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UPDATE 1-Blackberry contract loss weighs on Celestica sales
July 26, 2013 / 1:40 PM / 4 years ago

UPDATE 1-Blackberry contract loss weighs on Celestica sales

* Revenue declines 14 percent

* Sees third-quarter adjusted profit of $0.17/share-$0.23/share

* Second-quarter adjusted profit falls 18 pct

* Expects third-quarter revenue of $1.43-$1.53 billion

July 26 (Reuters) - Canadian contract electronics manufacturer Celestica Inc reported a 14 percent drop in quarterly revenue due to the loss of a contract with BlackBerry Ltd.

The consumer business, which included sales from BlackBerry last year, accounted for 7 percent of total revenue, down from 21 percent last year.

Sales at the communications business, the company’s largest, rose 12 percent to $627 million, accounting for 42 percent of overall revenue. The business makes networking equipment for telecom companies.

Total revenue fell to $1.50 billion in the second quarter From $1.74 billion a year earlier.

Toronto-based Celestica makes servers for manufacturers such as IBM, Cisco and Juniper Networks Inc .

Its products are also used in aerospace and defense electronics, data storage devices and healthcare products for diagnostic imaging.

The company’s net income in the second quarter rose to $28.0 million, or 15 cents per share, from $23.6 million, or 11 cents per share, a year earlier. Adjusted profit fell 18 percent to $38.6 million, or 21 cents per share.

The company expects an adjusted profit of 17 cents to 23 cents per share for the third quarter on revenue of $1.43 billion to $1.53 billion in the third quarter.

Analysts were looking an adjusted profit of 20 cents per share, on revenue of $1.51 billion, according to Thomson Reuters I/B/E/S.

Shares of Celestica closed at C$9.78 on the Toronto Stock Exchange on Thursday.

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