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

To: ccryder who wrote (2412)	1/12/1998 9:20:00 AM
From: Fenton White	Read Replies (2) \| Respond to of 6317

SCI just entered into a contract with HWP... Guess what: DEPENDENCE ON A LIMITED NUMBER OF CUSTOMERS For the fiscal year ended August 31, 1997, the [JBIL}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." Regards, Fenton