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

To: Rosemary who wrote (3318)	3/18/1998 5:12:00 PM
From: OldAIMGuy	Read Replies (1) \| Respond to of 6317

Hi Rosemary, My outstanding order to buy more shares of JBIL filled this AM. That adds about 13% to my holdings and the order filled at $33-1/2. That price is lower than my initial starting point and is also a happy discount from my last small sell of about 33%. That cash reserve I'm always talking about feels pretty good today! It's also quite handy to have some buying power when we need it. If the price stays under $34+ for another week, I'll add some more to my position. Best regards, Tom

To: Rosemary who wrote (3318)	3/18/1998 5:23:00 PM
From: Douglas V. Fant	Read Replies (1) \| Respond to of 6317

Rosemary, I picked apart HDCO's customer list last week. I was surprised to find that 34% of HDCO's revenues came from major telecommunications customers including Lucent and Northern Telecomm. Since HDCO manufactures for JBIL, I wonder what part of JBIL's customer base is not linked to the boxmakers... Let me see if any SEC filings list major customers.... Sincerely, Doug F.

To: Rosemary who wrote (3318)	3/18/1998 5:40:00 PM
From: Douglas V. Fant	Respond to of 6317

Rosemary, Here's the industry segment/ customer breakdown for JBIL from JBIL's 12/1/97 SEC Form 10-K (Annual Report): CUSTOMERS AND MARKETING The Company's revenue was distributed over the following significant industry segments: SIGNIFICANT INDUSTRY SEGMENTS <TABLE> <CAPTION> YEAR ENDED AUGUST 31 -------------------- 1995 1996 1997 ---- ---- ---- <S> <C> <C> <C> Communications....................................... 20% 30% 51% Personal Computers................................... 46% 36% 21% Computer Peripherals................................. 23% 25% 16% Automotive and other................................. 11% 9% 12% </TABLE> 6 <PAGE> 8 A small number of customers have historically comprised a major portion of the Company's net revenue. The table below sets forth the respective portion of net revenue for the applicable period attributable to customers who accounted for more than 10% of net revenue in any respective period: PERCENTAGE OF NET REVENUE <TABLE> <CAPTION> YEAR ENDED AUGUST 31 -------------------- 1995 1996 1997 ---- ---- ---- <S> <C> <C> <C> Hewlett Packard Company.............................. 28% 20% 15% NEC Technologies, Inc................................ 14% 15% * Quantum Corporation.................................. 17% 23% 10% 3Com................................................. * 11% 21% Cisco Systems Inc. ................................. * 10% 20% * less than 10% of net revenues </TABLE> In fiscal 1995, 1996 and 1997, 18 customers accounted for substantially all the Company's net revenue. The Company expects to continue to depend upon a relatively small number of customers for a significant percentage of its net revenue. Significant reductions or delays 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 or that the Company will not terminate arrangements with customers. Any such termination of a manufacturing relationship by the Company or its customers or change, reduction or delay in orders could have a material adverse effect on the Company's results of operations. See note 8 of Notes to Consolidated Financial Statements. The Company has pursued diversification of its customer base and sought multiple customers in the markets it serves. The Company's principal sources of new business are the expansion of existing relationships, referrals, and direct sales through its 32 business unit managers and executive staff. The Company does not rely on sales or manufacturers' representatives. Business unit managers, supported by the executive staff, identify and attempt to develop relationships with potential customers who meet a certain profile. This profile includes financial stability, need for technology-driven turnkey manufacturing, anticipated unit volume and long-term relationship stability. Unlike traditional sales managers, business unit managers are responsible for ongoing management of production for their customers.