News

MURRAY HILL, NJ - Is Lucent Technologies readying to cut manufacturing ties with Jabil Circuit?

In a column posted Monday at theStreet.com, a Wall Street newletter, Lucent was said to be preparing to reduce its EMS supply list to two, with Jabil among three EMS companies that stand to be on the outs.

Quoting "people close to Lucent," theStreet.com columnist Scott Moritz wrote that while Lucent declined to comment on any specific changes, the company was looking at its options.

According to the column, the rep said, "We are always looking to streamline our supply base," but "we have not made any final decisions."

On Tuesday, Jabil called the report "unsubstantiated." "[I]n light of an unsubstantiated news item posted online late yesterday afternoon, Jabil management said that its current guidance remained unchanged."

The EMS supplier also reiterated previous fiscal 2005 guidance. "The guidance we provided for the overall business, and specifically for our telecommunications sector, remains solid," said Tim Main, president and CEO, in a published statement.

Jabil has previously said the telecommunications sector accounts for 8 to 9% of total 2005 revenue. None of Jabil's telecommunications customers account for more than 2 to 3% of revenues, the company said.

• Prev
• Next