Sanmina-SCI looking at $20 million hit related to Nortel Networks bankruptcy

Sanmina-SCI, the San Jose-based electronics contract manufacturer, estimated in its quarterly filing with the SEC today that its “maximum exposure” was $20 million related to Nortel Networks, which filed  to reorganize under bankruptcy protection on Jan. 14.

Sanmina “considered collectibility of accounts receivable and determined that certain amounts may not be collectible.  Therefore, the Company deferred recognition of revenue in the amount of $5.0 million for shipments made during the three months ended December 27, 2008.”

The company also “determined that certain inventory balances may not be recoverable and provided a reserve for such inventories in the amount of $5.0 million during the three months ended December 27, 2008.”

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