Download press release
  • Quarterly revenue of $6.4 billion, increased 7% year-over-year GAAP diluted EPS of $0.22
  • Non-GAAP diluted EPS of $0.24


San Jose, CA, July 26, 2018 – Flex (NASDAQ: FLEX), the Sketch-to-Scale® solutions provider that designs and builds Intelligent Products for a Connected World®, today announced results for its first quarter ended June 29, 2018.
“This marked the sixth straight quarter of year-over-year revenue growth reflecting a balanced and diversified service offering that enables integrated industry solutions,” said Mike McNamara, CEO at Flex.

First quarter fiscal 2019 results of operations

Net sales for the first quarter ended June 29, 2018 were $6.4 billion, growing 7% year-over-year. We adopted the new revenue recognition standard, ASU 2014-09 “Revenue from Contracts with Customers (Topic 606)” starting April 1, 2018. Our net sales for Q1 fiscal year 2019 without the adoption impact were $6.5 billion and within the guidance range of $6.3 to $6.7 billion which also excluded the impact from adoption of the new revenue recognition standard. GAAP income before income taxes was $142 million for the quarter and adjusted operating income was $188 million, above the midpoint of the guidance range of $170 million to $200 million. GAAP net income was $116 million and adjusted net income for the quarter was $128 million. GAAP net income per share was $0.22 for the quarter and adjusted EPS was $0.24 for the quarter.

Balance sheet and cash flow highlights

Flex ended the quarter with over $1.25 billion of cash on hand and total debt of approximately $2.9 billion. The balance sheet remains well-positioned to support the business over the long-term.

In the first quarter of fiscal year 2019, we adopted the new cash flow accounting standard (ASU 2016-15) which resulted in a reclassification of cash inflows related to the deferred purchase price from securitization transactions from operating activities to investing activities. For the three-month period ended June 29, 2018, Flex’s cash from operations was negative $672 million or negative $15 million adjusted for the impact due to cash collections of deferred purchase price of $657 million during the period. Free cash flow was negative $185 million excluding the impact of the new standard as the Company has increased its investments into capital expenditures and net working capital to support its revenue growth.

Second quarter fiscal year 2019 guidance

For the second quarter ending September 28, 2018, revenue is expected to be in the range of $6.6 to $7.0 billion. Adjusted EPS is expected to be in the range of $0.26 to $0.30 per diluted share. GAAP EPS is expected to be in the range of $0.18 to $0.22 and includes stock-based compensation expense and intangible amortization.

Other items

The Company has undertaken, and will continue to undertake, measures to improve our internal control over financial reporting to address and remediate the material weaknesses described further in Item 9A “Controls and Procedures” of our fiscal 2018 Form 10-K. Many of our remediation efforts have been implemented already or are in the process of implementation and we will be finalizing our plans over the coming months. Our initiatives are focused on enhancing site level controls, designing and implementing centralized reporting controls and enhancing the quality and frequency of training. While our remediation plan is being executed, we also have engaged and will continue to engage additional resources to support and supplement the Company’s existing internal resources. We are working to have the material weaknesses remediated as soon as possible.

Webcast and conference call

Flex management team will host a conference call today at 2:00 PM (PT) / 5:00 PM (ET), to review first quarter fiscal 2019 results. A live webcast of the event and slides will be available on the Flex Investor Relations website at An audio replay and transcript will also be available after the event on the Flex Investor Relations website.

About Flex

Flex Ltd. (Reg. No. 199002645H) is the Sketch-to-Scale® solutions provider that designs and builds Intelligent Products for a Connected World®. With approximately 200,000 professionals across 30 countries, Flex provides innovative design, engineering, manufacturing, real-time supply chain insight and logistics services to companies of all sizes in various industries and end-markets. For more information, visit or follow us on Twitter @Flexintl. Flex – Live Smarter®

! function(o, t, e, a) { o._aoForms = o._aoForms || [], o._aoForms.push(a); var n = function() { var o = t.createElement(e); o.src = ("https:" == t.location.protocol ? "https://" : "http://") + "", o.async = !0; for (var a = t.getElementsByTagName(e)[0], n = a.parentNode, c = document.getElementsByTagName("script"), r = !1, s = 0; s < c.length; s++) { if (c[s].getAttribute("src") == o.getAttribute("src")) r = !0; } r ? typeof(_aoFormLoader) != "undefined" ? _aoFormLoader.load({ id: "482592df-d182-4ff0-be56-eebb313261fa:d-0001", accountId: "39314", domain: "", isTemp: false, noStyle: false, prefill: false }) : "" : n.insertBefore(o, a) }; window.attachEvent ? window.attachEvent("onload", n) : window.addEventListener("load", n, !1), n() }(window, document, "script", { id: "482592df-d182-4ff0-be56-eebb313261fa", accountId: "39314", domain: "", isTemp: false, noStyle: false, prefill: false });

You can learn more about our use of cookies and your choices here. By clicking on any link on this page or clicking "OK, I agree", you are giving your consent for us to set cookies.