Net sales for the fourth quarter ended March 31, 2017 were approximately $5.9 billion, which was at the high end of the guidance range of $5.5 to $5.9 billion.
GAAP income before income taxes was $99 million for the quarter and adjusted operating income was $205 million, above the mid-point of the guidance range of $185 million to $215 million.
Net income on a GAAP basis was approximately $87 million and adjusted net income for the quarter was $156 million. GAAP EPS was $0.16 for the quarter and non-GAAP EPS was $0.29 for the quarter.
Net sales for the fiscal year ended March 31, 2017 were $23.9 billion. Fiscal year 2017 GAAP income before income tax was $371 million and fiscal year 2017 adjusted operating income was $815 million. GAAP EPS was $0.59 and adjusted earnings per diluted share was $1.17 for fiscal year 2017.
Flex’s fiscal year 2017 performance illustrates its portfolio evolution to higher margin businesses. The company’s two higher margin business groups, High Reliability Solutions (HRS) and Industrial & Emerging Industries (IEI), combined were $9.1 billion or 38% of net sales in the fiscal year ended March 31, 2017, a $537 million increase from a year ago.
For the 12-month period ended March 31, 2017, Flex generated net cash from operations of $1.1 billion and free cash flow of $660 million. Strong cash flow generation has funded share repurchases of approximately $90 million and $350 million for the three and twelve-month periods ended March 31, 2017, respectively. The company remains committed to return over 50% of annual free cash flow to its shareholders.
Flex ended the quarter with $1.8 billion of cash on hand and total debt of $3.0 billion. The balance sheet remains strong and is well positioned to support the business over the long term.
“We remain committed to our Sketch-to-Scale strategy and are thrilled to have delivered 14 straight quarters of year-over-year operating margin expansion,” said Mike McNamara, CEO at Flex. “We have built a business model that produces outstanding cash flow consistently year after year. We have generated positive operating cash flow in 23 of our past 24 quarters. For the year, cash flow from operations totaled $1.15 billion and free cash flow was $660 million.”