By Dow Jones Business News,
December 18, 2013, 11:21:00 AM EDT
By Rex Crum, MarketWatch
SAN FRANCISCO (MarketWatch) -- Big losses from Jabil Circuit Inc. stood out in the tech sector Wednesday in the wake
of the electronics manufacturer giving a negative quarterly report and outlook and saying its was selling one of its
Jabil ( JBL ) shares plunged by almost 22%, to $15.47, after the company on Tuesday reported a fiscal first-quarter
profit that fell short of Wall Street analysts' estimates, and gave a second-quarter outlook that also was well off
expectations. Jabil also said it would sell its aftermarket services business, which includes warranty repairs, to iQor
Holdings for $725 million. It's estimated the business was responsible for about 6% of Jabil's revenue in its last
Jabil, which makes products for tech giants such as Apple Inc. ( AAPL ) and Hewlett-Packard Co. ( HPQ ), said it's second-
quarter results would be affected by the winding -down of its business with troubled smartphone maker BlackBerry Inc.
Sean Hannan, an analyst with Needham & Co., cut his rating on Jabil to hold from buy, saying that in light of the
company's recent announcements and outlook, "We believe Jabil is working through a much larger transitional period than
previously recognized or was clear" to Wall Street.
Along with Jabil, losses came from Apple, LinkedIn Corp. ( LNKD ), H-P and Western Digital Corp. (WDC). The tech-heavy
Nasdaq Composite Index (RIXF) was down by 5 points at 4,018.
Micron Technology Inc. (MU) shares fell more than 7%, to $21.20, following reports that its main memory-chip rival,
Hynix Semiconductor, plans to build a new factory in South Korea.
Microsoft Corp. (MSFT) shed 1.5%, to trade at $36. On Tuesday, Microsoft board member John Thompson said the company
wouldn't name a successor to retiring Chief Executive Steve Ballmer until early in 2014.
Oracle Corp. (ORCL) shares rose nearly 1% ahead of the company's quarterly results, due after the close of trading.
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