Jan 22 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
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
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
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.