The June quarter period includes a one-time gain of $2.5 million related to the reversal of previous restructuring provisions.
President and COO Roy Bauer said, "We are still doing a little bit more realigning of our portfolio. We are considering, as previously disclosed, strategic alternatives for our Tianjin, China, operations. We see optimism in our medical, computing and data storage and industrial businesses for the second half of the year."
For the quarter, industrial sales accounted for 38.4% of net sales, computing and data storage was 23.5%, communications was 36.2% and medical was 1.9%.Accounts receivable at June 30 was $125.5 million
with days sales
outstanding of 53 compared with $121.1 million in
accounts receivable
with DSO of 56 at March 31.
Net inventories were up nearly $10 million, to $64.2
million, and inventory turns dropped 0.9 turns to 12.4 times. Cash cycle was
31 days, down from 40 days in the March quarter.
Jefferies Broadview was retained to explore possible partnerships or a sale of the Tianjin, China operations. Pemstar said it seeks to reduce its consumer business and focus on more profitable markets like medical, industrial, instrumentation, military/aerospace and process equipment.
For the September quarter, Pemstar expects net sales of
$200 million to
$220 million.
NEW YORK -- The world market
for SMT screen printers will grow from $190.2 million in 2005 to $366.4
million in 2012, a research firm said today. Sales of glue dispensers
will grow from $26.3 million in 2005 to $42.1 million in 2012, said Frost & Sullivan.
Durables orders rose 3.1% in June, well above the 1.7% gain previously forecast by Wall Street.
Commercial aircraft rose 8.8%, reversing two months of big declines. Last month, Boeing booked orders for 135 aircraft, up from 33 in May.
Analysts believe that output in the manufacturing sector will continue to rise in coming months but at a slower pace, reflecting an economy that is slowing under the impact of surging energy prices, rising interest rates and the cooling housing market.Link to AP story here.
Net income rose 844% to $1.9 million year-on-year, and 31% from the first quarter. Operating income jumped to $2.5 million from $26,000 a year ago and was up 34% sequentially.
Worldwide mobile PC production in 2005 amounted to 61.9 million units, and will grow at a compound annual growth rate of 17.9% to reach 141.4 million units in 2010, iSuppli predicts.
In 2005, 82.6% of this production, or 51.2 million units, was outsourced by PC OEMs to contract manufacturers. By 2010, the portion of outsourced PC production will rise to 92.5%, or 130.8 million units.
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