Flextronics International Ltd. (FLEX, Financial) filed Quarterly Report for the period ended 2011-12-31.
Flextronics International Ltd. has a market cap of $5.06 billion; its shares were traded at around $7.09 with a P/E ratio of 9.8 and P/S ratio of 0.2.
Net sales during the nine-month period ended December 31, 2011 totaled $23.1 billion, representing an increase of approximately $1.3 billion, or 6.0%, from $21.8 billion during the nine-month period ended December 31, 2010. Sales increased across all of the markets we serve, consisting of increases of: (i) $479.1 million in the Integrated Network Solutions (INS) market, (ii) $393.9 million in the HRS market, (iii) $268.4 million in the HVS market, and (iv) $122.4 million in the Industrial and Emerging Industries market. Increased sales in our INS market were driven by new program wins with existing customers with products in enterprise data networking and telecommunications infrastructure markets, offset by declining demand from certain customer programs in the server market that were reducing due to the end of the product life cycles or which transitioned to another supplier. Increased sales in our HRS market were driven primarily from new wins and programs with our larger customers in the automotive, medical equipment and drug delivery markets. The increased sales in our HVS market were driven primarily from an increase in sales to one of our significant customers in the ODM personal computing business which we exited in the current quarter. Net sales increased in our Industrial and Emerging Industries market due to new customer wins and new programs with existing customers across this business group primarily with customers serving the clean tech markets offset by reduced demand from our customers serving the capital equipment markets. Net sales increased by $1.0 billion in Asia, $170.1 million in Europe and $70.7 million in the Americas.
Our ten largest customers during the three-month and nine-month periods ended December 31, 2011 accounted for approximately 56% and 57% of net sales, respectively, with Research In Motion accounting for greater than 10% of our net sales in both periods and Hewlett-Packard accounting for greater than 10% of our net sales in the nine-month period. Our ten largest customers during the three-month and nine-month periods ended December 31, 2010 accounted for approximately 55% and 52% of net sales, respectively, with Research In Motion accounting for greater than 10% of our net sales in both periods.
Selling, general and administrative expenses, or SG&A, amounted to $243.9 million, or 3.3% of net sales, during the three-month period ended December 31, 2011, increasing $28.8 million from $215.1 million, or 2.7% of net sales, during the three-month period ended December 31, 2010. The increase in SG&A and SG&A as a percentage of sales was primarily due to severance costs and other asset impairment costs associated with the exit of certain design activities in our ODM related businesses.
by day. During the three-month period ended December 31, 2011, days in trade accounts receivable increased by five days to 43 days compared to the three-month period ended December 31, 2010 primarily due to a decrease in sales during the current quarter as compared to the same quarter in the prior year due primarily to the decline in sales in the High Velocity Solutions market that contained lower payment terms. Non-cash accounts receivable sales, or deferred purchase price receivables included in the calculation of days in trade receivables were $750.3 million, $1.1 billion, $681.3 million, $460.0 million and $821.2 million for the quarters ended December 31, 2011, September 30, 2011, July 1, 2011, March 31, 2011 and December 31, 2010, respectively. Deferred purchase price receivables are recorded in other current assets in the Condensed Consolidated Balance Sheets. For further information regarding deferred purchase price receivables see Note 10 of our Notes to Condensed Consolidated Financial Statements.
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Flextronics International Ltd. has a market cap of $5.06 billion; its shares were traded at around $7.09 with a P/E ratio of 9.8 and P/S ratio of 0.2.
Highlight of Business Operations:
Net sales during the three-month period ended December 31, 2011 totaled $7.5 billion, representing a decrease of approximately $340.1 million, or 3.8%, from $7.8 billion during the three-month period ended December 31, 2010. The decline in net sales was primarily due to a $430.6 million decrease in the High Velocity Solutions (HVS) market partially offset by increases in the High Reliability Solutions (HRS) and Industrial and Emerging Industries markets. The decreased sales in our HVS market were driven primarily from reduced sales resulting from our exit of the ODM personal computing business in the current quarter combined with a reduction in sales with certain consumer products that had higher revenues in the prior year due to new program ramps in that period. The increase in our HRS market of $107.6 million was the result of stronger demand from our larger customers in the medical equipment and drug delivery markets combined with increased revenue from certain of our major customers in the automotive market driven by new program wins. Net sales decreased by $386.2 million in Asia, $88.3 million in Europe and increased by $134.0 million in the Americas.Net sales during the nine-month period ended December 31, 2011 totaled $23.1 billion, representing an increase of approximately $1.3 billion, or 6.0%, from $21.8 billion during the nine-month period ended December 31, 2010. Sales increased across all of the markets we serve, consisting of increases of: (i) $479.1 million in the Integrated Network Solutions (INS) market, (ii) $393.9 million in the HRS market, (iii) $268.4 million in the HVS market, and (iv) $122.4 million in the Industrial and Emerging Industries market. Increased sales in our INS market were driven by new program wins with existing customers with products in enterprise data networking and telecommunications infrastructure markets, offset by declining demand from certain customer programs in the server market that were reducing due to the end of the product life cycles or which transitioned to another supplier. Increased sales in our HRS market were driven primarily from new wins and programs with our larger customers in the automotive, medical equipment and drug delivery markets. The increased sales in our HVS market were driven primarily from an increase in sales to one of our significant customers in the ODM personal computing business which we exited in the current quarter. Net sales increased in our Industrial and Emerging Industries market due to new customer wins and new programs with existing customers across this business group primarily with customers serving the clean tech markets offset by reduced demand from our customers serving the capital equipment markets. Net sales increased by $1.0 billion in Asia, $170.1 million in Europe and $70.7 million in the Americas.
Our ten largest customers during the three-month and nine-month periods ended December 31, 2011 accounted for approximately 56% and 57% of net sales, respectively, with Research In Motion accounting for greater than 10% of our net sales in both periods and Hewlett-Packard accounting for greater than 10% of our net sales in the nine-month period. Our ten largest customers during the three-month and nine-month periods ended December 31, 2010 accounted for approximately 55% and 52% of net sales, respectively, with Research In Motion accounting for greater than 10% of our net sales in both periods.
Selling, general and administrative expenses, or SG&A, amounted to $243.9 million, or 3.3% of net sales, during the three-month period ended December 31, 2011, increasing $28.8 million from $215.1 million, or 2.7% of net sales, during the three-month period ended December 31, 2010. The increase in SG&A and SG&A as a percentage of sales was primarily due to severance costs and other asset impairment costs associated with the exit of certain design activities in our ODM related businesses.
by day. During the three-month period ended December 31, 2011, days in trade accounts receivable increased by five days to 43 days compared to the three-month period ended December 31, 2010 primarily due to a decrease in sales during the current quarter as compared to the same quarter in the prior year due primarily to the decline in sales in the High Velocity Solutions market that contained lower payment terms. Non-cash accounts receivable sales, or deferred purchase price receivables included in the calculation of days in trade receivables were $750.3 million, $1.1 billion, $681.3 million, $460.0 million and $821.2 million for the quarters ended December 31, 2011, September 30, 2011, July 1, 2011, March 31, 2011 and December 31, 2010, respectively. Deferred purchase price receivables are recorded in other current assets in the Condensed Consolidated Balance Sheets. For further information regarding deferred purchase price receivables see Note 10 of our Notes to Condensed Consolidated Financial Statements.
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