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The drop in revenues was due to weakness in consumer demand for set-top boxes and 3-G wireless handsets, and lagging semiconductor equipment orders, Solectron said. Sales of networking gear also fell.
Earnings met the company's previous guidance.
The firm guided for sales of $2.65 billion to $2.8 billion for the February quarter. "Looking forward, we expect revenue growth in the second half of the year, driven by the expected ramp of recent wins and improved demand," said Mike Cannon, president and chief executive.
Gross margins improved 40 basis points sequentially and operating expenses were cut to $96 million. Cash flow from operations was $190 million. Inventory was reduced $52 million. Inventory turns were 7.1.
The site, located in Peachtree City, GA, will be cut to a single building, from 300,000 sq. ft. and four buildings over the next nine months. The staff will be reduced to 100 workers from the current headcount of 600.
"This change to the physical presence of Photocircuits in North America results from the changing competitive landscape for printed circuits," the company said in an unattributed statement. "More and more customers demand the economic advantages of sourcing in Asia."
Photocircuits will maintain print-and-etch operations in Peachtree City, plus sales and technical services, logistics and inventory management.
Backlogs will be sent to Photocircuits' facility in Glen Cove, New York, and factories in China, where the PCB maker partners with Japan-based CMK.
The company estimates that realignment of the site will last about nine months.
2004 has been unkind to Photocircuits, one of the oldest PCB firms in the world. The company, once the largest board shop in the U.S., is in the hands of outside management and two of its longtime owners -- John Endee and Steve Wohlgemuth -- have been let go. The company had sales of $234 million in 2003, according to PCD&M contributing editor Hayao Nakahara, making it the 32d largest PCB company in the world.
ST. PETERSBURG, FL, Dec. 20 -- Electronics manufacturing services provider Jabil Circuit Inc. today reported record first-quarter net revenue rose 21% to $1.83 billion year-over-year.
For the quarter ended Nov. 30, GAAP net income increased to $55.9 million, from $42.5 million last year.
In a press statement, president and chief executive Tim Main said, "While the end-markets and the economy are just beginning to show signs of improvement, Jabil clearly has the strong trend for electronics companies to outsource in its favor."
Jabil guided for second quarter net revenue of $1.65 million to $1.75 billion and core earnings per share of 26 to 28 cents per diluted share. Estimated GAAP earnings per share are 22 to 24 cents per diluted share. The February quarter is typically hurt by lower consumer spending.
First quarter core earnings -- core earnings as GAAP net income before one-time charges and amortization of intangibles -- increased 26% to $65 million.
Gross profit for the first quarter of fiscal 2005 increased 16% to $154.9 million or 8.4% of net revenue.
On a GAAP basis, operating income rose 32% to $70.3 million.
The company expects to end the February quarter with significantly less inventory, officials said on a conference call with analysts.
Cash flow from operations was lower, at $35 million. Inventory turns were nine. Capital expenditures were $55 million, up nearly 100% over the second quarter. The company said it would stabilize R&D spending at that levels.
Return on invested capital rose to 17% during the quarter. Officials said they aim for ROIC of 15 to 20% longterm.
Three customers made up more than 10% each of Jabil's Q1 sales. Main said the firm plans to reduce its dependence on its top 10 customers.
The company is not ruling out future acquisitions. "We could do deals; we've got the bandwidth and the money to do it," Main said. "There are opportunities in the pipeline."
Jabil maintained previous fiscal 2005 guidance of net revenue of $7.2 billion to $7.4 billion and core earnings per share to be in a range of $1.20 to $1.24 per diluted share. "We're looking for end-markets to grow in the 4 to 5% range," the firm said. It said it expects gains from vertically integrated industrial OEMs who are considering outsourcing manufacturing.
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