NEW YORK – Cisco’s lower guidance suggests lower sales for its top EMS suppliers, including Jabil, Celestica, Flextronics and Sanmina-SCI, an industry analyst said yesterday.

Cisco this week reported fiscal second-quarter revenue fell 7.5% year-over-year to $9 billion, and guided for weaker sales in the coming quarters. Product revenue fell even more sharply, down 11%.

The drop will likely affect Cisco’s main EMS suppliers, says analyst Sherri Scribner of Deutsche Bank Equity Research. “We believe CSCO's cautious comments on the demand environment and lower guidance are a negative for EMS companies,” Scribner wrote in a research note last night.

Sales to Cisco make up 13% of Jabil’s revenues, an estimated 8 to 9% for Celestica, and about 5% for Flextronics and Sanmina-SCI, DB says.

• Prev
• Next