July 25, 2013 / 9:29 PM / 4 years ago

UPDATE 1-Flextronics revenue forecast tops estimates

3 Min Read

* 1st-qtr revenue falls 3 pct to $5.79 bln

* Company expects 2nd-qtr adjusted EPS of $0.19 to $0.22 vs est. $0.18

* Expects 2nd-qtr revenue of $6.10 bln to $6.40 bln vs. est. $6.11 bln

* Shares rise 4 percent in after-hours trading

July 25 (Reuters) - Flextronics International Ltd forecast current-quarter revenue largely above Wall Street's estimates as the contract electronics manufacturer gets set to benefit from the launch of customer Google Inc's new smartphone.

Shares of the Singapore-based company, which also reported higher-than-expected first-quarter revenue, rose as much as 4 percent in extended trading on Thursday.

Flextronics produces the Xbox game console for Microsoft Corp as well as smartphones for Google, along with networking gear and other electronics.

Google's Motorola division is expected to unveil its Moto X phone on Aug. 1, the first handset Motorola has developed since it was acquired by Google in 2011.

Microsoft's first Xbox in eight years will go on sale in the United States in November.

Flextronics forecast adjusted earnings from continuing operations of 19 cents to 22 cents per share for the second quarter ending Sept. 27 on revenue of $6.10 billion to $6.40 billion.

Analysts on average were expecting a profit of 18 cents per share on revenue of $6.11 billion, according to Thomson Reuters I/B/E/S.

Flextronics bought the manufacturing operations of Google's Motorola Mobility business in Tianjin, China and Jaguariuna, Brazil earlier this year.

The deal with Motorola includes manufacturing and servicing for Android mobile devices.

The company said its net profit fell to $59.3 million, or 9 cents per share, in the first quarter, from $128.5 million, or 19 cents per share, a year earlier.

Excluding items, earnings were 18 cents per share.

Revenue fell 3 percent to $5.79 billion.

Analysts on average had expected adjusted earnings of 9 cents per share on revenue of $5.47 billion, according to Thomson Reuters I/B/E/S.

Rival Sanmina-SCI Corp reported a better than-expected third-quarter profit on Monday but said revenue growth in the second half of the year could be hurt by slow network spending.

Flextronics' shares closed at $8.14 on the Nasdaq.

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