MILPITAS, CA -- Solectron Corp. this week reported a fiscal fourth-quarter net profit of $10 million on sales of $2.40 billion. Revenue slumped badly versus a year ago, down 21% from $3.04 billion.


Strength in networking and industrial products was offset by declines in consumer electronics and communications. While sales from Cisco were up a reported 20% sequentially, telecom and consumer sales nosedived, falling 20% and 40%, respectively, on a sequential basis.

The EMS company posted a profit of $2.7 million a year ago, including $40.7 million in income from discontinued operations. Restructuring charges and impairments costs declined to $6.7 million from $68.1 million a year ago. Cash from operations was roughly $240 million.

Solectron posted a profit of $37 million, excluding one-time charges. Revenue was below the analysts consensus of $2.49 billion.

For the year, Solectron's sales declined 10%. At quarter's end Solectron had $1 billion in net cash.

Solectron guided for fiscal Q1 revenue of $2.3 billion to $2.5 billion.

In a research note Wednesday night, Deutsche Bank analyst Carter Shoop said, "For FY06, we believe the company will continue to lose share, despite becoming incrementallymore aggressive on pricing and acquisitions."