(Reuters) - Contract manufacturer Jabil Circuit Inc <JBL.N> posted quarterly revenue below analysts' estimates as its large customers battled inventory pile-ups, and sees lower revenue in the second quarter from its high-velocity segment which services digital products.
Shares of the company were down 4 percent at $19.17 in extended trade on Tuesday.
Jabil, which supplies to Cisco Systems <CSCO.O>, Hewlett-Packard <HPQ.N>, IBM Corp <IBM.N> and Nokia Corp <NOK1V.HE>, sees a 14 percent decline in its high velocity segment (HVS), which brings in more than one-thirds of its revenue.
The company, which competes with Flextronics International Ltd <FLEX.O> and Sanmina-SCI Corp <SANM.O>, forecast second-quarter core earnings of 52-62 cents per share on revenue of $4-$4.2 billion.
Analysts on average were expecting earnings of 59 cents per share on revenue of $4.23 billion, according to Thomson Reuters I/B/E/S.
The company, which reduced exposure to its mobility handset and TV set displays businesses in the HVS in the first quarter, said the segment will see some impact from the Thailand floods.
"The Chinese new year, fewer working days in the (second)quarter, and there will be some impact in our high velocity business area related to set top boxes due to the Thailand flooding." Chief Executive Timothy Main said on a call with analysts.
The HVS provides module design, manufacturing, and repair services for digital home and office products like set-top boxes, printers and keyboards.
Jabil's first-quarter revenue fell as inventory adjustments by some large customers hurt its enterprise and infrastructure business.
First-quarter net income rose to $112.9 million, or 54 cents per share, from $106.7 million, or 49 cents per share, a year ago.
The company's core earnings were 65 cents per share.
Revenue for the quarter rose to $4.3 billion from $4.1 billion a year ago.
Analysts, on average, expected first-quarter earnings of 65 cents per share on revenue of $4.41 billion, according to Thomson Reuters I/B/E/S. (Reporting by Sruthi Ramakrishnan in Bangalore; Editing by Viraj Nair)