Circuits Assembly Online Magazine - Features

MINNEAPOLIS -- EMS provider Nortech Systems today reported net sales rose 21% to $25.3 million for its third quarter ended Sept. 30. Net income rose 17% to $304,587 versus the third quarter 2005.

Year-to-date the company's net sales are up 28% to $77.5 million, and net income is up 76% to $498,210.

"This was an excellent quarter for us at the top line and in terms of profitability," said Mike Degen, president and CEO. "Our growth rate continues to exceed the industry average and we believe we are well-positioned for the remainder of 2006 and beyond."

The company is on pace to surpass $100 million in revenue this fiscal year, up more than 20% from 2005. The industry average is about 11%, Degen said.

Three-month order backlogs rose 12% during the third quarter. In October the company secured an $8.5 million order for custom cable assemblies from a U.S. defense contractor, deliverable over the next 12 months.

Nortech raised its earnings for fiscal 2006 to 46 to 48 cents, compared with the 36 cents last year. The company expects revenues of $102 million to $104 million, an increase of 21 to 24% over last year.

MANKATO, MN -- Winland Electronics today announced third-quarter revenues of $9.6 million, up 29.5% from the third quarter 2005. Net income fell 11.8% to $385,456 compared to last year. Net income increased 33% sequentially.

Gross profit was $1.8 million, or 18.3% of sales, and gross profit margin increased sequentially from 15.1% for the period ended Sept. 30. Operating expenses were stable sequentially and up 16.7% to $1.1 million from last year.

Income from operations fell 13.9% to $631,262 versus last year and was up 32% sequentially.

In a press release, Winland chief executive Lorin Krueger said the company was focusing on diversifying its product mix as its major customer, Select Comfort, migrates 50% of its business to a second supplier. That previous announced transition will begin in mid November.

"During the third quarter, we brought 26 new or revised products online which included product introductions from four new customers. [W]e are optimistic that our continued efforts to diversify our customer and product offerings will offset this loss of the Select Comfort business."

NEENAH, WI -- Plexus Corp. reported record fiscal fourth-quarter net income of $42.6 million on a 23% hike in revenues over last year. For the quarter ended Sept. 30, the EMS firm's sales hit $396.9 million, bringing full year revenues to a record $1.46 billion, a 19% increase over 2005.

For the quarter, net income was up 305%, including a $17.7 million gain due to tax provisions and a $500,000 loss on the adoption of "FIN 47" concerning conditional asset retirement obligations. Non-GAAP quarterly net income was $25.5 million, a company record for the fourth quarter.

ROCHESTER, MN -- EMS firm Pemstar Inc., in its final days as a standalone company, reported fiscal 2007 second-quarter revenue rose $1.2 million to $212.3 million from last year. Net income was $3.2 million compared to a net loss of $13.5 million a year ago. The prior year loss from continuing operations includes restructuring and impairment charges totaling $7.9 million.

Last month Benchmark Electronics announced it would buy Pemstar in a deal expected to close next quarter.

WASHINGTON -- The U.S. Department of Justice's antitrust division has subpoenaed Sony's electronics unit for information on its sales of SRAM memory chips. The company expressed its full cooperation with the probe.

The move appears to be part of a growing Justice Department probe into SRAM sales. Earlier this month, Cypress Semiconductor said its SRAM operations were also under investigation.

VANCOUVER -- Nam Tai Electronics today reported third-quarter sales rose 5.1% year-over-year to $218.5 million. Operating income fell 11.6% to $12.4 million, and net income plummeted 35.7% to $12.1 million for the period ended Sept. 30.