* Does not see near-term impact from Lenovo's deal for
* Sees 4th-quarter revenue $5.9-$6.3 bln vs est $5.97 bln
* Expects adjusted EPS $0.18-$0.22 vs est $0.19
* Shares rise 15 percent in after-hours trading
By Aurindom Mukherjee
Jan 29 Contract electronics maker Flextronics
International Ltd forecast current-quarter revenue
largely above Wall Street estimates and said it planned to
reduce its workforce and undertake other cost cuts.
Shares of Flextronics, which said its third-quarter net
profit more than tripled, rose 15 percent in extended trading.
The Singapore-based company said revenue in the current
quarter would be helped by strong demand for game consoles and
smartphones. Flextronics makes the Xbox game console for
Microsoft Corp and smartphones for Google Inc.
China's Lenovo Group Ltd, which is also a
Flextronics customer, said on Wednesday it would acquire
Google's Motorola Mobility smartphone business.
However, Flextronics Chief Financial Officer Christopher
Collier said the company does not expect any near-term negative
impact from the deal.
Motorola Mobility accounted for more than 10 percent of
Flextronics' revenue in the quarter. Collier said Google is
"entering into a top 10 customer" independent of Motorola.
Flextronics predominantly manufactures and assembles desktop
PCs for Lenovo but does not make mobile phones for the company,
UBS Equities analyst Amitabh Passi told Reuters.
It is a risk element, Passi added.
Flextronics forecast adjusted earnings of 18-22 cents per
share on revenue of $5.9-$6.3 billion for the current quarter.
Analysts on average were expecting a profit of 19 cents per
share on revenue of $5.97 billion, according to Thomson Reuters
Microsoft last week posted a bigger-than-expected quarterly
profit, boosted by a solid holiday season for its new Xbox game
Google's Motorola division, which unveiled its Moto X phone
on Aug. 1 at an event in New York City, shipped 500,000 Moto X
worldwide in the third quarter, according to Strategy Analytics.
Flextronics's net income rose to $145.2 million, or 23 cents
per share, in the third quarter, from $47.3 million, or 7 cents
per share, a year earlier.
Excluding items, the company, which competes with
Sanmina-SCI Corp and Jabil Circuit Inc, earned
26 cents per share.
The company, which also produces networking and other
electronics gear, said revenue rose 17 percent to $7.18 billion.
Analysts on average had expected adjusted earnings of 23
cents per share on revenue of $6.70 billion.
Flextronics's shares rose to $8.52 in extended trading after
closing up 0.5 percent at $7.70 on the Nasdaq.