AUSTIN, TX – Newisys Inc., developer of multiple server technologies, is closing its manufacturing operation in Austin, TX and laying off 87 local employees.
Part of Sanmina SCI Corp., the San Jose-based parent company notified the Texas Workforce Commission of the layoffs in a letter dated May 8.
Newisys was founded in 2000 to capitalize on the Opteron chip produced by Advanced Micro Devices Inc. and was picked up by Sanmina SCI in 2003. It employed 100 people at that time.
Executives at Sanmina SCI could not be reached for comment.
Part of Sanmina SCI Corp., the San Jose-based parent company notified the Texas Workforce Commission of the layoffs in a letter dated May 8.
Newisys was founded in 2000 to capitalize on the Opteron chip produced by Advanced Micro Devices Inc. and was picked up by Sanmina SCI in 2003. It employed 100 people at that time.
Executives at Sanmina SCI could not be reached for comment.
LOS ANGELES – Northrop Grumman Corp. plans to close its Interconnect Technologies business in Missouri, and will discontinue PCB manufacturing for third parties, effective July 31.
Its interconnect business base is declining, and the plant is currently operating at about 25% capacity, the company said in a statement.
The factory produced backplanes and printed circuit boards.
PHOENIX – EMS provider Suntron Corporation reported net sales of $65.2 million and an operating loss of $1.2 million for the first quarter of 2007.
Gross profit for the first quarter was $3.5 million (5.3% of net sales), a decrease of $4.5 million compared to $8 million (8.4% of net sales) year-over-year.
Net sales in the first quarter last year were $95.8 million. This reflected a one-time increase in sales from an industrial customer and strong demand from semiconductor equipment customers.
PALO ALTO, CA – HP announced net revenue of $25.5 billion for its second fiscal quarter ended Apr. 30, representing 13% growth year-over-year.
For the quarter, year-over-year, revenue in the Americas grew 11% to $10.7 billion; revenue in Europe, the Middle East and Africa grew 14% to $10.3 billion, and revenue in Asia Pacific grew 16% to $4.5 billion.
OTTAWA – Under a recent license agreement, Ottawa-based PELA Technologies Inc. will supply DEK VectorGuard stencils throughout Canada. Financial and other terms were not disclosed.
EL SEGUNDO – Communications infrastructure equipment OEMs are engaging in a spate of mergers and acquisitions to become one-stop shops that can sell everything needed for telcos to compete in IPTV, according to iSuppli Corp.
At stake is a market for IPTV equipment that is expected to grow to $22.1 billion in 2011, up from $9 billion in 2007, the company says.
Leading the OEM M&A frenzy is Ericsson – with its purchase of Marconi in 2005, Redback Networks Inc. and Entrisphere Inc. in 2006, and its current pursuit of Tandberg TV. The company is positioning itself to be a complete IPTV supplier, iSuppli says.
Also, Motorola Inc. has purchased Netopia Inc., Tut Systems Inc. and Vertasent LCC—a developer of Video-on-Demand and IPTV software—and has forged a strategic alliance with ECI Telecom Ltd. Cisco Systems Inc. has followed the same path with its purchase of Scientific- Atlanta, Linksys and Arroyo Video Solutions, a maker of video-networking software, continues the research firm.
Meanwhile, Nortel Networks Ltd. entered into an agreement to jointly develop middleware for the IPTV market with pay-TV software specialist NDS Ltd. During the same period, the merger that resulted in Alcatel-Lucent is a leader in the IPTV equipment space. Finally, Siemens and Nokia merged, creating another potentially powerful competitor, according to iSuppli.
iSuppli expects the M&A activity to sustain its fast pace in 2007. The focus of M&A activity in 2007 will be on middleware, VOD and possibly video encoding, the company predicts.
