News Article
Flextronics Announces $32 M Write Down
Flextronics has reported it has filed its 2012 financial statements on Form 10-K with the Securities and Exchange Commission.
As a result of recent events impacting the finances and liquidity of one of the company's customers in the concentrated solar photovoltaic market, the company has recognized a $32.0 million charge for the write-down of inventory and provisions for doubtful accounts. company management has been in good faith negotiations with this customer regarding various out-of-court restructuring alternatives, but concluded on May 25, 2012 that all inventory and accounts receivable related to this customer were unrecoverable.
Because this updated information relates to an uncertainty that existed as of March 31, 2012 and because the company had not yet filed its 2012 financial statements on Form 10-K, the charge is considered a subsequent event under generally accepted accounting principles that must be recorded in the company's 2012 financial statements. The company announced its 2012 fourth quarter and full year financial results on May 1, 2012 and is now adjusting those results to reflect the impact of the event.
"This subsequent event has no effect on our on going operations, did not result in a material change to the company's balance sheet, and had no effect on cash flows from operations or free cash flows for fiscal year 2012," said Paul Read, CFO of Flextronics. "In addition, our estimates for the fiscal quarter ended June 2012 are unchanged from the estimates we provided in our May 1, 2012 earnings release."
