Share “Juniper drops Plexus as supplier, shares fall”

Juniper drops Plexus as supplier, shares fall

Associated Press Modified: November 7, 2012 at 3:30 pm •  Published: November 7, 2012
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A spokeswoman for Sunnyvale, Calif.-based Juniper confirmed the move was to help cut costs.

"We have taken actions to best align the company's resources to improve productivity and effectiveness," the Juniper statement said. "Our decision to consolidate contract manufacturers will enable us to further drive operational excellence. Our actions are being carefully planned and managed to maximize efficiencies in our cost structure while preserving the investments in innovation in our core businesses of routing, switching and security."

Citi analyst Jim Suva kept a neutral rating on Plexus shares but slashed his target price to $21.50 from $30. Suva said that Flextronics International Ltd. would be getting more business from Juniper because it offered a "more aggressive price," but he said the gain only amounts to about 1 to 2 percent of Flextronics sales. Suva named Juniper's other supplier as Canada's Celestica Inc.

Flextronics shares fell 13 cents to close at $5.96. Celestica shares rose 5 cents to $7.35.

Juniper shares rose 22 cents to close at $17.76.