MILPITAS, CA -- Top tier EMS maker Solectron will restate earnings from fiscal 2002, 2003 and 2004 due to "errors related to account reconciliations and tax account roll-forwards." Solectron said it did not believe the errors were material to its results.

On a conference call last year, CEO Mike Cannon said the company is not for sale.

The company last week said its February quarter net loss narrowed to $3.4 million, from a loss of $68 million last year. Revenue fell to $2.76 billion from $2.89 billion.

Solectron guided for third-quarter revenue of $2.6 billion to $2.8 billion.

The company said on a quarter-ending conference call with analysts that second-half revenue is not expected to be greater than in the first half. The assessment ran counter to previous expectations for an improved second half.

Cannon cited lower expectations from its largest handset customer in the second half, and a sharp slowdown in scheduled ramps of DVD players and set-top boxes from two major customers.

Asked on the conference call whether Solectron would be better off if it were sold or merged, Cannon said, "Well, I think that's not where we're at."

"We still think there's a lot of opportunity in this industry and with Solectron."

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