Original Source: FD (FAIR DISCLOSURE) WIRE
LOUIS MISCIOSCIA, ANALYST/MODERATOR, COWEN AND COMPANY: Okay, great. This is Lou Miscioscia, Cowen & Company, I am the EMS and Enterprise Hardware analyst here. I've got Mike McNamara, the CEO of Flextronics, I want to present. Mike is going to go through about 10 slides, then I will go through and ask some questions of Mike and then we will open it up to you all.
Mike actually came in as prior CEO. Michael Marks retired or moved on to be Executive Chairman a couple of years ago, and since then I think Mike McNamara has really done a very good job of refocusing Flextronics to what I would call a core EMS vertical operation whereas before I think some investors were maybe unhappy with some of the tangents like the software and services and the other things. But I think that Mike has pulled that all back in and done some good acquisitions. Obviously it has shown up in the numbers as the Company is growing to $20 billion-plus of revenue and posting some pretty decent performance here. So let me pass it over to Mike and then I will be back in a minute.
MIKE MCNAMARA, CEO, FLEXTRONICS: Good morning, thanks Lou. I'm going to go ahead through some of these slides pretty quickly. We focus our company on design, build and ship, so being a complete EMS contract manufacturer. In the design piece, we have we have about 3000 design engineers in a variety of different product categories. We have added almost 1000 design engineers over the last 12 months.
On the manufacturing front, we have very, very large operations. We have almost 140,000 people worldwide. We have large printed circuit boards operations of about a $700 million business. We have one of the largest plastics businesses in the world at about 1600 molding machines. We have one of the largest mechanical -- sheet metal mechanical businesses in the world and a very, very large assembly business. And then in our logistics business, we probably have close to 5 million square feet and over 4000 employees doing logistics, reverse logistics, refurbishment and a variety of different other services. So a very broad, very big diversified company.
We have production in over 30 countries on five continents. I mentioned earlier that we had about 140,000 people. I don't know why that's not coming up, but there's supposed to be little dots all over the place. But you can imagine now many dots we'd have. We have about 140,000 people, about 70,000 are in China. It gives us a huge scale when competing against the Taiwanese competitors that have come up over the last years. We have about 85% in the low cost regions and we actually have -- this is a tremendous footprint by which to go and compete with around the world.
We have built our business into a variety of different market segments. So it is our objective to build a very, very diversified portfolio of different industries and different customers, and by this it's a natural diversification, if you will. So we have divided our company into these seven segments -- Automotive, Computing, Consumer Digital, which is more like something you would see at Wal-Mart or CompUSA; Industrial, Infrastructure, Medical and Mobile. And by dividing the Company into these different segments, it allows us to focus and grow within each one of these different segments.
Over the last year in every one of these categories with the exception of Computing, we grew at double-digit rates and Computing this year we expect to grow well -- it didn't grow double-digit rates last year; we do expect it to grow about 40% this year. So we had quite a bit of restructuring to do in Computing in terms of our service offering and product offering and we spent a lot of time last year working on that and we should see a tremendous growth this year as a result.
The EMS industry has a lot of different growth rates. What I have up here is 13%. This is a combination of the EMS and ODM business. So you can see -- and this is a source, it's out of the Gartner Group. The business that we are in tends to be a high-growth business. It's one of the positives about being in the EMS industry. We view this as being an opportunity to go compete and we have taken advantage of this. So we try to participate in all of these different market segments and be able to go drive that.
In terms of profits and revenue, over the last quarter, March quarter, we grew 32% year-over-year. On an operating profit standpoint, we grew 36% over the -- year-over-year in the last quarter. On a yearly basis, you can see the trend chart on the left is the revenue. The revenue went up 23% last year from 15.3, up to 18.8, and then this year we have signaled that we expect our long-term growth rates to be around the 10% to 15% compounded annual growth rates. On operating profit, we grew 21% [to] last year, and this year we are expecting about a 15% to 20% operating profit improvement.
In quarterly margins, our gross …