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WASHINGTON -- The Institute of Supply Management on Monday morning is expected to release data showing an improved June manufacturing index, and on Friday, the Labor Department is expected to report a stable unemployment rate.
The numbers, if accurate, suggest the economy is recovering after a first quarter dip.
MILPITAS, CA – Solectron Corp. reported net income for the third quarter fell 71% to $42 million year-over-year.
The company’s sales were $2.99 billion for the quarter, an increase of 3% over the previous quarter, and an increase of 10% year-over-year.
A rebound in sales to Cisco following its Lean initiative and share gains from Celestica drove the sequential increase, said analyst Carter Shoop of Deutsche Bank. Excluding Cisco, Solectron's sales were off 4% sequentially. Consumer electronics sales dropped 15% sequentially and 6% versus last year.
The company’s sales were $2.99 billion for the quarter, an increase of 3% over the previous quarter, and an increase of 10% year-over-year.
On June 4, Flextronics announced it would acquire Solectron. The merger agreement has been filed with the SEC. The transaction is expected to close in the fourth quarter. In a conference call with analysts last night, Solectron did not provide guidance or details on the pending acquisition.
A rebound in sales to Cisco following its Lean initiative and share gains from Celestica drove the sequential increase, said analyst Carter Shoop of Deutsche Bank. Excluding Cisco, Solectron's sales were off 4% sequentially. Consumer electronics sales dropped 15% sequentially and 6% versus last year.
The operating margin was 1.3%, up 0.l points sequentially. Gross margins fell 0.2 points. Inventory days fell one day to 58 days.
VANCOUVER – Creation Technologies, a top 50 EMS provider, plans to acquire Taytronics Inc. of St. Peter, MN. The acquisition will provide Creation with a second facility in the central U.S. and is expected to be finalized July 29. Other financial details were not disclosed.
