UPDATE 1-Celestica revenue falls on soft demand for communications equipment

Wed Apr 23, 2014 9:48am EDT
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* Reports earnings of $0.20/share, in line with est

* Revenue falls 4.4 pct to $1.31 bln, below est

* Expects demand volatility in 2nd-half of 2014 (Adds second-quarter forecast, details, share move)

April 23 (Reuters) - Canadian contract electronics manufacturer Celestica Inc reported lower-than-expected first-quarter revenue due to weak demand for its communications and server equipment, and said it expected demand to remain volatile.

Celestica, which makes products for companies such as IBM Corp and Cisco Systems Inc, forecast second-quarter revenue to fall about 5 percent to $1.38-$1.48 billion.

It also forecast adjusted earnings of 20-26 cents per share.

Analysts on average were expecting earnings of 22 cents per share on revenue of $1.43 billion.

The company, which has been trying to come out of a restructuring after losing Blackberry Ltd contracts in 2012, reported a bigger-than-expected 10 percent fall in revenue from its communications business in the first quarter.

Celestica's server business, which contributed 10 percent to total revenue, fell 43 percent in the quarter ended March 31. The communication unit contributed 40 percent to total revenue.   Continued...