On May 2, 2005, Standard&Poor's Ratings Services revised its outlook on San Jose, Calif.-based Sanmina-SCI Corp to negative from stable, following the company's disappointing earnings announcement for second quarter ended April 2, 2005. The corporate credit rating is affirmed at 'BB-'. All other ratings are affirmed. Revenues and profitability from the company's computer business, about one-third of sales, were well below expectations, with segment sales down 9% year over year, and 27% sequentially, exceeding normal seasonal patterns. Gross profit for this business dropped below 2%, to 1.8%. Revenues have been adversely affected by the ownership transition of IBM's PC business to the Lenovo Group. Improved profitability is predicated on better vertical integration of the PC business with the
