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Re: billpr post# 15631

Tuesday, 08/23/2005 3:33:17 PM

Tuesday, August 23, 2005 3:33:17 PM

Post# of 53798
Can anyone tell me what a contract manufacturer like Sanmina has to lose in any situation like this? Who wouldnt take an offer to profit by building someone elses systems..I cant think of a downside for them?

Virtra places orders with them and they build to spec and deliver it back to virtra..they dont spend a penny until they get the order for systems from Virtra..which Virtra doesnt place until they have orders to submit to them.

If there are no orders from Virtra..they dont lose anything..and if there are, they make a profit from everything they build and deliver to Virtra. Im sure there was a minimum number of orders that had to be placed in a given year..are there penalties if that amount is not executed?

Overall, its a good sitation for both companies..but Im not sure I see where Sanmina risks much?

any other takes on this?
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