April 30 – Contract electronics manufacturer Flextronics International Ltd reported better-than-expected fourth-quarter revenue and adjusted profit on Wednesday, helped by higher demand from its game console and smartphone customers.
The company, which makes the Xbox game console for Microsoft Corp and smartphones for Google Inc, also forecast a higher profit for the current quarter, helping to push up its shares about 3 percent in extended trading.
Microsoft’s first new Xbox in eight years, which went on sale in the United States in November, had sold more than five million units as of April 17.
Uncertainly surrounds its links to Google, however, after the search giant agreed to sell its Motorola handset division to China’s Lenovo Group Ltd for $2.91 billion in January.
Flextronics makes and assembles desktop PCs for Lenovo but does not make mobile phones for the Chinese company.
The deal has yet to be cleared by U.S. and Chinese regulators.
Flextronics, which also produces networking and other electronics gear, forecast adjusted earnings of 20-24 cents per share for the current quarter, on revenue of $6.0-$6.5 billion.
Analysts on average had expected earnings of 23 cents per share on revenue of $6.28 billion.
Flextronics reported net income of $42.98 million, or seven cents per share, for the fourth quarter ended March 31 compared with a net loss of $49.32 million, or 8 cents per share, a year earlier.
Excluding items, the company earned 24 cents per share, beating the average analyst estimate of 20 cents per share.
Flextronics shares rose to $9.30 in extended trading after closing at $8.99 on the Nasdaq. The stock has risen about 17 percent in the past three months. (Reuters)