Flextronics International Ltd. (Nasdaq: FLEX) jumped 8 percent on high volume Wednesday on news the company will help Microsoft (Nasdaq: MSFT) develop its much-anticipated X-box video game console, due to ship in fall 2001.
Shares in the provider of contract electronics manufacturing services were up 4 5/8 to 64 1/16, still below their 52-week high of 79 3/4.
The company will be an electronics manufacturing services (EMS) partner in work on Microsoft's X-box, the code name for its new game console. Microsoft unveiled the X-box last month. With the X-box, Microsoft is taking on established gaming players such as Sony (NYSE: SNE) and Nintendo.
Flextronics will contribute its software expertise and advances in PC technology, such as 3-D graphics and Internet connectivity.
The deal furthers the relationship between the two companies; Flextronics, a Microsoft strategic hardware supplier, currently manufactures products for Microsoft's Hardware and WebTV groups.
Flextronics' competitors include Celestica (NYSE: CLS), SCI Systems (NYSE: SCI) and Solectron (NYSE: SLR).