SAN JOSE – Multek's June quarter revenue declined sequentially, but is expected to grow more than 15% over the next three quarters, the company's parent said this week.

Multek was profitable in the electronics manufacturing services company's fiscal first quarter, said Flextronics CEO Mike McNamara, adding that incremental improvement is expected over the next three periods.

Flextronics doesn't break out revenue for Multek, which analyst Dr. Hayao Nakahara of N.T. Information estimates was $910 million in calendar 2010.

Multek is part of the company's Components business, which generates about $600 million per quarter. The unit's overall margin was 3.5% during the quarter, but its FlexPower and Display segment was "just below" breakeven, suggesting that Multek's profit margin was likely above 11.5% for the period.

Flextronics reported fiscal first-quarter net sales of $982 million, up 15% year-over-year. GAAP net income increased 12% to $132 million for the period ended June 30.

“Every one of our four core business groups grew double digits year-over-year, and our revenue marked the second highest June quarter in our history. We expect our revenue growth to continue next quarter,” said McNamara.

During the quarter, the company's PC ODM business tallied a $19 million operating loss on $653 million in revenue. Flextronics expects to completely exit the PC business by the end of December quarter due to the low margins.

During the June quarter, the company completed its third $200 million dollar share buyback program.

For the second quarter, revenue is expected to be in the range of $7.6 billion to $8 billion. Flextronics sees strength ahead in telecom infrastructure and storage. Softness is expected in capital equipment and office equipment. Medical, automotive, aerospace and defense are forecast to grow in the mid single-digits sequentially.

The company said labor costs rose about 20% on average this year.