Mar 25, 2002 Milpitas, California
Solectron Corp. reported a net loss of $126 million, or 19 cents diluted earnings per share, for the quarter ended March 1, compared to net income of $121.9 million, or 18 cents diluted earnings per share, for the same period last year.
The Milpitas, Calif., EMS provider reported revenue of $3 billion, down 45.6% from $5.4 billion in the year ago quarter. Solectron's guidance was for second-quarter sales of $2.7 billion to $3.2 billion.
The average estimate of 21 brokers surveyed by Thomson Financial/First Call was for a pro forma profit of 3 cents.
"In the quarter, we generated nearly $1 billion of cash flow from operations, and we greatly strengthened our balance sheet with athree-part financing package in which we raised $1.6 billion, completed a $500 million line of credit and paid down $2.2 billion of debt," said Koichi Nishimura, chairman, president, and chief executive, in a statement.
"In the midst of a tough economy, we continued to adjust rapidly to current conditions and at the same time make progress on initiatives important to our company's sustained, long-term success."
Solectron expects sales to range from $2.7 billion to $3.1 billion in its fiscal third quarter. Excluding one-time charges, the company expects a loss ranging from 4 cents to 6 cents diluted earnings per share, reflecting continued softness in sales and higher interest expense.
First Call estimates for the company's fiscal third quarter had been for earnings per share of 5 cents, with revenue of $3.2 billion.
For the first six months of fiscal 2002, Solectron reported sales of $6.1 billion, compared with $11.1 billion in the year-earlier period. The company reported a net loss of $178.5 million, or 24 cents per diluted share, compared with net income of $312.5 million, or 48 cents per diluted share, a year ago.
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