Circuits Assembly Online Magazine - Features

GREENVILLE, SC -- Kemet Corp. today June quarter net income of $3 million on net sales of $114.1 million. The company's net loss before special items was $300,000, with the difference made up by a one-time tax benefit of $3.3 million.

Sales at the maker of passive chips were down 6.8% from last year and up 12.5% sequentially.

BOSTON -- Revenues of Europe-based electronics manufacturing services firms are in recovery, according to a recent research report.

Reed Electronics Research says the European EMS market will reach €47.1 billion by 2009, up 139% from €19.7billion in 2003. Reed estimates the market grew 20.3% in 2004, to €23.7 billion.

One big factor: Eastern Europe. The cost savings gained by moving manufacturing to the emerging region is driving the rest of the continent. Eastern Europe's EMS sales will reach €11billion by 2009, up from an estimated €4 billion this year, Reed reports. Eastern Europe is already the third largest EMS market in Europe, with a 16.8% share.

Germany is the market share leader, at 23%, followed by the U.K. (18.1%) and France (13%).

As of last year, the 10 largest companies made up an estimated 64% of total EMS sales, Reed says.

BOCA RATON, FL -- Celestica has landed a major EMS contract with Artesyn Technologies, a maker of power conversion and embedded boards for server and storage, networking, wireless and telecommunications.

In a statement today, Artesyn said it is closing its manufacturing facility Tatabanya, Hungary, and will award European manufacturing services work to Celestica. Most of the products currently being manufactured in Hungary will be transferred to Celestica's factory in Oradea, Romania, Artesyn said.

This transition is expected to be complete by the end of 2005. The move will save Artesyn an estimated $6 million next year.

Joseph O'Donnell, president and CEO, said, "Our intent to outsource production to Celestica is primarily based on their larger purchasing power and ability to leverage economies of scale from a larger manufacturing base. Additionally, Celestica's global manufacturing structure will open up sourcing options in different geographic locations as we grow our global wireless infrastructure business. The new relationship with Celestica gives us the ability to leverage our cost structure, as well as improve gross margins and overall profitability."

IRVINE, CA -- Sparton Corp. will use RiverOne's supply-chain management software in its electronics design and manufacturing operations.

Sparton will implement RiverOne's Interactive software for business processes with customers and suppliers. Financial terms were not announced.

David W. Hockenbrocht, Sparton CEO, said, "By leveraging industry shifts from the outset, we have always been a step ahead of the competition and moving to the next level. RiverOne's unique approach to controlling supply chain relationships in complex, outsourced environments, meshes with our vision and will support us regardless of how our business model continues to evolve."

MANKATO, MN -- Winland Electronics, a designer and manufacturer of electronic control products and systems, reported second-quarter revenues of $7.1 million, a record. Net income rose more than 600%, to $566,539, over last year.

Sales for the quarter ended June 30 were up 22% over last year, driven primarily from new product line items and improved sales of proprietary products.

Gross profit for the quarter was $1.9 million, up 90% ovfer last year and up 10.6% sequentially.

Gross profit as a percentage of net sales increased from 17% in the second quarter last year to 26.4% this year.

Total operating expenses increased 15.9% to $963,985 but were down 9.9% sequentially. Operating income was up almost five-fold to $914,900, and up 45.4% over the first quarter.

Lorin Krueger, chief executive, said, "[T]hus far our blend of contract services, proprietary products and cost management have enabled us to hold margins even in a competitive environment."

This year Winland has added six new customers and 41 new product introductions in its EMS business

The company had $1.6 million in cash at quarter's end.

Winland performs EMS services and also has its own line of environmental sensors.

Irvine, CA -- The electronics group of Henkel will relocate its mold compound development, application engineering and technical service capabilities from Olean, NY, to the advanced research and applications center in Irvine that opened earlier this year.

Dr. Larry Crane, global director of research, development & engineering for semiconductor materials, said, “With the unification of product development in one facility, Henkel now has the capability to develop our mold compounds, die attach products, thermal interface materials, underfills and encapsulants under one roof with a superior technical team. This streamlined approach is a win-win for everyone, especially customers who can prototype new packages more quickly, accelerate time-to-market and do so more cost-effectively.”

The 53, 000 sq. ft. facility is host to an analytical and failure analysis lab and a 5,000 sq. ft Class 10,000 clean room which houses advanced testing and manufacturing equipment, including a Datacon APS 2200 placement system, a DEK Europa screen/stencil printing system for backside wafer coating and a Disco wafer dicing saw. The operation also has a 2,000 sq. ft surface mount production line with screen printing, reflow and dispensing capabilities.