Flextronics International today signalled its September quarter earnings may fall short of the most optimistic market forecasts.
The downbeat forecast from the world's largest contract electronics maker came as analysts expect demand for mobile phones, notebook computers and consumer gadgets to taper off in the second half.
The announcement knocked Flextronics shares down by 8 per cent in after-hours US trade.
Singapore-based Flextronics swung to a net profit in its fiscal first quarter from a year-ago loss, after cutting costs and seeing strong demand for mobiles, but said the US economy may not be as strong as some had anticiapated.
Investors are worried about the picture for technology spending in the second half.
Last week, the world's largest chip maker, Intel Corp, lowered its gross margin forecast for the year and said inventories rose 15 per cent from March to June. Analysts said this could signal that supply was outstripping demand.
Flextronics reported net income for its fiscal first quarter to June 30th of $74.3 million, or 13 cents a share, compared with a year-ago net loss of $289.7 million, or 56 cents a share, weighed down by restructuring charges.
Revenue rose 25 percent to $3.88 billion, in line with analysts' expectations of $3.90 billion.
Excluding charges, the maker of high-tech goods for brand-name companies posted a profit of $78.3 million, or 14 cents a share, up from a profit before charges a year ago of $20.4 million, or 4 cents.