Flextronics 1Q13 Earnings Call Notes

posted in: Notes | 0

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. The quotes are generally pieces of information that I find interesting or helpful to understanding the company, industry or economy and are not meant to provide summaries of the full content of the call. Other posts in this series can be found by clicking here. Full transcripts can be found at Seeking Alpha.

“Globally, demand trends remain challenging, and the hardware sales of many of our customers this earnings season have been disappointing. While most customers point to a better second half, we have not yet seen these in our orders except for consumer customers.”

“there’s a little bit of uncertainty with us in terms of how the revenue will flow through the rest of the year in that whole Google-Motorola deal. Like I said, there’s going to be a lot of new products coming out. And, I think, you guys will probably see — will start seeing announcements soon enough and have your own opinion on it.”

“a lot of the industrial business or a lot of the telecom or datacom or server storage…We’ve heard a lot of commentary from some of our customers in those spaces that have been positive on the second half, but until we see that, we’re going to assume it’s going to be pretty flat.”

“We do have other programs that will begin to kick in at the end of the year. I would expect those to start hitting in the December quarter and actually carry on into the March quarter. And then of course, we have the big Google thing, which hard to say exactly what that’s going to be…You got some products like Xbox that has a refresh that’s going to kick up some incremental seasonality for us.”

[commenting on the Google/Motorola relationship] “I think normally, you’ll find that new products launches start pretty aggressively in the September quarter and the December quarter, and then it’s hard to say in March. So I think it’s fair to say that we would see a pretty significant ramp, but it’s highly dependent on the success in the marketplace, which is still a little bit of an unknown for us. But we’re pretty bullish, we’re starting to see some of those products today. We’re excited about what the future might be this quarter is for sure, a trough quarter for them and for us. But I would expect maybe to think about it, it being kind of a trough quarter than over the next 3 quarters.”

“what we don’t see is networking, server storage, computing, the industrial business, any of the telecom entity, all of these categories, which I’d call a big core part of our business”