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To: Johnny Canuck who wrote (34244)	9/18/2001 3:44:05 AM
From: Johnny Canuck	Read Replies (1) \| Respond to of 67997

SLR still reporting weak PC and telecom sales. Gross margins under pressure due to lower volume production. ***************** Monday September 17, 9:00 pm Eastern Time Solectron reports large Q4 loss (UPDATE: Adds notes from conference call, updates with closing stock price) By Ben Berkowitz LOS ANGELES, Sept 17 (Reuters) - Solectron Corp. (NYSE:SLR - news), the world's largest contract electronics manufacturer, reported a steep fiscal fourth-quarter loss on Monday because of restructuring charges and weak demand from brand-name manufacturers of computers and communications gear. . . . ``I thought the numbers were pretty good,'' said Herve Francois, an analyst at Credit Suisse First Boston who covers the contract manufacturing industry. In particular, Solectron's progress in reducing excess inventories was better than investors had expected, he said. Solectron's fourth-quarter sales fell more than 23 percent to $3.6 billion from $4.7 billion last year. They were 10 percent lower than the $4 billion in sales during the third quarter. For the quarter, Solectron's biggest source of revenue was PC manufacturing, at 23 percent, followed by networking equipment at 21 percent and telecoms equipment at 18 percent . . . Gross profit margins were squeezed during the quarter as low-margin personal computer-sector sales rose, while higher-margin areas such as telecommunications saw a drop in activity. Margins are expected to improve in the coming year as restructuring efficiencies take hold, the company said. Solectron said it expects continued softness in the first half of the fiscal year as there is little evidence of near-term improvement in end markets. biz.yahoo.com