SAN JOSE -- Flextronics' Components business is once again on the wrong side of breakeven, and the company is relying on layoffs and plant closures to narrow the gap.

The unit, which includes printed circuit board fabricator Multek, is undergoing yet another restructuring, one that is expected to last two more quarters. Flextronics took $8 million in charges in the December quarter related to restructuring the unit, and expects to take a total of $25 million in charges through the next two quarters.

On a Jan. 19 conference call with analysts, company officials stressed most of the work to be done is in the Power Solutions division. They expect the overall Components unit to be operationally profitable by the June quarter.

To get to profitability, Flextronics plans to close at least three factories in the power business and one in camera modules. The firm did not disclose any plans to shutter plants in its printed circuit operations.

Flextronics has a long-range profit goal of 4% for the business unit.

Base revenues for the unit are about $500 million a quarter. Multek is at about 70% to 75% capacity utilization, the company said, adding that the PCB unit should reverse the typical slower seasonal growth in the current quarter.

Still, analysts pressed Flextronics to explain why Components hasn't been able to attain consistent profitability, and questioned whether vertical integration is in the company's best interests.

Asked by Amitabh Passii of UBS whether Flextronics would consider exiting its Components business, CEO Mike McNamara acknowledged the notion could not be dismissed. "I think we’d always consider all the strategic options open to us. So I don’t ever think we would just not consider the possibilities of doing other things. Bookings have been exceptionally strong this quarter ... across the whole component portfolio. But I think we for sure will look at the possibilities of what other strategic options we have available to us."

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