The electronics contract manufacturing industry struggled right along with the rest of the tech sector over the past few years. But it's an industry on the mend. Now, more than ever, technology companies are looking for ways to cut costs. Many choose to outsource manufacturing while focusing on product development and marketing.
One such company is electronics manufacturing services (EMS) provider Flextronics International
For fiscal 2004 ended in March, the company had $14.5 billion in sales versus $13.4 billion for 2003. On a generally accepted accounting principles basis for the same period, it had a net loss of $352.4 million, or $0.67 per share, compared with a loss of $83.5 million, or $0.16 per share, a year earlier. On a pro forma basis, though (excluding amortization, debt retirement, and a legal settlement), net earnings were a positive $234.8 million, or $0.42 per share, compared with $161.6 million, or $0.31 per share.
That's a lot of numbers to juggle, but they show that -- discounting nonrecurring items -- the financials are improving. And that is further evidenced by the deals Flextronics International has put together recently.
Last week, it agreed to purchase factories in several countries from telecommunications equipment company Nortel Networks
Flextronics International and main competitor Solectron
Fool contributor Mark Mahorney doesn't own shares of any companies mentioned.