Solectron meets Wall St. projections in first fiscal quarter

CEM giant Solectron Corp. met analysts' high expectations this week, reporting record revenue for the first quarter of fiscal 2000, ended Nov. 26. Solectron's first-quarter revenue was $2.5 billion, a 28% increase over the first quarter of fiscal 1999. Net income for the quarter was $98 million, up 53.4% from the year-ago period.

Solectron's first-quarter sales on a geographical basis were 60% United States, 14% Latin America, 13% Europe, and 13% Asia.

Company executives anticipate that Solectron's fiscal 2000 revenue will range between $14 billion and $14.5 billion, with further expansion opportunities waiting to be tapped in China, Mexico, and Romania.

A pending transaction with Ericsson would allow Solectron to expand further in Europe, specifically in Sweden and France.

"We continue to win a good share of business in the telecommunications market, mobile phones, as well as datacom. In the PC area, we have lots of notebook business and some of the server business is strong," said Susan Wang, Solectron's chief financial officer and senior vice president."We feel confident that the second half of fiscal 2000 will repeat the company's pattern of being stronger than in the first half."

The world's largest contract electronics manufacturer, Solectron, Milpitas, Calif., provides a full range of integrated supply-chain solutions. The company has more than 42,000 employees in 38 locations worldwide, and more than 8 million sq. ft. of manufacturing capacity.