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Jabil Circuit prepares to cut ties to troubled smart phone maker Blackberry

St. Petersburg contract electronics manufacturer Jabil Circuit said it will likely end its substantial relationship with troubled smartphone maker BlackBerry. News of that transition drove Jabil's stock down 10 percent Thursday to close at $21.60.

"BlackBerry has been a great partner over the past six to seven years, and we believe that they will offer their typical, high-integrity cooperation as we navigate this probable disengagement in the coming months," Jabil chief executive officer Mark Mondello said in a quarterly earnings conference call with analysts.

Jabil reported fiscal fourth-quarter earnings rose 53 percent to $127 million on revenue of $4.8 billion. But the company also projected fiscal first-quarter results below expectations. Jabil estimated it will record about $35 million to $85 million in charges during the new fiscal year stemming from its exposure to BlackBerry, Jabil's second-largest customer after Apple in the past fiscal year. For the 2013 fiscal year, Jabil earned $370 million, down from $396 million in 2012, on revenue of $18.3 billion.

"We are fortunate to have a strong balance sheet, broad-based capabilities that deliver innovative solutions, outstanding employees and a roster of market-leading customers as we head into fiscal year 2014," Mondello stated.

Jabil Circuit prepares to cut ties to troubled smart phone maker Blackberry 09/26/13 [Last modified: Thursday, September 26, 2013 7:34pm]
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