Nov 7 (Reuters) - Contract electronics manufacturer Plexus Corp said it does not expect any material impact to its current quarter results after losing business from its largest customer Juniper Networks Inc.
Shares of the company fell almost 30 percent to a more than three year low of $19.63.
Plexus expects more revenue from Juniper in the second quarter, as it builds some products in advance of the transition, but sees revenue tailing off by the second half of the fiscal year, the company said on a conference call.
For the year ended October 2011, Juniper contributed 17 percent to Plexus’ sales of $2.23 billion.
Juniper informed Plexus on Monday of its decision and is expected to completely cut off its manufacturing relationship by the end of the year, Plexus said.
Juniper counts on contract manufacturers to build the network gear and switches it engineers, and until now Plexus won the lion’s share of Juniper’s business.
Juniper did not disclose who would get Plexus’ share of its business but it also contracts production from Flextronics International Ltd and Canada’s Celestica Inc. (Reporting by Chandni Doulatramani in Bangalore; Editing by Supriya Kurane)