Electronic Contract Manufacture (ECM) Sector Message Board

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Strategies & Market Trends : Electronic Contract Manufacture (ECM) Sector

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To: G.M. Flinn who wrote (2441)	9/13/2000 10:38:45 AM
From: MGV	Read Replies (2) of 2542

After the CC, it clearly is more of a company specific than industry wide problem. To answer a few of the questions asked in prior posts - consumer elec. is largely set top boxes. It appears this biz. fell substantially in Q1 - down by as much as 75-80% below expectations. The explanation was all of seasonal weakness, a design issue inhibiting ramp w/ a NOK program, and components inhibiting ramp of other new programs. They indicated the set top biz. accounted foro 50-70% of the $300 million total short fall. That means the finished PC biz accounted for 30-50%. "Finished PC" was explained to mean finished boxes sold into the consumer retail outlets. They maintained guidance for the full year at 10.5 billion - indicating that comm. biz is robust - NT very strong. They also claim record backlog. The biggest issue is the set top box biz and how it could fall so much in 1 Q. They claim they have lost no biz. To the extent other EMS' are selling off in sympathy, they become more attractive. That said, down 15 for SCI is overdone - though it will ytake longer than others to rebound in all likelihood.

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