Prices for oil, raw material and labor cut the gross profit margin from 19.7% to 18.9% in the quarter.
Celestica and HCL have had a three-year relationship during which they have supplied integrated solutions to telecom, enterprise, consumer, medical, aerospace and semiconductor customers. HCL's software is in use in Celestica's Solutions Accelerator platforms for server blades, WiMAX, ATCA and storage equipment.
"Our customers are increasingly being challenged to compress their concept-to-manufacturing schedule," said Dave Tiley, Senior Vice President, Global Services, Celestica. "This exciting joint venture between two world-class companies creates a highly integrated, flexible offering that enables OEMs to focus on IP generation while Celestica and HCL focus on time-to-market and total cost of ownership."
According to H-P, Flextronics will license the software for camera modules that capture images at 3 MP and above,. That segment is forecast to make up five to 13% of the more than 600 million camera phones expected to be shipped next year.
It is not clear whether the deal is exclusive to Flextronics .
"Flextronics is the ideal partner to harness the capabilities of H-P's digital-imaging technology to open new markets," H-P imaging and printer group vice president Tara Bunch said in a statement. "The agreement is a breakthrough for the booming camera-phone market because it will transform photos into higher-quality images and keepsakes to share and print."Pretax income was $1 million, up from $396,084 last year.