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News > Technology
SCI warns of shortfall
September 13, 2000: 10:09 a.m. ET

Electronics manufacturing service says 1Q, 2Q earnings won't meet forecasts
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NEW YORK (CNNfn) - SCI Systems Inc., an electronics manufacturing service whose clients include the U.S. Government, warned its first-quarter earnings won't meet Wall Street expectations.

The Huntsville, Ala.-based company warned its fiscal first-quarter sales will be about $2 billion, short of the $2.3 billion it expected, leading to quarterly earnings of about 34 cents a share. The company and Wall Street analysts polled by First Call expected 38 cents a share.

graphic"Seasonal weakness in demand is having the most significant impact on this quarter," SCI chief executive officer Gene Sapp said. He also said delays in getting certain components had kept the company from starting on a number of new jobs in its backlog of work orders.

Sapp said the company stands by its prediction of $10.5 billion in sales for fiscal 2001 and sees second-quarter earnings of about 42 cents a share. First Call expected the company to earn 43 cents a share in the second quarter.

SCI (SCI: Research, Estimates), which had revenue of $8.3 billion in fiscal 2000, makes electronics products for several businesses, including the computer industry and the aerospace and defense industries. It has about 25,000 employees around the world.

SCI shares were down $13.94 at $42 in early trading Wednesday. Back to top

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