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Flextronics Regains Footing With 2Q Profit

Singapore-based Flextronics International, which makes electronic gadgets, said it flipped to a second-quarter profit on better margins and improvements from restructuring.

NEW YORK (AP) -- Singapore-based Flextronics International Ltd., which makes electronic gadgets such as cell phones and Microsoft Corp.'s Xbox, said Monday it flipped to a second-quarter profit on better margins and improvements from restructuring.

The company earned $19.7 million, or 2 cents per share, compared with a loss of $154 million, or 19 cents per share, a year ago. Adjusted to exclude one-time charges including those for restructuring, the company said it earned $104 million, or 13 cents per share, in its latest fiscal second quarter.

Revenue rose slightly to $5.83 billion, from $5.78 billion in the same period in 2008.

Analysts polled by Thomson Reuters, who typically exclude one-time items from their estimates, forecast a profit of 9 cents per share on $5.77 billion in sales.

"The improvement of our financial performance this quarter was a real positive and we are seeing signs of strengthening in the economy and a general improvement in business conditions," said CEO Mike McNamara, in a statement.

For the fiscal third quarter ending Dec. 31, the company forecasts adjusted earnings per share between 14 cents and 16 cents and revenue of $6 billion to $6.4 billion. The company predicts restructuring and other charges will lower earnings per share by about 7 cents.

Analysts are expecting profit excluding items of 13 cents per share and revenue of $6.24 billion, on average.

The stock rose more than 3 percent in aftermarket electronic trading. Shares closed earlier down 13 cents to $7.11 in the regular session.