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To: StanX Long who wrote (9104)	3/21/2003 1:33:06 AM
From: StanX Long	Respond to of 95598

Solectron to Cut 12,000 More Jobs; Sees 3rd-Qtr Loss (Update4) By J. Kyle Foster quote.bloomberg.com 03/20 19:50 Milpitas, California, March 20 (Bloomberg) -- Solectron Corp., the world's No. 2 maker of electronics for brand-name companies, will fire an additional 12,000 workers. The company forecast its ninth straight quarterly loss, and the shares fell 8.8 percent. Solectron predicted a third-quarter loss, excluding some costs, of 1 cent to 4 cents a share and said sales in the quarter ending in May will be $2.6 billion to $2.9 billion. The company, which had 75,000 employees in December, was expected to earn 1 cent on sales of $3.1 billion, the average Thomson Financial estimates. ``I am not pleased to deliver this guidance, but it is where we are today,'' Chief Executive Officer Michael Cannon said on a conference call. Cannon joined Solectron as CEO 11 weeks ago. ``There is more work to be done.'' The job cuts are on top of 40,000 firings already completed since 2001 and previously announced plans for another 1,000 by the end of August. Solectron, which assembles computers and networking gear for companies such as Hewlett-Packard Co. and Cisco Systems Inc., has closed plants and moved production to lower-cost regions as clients have scaled back orders. Solectron shares fell 30 cents to $3.11 in extended trading after the report. They had dropped 7 cents at 4 p.m. in New York Stock Exchange composite trading and have declined 59 percent in the past year. ``It's difficult to get excited about this stock,'' Needham & Co. analyst Jesse Pichel said in an interview. Pichel, who rates Solectron shares ``hold'' and doesn't own them, said the job cuts may take a year to complete. Solectron had a net loss of 35 cents a share on sales of $3.03 billion in the year-earlier third quarter. Second Quarter The company also will eliminate 3 million square feet of manufacturing space. The consolidation and job cuts will cost about $300 million over the next ``several quarters,'' Chief Financial Officer Kiran Patel said on the call. Solectron's second-quarter loss declined to $110.8 million, or 13 cents a share, in the period ended Feb. 28 from $126 million, or 15 cents, in the same period a year earlier. Sales fell 5.3 percent to $2.82 billion from $2.97 billion, it said. The company said in December that sales would be $2.8 billion to $3 billion. Analysts surveyed by Thomson Financial expected sales of $2.95 billion. Excluding some costs, Solectron said it would have had a loss of 1 cent a share, matching the average estimate of analysts surveyed by Thomson Financial. The Milpitas, California-based company is cutting more expenses, ``streamlining the management structure,'' and replacing some computer systems, Cannon said. `Still Awful' ``Business is still awful and they just have too much capacity,'' Needham's Pichel said of Solectron and rivals such as Flextronics International Ltd., the world's largest maker of electronics for other companies. Lucent Technologies Inc. has said it ended a contract with Solectron. Solectron will lose about $500 million in annual revenue from Lucent and an unidentified video-game console maker after this quarter, Patel said. Lucent halted a three-year agreement for Solectron to build fiber-optic cable, which provided $50 million in revenue each quarter. The video-game company contract was worth $70 million a quarter, Patel said. ``Here they are closing plants and then lose $500 million in business,'' Pichel said. ``It's a moving target that these contract manufacturers are constantly chasing.''

To: StanX Long who wrote (9104)	3/21/2003 10:16:54 AM
From: Return to Sender	Read Replies (1) \| Respond to of 95598

From Briefing.com: AMAT Applied Materials cut to Neutral at UBS on valuation; target $15 (14.18 +0.27) 9:32AM KLA-Tencor: AMAT posture in PDC is a growth risk factor (KLAC) 40.45 +0.70: CIBC World Mkts says competitor AMAT took an aggressive process diagnostic & control posture at its analyst meeting: co announced plans to launch 3 new inspection platforms head to head with KLAC by year end. While KLAC still dominant in PDC, a broader front from AMAT will at very least cause order postponement, demand for discounts from customers; believes AMAT plans 20%-30% lower pricing 7:42AM Intersil and Broadcom to benefit from Cisco acquisition - Lehman : Lehman believes that CSCO's purchase of Linksys is a positive for ISIL and BRCM, as CSCO's presence will likely accelerate SOHO WLAN mkt growth; for ISIL, firm thinks this could allow the co to gain back some share in 802.11g as CSCO dual-sources .11g chipsets, and for BRCM, this should reinforce the strong BRCM/CSCO relationship in Ethernet which previously did not crossover into wireless LAN. Firm also believes that MRVL should benefit as well. 7:07AM Microtune 'victorious' in Broadcom infringement case (TUNE) 1.72: Announces that a U.S. District Court jury has found in favor of Microtune in its patent infringement dispute against Broadcom (BRCM). The jury found that Microtune's patent No. 5,737,035 was valid and that Broadcom is infringing. The jury also found that Broadcom's infringement was willful. Microtune anticipates that the Court will schedule a hearing within 30 days to consider the issues of granting an injunction with respect to the infringing tuners and to determine the amount of damages to enter based on the jury's determination of infringement and validity of the '035 patent. 6:54AM ATI Tech beats by $0.02 (ATYT) 4.54: Reports Q2 (Feb) earnings of $0.04 per share (ex-items), $0.02 better than the Multex consensus. Revs rose 19.7% year/year to $318.5 mln vs the $292.0 mln consensus. For Q3, co sees revs in the $300 mln range ($298.53 mln). finance.yahoo.com^SOXX+ALTR+AMAT+AMD+ATYT+BRCM+INTC+ISIL+KLAC+LLTC+LSCC+LSI+MOT+MRVL+MU+MXIM+NSM+NVLS+TER+TUNE+TXN+XLNX+^IXIC+^NDX+^SPX+^VIX+^VXN+^STI.N+SMH&d=t