Shares of Sanmina-SCI (SANM) - Get Report slumped Monday after the company said it expects second-quarter results to fall short of its previous expectations due to weaker demand in its communications and high-end computing end-markets.
The electronics manufacturing firm said it now expects revenue for the quarter ended March 31 of about $2.6 billion, compared with earlier expectations of $2.65 billion to $2.75 billion.
Analysts surveyed by Thomson Financial had expected the company to post revenue of $2.69 billion.
Sanmina said it couldn't update its earnings forecast but said it expected earnings before items would be below previous guidance.
Analysts had expected the company to earn 6 cents a share before items.
"The second quarter has historically been a seasonally weak quarter for us, but we experienced even greater weakness in demand over the last two to three weeks. The majority of this softness was in the communications and high-end computing end-markets, while the rest of the markets delivered to our expectations. We believe this weakness will be short term and that the business should improve in the second half of 2007," said Chairman and CEO Jure Sola in a press release.
Shares of Sanmina were recently off 24 cents, or 6.3%, to $3.57.