PALO ALTO, CA -- H-P will license its photo-enhancing technology to Flextronics for use in camera-equipped cellphones. The deal is for five years; the companies did not diclose the royalty fees or other aspects of the agreement.

According to H-P, Flextronics will license the software for camera modules that capture images at 3 MP and above,. That segment is forecast to make up five to 13% of the more than 600 million camera phones expected to be shipped next year.

It is not clear whether the deal is exclusive to Flextronics .

"Flextronics is the ideal partner to harness the capabilities of H-P's digital-imaging technology to open new markets," H-P imaging and printer group vice president Tara Bunch said in a statement. "The agreement is a breakthrough for the booming camera-phone market because it will transform photos into higher-quality images and keepsakes to share and print."

In licensing the technology, H-P's goal is that more users will print the images -- ideally using H-P printers, ink and paper stock.

HIALEAH, FL -- EMS provider Simclar Inc. reported September quarter revenue of $30,653,658, up 85% from 2005. Net income was $617,868, up from $241,611. A portion of the growth was came from acquisitions.

Pretax income was $1 million, up from $396,084 last year.

VANCOUVER -- Northstar Electronics, a electronics contractor and OEM of sonar technologies, today reported third-quarter revenues climbed up 87% to $413,132, while the net loss from operations narrowed to $161,514.

Northstar CEO Dr. said, "We have taken measures to reduce salary and overhead expenses. These measures along with increased revenues have helped reduce the loss in the quarter to approximately 40% of the loss in the third quarter of 2005.

"During the quarter, we made good progress in our efforts to secure new contracts in defense and Homeland Security and anticipate concrete results shortly in several areas."

In the quarter, the company continued work on a Lockheed Martin contract for command and control consoles for submarines, on an a digital receiver for wireless underwater products, and on a sonar system for fisheries research.

RICHARDSON, TX -- TXP Corp., a provider of pre-manufacturing services for electronics manufacturing, today reported September quarter sales of $1.7 million and net income was $2.2 million.

The odd ratio was tied to a one-time revene gain in the third quarter 2005 and a large tax benefit in the just-completed period.

For the quarter net income included a non-cash gain of $2.7 million related to a change in the fair value of derivative financial instruments. TXP had net income of $405,000 in 2005.

Sales dropped $4.2 million from the quarter last year, when TXP booked $5.2 million from a one-time project with a single customer.

The operating loss was $215,000, down from income of $676,000 last year.

Total revenue year-to-date is $5.1 million, down from $8.5 million in 2005. The operating loss is $346,000, versus operating income of $332,000, and the net loss is $2.1 million, versus a net loss of $21,000 last year.

Excluding last year's one-time gain, core revenues rose 120% year-over-year and gross margin increased to 41% from 22% last year.