Who Else Gets Slammed In The Cisco Debacle?

Cisco CEO John Chambers

Cisco delivered another lemon on the earnings guidance front last night.

Citi highlights the risks this poses to tech manufacturers, lower down the value chain:

Figure 1 in this report details the exposure to Cisco across the EMS Technology Supply Chain with Jabil at 15%, SMOD at 14%, Flextronics at 9% and Celestica at 9% of each of the companies’ respective sales. While we recognise the EMS companies manufacture Cisco & other OEM products, we note many of these companies benefited from Cisco’s product & order strength for much of 2009/2010 and we believe this will no longer provide a tailwind for the EMS sector.