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Pemstar filings/ outlook

Pemstar filings/ outlook
Pemstar filings/ outlook

Speaking (as I was sort of when I posted about the guy who made the first portable computer getting laid off by Pemstar when they closed the San Jose plant) of Pemstar plant closings, here an item by Bob Freund about how the closures are brightening the outlook for this quarter. This is tied to the 8-K from Thursday and proxy statement the company filed Friday. The proxy also has the ballot for voting for the board of directors.

To see the those filings, go to the company's i nvestor relations site .

Anway, here's what Bob wrote:

Pemstar Inc.’s profit picture could be brighter this quarter because of better-than-expected results in unwinding leases of shuttered plants.

The Rochester-based elecrtonics manufacturer late Thursday said it plans to add more than $2.5 million to operating profit after exiting leases in San Jose and Mountain View, Calif., and in Taunton, Mass.

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Those deals cost less than what Pemstar had set aside on its books, chief financial officer Greg Lea said this morning so the $2.5 million difference wll be returned as one-time benefit in the current first quarter of fiscal 2007 .

Pemstar management is forecasting profit of 3 cents to 7 cents a common share for regular operatoins — excluding such unusual events — in this quarter.

With the renegotiatons, Pemstar also was able to cut its lease payments by 55 percent through fiscal 2011, Pemstar announced.

Pemstar stock was up 29 cents a share, or more than 9 percent, to $3.43 in trading on Friday.

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