SAN JOSE -- Flextronics announced today that it has entered into a agreement with Juniper Networks to manufacture the company's security and networking products worth an estimated $350 million in revenue in calendar 2007.

Juniper did not state how the addition of Flextronics will affect its current EMS vendors, which include Plexus and Celestica, which currently split the business evenly.



In February Juniper had said it would add an EMS supplier but did not disclose the company's name at that time.

According to Carter Shoop, an analyst with Deutsche Bank, the most likely scenario has Juniper moving production from Plexus and Celestica to Flextronics over the next six months, and then trimming one of the vendors from its supply chain.

"We believe Plexus has done a superior job servicing Juniper and has the inside track to keep the business, but expect Celestica's to aggressively try to retain the program," Shoop said.

Juniper represents roughly 20% of Plexus' sales and 4% of Celestica's, Shoop said.

• Prev
• Next