Despite the slight decline in revenue, adjusted operating income increased 13% on a year-over-year basis to $200 million, which was above the mid-point of the guidance range. Quarterly adjusted operating margin expanded 50 basis points year-over-year to 3.5%. Adjusted net income was $161 million in the fourth quarter, increasing 2% year-over-year. Adjusted earnings per diluted share of $0.29 was up 7% from $0.27 in the year ago quarter.
Net sales for the fiscal year ended March 31, 2016 were $24.4 billion, and fiscal year 2016 adjusted operating income increased 5% to $792 million from $751 million in the prior fiscal year. Adjusted earnings per diluted share increased 6 cents to $1.14 year-over-year.
“Fiscal 2016 profit and margin expansion continues to validate Flex’s portfolio evolution and sketch-to-scale strategy. This also marks our third consecutive year of adjusted operating profit and adjusted EPS expansion,” said Mike McNamara, CEO of Flex. “We are committed to continuing this strong trend, and remain focused on driving a continuously richer mix of business across the entire Flex Platform.”
“Cash flow generation continues to be a hallmark for Flex, and a positive reflection of our culture of discipline and focused execution,” said Flex CFO Chris Collier. “We generated over $1.1 billion in operating cash flow and $639 million in free cash flow in fiscal 2016. This allowed us to continue fulfilling our commitment to consistently return value to our shareholders; this year we spent $420 million buying back almost 7% of our shares, representing an allocation of 66% of our fiscal 2016 free cash flow.”