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Solectron clears earnings hurdle

The company, a contract manufacturer for electronics, sees a 101 percent increase in sales compared with the same quarter last year.

Solectron, the world's biggest contract manufacturer for electronics, on Monday topped analyst estimates for its fiscal first quarter.

Excluding acquisition-related and one-time charges, the company earned $190.6 million, or 31 cents per share, on sales of $5.7 billion. A consensus of analysts expected the company to earn 28 cents per share, according to First Call/Thomson Financial.

The $5.7 billion in sales marks a 101 percent increase from the same quarter last year, when the company earned $109.8 million, or 19 cents a share, on sales of $2.8 billion.

The Milpitas, Calif.-based contract manufacturer said it benefited from strong demand from computer-networking and telecommunications equipment makers, and a relatively small exposure to the personal-computer industry.

"We were one of the first to identify a slower growth rate in the personal-computer market back in September," Solectron chief financial officer Susan Wang said. "Our involvement with desktop computers is relatively light'' and isn't likely to exceed 11 percent of Solectron's business in 2001.

Looking ahead, Solectron executives said the company expects to post sales of $5.4 billion to $5.7 billion in its fiscal second quarter.

Bloomberg News contributed to this report.