FLEX » Topics » Our exposure to financially troubled customers or suppliers may adversely affect our financial results.

These excerpts taken from the FLEX 10-K filed May 20, 2009.
Our exposure to financially troubled customers or suppliers may adversely affect our financial results.
 
We provide EMS services to companies and industries that have in the past, and may in the future, experience financial difficulty, particularly in light of conditions in the credit markets and the overall economy. Our suppliers may also experience financial difficulty in this environment. If our customers experience financial difficulty, we could have difficulty recovering amounts owed to us from these customers, or demand for our products from these customers could decline. Additionally, if our suppliers experience financial difficulty we could have difficulty sourcing supply necessary to fulfill production requirements and meet scheduled shipments. The current global financial crisis is continuing to adversely affect our customers’ and suppliers’ access to capital and liquidity. If one or more of our customers were to become insolvent or otherwise were unable to pay for the services provided by us on a timely basis, or at all, our operating results and financial condition could be adversely affected. Such adverse effects could include one or more of the following: a provision for doubtful accounts, a charge for inventory write-offs, a reduction in revenue, and increases in working capital requirements due to increases in days in inventory and increases in days in accounts receivable. For the year ended March 31, 2009, we recognized approximately $262.7 million in charges for provisions of accounts receivable, the write-down of inventory and recognition of related obligations for certain financially distressed customers.
 
Our exposure to financially troubled customers or suppliers may adversely affect our financial results.
 
We provide EMS services to companies and industries that have in the past, and may in the future, experience financial difficulty, particularly in light of conditions in the credit markets and the overall economy. Our suppliers may also experience financial difficulty in this environment. If our customers experience financial difficulty, we could have difficulty recovering amounts owed to us from these customers, or demand for our products from these customers could decline. Additionally, if our suppliers experience financial difficulty we could have difficulty sourcing supply necessary to fulfill production requirements and meet scheduled shipments. The current global financial crisis is continuing to adversely affect our customers’ and suppliers’ access to capital and liquidity. If one or more of our customers were to become insolvent or otherwise were unable to pay for the services provided by us on a timely basis, or at all, our operating results and financial condition could be adversely affected. Such adverse effects could include one or more of the following: a provision for doubtful accounts, a charge for inventory write-offs, a reduction in revenue, and increases in working capital requirements due to increases in days in inventory and increases in days in accounts receivable. For the year ended March 31, 2009, we recognized approximately $262.7 million in charges for provisions of accounts receivable, the write-down of inventory and recognition of related obligations for certain financially distressed customers.
 
Our
exposure to financially troubled customers or suppliers may
adversely affect our financial results.



 



We provide EMS services to companies and industries that have in
the past, and may in the future, experience financial
difficulty, particularly in light of conditions in the credit
markets and the overall economy. Our suppliers may also
experience financial difficulty in this environment. If our
customers experience financial difficulty, we could have
difficulty recovering amounts owed to us from these customers,
or demand for our products from these customers could decline.
Additionally, if our suppliers experience financial difficulty
we could have difficulty sourcing supply necessary to fulfill
production requirements and meet scheduled shipments. The
current global financial crisis is continuing to adversely
affect our customers’ and suppliers’ access to capital
and liquidity. If one or more of our customers were to become
insolvent or otherwise were unable to pay for the services
provided by us on a timely basis, or at all, our operating
results and financial condition could be adversely affected.
Such adverse effects could include one or more of the following:
a provision for doubtful accounts, a charge for inventory
write-offs, a reduction in revenue, and increases in working
capital requirements due to increases in days in inventory and
increases in days in accounts receivable. For the year ended
March 31, 2009, we recognized approximately
$262.7 million in charges for provisions of accounts
receivable, the write-down of inventory and recognition of
related obligations for certain financially distressed customers.


 




Our
exposure to financially troubled customers or suppliers may
adversely affect our financial results.



 



We provide EMS services to companies and industries that have in
the past, and may in the future, experience financial
difficulty, particularly in light of conditions in the credit
markets and the overall economy. Our suppliers may also
experience financial difficulty in this environment. If our
customers experience financial difficulty, we could have
difficulty recovering amounts owed to us from these customers,
or demand for our products from these customers could decline.
Additionally, if our suppliers experience financial difficulty
we could have difficulty sourcing supply necessary to fulfill
production requirements and meet scheduled shipments. The
current global financial crisis is continuing to adversely
affect our customers’ and suppliers’ access to capital
and liquidity. If one or more of our customers were to become
insolvent or otherwise were unable to pay for the services
provided by us on a timely basis, or at all, our operating
results and financial condition could be adversely affected.
Such adverse effects could include one or more of the following:
a provision for doubtful accounts, a charge for inventory
write-offs, a reduction in revenue, and increases in working
capital requirements due to increases in days in inventory and
increases in days in accounts receivable. For the year ended
March 31, 2009, we recognized approximately
$262.7 million in charges for provisions of accounts
receivable, the write-down of inventory and recognition of
related obligations for certain financially distressed customers.


 




EXCERPTS ON THIS PAGE:

10-K (4 sections)
May 20, 2009
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