News
SAN FRANCISCO -- Cisco Systems, a bellwether for communications equipment demand, yesterday reported revenues of $6.06 billion for the January quarter, disappointing Wall Street and signaling a potential slowdown for its suppliers.
In a research note, Deutsche Bank said Cisco's performance and outlook are behind its "cautious view" of the EMS sector. The maker of networking gear is one of the largest customers of the EMS industry.
Cisco's sales were up 1.5% sequentially, but below Street expectations of $6.13 billion. Year-on-year revenue forecasts are decelerating, from 12% in January
to 8 to 10% for the current quarter.
The combination of slowing end demand, contracting component lead times and relatively high inventory levels across the communications infrastructure market continues
Cisco said its internal book-to-bill ratio for communications infrastructure gear is below 1.0, the benchmark for growth. "We continue to believe the recent softness across the supply chain reflects slowing end-demand and customers' inventory reduction efforts," DB wrote.
"Look for Cisco to work inventory levels lower in future quarters in response
to softer end market demand and improved component availability. This will likely translate into soft near-term demand for EMS suppliers," DB wrote.
The EMS makers which stand to be most affected include Celestica (more than 10% of revenue comes from Cisco), Solectron (14%) and Jabil (15%).
In a research note, Deutsche Bank said Cisco's performance and outlook are behind its "cautious view" of the EMS sector. The maker of networking gear is one of the largest customers of the EMS industry.
Cisco's sales were up 1.5% sequentially, but below Street expectations of $6.13 billion. Year-on-year revenue forecasts are decelerating, from 12% in January
to 8 to 10% for the current quarter.
The combination of slowing end demand, contracting component lead times and relatively high inventory levels across the communications infrastructure market continues
Cisco said its internal book-to-bill ratio for communications infrastructure gear is below 1.0, the benchmark for growth. "We continue to believe the recent softness across the supply chain reflects slowing end-demand and customers' inventory reduction efforts," DB wrote.
"Look for Cisco to work inventory levels lower in future quarters in response
to softer end market demand and improved component availability. This will likely translate into soft near-term demand for EMS suppliers," DB wrote.
The EMS makers which stand to be most affected include Celestica (more than 10% of revenue comes from Cisco), Solectron (14%) and Jabil (15%).
Minneapolis, MN -- The SMTA is accepting applications for the Hutchins Educational Grant through April 15. Co-sponsored by Circuits Assembly, the $5,000 grant is awarded annually to a graduate student for thesis research in electronic assembly, electronics packaging or a related field.
To be considered, students must submit an entry form, academic transcripts, a letter of recommendation, a resume and a one-page thesis research abstract.
The grant, presented each year at the SMTA International conference, was established in memory of past SMTA president and industry colleague Dr. Charles Hutchins.
The 2004 recipient was Brian McAdams from Lehigh University (Bethlehem, PA) for his project: "Sub-critical Initiation of Delaminations at the Underfill/Passivation Interface in Flip-chip Assemblies."
To be considered, students must submit an entry form, academic transcripts, a letter of recommendation, a resume and a one-page thesis research abstract.
The grant, presented each year at the SMTA International conference, was established in memory of past SMTA president and industry colleague Dr. Charles Hutchins.
The 2004 recipient was Brian McAdams from Lehigh University (Bethlehem, PA) for his project: "Sub-critical Initiation of Delaminations at the Underfill/Passivation Interface in Flip-chip Assemblies."
SAN FRANCISCO -- Fabrinet, an engineering and electromechanical
manufacturing services company, last week opened a 115,000 sq. ft. building in Pathumthani,
Thailand,
the first of what is a new campus for the company.
The site, known as Pinehurst, will provide electronics assembly
support for products built at Fabrinet's Chokchai campus 7 miles away.
The company has broken ground on a second building at the Pinehurst
campus. When completed, Fabrinet will have doubled its footprint in Thailand.
The second building is scheduled for completion in December.
Upon completion of the Pinehurst campus, Fabrinet have nearly 450,000
sq. ft. of capacity in Thailand.
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