Flextronics Announces Fourth Quarter and Fiscal Year Results

Conference Call and Web Cast

A conference call hosted by Flextronics' management will be held today at 1:30 p.m. PDT to discuss the Company's financial results and its outlook. This call will be broadcast via the Internet and may be accessed by logging on to the Company's website at www.flextronics.com. Additional information in the form of a slide presentation that summarizes the quarterly results may also be found on the Company's site. A replay of the broadcast will remain available on the Company's website after the call.

Minimum requirements to listen to the broadcast are Microsoft Windows Media Player software (free download at http://www.microsoft.com/windows/windowsmedia/download/default.asp) and at least a 28.8 Kbps bandwidth connection to the Internet.

About Flextronics

Headquartered in Singapore (Singapore Reg. No. 199002645H), Flextronics is a leading Electronics Manufacturing Services (EMS) provider focused on delivering complete design, engineering and manufacturing services to aerospace, automotive, computing, consumer digital, industrial, infrastructure, medical and mobile OEMs. With fiscal year 2006 revenues from continuing operations of USD$15.3 billion, Flextronics helps customers design, build, ship, and service electronics products through a network of facilities in over 30 countries on five continents. This global presence provides design and engineering solutions that are combined with core electronics manufacturing and logistics services, and vertically integrated with components technologies, to optimize customer operations by lowering costs and reducing time to market. For more information, please visit www.flextronics.com.

This press release contains forward-looking statements within the meaning of federal securities laws. These forward-looking statements include statements related to revenue growth, the opportunities for growth in our core EMS business and the proposed divestiture of our software services business. These forward-looking statements involve risks and uncertainties that could cause the actual results to differ materially from those anticipated by these forward-looking statements. These risks include that the divestiture may not be completed as planned; that we may not realize expected returns from our retained interests in divested businesses; that we may not be successful in redeploying cash proceeds from our recent and pending divestitures in a manner that achieves improved profitability; that growth in our core EMS business (including our agreement with Nortel) may not occur as expected or at all; that we may not be able to obtain new customer programs, or that if we do obtain them, the risk that they may not contribute to our revenue or profitability as expected or at all; competition in our industry; the challenges of international operations; our dependence on industries that continually produce technologically advanced products with short life cycles; our ability to respond to changes in economic trends, to fluctuations in demand for our customers' products and to the short-term nature of our customers' commitments; the challenges of effectively managing our operations; the challenges of integrating acquired companies or assets; our dependence on a small number of customers for the majority of our sales; our reliance on strategic relationships with major customers; the impact on our margins and profitability resulting from substantial investments and start-up and integration costs in our components, design and ODM capabilities; production difficulties, especially with new products; changes in government regulations and tax laws; our exposure to potential litigation relating to intellectual property rights, product warranty and product liability; the effects of customer bankruptcies; potential impairment of our intangible assets and the other risks described under "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our reports on Form 10-K, 10-Q and 8-K that we file with the U.S. Securities and Exchange Commission. The forward-looking statements in this press release are based on current expectations and Flextronics assumes no obligation to update these forward-looking statements.

                                                             SCHEDULE I

               FLEXTRONICS INTERNATIONAL LTD. AND SUBSIDIARIES
               UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
                   (In thousands, except per share amounts)


                For the three months ended March 31, 2006 (2)
                  Non-GAAP  Discontinued  Continuing   Required
                              Operations  Operations   Adjustments  GAAP


    Net sales   $3,597,341      $66,452   $3,530,889         $- $3,530,889
    Cost of
     sales       3,359,408       41,860    3,317,548          -  3,317,548
    Restructuring
     and
     other charges       -            -            -     56,481     56,481
                         -            -            -      7,610      7,610
      Gross
       profit      237,933       24,592      213,341   (56,481)    156,860
    Selling,
     general and
     administrative
     expenses      120,542       11,183      109,359          -    109,359
    Restructuring and
     other charges
    (income)             -            -            -      7,668      7,668
      Operating
       income      117,391       13,409      103,982   (64,149)     39,833
    Intangible
     amortization        -            -            -      8,270      8,270
                         -            -            -      7,121      7,121
    Interest and
     other expense,
     net            19,354          987       18,367   (18,013)        354
    Loss on early
     extinguishment
     of debt             -            -            -          -            -
            Income  before
              income  taxes  98,037              12,422              85,615      (54,406)          31,209
        Provision  for
          (benefit  from)
          income  taxes              72                2,533            (2,461)        (3,233)        (5,694)
            Net  income  from
              continuing
              operations                                                        $88,076      (51,173)          36,903

        Income  from
          discontinued
          operations
          (net  of  tax  of
          $1,790  and  $1,335,
          respectively)                              $9,889                                  (3,844)            6,045
            Net  income      $97,965                                                      $  (55,017)        $42,948
        Earnings  per  share:
          Net  income  from  continuing  operations
            Basic                                                                                                                    $0.06
            Diluted                                                                                                                $0.06
          Income  from
          discontinued  operations
            Basic                                                                                                                    $0.01
            Diluted                                                                                                                $0.01
          Net  income
          Basic                      $0.17                                                                                      $0.07
          Diluted                  $0.16                                                                                      $0.07
        Shares  used  in
          computing  per
          share  amounts:
        Basic                    577,741                                                                                  577,741
        Diluted                602,218                                                                                  602,218


                                    For  the  three  months  ended  March  31,  2005  (2)
                                    Non-GAAP    Discontinued  Continuing      Required
                                                            Operations    Operations    Adjustments    GAAP


        Net  sales      $3,612,912            $73,050    $3,539,862                    $-  $3,539,862
        Cost  of
          sales              3,350,127              43,595      3,306,532                      -    3,306,532
        Restructuring
          and  other
          charges                          -                        -                      -              7,610            7,610
          Gross
            profit              262,785              29,455          233,330          (7,610)        225,720
        Selling,  general
          and
          administrative
          expenses            144,585              19,626          124,959                      -        124,959
        Restructuring
          and  other
          charges
        (income)                          -                        -                      -                      -                    -
          Operating
            income              118,200                9,829          108,371          (7,610)        100,761
        Intangible
          amortization                -                        -                      -              7,121            7,121
        Interest
          and  other
          expense,  net      26,250                2,063            24,187              1,415          25,602
        Loss  on
          early
          extinguishment
          of  debt                          -                        -                      -            16,328          16,328
          Income  before
            income
            taxes                  91,950                7,766            84,184        (32,474)          51,710
        Provision
          for
        (benefit  from)
          income  taxes    (3,334)                2,220          (5,554)        (19,403)      (24,957)
          Net  income
            from
            continuing
            operations                                                        $89,738        (13,071)          76,667
        Income  from
          discontinued
          operations
          (net  of  tax
            of  $1,790
          and  $1,335,
          respectively)                              $5,546                                  (7,969)        (2,423)
          Net  income        $95,284                                                        $(21,040)        $74,244
        Earnings
          per  share:
          Net  income
          from  continuing
          operations
          Basic                                                                                                                      $0.14
          Diluted                                                                                                                  $0.13

          Income  from
          discontinued
          operations
          Basic                                                                                                                            $-
          Diluted                                                                                                                        $-
        Net  income
          Basic                      $0.17                                                                                      $0.13
          Diluted                  $0.16                                                                                      $0.12
        Shares  used
          in  computing
          per  share  amounts:
          Basic                  566,912                                                                                  566,912
          Diluted              597,628                                                                                  597,628

        (2)  See  Note  2  on  Schedule  IV  attached  to  this  press  release.

                                                                                                                                SCHEDULE  II


                              FLEXTRONICS  INTERNATIONAL  LTD.  AND  SUBSIDIARIES
                              UNAUDITED  CONSOLIDATED  STATEMENTS  OF  OPERATIONS
                                      (In  thousands,  except  per  share  amounts)


                                                For  the  twelve  months  ended  March  31,  2006  (3)
                                                          Discontinued  Continuing      Required
                                    Non-GAAP        Operations    Operations    Adjustments        GAAP

        Net  sales        $15,565,994      $278,018      $15,287,976              $--  $15,287,976
        Cost  of
          sales                14,527,208        172,747        14,354,461                --    14,354,461
        Restructuring
          and  other
          charges                            --                  --                        --      185,631          185,631
            Gross
              profit            1,038,786        105,271              933,515  (185,631)          747,884
        Selling,
          general  and
          administrative
          expenses                525,124          61,178              463,946                --          463,946
        Restructuring
          and  other
          charges                            --                  --                        --        37,815            37,815
            Operating
              income                513,662          44,093              469,569  (223,446)          246,123
        Intangible
          amortization                  --                  --                        --        37,160            37,160
        Interest
          and  other
          expense,  net          88,757            5,023                83,734    (15,688)            68,046
        Gain  on
          divestiture
          of  operations                --                  --                        --    (23,819)        (23,819)
        Loss  on
          early
          extinguishment
          of  debt                            --                  --                        --                --                    --
            Income  before
              income
              taxes                  424,905          39,070              385,835  (221,099)          164,736
        Provision  for
          (benefit  from)
          income  taxes            7,566            7,968                  (402)        54,620            54,218
            Net  income
              from
              continuing
              operations                                                        $386,237  (275,719)          110,518
        Income  from
          discontinued
          operations
          (net  of  tax
          of  $35,535
          and  $5,690,
          respectively)                            $31,102                                      (458)            30,644
              Net  income      $417,339                                                    ($276,177)      $141,162
        Earnings  per  share:
          Net  income
            from
            continuing
            operations
                Basic                                                                                                                $0.19
                Diluted                                                                                                            $0.18
          Income  from
            discontinued
            operations
                Basic                                                                                                                $0.05
                Diluted                                                                                                            $0.05
          Net  income
                Basic                    $0.73                                                                                  $0.25
                Diluted                $0.69                                                                                  $0.24
        Shares  used  in
          computing
          per  share  amounts:
                Basic                573,520                                                                                573,520
                Diluted            600,604                                                                                600,604



                                                For  the  twelve  months  ended  March  31,  2005  (3)
                                                          Discontinued  Continuing      Required
                                    Non-GAAP        Operations    Operations    Adjustments        GAAP

        Net
          sales              $15,908,223      $177,506      $15,730,717              $--  $15,730,717
        Cost  of
          sales                14,827,860        107,328        14,720,532                --    14,720,532
        Restructuring
          and  other
          charges                            --                  --                        --        78,381            78,381
            Gross
              profit            1,080,363          70,178          1,010,185    (78,381)          931,804
        Selling,
          general  and
          administrative
          expenses                568,533          42,926              525,607                --          525,607
        Restructuring
          and  other
          charges                            --                  --                        --        16,978            16,978
        Operating
          income                    511,830          27,252              484,578    (95,359)          389,219
        Intangible
          amortization                  --                  --                        --        33,541            33,541
        Interest
          and  other
          expense,
          net                            94,205            4,209                89,996    (13,491)            76,505
        Gain  on
          divestiture
          of  operations                --                  --                        --                --                    --
        Loss  on
          early
          extinguishment
          of  debt                            --                  --                        --        16,328            16,328
        Income
          before
          income
          taxes                      417,625          23,043              394,582  (131,737)          262,845
        Provision
          for  (benefit
          from)  income
          taxes                        29,234            6,588                22,646    (91,298)        (68,652)
            Net  income
              from
              continuing
              operations                                                        $371,936    (40,439)          331,497
        Income  from
          discontinued
          operations
          (net  of  tax
          of  $35,535
          and  $5,690,
          respectively)                            $16,455                                  (8,081)              8,374
            Net
              income              $388,391                                                    ($48,520)      $339,871
        Earnings  per  share:
          Net  income
            from  continuing
            operations
              Basic                                                                                                                  $0.60
              Diluted                                                                                                              $0.57
          Income  from
            discontinued
            operations
              Basic                                                                                                                  $0.02
              Diluted                                                                                                              $0.01
          Net  income
            Basic                        $0.70                                                                                  $0.61
            Diluted                    $0.66                                                                                  $0.58
        Shares  used  in
          computing
          per  share
          amounts:
            Basic                    552,920                                                                                552,920
            Diluted                585,499                                                                                585,499

        (3)      See  Note  3  on  Schedule  IV  attached  to  this  press  release.


                                                                                                                                    SCHEDULE  III

                              FLEXTRONICS  INTERNATIONAL  LTD.  AND  SUBSIDIARIES
                              UNAUDITED  CONDENSED  CONSOLIDATED  BALANCE  SHEETS
                                                                (In  thousands)

                                                                                                      March  31,            March  31,
                                                                                                        2006                          2005
        ASSETS

        Current  Assets:
          Cash  and  cash  equivalents                                          $  942,859            $  869,258
          Certificates  of  deposit                                                    55,672                            -
          Accounts  receivable,  net                                            1,496,520            1,787,006
          Inventories                                                                      1,738,310            1,513,715
          Deferred  income  taxes                                                        10,688                  10,815
          Current  assets  of  discontinued  operations                88,464                  79,852
          Other  current  assets                                                        564,423                526,519
            Total  current  assets                                                  4,896,936            4,787,165

        Property  and  equipment,  net                                        1,586,486            1,669,876
        Deferred  income  taxes                                                        628,296                684,301
        Goodwill  and  other  intangibles,  net                        2,791,791            3,047,511
        Non-current  assets  of  discontinued  operations        575,008                494,670
        Other  assets                                                                          462,379                324,049
            Total  assets                                                              $10,940,896        $11,007,572


        LIABILITIES  AND  SHAREHOLDERS'  EQUITY

        Current  Liabilities:
          Bank  borrowings,  current  portion  of
            long-term  debt  and
            capital  lease  obligations                                          $106,099                $26,140
          Accounts  payable                                                            2,758,019            2,505,719
          Current  liabilities  of  discontinued  operations      58,251                  66,704
          Other  current  liabilities                                          1,035,935            1,281,631
            Total  current  liabilities                                        3,958,304            3,880,194
          Long-term  debt,  net  of  current  portion:
          Zero  Coupon  Convertible  Junior
            Subordinated  Notes  due  2008                                        195,000                200,000
          1  %  Convertible  Subordinated  Notes  due  2010          500,000                500,000
          6  1/2  %  Senior  Subordinated  Notes  due  2013            399,650                399,650
          6  1/4  %  Senior  Subordinate  Notes  due  2014              390,548                490,270
          Other  long-term  debt  and  capital  lease
            obligations                                                                            3,777                119,091
          Non-current  liabilities  of  discontinued
            operations                                                                            33,419                  50,995
          Other  liabilities                                                              105,551                143,324

        Total  shareholders'  equity                                          5,354,647            5,224,048
            Total  liabilities  and
            shareholders'  equity                                              $10,940,896        $11,007,572


                                                                                                              SCHEDULE  IV


                              FLEXTRONICS  INTERNATIONAL  LTD.  AND  SUBSIDIARIES
        NOTES  TO  PRESS  RELEASE  AND  UNAUDITED  CONDENSED  CONSOLIDATED  FINANCIAL
                                                                    STATEMENTS
                                                                (In  thousands)

 





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