Circuits Assembly Online Magazine - Current Issue

News

SPOKANE, WA -- EMS provider Key Tronic Corp. today announced fiscal third quarter revenue of $49.7 million, up 33% from last year.

For the quarter ended April 2, the company reported net income of $852,000, up 661% from last year and up 74% from the second quarter.

In a press release, Jack Oehlke, president and chief executive, credited growth to higher sales to existing customers for specialty printer accessories and components, and gaming technology.

The firm said it will add capacity in China and Mexico. "[We] plan to expand capacity in Mexico by buying the building adjacent to our existing facility in Juarez during the fourth quarter of fiscal 2005," Oehlke said. "We also are investing in our worldwide printed circuit board operations to ensure compliance with new environmental regulations."

Key Tronic guided for fiscal fourth quarter revenue to increase five to 10% sequentially and earnings of $0.08 to $0.12 per share.

Key Tronic will host a conference call today to discuss its financial results at 2:00 PM Pacific (5:00 PM Eastern). A broadcast of the conference call will be available at www.keytronic.com under "Investor Relations" or by calling 800-218-0204 or +1 303-262-2211. A 48-hour replay will be available by calling 800-405-2236 or +1 303-590-3000 (Reservation No. 11027377). A replay will also be available on the Company's Web site.

About Key Tronic

SAN JOSE -- Flextronics International, the world's largest EMS company, said yesterday that profits climbed despite a drop in sales of 4%.

For the three months ended March 31, the firm reported revenue of $3.61 billion, down 4% from $3.77 billion last year. The company cited lower demand for handsets, saying handset sales fell $480 million in the fourth quarter from the prior period.

The quarterly profit rose to $74.2 million, from $16 million a year ago.

The analyst consensus was sales of $4 billion.

For the fiscal year, Flextronics recorded a profit of $339.9 million on sales of $15.91 billion.

Flextronics guided for sales of $3.7 billion to $3.9 billion for the July quarter.

For fiscal 2006, the company expects sales of $17 billion to $17.5 billion, which would be a record for EMS/ODM firms. Analysts forecast sales of $19 billion.

NEW YORK -- David R. Van Loan, president of test equipment maker Everett Charles Technologies, will move one rung higher, taking over as president of Dover Technologies. A successor at ECT has not yet been named.

Dover Technologies is a $1.5 billion subsidiary of Dover Corp. and the parent of ECT. Its companies include Universal Instruments Corp. and DEK.

Van Loan, who has been with ECT since 1981, will report to outgoing president and current chief executive John Pomeroy. That won't last long: Pomeroy will retire within the next year.

Van Loan will also take over the responsibilities of Gerhard Meese, executive vice president of Dover Technologies, who is retiring in the same time frame.

In a press statement Dover CEO Ron Hoffman said, "Dave has done an excellent job of building Everett Charles into the premier test interconnect equipment supplier to the circuit board and back end semiconductor markets. He has displayed great strategic vision in guiding his company and will bring his high energy level and proven track record of delivering outstanding operating results to his new role."

On April 19 Dover Corp. reported earnings of $100.3 million from continuing operations for the first quarter ended March 31, compared to $83.8 million last year, an increase of 20%. Net earnings were $98.1 million including $2.1 million of losses from discontinued operations, compared to $83.1 million. Sales were up 17% to a record $1.45 billion.