News
SALT LAKE CITY--CirTran Corp. reported its first profitable quarter and the fifth consecutive quarter of growth and record sales in its recent SEC filing for the period ended June 30.
Iehab J. Hawatmeh, founder and president, said continued growth in domestic and off-shore business helped the company achieve an 11% net profit of $466,229, its first profitable quarter since going public in 2000. The filing reported an $828,193 improvement over the loss of $361,964 for the same period in 2004.
CirTran was also profitable for the six months ended June 30, reporting $264,501, an improvement of $1,210,087 over the same period a year ago.
The company also achieved record sales for the fifth straight quarter, reporting revenues of $4,309,184, an increase of 123% over last year. Net sales for the first six months was $7,229,649, a 277% increase over the first half of 2004.
In addition, CirTran's total assets more than doubled to $9,513,156 from $4,293,429 year-on-year.
Hawatmeh said that CirTran was "on or ahead of our strategic plan. This is the most exciting period of growth in the company's history, with our core business in Salt Lake City continuing to grow, attracting more and bigger customers, while our CirTran-Asia subsidiary in China has emerged as a player in manufacturing goods for the consumers and the sold-on-TV marketplace."
FRANKFURT -- Deutsche Bank has expressed concern over the U.S.-based EMS vendors' high-cost manufacturing footprint and Asian-based ODM/EMS vendors' increasing competitiveness for the past several years. The U.S.-based EMS industry experienced healthy growth in 2003 and 2004 as end market demand improved and Taiwanese companies were just beginning to expand beyond niche offerings. According to DB this trend came to an end in the second quarter of 2005 and is getting worse in Q3.
DB is forecasting U.S.-based EMS sales to decline 5% year-on-year, compared to a 50% Y/Y increase for Hon Hai. Hon Hai, now the largest EMS vendor, may grow by more than $8 billion in 2005 (Jabil and Celestica had 2004 sales of $6.5 and $8.8 billion, respectively). DB believes Hon Hai will continue to take share from poorly positioned EMS vendors like Sanmina-SCI and Solectron in the next year.
Factors contributing to DB’s cautious view on the U.S EMS industry include the excess of high-cost capacity and increasing number of competitors. In addition, the Taiwanese are becoming increasingly competitive on quality. While most U.S. EMS vendors have rationalized the majority of their high-cost capacity, there is still too much capacity at companies like Sanmina-SCI and Solectron.
At the same time, Taiwanese companies like Hon Hai and Asustek have expanded outside of their core offering and are taking share. Asustek, a manufacturer of motherboards, has become a major player in the notebook, server and gaming market, and recently entered the handset market. Hon Hai is manufacturing low- and mid-range datanetworking gear for companies like Cisco, and handsets for Nokia/Motorola.
Carlsbad, CA – Asymtek added a new team of sales representatives, Shanghai Kankun Trading Co., to market its automated fluid dispensing systems in China. Headquartered in Shanghai, Kankun also has branches in Suzhou, Guangzhou, Shenzhen, Dalian, Chengdu and Wuhan.
Kankun (kankun.com.cn) will provide on-site equipment service, training, applications support and spare parts. In addition, they offer extensive lab resources, including equipment demonstrations and the latest technical data on dispensing.
Kankun’s customer base includes the electronics, automotive, medical, and appliance markets. The company also employs more than 20 sub-distributors located throughout China.
