Good afternoon, and welcome to the Flextronics International Fourth Quarter Fiscal Year 2011 Earnings Conference Call. Today’s call is being recorded, and all lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. At this time, for opening remarks and introductions, I would like to turn the call over to Mr. Kevin Kessel, Flextronics’ Vice President of Investor Relations. Sir, you may begin. Kevin Kessel – Vice President, Investor Relations: Thank you, Victor. And welcome to Flextronics’ conference call to discuss the results of our fiscal 2011 fourth quarter ended March 31, 2011. Joining me on the call today is our Chief Executive Officer, Mike McNamara, and our Chief Financial Officer, Paul Read. The presentation that corresponds to our comments today is posted on the Investors section of our website under Conference Calls and Presentations and it can also be accessed directly from our home page. Our agenda for today’s call will begin with Paul Read reviewing the financial highlights from the fourth quarter of fiscal 2011 and from the yearend for fiscal 2011 and Mike McNamara will follow-up with some insights on our current business trends, how our business performed during fiscal 2011 and he will conclude with our guidance for the first quarter of fiscal 2012 ending in June. Following that, we will take your questions. Please turn to Slide two, for review of the risks and non-GAAP disclosures. This presentation contains statements that are forward-looking. These statements are based on current expectations and assumptions that are subject to risks and uncertainties, which may cause actual results to differ materially from those set forth in this presentation. Such information is subject to change, and we undertake no duty or obligation to revise, update or inform you of…

Yes, sir. Our first question comes from Sherri Scribner with Deutsche Bank. Your line is open. Sherri Scribner – Deutsche Bank: Hi, thank you. Thank you for the detail Mike. I just want to get to a sense of in the communication segment it seems like we’ve heard a lot of from lots of different companies of that segment has been weak. Just wanted to get a sense of was that one particular customer for you. I know you’ve got a couple of strong growing customers at least you have with us couple of quarters. Was that primarily one customer did you see broad based weakness or maybe a little bit more detail on communication?

Hi, Sherri. We have quite a few customers just in I know I heard noise in the past about optical, people talking about the optical market. We have 11 different customers that are in the optical space. We have such a broad portfolio. We have a lot of ups and we have a lots of down. Suffice to say, we were expecting a pretty much of flat results of the December quarter we ended up getting 12% down. So, we were a little bit surprised. I think our customers were little bit surprised. It’s more than just one customer. It’s a bundle of customers. But the comment that I made were also that we don’t expect that to continue and we actually expect to recover all that March downside in the June quarter. So, we think its coming back and we don’t think that structurally the end-market place is weak. Sherri Scribner – Deutsche Bank: So, there is potentially an inventory correction or correction you really only see it is being one quarter?

Yeah, it’s hard for us to say and going in to the March quarter and January we thought we would have much large number. So, it’s hard for us to say, but usually we’re pretty accurate on these and I would say it’s going to come back this quarter and I’d guess it’s to be a little bit of inventory correction. We also had to be fair two or three different product ramps that we are expecting that slowdown a lot of our business on the very, very, high end of the marketplace and some of the product ramps on the very high end. We are slower than anticipated or few delayed too. So there were a couple of product transitions that slowdown a little bit. But I think fundamentally that communication segment is actually reasonably healthy and I think it will comeback rest of the year. Sherri Scribner – Deutsche Bank: Okay. That’s helpful. And then just quickly I want to ask you about the notebook business. I think there has been some speculation in the press that you guys are not committed to the notebook business anymore. It sounded like you are still committed to the business, but want to know, are you still committed and do you still expect to double that business this year?

Yeah, we have been on this track to do one, two, four, I think everybody knows that the foray would be this FY12. We have enough orders to go and we will do that 4 billion. So, we hit our objective of what we thought was kind of a minimum level that was necessary to be relevant in the business and to have any sort of scale to have a high quality business. So, going forward we don’t have a strategy of going one, two, four, eight. There is no objective of that. You never heard us communicate another step. So, our strategy going forward is that and it has been for some time is that it is our objective to have a broad penetration in to all the electronic markets and then once we have a strong enough position then its our objective to balance our business between margins and return on capital. So in the end, the objective is to look across all our businesses and run them, so that we deliver value to the shareholders. So in summary, what that means is we’ll portfolio manage our business in a very active way and some business units will try to push on the accelerator and other businesses will slowdown. So, I wouldn’t say we’re not committed I would just say that we are going to manage our overall portfolio of businesses to optimize cash generation return on capital growth. Sherri Scribner – Deutsche Bank: Okay, thank you.

Welcome.

Our next question comes from Matt Sheerin with Stifel Nicolaus. Your line is open. Matt Sheerin – Stifel Nicolaus: Yes, thanks. So just wanted to follow-up your comments on the notebook business Mike, you’ve talked about getting to breakeven at the $4 billion revenue, but you also talked about a lot of headwinds, materials costs, labor costs, etcetera. Are you still looking at breakeven at that 4 billion revenue mark? And also when do you expect to get there, it sounds like you’re hedging a little bit, because you are talking about you’re managing profitability versus growth, but when would you expect to get there?

Yeah. So right now, we’re in a significant transition period. So we’re literally between March when we really started ramping and June will mostly go from a $2 billion run rate to a $4 billion run rate. So I would call the ramp they want is pretty severe, so that in itself creates – is creating some losses for us. Not too typical about ramping any program too fast or real fast. So that’s a ramp kind of scenario. Now, what we didn’t anticipate is that the commodity prices are driving the significant amount of price escalation in the commodity business. And I would say that we find that price escalation of commodities higher in the notebook business than we find in any other parts of our business. I think on average the market or that entire business tends to be a little bit stressed from a performance standpoint and I think it’s put a lot of pressures over the years on a lot of the component suppliers. And I think a lot of them as they see the labor wages going up and the commodity prices going up, it’s putting a lot of pressure on them to raise prices. So we didn’t anticipate as much headwind on that as when we went into that, we went – than two quarters ago. So for sure that’s an additional headwind. So I’d say we – so and as a result of that, we’re looking and I think you’ve seen some of this data in some of the other presses that over time we’re going to need to be raising prices on these products. So we do have some additional headwinds that we didn’t anticipate. And yes, we did expect to be breakeven at $4 billion, so the question is will we get there with the headwinds that we are seeing now. If we did it wouldn’t be this next quarter, because we are on the [subject] ramping and we have incremental operating expenses as a result of the ramp, but by the end of the year when we hit the $4 billion is when we would have expected to be at breakeven. Matt Sheerin – Stifel Nicolaus: Okay. And then it looks like you’re obviously growing pretty rapidly in the industrial “other markets” auto, medical, etcetera. And you would think that the margins in those – the margin profile in those segments would be larger than the or higher than the company overall yet, you’ve been stuck at this 2.8%, 2.9% operating margin for a few quarters here. Is that – do you think that’s going to continue to drive operating margins for the company higher or they are just other headwinds in things like components and the ODM notebook business that’s going to continue to be headwinds and keep you from getting pass 3% number?

So those businesses do carry higher than company average operating margins and I would expect that to continue into the future and I would expect that the growth rate that we have in those businesses to continue. The headwind we had last year that really kept that flat was really the component businesses more than anything else. And those things we said again, we said last year that we thought by the end of this year in 2011 we had hoped that those businesses would turn above breakeven and start contribute that didn’t happen. As we look at those businesses now, the components businesses now, we expect them to be back up to 4% by the end of the year. So, we have to go prove that. We can go make that happen, but that’s again what it looks like there is a lot of structural changes that are quite different than last year. So that was a headwind last year. Right now, the headwind we’re seeing there is, we’re having these additional computing ramps, which are significantly below the company average. And I think it’s offsetting all the incremental good news associated with higher and higher revenues associated with higher margin businesses. So I’d say we’re stood in the corner on components. We have an additional headwind with components with computing and still keeping it pretty much flatted our as a result we’re achieving that pretty much that we are which pretty much flat. Matt Sheerin – Stifel Nicolaus: Got it. Okay, thanks.

Our next question comes from Steve O'Brien with JPMC. Your line is open. Steve O'Brien – JPMC: Hey thanks for taking my question. We talked a little bit more about the mobile devices outlook I think Mike were answered number of questions and puts and takes there that seems like there is a little bit less seasonality than we would have normally seen for June quarter?

You mean June quarter would have been higher than. Steve O'Brien – JPMC: (indiscernible)

Yeah. I think that’s right. I think maybe few of our programs are little bit in transition in terms of one product to the next product. And one of the other things I’d did mention is we had a number different Japanese customers. We have several and some of those are seen some of that volume either slowdown or maybe they’re tying to do in their own factories, whatever the case might be. I think it’s a little bit different for each one. But that’s in a little bit of headwind. That’s not necessarily represented at the market. So I think between those two it’s quite a little bit of slowdown. Now that being said, as we look at over our forecast on the September and the December quarter those numbers get significantly higher. So I think on the yearly basis we would still expect to continue to grow that business nicely. But there is no doubt to correct that the June expectation that we have is below or normal seasonality is. Steve O'Brien – JPMC: Are these transitions maybe with some of your existing customers or maybe customers are really impacted by ODMs entering the Smartphone market you’re seeing pressure there that’s maybe inhibiting growth and inhibiting margin?

No. I don’t see that as. No, we don’t see that at all as a threat. Not as a threat. We don’t see that impacting anything, no. Steve O'Brien – JPMC: I can just ask quick question on the share count this quarter maybe there was the function of share price or something else. But Paul maybe you can help us understand the sequential in share count was fairly flat even compared to the first, this quarter the purchases in the prior quarter?

Yeah, like I said we repurchased the remaining balance of that $200 million programs. So we took about $32 million, 4.5 million shares. So the share count was fairly flat because every quarter there is sequential increase in the stock options. And so that in addition and then you take that away with the amount of shares that we repurchased and you get a flat number for this quarter. Steve O'Brien – JPMC: Yeah I understand that and I guess I thought that option exercises in the past were sort of running in the $2 million in a quarter range and maybe I’m getting too granular or precise here. But maybe you could help us understand going forward what do you think the quarterly or annual dilution from awards would be?

We tend to model about 3 to 5 million in a quarter for that and so 12 million, 15 million, 20 million depends on the share price, of course, throughout the year. Steve O'Brien – JPMC: Thanks.

Our next question comes from Jim Suva with Citi. Your line is open. Jim Suva – Citi: Great. Thank you very much gentlemen. If we take a look at the bigger picture and as the quarter progressed Mike and Paul maybe can you walk us through about was the kind of linear downtick in the demand softness as you progressed or was that kind of backend loaded with the share loss or was the double orderings that are now back into equilibrium or just true end-market softness. Just trying to get a grasp around the linearity of it and then what gives you the confidence going forward.

Well, if you look at the sequential numbers for each one of the different market segments you see kind of a broad product if you think about it. I think the only market segment that was up was one of them and that was industrial. So, outside of that every one of them went down a little bit, (indiscernible) went down, mobile went down, infrastructure went down way more than anticipated. And it wasn’t reasonably linear. It just seemed as slow as the quarter went on and almost felt as the GDP kept getting weaker and weaker and just seem like our numbers kept getting weaker and weaker. It’s just kind of trended down a little bit. But I think it was kind of across the board. It wasn’t really one thing or another, if we add up our segment. You can see and look at some of the big investments were in infrastructure, some of the big investments were in really in lot of different segments. So, I don’t know that it’s just one thing, it’s not one customers, it’s, I don’t think it’s market share because I think we’ll still see 10% to 15% growth this year for the entire year. So, we are not coming off that number. I just think it was just the little slower and I think it comes back. And as we look at our forecast for the next two quarters, it looks quite strong again. Jim Suva – Citi: Great. And then switching gears from my follow-up question on the PC sector, with the tablet share gains and a lot of the other manufacturers in the PCs getting more aggressive on pricing, I believe it was, industry was getting close to 3% margins for the PC sector. Now it’s looking like it’s less than that. Does that cause you to reevaluate your efforts there or shift gears or how do you, your executive management team look at something you are going after and that target has now deteriorated it its industry profitability?

Yeah, there is no question the target has deteriorated, Jim, so that’s for sure true. And the way we look at it is and maybe there are some revenue that’s going to coming out of the industry going forward because of tablets and other things. But one thing keep in mind going after that target also enables you to go after tablet as well, so there is a switch in products that are certainly possible and available. But as we think about it, the way we think about it at Flextronics is our computing business on a go forward basis is $4 billion out of whatever you want to call the number. I think the analysts have us down for 32 billion this year. It’s a small part of our business. And it is our objective that, and our objective is to run this diversified portfolio. So, if one market segment like our personal computer starts to deteriorate and become less valuable, hopefully we can switch our energies and effort and put more efforts into another area of the business. So, that’s kind of the objective having diversified portfolio. We are happy that we are not like the PC ODMs that have, could have 60%, 70%, 80% of their business in the personal computer market. And we are fortunate to have the diversified portfolio. But certainly the world is going to change on a regular basis and it is for sure our objective to continually change with it and try to optimize our ability to generate cash and earn a return on our money. Jim Suva – Citi: Thanks for the detail and we look forward to seeing you in a few weeks at your Investor Day.

Thank you.

Our next question comes from Lou Miscioscia with Collins Stewart. Your line is opened. Lou Miscioscia – Collins Stewart: Okay, great. Maybe if you can talk about if you are willing to give a projection for free cash flow for fiscal ’12. Maybe then also tie that back into the buy back in the sense of obviously you’ve just come out with a $200 million one. Is there any chance that the stock is weak, here in the first half that you could materially increase that given the1.75 billion of cash on the balance sheet?

Yes, you have seen us being fairly opportunistic on the price 400 million at $6 I think is a great accretion for us going forward for sure. We generated over 400 million of free cash in fiscal ’11 as expectation to continue those levels of cash generation. I think share repurchases that we may do would he coming out of free cash. And if we weren’t generating the free cash flow we probably wouldn’t be buying back our stock. So that’s the way we look at it. We’ll continue to look at it that way. We have regular dialog with the Board about these issues and to-date you’ve seen us to be pretty active. So, we just got a new program approved by the Board and we just gotten here. So, we’ll look forward to what the year brings and share price etcetera and make our decisions as we go. Lou Miscioscia – Collins Stewart: Okay, but there is no -- in the past at times there have been some restrictions, but there is no real restriction from Singapore law or something else?

No, we have 10% a year allowed. We’ve roughly spent about 6% and so we have enough of the program left to spend the remaining $200 million, which would take you 10% up to about July when we have a new AGM which would re-up another 10% for us. So we have no restrictions in front of us now to repurchase the other $200 million. Lou Miscioscia – Collins Stewart: Okay, great. And realize when we all model and you all give guidance, a lot of it is sequential, but it sounds like from what Mike said that a lot of the business is bouncing back and I realize you’ve given guidance number, but excuse me, in comparison to what the street was modeling before somewhere for June around 7.6. Is there – what is the likelihood or odds that you could actually hit the high end or maybe just go through the dynamics that would get you there, because it did seem like Mike was suggesting a lot of stuff should bounce back pretty quickly?

Yeah, we do. We think that apart from on the consumer and the mobile side, we think there is a strong bounce back on the other sectors, albeit industrial actually had a strong sequential growth anyway in March. So that’s going really well. We’ve given you a wider range this time of some 500 million representative of two things Japan being one which can quantify that in terms of risk to that number. Computing ramp is huge for us and we missed it a little bit in March. We think we’ll get it back in June. So there is some risk there. But no, I think that we’ve come out of this, we realized that we were below the guidance range and we want to make sure we can hit our numbers in the June quarter. So I think the range that we’ve given is appropriate and we will look to end up somewhere in between those numbers I hope. Lou Miscioscia – Collins Stewart: Okay, thanks guys. Good luck.

Thanks.

Our next question comes from Amitabh Passi with UBS. Your line is open. Amitabh Passi – UBS: Okay, thank you. Mike, sorry not too hard from this, but just wondering why should we committed to the computing business, I mean I thought at one point we were looking at breakeven margins at $2 billion, we’re now looking at breakeven around $4 billion. And just wondering what the sort of rationale as to stay committed to this segment? And then related to that at one point I think we were also looking at a 3.5% operating margin goal. Is it more realistic now to essentially assume a 3% type target for the rest of fiscal ‘12?

Yeah, I mean, all I can answer to say kind of the same thing that I said before the world changes, I mean, let’s talk about the computing first. As the world changes, there is different profitability levels associated with this thing. There are different margins. There is new products that come on the marketplace like a tablet that could be disruptive to an existing product category like a PC. And as those things happened, it will be our objective to shift with them. So three years ago we went into the business, the PC market was growing very rapidly and mostly operating margins were 3% and the ROICs in the industry were between 20% and 25%. And being a $30 billion company, we want to go participate in that growth and we thought we should be in it and we said the goal (indiscernible) and then we decided we’ll see where we go from there, because that’s the minimum level required to be in the business with any sort of capability and competence. So as we move forward as the world changes, it doesn’t matter if its competing or if its any of the other businesses as the world changes we’ll evolve with it. And what we are trying to do is in our company, you have to have enough diversification that when the world changes we can go change with it. So I would say we’re committed to the business in so long as we can earn a return on capital that is consistent with the rest of our business. And if we don’t know the return on capital consistent with our business, we’ll spend more time on other markets. So that’s – and that goes the same whether it’s competing or anything else. So as competing comes under pressure, we’ll obviously spend more time trying to understand if whether or not we can earn an appropriate return on capital or not and then move accordingly, but certainly moving more into tablets and other products which may yield a better return we’ll certainly do that. Amitabh Passi – UBS: Okay, but perhaps related to that can you just update us in terms of where you are on tablet opportunities, I mean, there seems to be a slew of them coming to the market, one of your largest mobile customers has already launched one, but I don’t believe you are engaged to that opportunity. So maybe you could just update us where you are at with respect to just the opportunities with tablets?

Yeah, well we delivered one tablet to the marketplace. We’ll deliver a second one to the marketplace somewhere around the October timeframe. So we have kind of two that would be coming out of our ODM design group. But additionally lot of that penetration, we’re getting a lot of penetration in tablets, because the multi-printed circuit board this is the exact same technology that use. So we probably have three or four different tablet manufacturers where we’re building boards for or building flex circuits for or doing power charges for us and also doing services for us. So we’re actually starting to build a very nice portfolio of new wins on the tablet market, in addition to just doing the assembly. So this is actually a more attractive market for us and for our verticals. So, we’re also engaged in the design of products at the same time, so which have – which we’ve been out with one and we’ll be out with the second one shortly. Amitabh Passi – UBS: Okay, thank you.

Our next question comes from Brian Alexander. Your line is open.

Yeah, thanks Mike. I think you said you are still expecting to hit your double-digit growth objectives for FY ‘12. Just wondering if you still expect double-digit growth in all segments ex components, which I think you said last quarter or has the composition of growth changed in terms of individual markets maybe being below double-digits versus a quarter ago and just overall confidence level in getting to double-digit growth given you’re starting the year kind of low double-digits and the comparisons get tougher as we move throughout the year?

Yeah, I would agree. Yeah, at this point we’re driving to have balanced growth. We don’t want everything to be driven by one thing like in computing for instance. We don’t consider that to be selling balanced growth. We drove our businesses last year that every market segment in terms of how they structured their business plans and how they grew is that we expect them to grow double-digits. We think the same thing going forward. We actually think that at this point in time we would like to see every one of our market segments grow in a double-digit format. We’ll probably have some – we may have some more detail on that when we get to the Analyst Day and when we talk a little bit more detail about each of the segments and their strategies. But that’s for sure the expectation at this time is that every one of them grows in the double-digit way.

Okay. And then maybe just a follow-up on computing, but a non-notebook computing question, how much of the revenue shortfall that you saw in the March quarter was driven by other computing area, server storage, etcetera? And when I look at your June quarter guidance, it looks all of the sequential growth in that category is coming from notebooks and what I’m really asking is what are you expecting to see out of the enterprise server storage space for June?

Well, that whole infrastructure business, we actually expect to grow and we would expect the enterprise, where I’m not sure I know the answer of that for June, but we don’t expect it to be down. So, and as far as the March quarter how much of it was out of the first computing market, not as much as you would think. I mean, that was a contribution that like multiple other product category, so all of our downside in revenue in the March quarter was not computing, it was partially computing, but we did have some other softness as you know that we mentioned across infrastructure in other product categories.

Okay. Just one last follow-up, just on profitability, is there anyway you guys could Paul, maybe quantify the total losses that you saw from both the components business and the PC business, so we can just get a sense for how much of a drag that was on operating profits for the quarter?

Yeah, certainly it’s significant for us, lesser on the components side, we saw some improvements from December to March. We were disappointed we didn’t hit the breakeven. We weren’t far short, but we’ve got, we had good progressions through the March quarter on components which is encouraging for June. Computing is having these headwinds Mike talked about. They’re significant. It’s a big program run for us. But I can’t quantify for you the absolute numbers on these areas. It’s not something that we breakout. But, nevertheless it’s closing some headwinds on the margin side for us.

Okay. Thank you very much.

Thanks.

Our next question comes from Craig Hettenbach with Goldman Sachs. Your line is open. Craig Hettenbach – Goldman Sachs: Yes, thank you. Just on the computing market and discussion of tablets as a new category. Any reason to think that market to longer term won’t be challenged in terms of profitability? We’re seeing it originally in desktops and in notebook, just what your thoughts are on that type of categories’ ability to generate attractive margins longer-term?

Well, I think that’s certainly a good thought. But even if like cell phones themselves and I wouldn’t expect them to be any different than a cell phone for example. They actually match the cell phones cost structure and our profitability much more than a computer because they are much less complicated. But if you think about cell phones the profitability on those products and smartphones, and profitability on those products are much less as well, but alternatively the ROIC may be very, very strong. So we still can do, two points profit on the cell phone and if you do 12 inventory turns, it’s still a very, very nice ROIC. So, I think tablets can fall into that category. But I think the attractiveness in tablets to us as well as is we don't have to participate in the assembly which drives the margins down. We can participate where it makes sense. And then hopefully be able to do things like power and printed circuit boards as flex circuits and services and the kind of things that generate higher margins. So that’s kind of our objective and let’s figure how to penetrate the tablet market in a smart way. But I think you can get higher, you could still get a very reasonable ROIC on theses different products. And I think there is way to penetrate and earn money without necessarily doing the assembly and doing the components only. Craig Hettenbach – Goldman Sachs: Okay. And if I could followup just on the commentary on Japan in the prepared remarks mentioned a modest impact and you do have a wider range. Anyway within that wider range whether it’s a percent of sales or anything else to quantify how you are thinking about Japan?

Yeah, as we look through, we obviously track every partner working out of Japan and what the implication is and it continues to get better. So, is there a way to track it? It’s hard for us to say. So, the answer is no. We really can’t. And it’s because the top tier is above, the top tier component supply base is only partially the question is, also but some components. And those are really, really hard to understand how they get impacted and how their capacity is consumed. So I’m uncomfortable putting a range on it except to say we just think it's pretty modest. Craig Hettenbach – Goldman Sachs: Okay, thank you.

Our next question comes from Wamsi Mohan with Bank of America Merrill Lynch. Your line is open. Wamsi Mohan – Bank of America Merrill Lynch: Yes, thank you. Mike, the reasons for the pressure on margin improvement for the components business were somewhat similar to what you mentioned last call as well on inflationary environment, commodity cost increases, rising labor cost. So, now starting with a lower revenue base in absolute dollars versus where you thought you might start of the year, can you give us some more detail around what you are doing more specifically that can give us some comfort on your path to the 4% margin deciding fiscal ‘12 and how linear do you expect that progression to be? Thanks.

So 4%, our first goal and objective is to get us into 3.5%. We think that the business model that we have has penetrated the markets that we are currently after generates, they can generate whatever things run well at 3.5% margin. So that's really our near term target and something that we always hold as a mid-term target. Once you get to 4% you probably need to change the business mix. So, what I mean by that is we can get to 4% but maybe we have to not participate in certain market segments, so we would have to take that away. Now that being said, the important part is to keep the whole return on capital and cash generation in balance and our model is built around the 3.5% when everything runs well and at that 3.5% we believe we can generate a 30% return on capital. In fact we think we can generate a higher return on capital than that. So, if we move to a 4% model then we would have to exit certain businesses. So, in our business you can kind of dial in the operating profit that’s desirable based on the mix of product categories you go after. But that doesn’t mean we can’t go after 3.5% business model that generates higher return on capital in the industry. Wamsi Mohan – Bank of America Merrill Lynch: Right, I guess my question was not on aggregate company margin, but more or so specifically for components.

Components, yes, sorry. So, what we need to do is have 10% growth in Multek and we probably that’s one category. And we see no problem in getting a 10% in Multek at this point in time based on notebook business. Camera modules we just have to run reasonably flat year in terms of revenue and maintain the existing performance in terms of operating yield. So, I think that will fill in and ours a little bit of more of a challenge. We have to continue with the movements to Guangzhou that’s probably another six months. As we do that full transition into Guangzhou and we have to get some price increases for customers, which we are working real hard on and we probably need a little bit of our portfolio shift in that business. We are very heavily weighted in the charger and adaptor market and we need to move that portfolio a little bit more towards the higher end products. This carry a higher margin. So that business has matures need a little bit higher margins. But every one of those activities is in high gear, we believe Multek is probably the easiest to turnaround as mentioned by the 35% growth last year just completely different in last year. Last year we grew that whole business Flextronics came down to grew well over 100%. It grew actually over 200%. The Multek group grew about 35%. The power grew about 25%. There are in heavy growth modes often based that was much lower and our management confidence much lower. Now management confidence a lot higher, we have got major initiatives on the way above moving inland and other initiatives and we have the more stable business environment in front of us and most importantly probably, we have Multek, which is loading up fixed cost kind of base of equipment. So, it’s a little bit different and as a result much more comfortable as we look about what we see going forward, but once again we didn’t see it. We saw execute on it. We saw to have some the demand called in, but we will probably way more comfortable than having many, many more variables eliminated this year than last year. Wamsi Mohan – Bank of America Merrill Lynch: And just a follow-up on that, so you would expect components to sort of be about breakeven next quarter and then can you comment your thoughts on linearity heading sort of through the end of fiscal 12?

Yes, I mean it’s kind of our objective. It will probably be a reasonably linear increase all the way through the year. That’s correct. We expect breakeven next quarter and then we expect to literally improve. We expect the breakeven this quarter, we probably shouldn’t picked March quarter to be call in for the breakeven because March quarter, where we again kind of a seasonally downturn in revenue in those business. A lot of them are feeding the Smartphone market and call phone market and consumer markets. So, a lot of them go down in that quarter. So, June will probably hit the breakeven and then we will probably see a linear upside to four points over the next two quarters. Wamsi Mohan – Bank of America Merrill Lynch: Okay. Thank you.

Operator one last question.

And our final question comes from Shawn Harrison with Longbow Research. Your line is open. Shawn Harrison – Longbow Research: Hi, thanks. Hopefully just a few clarifications. The doubling in the ODM competing business to the $4 billion run rate that’s the September quarter the timeframe or the December quarter.

It occurs over the period from March when we start ramping this all the way through to maybe July. So, over that four month timeframe. Shawn Harrison – Longbow Research: Okay. And then the second, on the components business it gives another side of the equation, it terms like there is a lag going on this year, you are facing some labor rate increases, but I guess you are seeing any supply chain issues right now either with Multek type just input costs or just getting different raw materials from Japan or within the Vista business, where the power supplies business anything there just Japan related disruption that could create a potential hurdle going in to the June quarter.

Well, that’s a hurdle in the March quarter, it’s lot of these labor rates have been going up, but the commodity price increases have been significant and a lot of the components are going up in price. So to me that’s already part of our results in March. It’s for sure going to be part of our results in June and that’s something and so part of it is Japan, but part of it also is just the commodity cost just keep going up. So I think that’s a real term. I think it’s important. It’s a real effect, but it’s already in our March numbers, and for sure, it will carryover to the June and maybe in the September. So this is – we are seeing a reasonably inflationary environment in a lot of different commodities that we buy. Shawn Harrison – Longbow Research: Okay. With those commodities, there is no issue in getting different components that would be either required to make the power supply or the camera module?

Yeah, I mean, there is some. I mean, we are experiencing some trouble getting foiled for example, for like a flex circuit or there are some subcomponents that are getting in the way of our ability to deliver. So these are part of the Japan challenges. We still have hundreds if not thousands of risk items associated with Japan. And partly the implication of that is going to be higher prices as well. So that for sure is something that we are working on on the continuous basis. It’s why we give a wider range. So it’s still a real problem. I just think the response of the marketplace to – as it relates to Japan has been very, very rapid. I think it’s been impressive about how supply chains have moved around. And I think a lot of the risk is coming out of the system. We haven’t seen that impact in terms of revenue yet, because there is probably enough supply in the supply chain that last through May, where they call it a three months window by which we can move those things, move those parts, but I think the risk continues to get lower each month. Shawn Harrison – Longbow Research: Okay, thanks a lot for taking my questions.

Okay, thank you. Kevin? Kevin Kessel – Vice President, Investor Relations: Sure. So, thanks for joining us on our call today. You can access a replay of this call and obtain the transcript on our Investors section of our website which will be posted by tomorrow. As Mike mentioned also we planned to send out registration information for the May 24 Analyst and Investor Day early next week. If you have any questions, please contact me directly. Thank you and this concludes the call.

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