Flextronics International Ltd Chairman and Chief Executive Michael Marks said fiscal second-quarter revenue will reach a record, with the electronics manufacturer's sales rising in the next year.
"We expect revenue up again next quarter and expect 2002 to be a really big year," said Marks, who spoke this morning at a Bank of America Securities conference in San Francisco.
Revenue is expected to increase as more businesses, seeking to reduce costs, hire companies like Flextronics, the No. 2 contract manufacturer of electronics, to make their products because the Singapore-based company can do so more cheaply.
Flextronics has cut jobs and manufacturing capacity this year as demand for cell phones, personal computers and communications-related gear has fallen, hurting customers' sales.
"Markets across the board are in terrible shape, that's no surprise to anyone," Marks said. "Inventories are improving somewhat, there's less of an overhang."
Sales in the first quarter ended June 30 rose 16 percent to US$3.1 billion from US$2.68 billion a year earlier. Analysts polled by Thomson Financial/First Call on average expect sales in the September quarter to rise to US$3.23 billion. The company had revenue of US$12.1 billion in fiscal 2001.
Flextronics shares fell US$0.47 to US$17.96 in regular trading. They rose as high as US$18.21 in trading after US markets closed.
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