UPDATE 1-Celestica forecasts profit below estimates, post-RIM exit

Tue Jan 22, 2013 4:58pm EST

Jan 22 (Reuters) - Contract electronics manufacturer Celestica Inc forecast worse-than-expected revenue for the three months ending March, which would be the first quarter for the company after it stopped making products for Research in Motion .

Celestica said on Tuesday that it expects first-quarter adjusted profit of between 11 and 17 cents per share. It forecast revenue of $1.325 billion to $1.425 billion.

The company recorded revenue of $1.69 billion in the first quarter of 2012, 19 percent of which came from RIM.

Analysts on average were expecting an adjusted profit of 16 cents per share on revenue of $1.43 billion, according to Thomson Reuters I/B/E/S.

The company said it completed its manufacturing services for RIM - once its biggest customer - and related transition activities by the end of 2012.

Celestica said last June that it would stop making products for RIM.

Celestica, which makes servers and other products for branded manufacturers such as IBM and Cisco Systems Inc , also said it expects to take a charge of between 7 and 13 cents per share on restructuring, amortization of intangible assets and stock-based compensation.

Net income fell to $7.2 million, or 4 cents per share, in the fourth quarter from $69.2 million, or 32 cents per share, a year earlier.

Celestica, which competes with Plexus Corp and Benchmark Electronics, earned $50.3 million or 25 cents per share, excluding items.

The company took a restructuring charge of $16.7 million related to winding down its manufacturing services for RIM.

Revenue fell 15 percent to $1.50 billion, consistent with the company's forecast of between $1.43 billion and $1.53 billion.

Revenue from RIM, which contributed 19 percent of the company's 2011 revenue, was minimal.

Analysts expected the company to earn 19 cents per share on revenue of $1.48 billion.

A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

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