adj EPS from cont ops $0.28 vs est $0.23

* Sees Q1 EPS $0.20-$0.24

* Sees Q1 rev $5.90-$6.3 bln

May 1 (Reuters) - Flextronics International Ltd's quarterly revenue fell short of expectations on lower personal computer and mobile phone sales, and the electronics manufacturer forecast current-quarter below expectations.

Shares of the company fell 4 percent in after-market trade to $6.51.

For the first fiscal quarter, the Singapore-based company expects a profit of 20 cents to 24 cents in adjusted earnings on $5.9 billion to $6.3 billion in revenue for the current quarter.

Analysts were expecting a profit of 25 cents a share on revenue of $6.72 billion, according to Thomson Reuters I/B/E/S.

The company, which counts Microsoft Corp and Research in Motion as some its customers, said it saw a drop in sales at its High Velocity Solutions (HVS) business, which includes mobile phones, PCs and other consumer electronics products, during the quarter.

Sales at the HVS segment, which accounts for nearly a third of the company's overall revenue, fell 29 percent to $1.96 billion.

Flextronics has been trying to cut down on its reliance on low-margin consumer electronics to gain a larger portion of the industrial, automotive and communications manufacturing markets.

Fourth-quarter profit rose 15 percent despite a 6 percent drop in revenue as margins remained high.

The company posted a net income of $156.7 million, or 22 cents a share, up from $135.3 million, or 17 cents a share last year.

Excluding items, the company earned a 28 cent a share profit on a continuing basis, topping analysts' expectation of 23 cents a share.

Flextronics shares closed at $6.77 on Tuesday on the Nasdaq.

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