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Strategies & Market Trends : Electronic Contract Manufacture (ECM) Sector -- Ignore unavailable to you. Want to Upgrade?

To: kolo55 who wrote (987)	12/17/1997 4:33:00 PM
From: 18acastra	Respond to of 2542

Next Level Systems announced a huge deal with TCI today for set-top boxes. Stock went from 15 to 17 7/8. Any idea who makes the boxes for Next Level?

To: kolo55 who wrote (987)	12/17/1997 7:39:00 PM
From: 18acastra	Read Replies (2) \| Respond to of 2542

Think I got the answer to my own question: Jabil is the likely suspect for Next Level set-top boxes. The Next Level announcement indicates 5mm-10mm set-top boxes over the next 3-5 years. Being conservative, assuming 5mm boxes over 5 years at $50/box mfg. cost = $50mm revenue/year and at $100/box mfg. cost =$100mm revenue/year. Unfortunately, my price/unit data is a blind guess. Do you have any insight/guesses here (also not completely positive that it is Jabil who does set top boxes). The other issue is whether or not this business is already included in the revenue/earnings guidance Jabil has been giving out or if it is incremental. I have no idea about this either. Wonder if Flextronics opportunity with Web TV is similar? My opinion/guess.

To: kolo55 who wrote (987)	12/17/1997 10:54:00 PM
From: patroller	Read Replies (1) \| Respond to of 2542

Here,s A little tid bit .patroller Electronics contract manufacturer (ECM) Jabil Circuit (Nasdaq:JBIL - news) followed up on Solectron's (NYSE:SLR - news) performance yesterday and topped it. Jabil gained $4 3/8 to $41 1/2 on reporting record Q1 EPS of $0.49, beating the mean analyst estimate of $0.48 a share. Revenues grew 5% sequentially and 57% year-over-year, while EPS grew 4.3% sequentially and 116% year-over-year. Company President Thomas Sanson reiterated guidance that Jabil sees compounded annual growth in EPS of 30%, or 7% sequentially, going forward. Sanson also said, "We think the fear in financial markets is overstated and is painting the electronics industry with too broad a brush," explaining that very little of the company's end-user demand comes from eastern Asia. That also could be said for many so-called "tech stocks," but the question is more one of supply than demand. As long as Jabil can keep ahead of the supply curve (producing at prices that meet the market with a minimum of invested capital), it will continue to keep its place as the Dell of the contract manufacturing sector. (For a spreadsheet on the electronics contract manufacturing