Welcome to our dedicated page for Celestica news (Ticker: CLS), a resource for investors and traders seeking the latest updates and insights on Celestica stock.
Overview of Celestica Inc.
Celestica Inc. (NYSE: CLS, TSX: CLS) is a globally recognized provider of end-to-end product lifecycle solutions, catering to some of the most innovative companies across diverse industries. With a commitment to delivering informed, flexible, and scalable solutions, Celestica empowers its customers to succeed in dynamic and competitive markets. The company operates through two primary segments: Advanced Technology Solutions (ATS) and Connectivity & Cloud Solutions (CCS), each addressing specific market needs with tailored expertise and capabilities.
Business Segments and Core Operations
Advanced Technology Solutions (ATS): The ATS segment serves industries requiring high-precision and mission-critical solutions, including Aerospace and Defense, Industrial, HealthTech, and Capital Equipment. Within the Capital Equipment business, Celestica supports semiconductor, display, and robotics equipment markets, showcasing its ability to meet the demands of highly specialized sectors.
Connectivity & Cloud Solutions (CCS): The CCS segment focuses on Communications and Enterprise markets, providing essential hardware and supply chain solutions for servers, storage, and networking equipment. This segment represents a significant portion of Celestica's revenue, reflecting its strong position in the connectivity and cloud infrastructure space.
Value Proposition and Market Differentiation
Celestica's value proposition lies in its ability to offer comprehensive solutions that span the entire product lifecycle—from initial design and prototyping to full-scale production and after-market services. The company's global operations network and advanced IT platform enable it to deliver agile and adaptive solutions, ensuring that customers can respond effectively to evolving market demands. By leveraging its deep expertise, Celestica helps its partners overcome complex challenges, drive innovation, and achieve operational excellence.
Industry Context and Competitive Landscape
Operating at the intersection of technology, manufacturing, and supply chain management, Celestica is part of a highly competitive industry characterized by rapid technological advancements and evolving customer requirements. Its primary competitors include other global providers of design and manufacturing services, as well as niche players specializing in specific market segments. Celestica differentiates itself through its customer-centric approach, technical innovation, and ability to deliver tailored solutions across multiple industries.
Commitment to Innovation and Sustainability
Innovation is a cornerstone of Celestica's strategy. The company continuously invests in advanced technologies and solutions to help customers navigate the complexities of modern markets. For example, its portfolio of networking switches, including products supporting Software for Open Networking in the Cloud (SONiC), exemplifies its commitment to engineering excellence and adaptability. Additionally, Celestica adheres to sustainability principles, aligning its operations with environmental and social goals to create long-term value for stakeholders.
Global Reach and Expertise
With a presence across North America, Europe, and Asia, Celestica combines global expertise with local insights to serve a diverse customer base. Its talented teams bring a wealth of experience and creativity, enabling the company to deliver solutions that address both traditional and emerging market needs. This global footprint ensures that Celestica remains a trusted partner for companies seeking reliable and innovative solutions.
Conclusion
Celestica Inc. stands out as a vital enabler of innovation and operational efficiency for its customers. Through its diversified portfolio, global operations, and commitment to excellence, the company continues to play a pivotal role in shaping the future of technology and supply chain solutions. By addressing complex challenges with agility and expertise, Celestica reinforces its position as a trusted partner for leading brands worldwide.
Celestica Inc. (TSX: CLS) (NYSE: CLS) has announced the availability of its SC6100, a next-generation 2U rackmount all-flash storage controller. This advanced solution is designed to deliver increased performance and high availability for demanding enterprise application workloads. Key features include:
- Powered by two AMD EPYC Embedded 9004 series processors
- Support for up to 24 dual-port U.2 PCIe Gen 5 solid state drives
- Flexible I/O options, including 400GbE SmartNICs
- Redundant architecture with battery backup and hot-swappable components
The SC6100 is optimized for various use cases, including file shares, databases, virtual desktops, and high-frequency trading. Celestica is showcasing this solution at the FMS: Future of Memory and Storage conference in Santa Clara, California, from August 6-8, 2024.
Celestica (NYSE: CLS) reported strong Q2 2024 financial results, exceeding guidance. Revenue increased 23% year-over-year to $2.39 billion, while non-IFRS adjusted EPS rose 65% to $0.91. The company's CCS segment saw a 51% revenue increase, offsetting an 11% decrease in ATS segment revenue. Non-IFRS operating margin improved to 6.3% from 5.5% in Q2 2023.
Based on strong performance, Celestica raised its full-year 2024 outlook, projecting revenue of $9.45 billion (up 19% from 2023) and non-IFRS adjusted EPS of $3.62 (up 49% from 2023). For Q3 2024, the company expects revenue between $2.325 billion and $2.475 billion, with non-IFRS adjusted EPS of $0.86 to $0.96.
Celestica (TSX: CLS, NYSE: CLS) will announce its Q2 2024 financial results after market close on Wednesday, July 24, 2024. A conference call will follow on Thursday, July 25, 2024, at 8:00 a.m. ET. Interested parties can join the live webcast through the provided link. A recorded version will be accessible approximately two hours after the event on Celestica's website. For more details, contact Celestica Investor Relations.
Celestica has amended and increased its senior secured credit agreement, raising the total facility size to $1.5 billion. The amendment includes upsizing the revolving loan facility to $750 million and introducing new Term A and Term B loans totaling $750 million. The maturity dates for these loans extend to June 2029 and June 2031, respectively. The new loans will bear interest at varying rates based on the company's net leverage ratio. A portion of the proceeds will repay existing loans, with remaining funds available for corporate activities. Bank of America acted as the administrative agent, with several other financial institutions participating as joint lead arrangers and bookrunners.
On May 15, 2024, Celestica (TSX: CLS) (NYSE: CLS) unveiled four new networking switches designed to meet modern business demands. These switches—ES1000, ES1010, ES1050, and EG1050—offer 1GbE and 2.5GbE options, with up to 48 ports, secure access, and advanced features including concurrent Wi-Fi and 5G/LTE support. Each switch supports SONiC and adheres to the Open Compute Project (OCP) standards, emphasizing scalability, efficiency, and sustainability. The new switches come in a compact 1U form factor with redundant, field-replaceable components for high reliability. Celestica will showcase these at the ONUG Spring Summit on May 15-16.
Aviz Networks and Celestica Inc. have announced a partnership to enhance SONiC networking solutions. The collaboration aims to provide advanced networking solutions for SONiC and GenAI, offering customers unprecedented control and flexibility at the fabric level. Celestica's expertise in compute and connectivity solutions combined with Aviz Networks' innovative software stack will streamline SONiC-based network deployments.
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