Flextronics FY 2Q15 Earnings Call Notes

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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. Full transcripts can be found at Seeking Alpha

Continue to see the macro environment stable

“In terms of macro environment, we continue to see it as stable. Our guidance also reflects this.”

Don’t see any major pullback in technology space

“I think our visibility has not changed very much and I consider it to be reasonably good. We have not seen a big pull back across the industry. I know some company has made a lot of noise about it. We just haven’t seen that evidence, don’t know if we are going to see that later or not but just based on what we can see and our expectations, we continue to see a very stable environment and we just don’t see the evidence of any kind of major pullback.”

Networking and server business down 0-5%

“We see the group somewhat down like a 0% to 5% kind of thing on an annual basis in terms of the data we see in the marketplace. We are trying to offset that by really going after more customers in China, where we already have a pretty good position. We are trying to offset it by going into the appliance manufacturers”

Connected home

“connected home, we have a whole range of technologies and wireless technologies that we are now taking and putting into our number of different customers products in order to get them smart and connected into the whole engineering of things.”

Wearables

“I think I mentioned earlier we probably have about 25 customers in variables. We do everything from sensors, to glasses, to fabrics, to wrist bands, to watches, to a variety of different product categories. And what we are focused on in that place because you mentioned the capabilities, that’s actually what is important in wearables in our view. I don’t think anybody really knows what the consumer preferences are going to be on consumers and our wearables in the future. What we are very, very focussed on is the underlying core technologies associated with wearables. And these are things like — and we probably had 30 patents in materials and methods and advanced manufacturing processes and technologies over the last 12 months.”

YOu have to solve a lot of problems to put together a wearable device

“the reason they are differentiating is you actually have to solve plastics problems, you have to solve circuit problems, you have to solve very traditional electronics problems all simultaneously. And the fact that we have more techs effectively, we have a big mechanicals operation, and the fact that we have really, really broad electronics ecosystem really gives us the tools that we need.”