From a ML report
H-P is one of the largest outsourcers of the production of electronic
equipment and is a greater than 10% customer for Celestica, Jabil Circuit,
SCI Systems and Solectron.
H-P?s October Rebound
As one of the largest outsourcers of electronic equipment to
the EMS industry, business trends at Hewlett Packard often
impact the EMS stocks. Celestica, Jabil Circuit, SCI Systems
and Solectron combined have or are estimated to derive about
$5 billion in F1999 revenue from Hewlett Packard. SCI
Systems generated 37% ($2.48 billion) of its F1999 revenue
from H-P, Jabil Circuit 25% ($500 million), Celestica 20%
(i.e., first 9-months of 1999; $1.0 billion estimate for 1999)
and Solectron 11% ($923 million).
Although, H-P warned of lower than expected UNIX server
sales about a month ago, the company saw UNIX orders
grow by double digits in October. Although, NT server and
other server lines were essentially flat. We believe Celestica,
Solectron and SCI Systems are all involved in workstation
and server programs with H-P. |
