Solectron (SLR) on Tuesday reversed a first-quarter loss from a year ago but posted sales that fell short of expectations because of weakness in the consumer, industrial and networking markets. The company said sales in the fiscal second quarter also will fall short of current Wall Street targets.

Shares of the electronics contract manufacturer recently fell 43 cents, or 7.1%, to $5.60 after hours on the news.

Under generally accepted accounting principles, the Milpitas, Calif.-based company posted net income of $55.9 million, or 6 cents per share, in the first quarter, which ended Nov. 30. That reversed a net loss of $119.8 million, or 14 cents a share, in the same period a year earlier.

Solectron reported GAAP net income from continuing operations of $46.9 million, or 5 cents a share, compared with a GAAP net loss from continuing operations of $52.2 million, or 6 cents a share, in the same period a year earlier.

Excluding charges, the company reported non-GAAP income from continuing operations of $48.5 million, or 5 cents a share. That was in line with the consensus earnings estimate of 5 cents a share gathered by Thomson First Call.

First-quarter revenue was flat from a year ago at $2.7 billion, but fell from $3.0 billion in the previous quarter and also failed to meet the $3.011 billion sales target set by Wall Street analysts.

The company said sales sank sequentially because of greater-than-expected weakness in the consumer market for set-top boxes and 3-G wireless handsets, as well as in the semiconductor capital equipment sector of the industrial market, and lower demand in the networking market.

For the second quarter, Solectron projected that non-GAAP earnings from continuing operations would range from 4 cents to 6 cents a share on sales of $2.65 billion to $2.8 billion. Analyst estimates most recently called for earnings of 5 cents a share on $3.073 billion in revenue.

Shares of Solectron closed the regular session up 14 cents, or 2.4%, to $6.03.