EL SEGUNDO, CA – Following three years of strong growth, the global electronic equipment market’s expansion will decelerate slightly in 2007, iSuppli Corp. predicts.
HONG KONG – Top 30 EMS provider Surface Mount Technology (Holdings) Ltd. reported June quarter sales of HK816,843, up 16.1% from a year ago. For its fiscal first quarter, the company’s gross profit was HK105,826, up 3.1%, while earnings were HK15,410, down 27%.
Profits were lower due to higher cost of sales resulting from higher raw material prices, wages, energy cost and depreciation charges, the company said.
“We are seeing a steady stream of new projects. Most of our customers have indicated order growth in the second half of 2007,” SMT said. “As customers are increasingly requiring EMS manufacturers to provide more design services, we are establishing product design and development capability to meet this demand.”
Revenue growth was mainly from higher demand for turnkey projects in industrial control and consumer sectors. Gross and net profit margins decreased on a sequential basis from 14.6% to 13% and from 3% to 1.9%, respectively.
For the quarter, cash from operations was HK63,639. Capital investment was HK$70 million, HK$43 million for production equipment. Five new SMT lines were installed in the quarter, and nine more are planned this fiscal year, for a total to 152.
In the June quarter, industrial controls, consumer products and office appliances made up 38%, 10% and 6%, respectively, of revenue, while computer peripheral and telecommunication products were 21% and 3%, respectively, and automotive electronics was 22%.
By region, Japan made up 54% of total revenue, Korea 16%, European and U.S. 20% and other Asian 10%.
At quarter’s end, SMT had HK183,840 in reserves, down 61% year-on-year.
Inventories were 4.8% lower, at HK 298,188.
In June, the firm opened a factory in Changchun, and in July began production on a second factory at TangXia, Dongguan. SMT has also completed the construction on a plant in Suzhou and has begun internal renovation works. Construction of a factory in Tianjin is on schedule, with operations planned to begin in mid 2008.
Profits were lower due to higher cost of sales resulting from higher raw material prices, wages, energy cost and depreciation charges, the company said.
“We are seeing a steady stream of new projects. Most of our customers have indicated order growth in the second half of 2007,” SMT said. “As customers are increasingly requiring EMS manufacturers to provide more design services, we are establishing product design and development capability to meet this demand.”
Revenue growth was mainly from higher demand for turnkey projects in industrial control and consumer sectors. Gross and net profit margins decreased on a sequential basis from 14.6% to 13% and from 3% to 1.9%, respectively.
For the quarter, cash from operations was HK63,639. Capital investment was HK$70 million, HK$43 million for production equipment. Five new SMT lines were installed in the quarter, and nine more are planned this fiscal year, for a total to 152.
In the June quarter, industrial controls, consumer products and office appliances made up 38%, 10% and 6%, respectively, of revenue, while computer peripheral and telecommunication products were 21% and 3%, respectively, and automotive electronics was 22%.
By region, Japan made up 54% of total revenue, Korea 16%, European and U.S. 20% and other Asian 10%.
At quarter’s end, SMT had HK183,840 in reserves, down 61% year-on-year.
Inventories were 4.8% lower, at HK 298,188.
In June, the firm opened a factory in Changchun, and in July began production on a second factory at TangXia, Dongguan. SMT has also completed the construction on a plant in Suzhou and has begun internal renovation works. Construction of a factory in Tianjin is on schedule, with operations planned to begin in mid 2008.
VANCOUVER – EMS provider Creation Technologies has acquired Lexington, KY-based SMC Inc. No financial details were disclosed. However, Creation had received $65 million in equity funding in June from Burch Hill Equity Partners.
ST. PETERSBURG, FL — Jabil Circuit Inc. today sold the switching power supply business of its Celetronix Power India Private Ltd. subsidiary to Red Rocket Inc. Financial terms were not disclosed.
The deal includes Celetronix's capital stock, product design and manufacturing operations in Mumbai, India, products and IP. The unit's 105 employees and 550 contract personnel were also included.
The deal includes Celetronix's capital stock, product design and manufacturing operations in Mumbai, India, products and IP. The unit's 105 employees and 550 contract personnel were also included.
Red Rocket also bought the EOS brand of power supply products and related technology.
ELKHART, IN -- CTS Corp. today announced second-quarter revenues of $169.6 million and net earnings of $5.9 million. The company, which also makes components, was boosted by strength for its EMS services.
WASHINGTON -- The Electronic Industries Alliance's board of directors has approved a plan that would split the assets of the trade goup coalition across five distinct organizations.
Under the plan, EIA will distribute its assets equally among its four current member associations -- The Electronic Components, Assemblies & Materials Association (ECA); the Government Electronics and Information Technology Association (GEIA); the JEDEC Solid State Technology Association (JEDEC); and the Telecommunications Industry Association -- and the Consumer Electronics Association, a former member of EIA.
Under the plan, EIA will distribute its assets equally among its four current member associations -- The Electronic Components, Assemblies & Materials Association (ECA); the Government Electronics and Information Technology Association (GEIA); the JEDEC Solid State Technology Association (JEDEC); and the Telecommunications Industry Association -- and the Consumer Electronics Association, a former member of EIA.
