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RIM Supplier to “Wind Down” BlackBerry Manufacturing Over Next 3-6 Months

by Todd Haselton | June 18, 2012June 18, 2012 9:30 am PDT

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One of Research In Motion’s BlackBerry suppliers, Celestica, said Monday that it will “wind down its manufacturing services for Research In Motion” during the next three to six months. Celestica said the move is part of its own restructuring, which it says will not exceed $35 million. The company will share more information about its decision during a conference call on July 27. Celestica’s move could hurt RIM as it tries to get its latest BlackBerry 10 smartphones out the door and as it continues to compete against other companies in emerging markets with its current BlackBerry 7 operating system.

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Celestica To Wind Down Manufacturing Services For Research In Motion

June 18, 2012

TORONTO, Canada – Celestica Inc. (NYSE, TSX: CLS), a global leader in the delivery of end-to-end product lifecycle solutions, today announced that over the course of the next three to six months, it will wind down its manufacturing services for Research in Motion (RIM).

Celestica has been a high-performing manufacturing supplier for RIM and will work closely with RIM throughout the transition. As discussed on the company’s first quarter results conference call on April 24, Celestica has been working with RIM as it assesses its supply chain strategy. Celestica estimates that prior to any recoveries, its restructuring charges will not exceed $35 million.

More details about this announcement will be provided as part of the company’s second-quarter results press release and conference call, which are scheduled for Friday, July 27.

In addition, Celestica is reaffirming its second quarter financial guidance that was provided on April 24. The company anticipates revenue to be in the range of $1.65 billion to $1.75 billion, and adjusted net earnings per share to be in the range of $0.20 to $0.26.

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Todd Haselton

Todd Haselton has been writing professionally since 2006 during his undergraduate days at Lehigh University. He started out as an intern with...

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