Device manufacturer Celestica ceases RIM production
updated 09:00 pm EDT, Mon June 18, 2012
Three to six month cessation, little impact on company
Toronto phone manufacturer Celestica announced Monday that it is ceasing production of BlackBerry-based devices by embattled producer Research in Motion. Celestica is tapering off production over the next three to six months, and will continue to work in the short term assessing RIM's future supply chain strategies.
Celestia expects a restructuring charge due to the change in direction of less than $35 million prior to any recoveries. The company expects little change to it's quarterly financial earnings guidance with revenue expected in the $1.65 billion to $1.75 billion range. Further information in Celestica's departure is expected with its second quarter press conference on July 27.
RIM reported its fiscal earnings in late March for the fourth fiscal quarter, missing lowered expectations. A $1 billion charge related to unsold inventory will be taken by RIM in the next quarter.
