For Q2, it expects revenue of $6.1 billion to $6.5 billion and adjusted EPS of $0.29 to $0.33, against CIQ estimates of $0.30 for EPS on revenue of $6.58 billion. It said Q2 guidance includes restructuring charges.
As a result of recent geopolitical uncertainties, primarily impacting one customer in China, we have seen a reduction in demand for products assembled for that customer, the electronics contract manufacturer said.
"The company has decided to accelerate its strategic decision to reduce its exposure to certain high-volatility products in both China and India," it said, adding that it has started to restructure its business to reduce and streamline its cost structure and expects to incur charges throughout fiscal 2020 of $145 million to $265 million.
The company also said it is not providing detailed fiscal 2020 guidance but remains comfortable with the prior fiscal 2020 consensus adjusted EPS range from $1.20 to $1.30. When adjusting for restructuring and other charges of $0.37 to $0.57, stock-based compensation expenses and intangible amortization of $0.28, the company said its GAAP EPS would range from $0.65 to $0.85 below adjusted EPS. CIQ estimates expected adjusted EPS of $1.23 for fiscal 2020 and $0.96 per share on a GAAP basis.
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