* Benchmark pre-announced the Company anticipates hitting near the higher end of its financial guidance as it prepares to reports upcoming earnings for the quarter. The Company continues to diversify its customer base and has reduced its revenue reliance on EMC from 19% one year ago to roughly 9%, currently. Sun Microsystems still accounts for more than 35% of the Company’s revenues. Benchmark continues to be one of the EMS industry’s leaders in terms of sales growth and margins.
* Lucent Technologies indicated its upcoming quarterly financials would be lower than anticipated. Company management cited weakness in the US wireless business; customer consolidation, and slower sales in China. The announcement could likely have a negative impact on near-term financial performance for Celestica and Solectron. Both EMS providers earn revenue contributions from work with Lucent at 8% and 5% of total revenues, respectively.
* Solectron Corporation related quarterly earnings near the high end of expectations. However, the Company’s bottom line still needs work. Management announced some cost-cutting measures will be addressed to help bottom line performance. It is believed this will involve some manufacturing-related restructuring. Most manufacturing square footage is still located in the higher cost, US region.
* Jabil Circuit is focused on trying to gain composure from its recent management slip. The Company announced a stock buyback which some believe is a positive sign of management’s ability to recover from the missteps.
VentureOutsource.com, July 2006
Comments