UPDATE 1-Celestica revenue falls on soft demand for communications equipment
* Reports earnings of $0.20/share, in line with est
* Revenue falls 4.4 pct to $1.31 bln, below est
* Expects demand volatility in 2nd-half of 2014 (Adds second-quarter forecast, details, share move)
April 23 (Reuters) - Canadian contract electronics manufacturer Celestica Inc reported lower-than-expected first-quarter revenue due to weak demand for its communications and server equipment, and said it expected demand to remain volatile.
Celestica, which makes products for companies such as IBM Corp and Cisco Systems Inc, forecast second-quarter revenue to fall about 5 percent to $1.38-$1.48 billion.
It also forecast adjusted earnings of 20-26 cents per share.
Analysts on average were expecting earnings of 22 cents per share on revenue of $1.43 billion.
The company, which has been trying to come out of a restructuring after losing Blackberry Ltd contracts in 2012, reported a bigger-than-expected 10 percent fall in revenue from its communications business in the first quarter.
Celestica's server business, which contributed 10 percent to total revenue, fell 43 percent in the quarter ended March 31. The communication unit contributed 40 percent to total revenue.
Revenue fell 4.4 percent to $1.31 billion. Analysts on average had expected $1.36 billion, according to Thomson Reuters I/B/E/S.
Celestica's net profit, however, more than tripled to $37.3 million, or 20 cents per share, from a year earlier when it took a restructuring charge of $7.3 million.
It received $2.5 million as recoveries from settlement of class action lawsuits in the latest first quarter.
The company competes with AT Automation Tooling Systems Inc , Plexus Corp and Benchmark Electronics Inc .
Celestica's shares were up about 1 percent at C$12.29 on the Toronto Stock Exchange in early trading. The company's U.S.-listed shares were up less than 2 percent at $11.13. (Reporting by Sneha Banerjee and Shubhankar Chakravorty in Bangalore; Editing by Don Sebastian)
- Exclusive: Angry with Washington, 1 in 4 Americans open to secession
- U.S. Secret Service investigates after man jumps White House fence, reaches doors
- French jets strike in Iraq, expanding U.S.-led campaign against Islamic State |
- Alice, steampunk and a false name: enigma of an American jailed in North Korea
- North Korea says imprisoned American tried to become 'second Snowden'