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CMC Industries Stock Drops on Loss of Client

January 01, 1998| Bloomberg News

CMC Industries Inc. shares fell 46% after it said it lost its largest customer, Micron Electronics Inc. CMC stock fell $4.94 to close at $5.88 in Nasdaq trading. Earlier, it had fallen as low as $5.75. Last month, it reached a 52-week high of $14.19. Micron provided 42% of its revenue for the quarter ended Oct. 31. Santa Clara-based CMC warned that the loss may have a "material adverse effect" on its business in the current and future quarters. "Micron made the decision to pull all their manufacturing business inside," said Andrew Moley, CMC's chief financial officer. CMC's work for Nampa, Idaho-based Micron involved final assembly of personal computer boxes at its Corinth, Miss., factory. Moley said CMC, which provides electronic manufacturing services to original equipment makers in the telecommunications, computer and electronics industries, had anticipated revenue from Micron of $20 million for each of the third and fourth quarters.

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