Lately there have been a lot of reports about how RIM is currently struggling and could be looking to sell the Blackberry brand, or at least license some of its patents. Given the company’s rather bleak earnings and with Blackberry 10 still up in the air with no one knowing for sure how well it would do, it seems that one of RIM’s manufacturing partners is calling it quits as far as its partnership with RIM is concerned. The Toronto-based OEM, Celestica, has announced today that they will stop producing hardware for RIM and will be winding down their services over the next three to six months. Of course this is hardly the end of RIM and the Blackberry brand as we’re sure that they have other manufacturing partners, but the loss of one of them could affect its supply overall and no doubt their inventory as well. Hopefully things will pick up once Blackberry 10 has been released, but until then you can check out the full press release below.
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.