It is no surprise that Research In Motion has been struggling lately. Word on the street suggest RIM has been losing money in the hardware sector. Evidence of this seems to be emerging as the Toronto-based OEM Celestica has called it quits as one of RIM’s hardware partners. Don’t fret just yet, as RIM likely has many other hardware partners, but it isn’t clear how Celestica’s departure will affect RIM’s supply and inventory over all.
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.