SAN JOSE -- Sanmina-SCI reported a fiscal first-quarter net loss of net loss of $768,000, on revenue of $1.42 billion. The company said it reduced headcount by 10% and cut salaries during the quarter.

For the period ended Dec. 27, revenues fell 20% year-over-year on weakness in telecommunications, networking, servers and storage. Operating margins were 2.2%, down 10 basis points from a year ago.

During the quarter, Sanmina-SCI took $10 million in writedowns related to Nortel's bankruptcy filing, and warned certain new developments could results in additional charges or credits. In a research note last night, Deutsche Bank said Sanmina's sales to Nortel were expected to be $200 million for the year, or 4% of revenue. However, Sanmina-SCI CEO and chairman Jure Sola claimed Nortel is "not a huge customer" and represents "a couple million dollars a year."

The company declined to provide guidance for its second quarter, saying “we cannot confidently provide a meaningful range of guidance.”

On the call, Sanmina executives said the company reduced headcount by 10%, reduced pay 10 to 20%, and implemented mandatory worker furloughs of two weeks per quarter.

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