Friday, June 20, 2003
Solectron said its fiscal third quarter net loss have deepen to $3.1 billion from $284 million in the year-ago quarter due to a hefty $2.8 billion pre-tax charge related to a write down of assets in compliance with accounting regulations.
As a result of the charges, Solectron said it was in default of the terms of its $450 million credit facility and had opened discussions with its bankers to amend the conditions of the credit line.
Fiscal third quarter revenue at Solectron, the second largest global contract manufacturer, slipped to $2.8 billion in the quarter ended May 31, from $3 billion in the comparable 2002 quarter but were in line with analysts' estimates.
"While this quarter was complicated with a number of revaluations that had a negative impact on earnings, we believe the resulting balance sheet is stronger and better positions us for the future," said Mike Cannon, president and chief executive of Solectron in a statement.
By: Docmemory
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