Flex Reports Third Quarter Fiscal 2019 Results
Summary
“During the quarter, we grew revenues, improved the quality of our sales mix, expanded margins, returned to free cash flow generation, and streamlined our investment portfolio,” said Michael Capellas, Chairman of Flex. Stock-based compensation expense consists of non-cash charges for the estimated fair value of stock options and unvested restricted share unit awards granted to employees and assumed in business acquisitions. (5) Contingencies and otherduring the three and nine-month periods ended December 31, 2018 primarily consist of costs incurred relating to the independent investigation undertaken by the Audit Committee of the Company’s Board of Directors which was completed in June 2018. (6) During the third quarter of fiscal year 2019, the Company recorded a $70 million impairment charge related to one of its non-core cost method investments due to limited funding the investee has received and its deteriorating operating performance. During the first quarter of fiscal year 2019, the Company transferred employees and equipment along with certain related software and IP, into Bright Machines which later received additional equity funding from third party investors and changed the composition of the Board of directors removing Flex’s control.