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Technology Stocks : Jabil Circuit (JBL) -- Ignore unavailable to you. Want to Upgrade?

To: B Hewson who wrote (2363)	1/5/1998 8:50:00 AM
From: Fenton White	Read Replies (2) \| Respond to of 6317

There are so many... For example from the 10-Q DEPENDENCE ON A LIMITED NUMBER OF CUSTOMERS For the fiscal year ended August 31, 1997, the Company's three largest customers accounted for approximately 56% of net revenue and 18 customers accounted for substantially all net revenue. 3Com Corporation ("3Com"), Cisco Systems, Inc. ("Cisco"), and Hewlett Packard Company ("Hewlett Packard"), accounted for approximately 21%, 20%, 15% of net revenue, respectively. The Company expects to continue to depend upon a relatively small number of customers for a significant percentage of its net revenue. Significant reductions in sales to any of the Company's large customers would have a material adverse effect on the Company's results of operations. In the past, some of the Company's customers have terminated their manufacturing arrangement with the Company, and other customers have significantly reduced or delayed the volume of manufacturing services ordered from the Company. There can be no assurance that present or future customers will not terminate their manufacturing arrangements with the Company or significantly change, reduce or delay the amount of manufacturing services ordered from the Company. Any such termination of a manufacturing relationship or change, reduction or delay in orders could have an adverse effect on the Company's results of operations. See "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "BusinessCustomers and Marketing." 3COM is adjusting all of its inventory. JBIL statement is: we do not make any of the modems that 3 com is adjusting inventory therefore the modem inventory adjustments will not adversely impact JBIL bottom line. [They did not address the other items that JBIL makes for 3 com and the push back of those specific products.] JBIL said that 3com will continue to account for 20-21% of net revenue. If, for example, you have a 30 day pushback in AR/orders and prices for your products decrease 10-15% due to competition 3com could still account for 21% of net income while return to the investor shrinks 20-25% Regards, Fenton PS look at PCWORLD price comparisons for components over the past 12 months. JBIL officers did not lie, they told specific truths. They Clintonized their report.

To: B Hewson who wrote (2363)	1/5/1998 8:55:00 AM
From: Caroline	Respond to of 6317

If Fenton answers your question, I, for one, will be jealous. I asked that question two or three times, nada. I believe he is implying that Jabil has a small customer base. If I remember, about 12-15 customers make up 99% of JBIL's revenues. Somewhere between the 10-K and 3COM & QNTM statements, Fenton implies there's a mismatch of potential. Neither is "lying," but JBIL & its customers are not saying the same thing. I have yet to find it. Only Fenton has found it. If that's what he's saying. 3COM says it has a slow-down in modems; Jabil says its 3COM business doesn't come from that modem revenue stream. Quantum says it has a slow-down in disks; Jabil says its Quantum business comes from tape, which is unaffected. Go figure.