EMS FIRM HURT BY WEAKER LEXMARK

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EMS FIRM HURT BY WEAKER LEXMARK

 user 2005-08-16 at 8:05:00 am Views: 53
  • #12612

    EMS Firms Hurt By Weaker Lexmark, Artesyn Guidance
    In a review of the
    electronics manufacturing services (EMS) industry, Credit Suisse First Boston
    said Flextronics International  could see weaker printer numbers after
    Lexmark recently reported lower second-quarter revenue, citing difficult
    conditions in the printer market.
     
    “[Lexmark] Management guided third-quarter year-over-year revenue growth of
    low single-digits, also below consensus. Impact: Could indicate similarly
    negative demand read for HP inkjets, which are 8% to 10% revenue for
    Flextronics.”
     
    Flextronics, rated by CSFB at “outperform” with a $16 price target, reports
    fiscal first-quarter results today after the close of trading.
     
    The research firm also noted that guidance from Artesyn Technologies 
    may indicate weaker demand for wireless infrastructure products. Artesyn said
    second-half revenue growth would range from 8% to 10%, compared with the
    consensus forecast of 18%, according to CSFB.
     
    “Artesyn stated wireless customers are reducing demand due to 3G rollout
    delays in North America and China. Impact: Confirmation of 3G wireless
    infrastructure delay is negative for EMS wireless infrastructure
    exposures