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Jabil, Digital Lightwave forge new partnership
By JEFF HARRINGTON, Times Staff Writer Digital Lightwave's search for a global partner to handle its manufacturing and much of its repair business has landed back in the Tampa Bay area. Digital of Clearwater, struggling with a sharp downturn in demand for its fiber-optic products, said Tuesday that it is outsourcing all manufacturing to Jabil Circuit of St. Petersburg. Terms were not disclosed, but Digital executives indicated the venture was expansive. In addition to production, Jabil will deal with all warranty and repair issues for Digital customers overseas; Digital will continue servicing U.S. customers. Jabil also is being tapped to help with engineering design for the next generation of Digital Lightwave equipment. "We're going to use their expertise in some of the higher advanced technology to help us get our product more competitive," said Jim Green, Digital's recently named chief operating officer. Green said the company turned to contract manufacturer Jabil because of its expertise and its plant locations worldwide, in addition to the proximity of its headquarters. The operational shift is part of Digital's plan to wring $16-million in savings out of the company after sales plummetted late last year. The company, which makes equipment for monitoring fiber-optic networks, suffered an 84 percent slide in sales to $5.4-million in its fourth quarter ended Dec. 31. Since October, Digital has cut its work force from 201 employees to about 110. Between 10 and 15 manufacturing jobs are included in the cuts. Though the contract signifies a major shift for Digital, it is a relatively small slice of business for Jabil, which has 17,000 employees and annual revenues surpassing $4-billion. Shares in Digital closed unchanged Tuesday at $5.07, while Jabil shares dropped $1 to close at $19.71. -- Jeff Harrington can be reached at harrington@sptimes.com or (813) 226-3407.
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From the Times Business report Robert Trigaux
From the AP
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