News
The results include a $23.1 million charge for the impairment of goodwill and a $1.8 million writeoff of
customer
lists associated with the acquisitions of ETMA and AVT, respectively.
TFAS also took a $1.6 million charge for excess inventory and
transition issues relating to completion of the move of the display
business from the company's factory in Manila to a factory in Beijing.
For
the quarter, the cost of sales was $42.5 million, up from $41 million
last year. Gross margin was a loss of 0.1, versus 1.4 last year.
Jack
Saltich, president and chief executive, said in a statement, "We have
been concentrating our efforts this year on streamlining our global
manufacturing operations and correcting issues in our Redmond factory.
Optimizing our global infrastructure has taken a significant effort. I
believe we are starting to see success from these endeavors."
Separately, TFS named Leslie Honda regulatory affairs director, a new post. Honda was vice president of quality and regulatory for ClearMedical Inc., a medical devices reprocessor.
The book-to-bill ratio for all types of boards was 1.08, meaning for every $100 of shipments, $108 in orders were booked, said IPC, which tracks the data. The trade group does not disclose the participants or their revenues. The book-to-bill ratio was 1.04 in August.
The ratios for rigid and flex boards were 1.01 and 1.38, respectively. The ratio is calculated by dividing the value of orders booked over the past three months by the value of sales billed. A ratio over 1.0 is considered an indicator of rising demand.
Overall September shipments rose 25.9% and bookings were up 18.1% year-on-year, IPC said. For the year, shipments are up 33.5%, bookings are up 35.2%. Sequentially, shipments were up 12.1%, bookings 16.6%.
"Both rigid and flex shipments are rebounding from the recession and are showing strong growth, but flex is growing at a faster rate than rigid," IPC said in a press release.
For the month rigid PCB shipments were up 12.2% but bookings fell 10.1%. Flexible circuit shipments were up 85.6% and bookings were 140.1% higher.
Year-to-date, rigid PCB shipments are up 23.3% and bookings are 16.8% higher, while flex shipments have grown 78.5% and bookings are up 106.5%.
The flexible circuit sales include some value-added services -- about 17%, says IPC.
For the three months ended Oct. 2, the company posted earnings of $11.5 million, up from a loss of $85.7 million last year. The results topped consensus forecasts, thanks to strength in PCs and wireless infrastructure.
Excluding items, income rose to $41.8 million, from $14 million last year. Gross margins were 5.3%. In a research note, Deutsche Bank said, "We believe a mix shift toward PCs, continued pricing pressure and management mishaps in enclosures combined to drive the margin shortfall."
The company generated $160 million in cash flow from operations during the quarter. Inventory turns improved to 11.5 from 10.4 sequentially.
For its 2004 fiscal year, Sanmina-SCI posted a loss of $5.3 million, up from a loss of $137.2 million in 2003. Excluding one-time charges, the company reported income of $128.9 million, up from $28.3 million last year. Yearly revenue rose to $12.2 billion, from $10.4 billion.
Sanmina guided for first-quarter earnings per share of 9 to 11 cents
on revenue of $3.3 billion to $3.5 billion. Last year Sanmina-SCI
reported revenue of $3 billion.
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