Electronics manufacturer Flextronics last week released its earnings for the first quarter of fiscal year 2010.
The company, which designs and manufacturers kiosks and other electronic equipment, announced net sales of $5.8 billion, up 4 percent from $5.5 billion last quarter, which ended March 31. But the company's net sales year-over-year are down 31 percent. Flextronics posted record net sales of $8.4 billion in Q1 FY 2009.
Net income for the quarter came in at a loss of $154 million. In Q1 FY 2009, net income was $130 million.
During Flextronics' Q1 earnings call July 29, CEO Mike McNamara said an overall decrease in market demand adversely affected the company's earnings:
 | The overall demand climate has remained subdued, but we have made measurable strides to adjust to the current market positions and position ourselves for improving profitability. We have balanced these challenges with new business wins and successful executions. We will continue to act with speed and agility to adjust our operations, keep disciplined cost controls in place and optimally position Flextronics in the market. |  |
Flextronics chief financial officer Paul Read's says the company's gains since last quarter are a reflection of efforts to cut costs and restructure after a disappointing quarter.
| As discussed last quarter, we have quickly executed our restructuring plans to resize our business and are seeing the benefits in sequential margin expansion. As we continue to execute on our restructuring plans, we are confident that our activities will achieve their intended cost savings and contribute to further margin improvements. | |
Read said Flextronics has recognized $215 million in restructuring charges since restructuring plans were announced in March, and the company expects to recognize about $35 million more in those charges over the course of FY 2010.
