NEWARK, NY -- IEC Electronics, a publicly held EMS firm,
today reported second quarter net income of $73,000 on sales of $4.7 million.
For the quarter ended April 1, sales dropped 36% year-on-year, due to a decline in orders from two major customers. Net income dropped from $124,000 last year.
In a press statement, chairman and CEO W. Barry Gilbert said, "The business has been restructured delivering solid gross
profits and excellent inventory turns even though our sales reflect
the previously reported loss of Motorola and Teradyne, which
historically were a majority of the company's business."
IEC has cut $1.5 million annually from its overhead during the past
six months, Gilbert added.
The company landed two new accounts that are eventually expected to be worth $6 million to $10
million annually in sales.
Another customer
said it would cease its business with IEC in July and bring its work in-house.
The top five customers accounted for 71% of sales for the quarter, down five points from last year.
For the quarter, IEC took restructuring costs of $41,000.
Revenue rose 20.1% to $305.5 million from $254.3 million last
year. The results beat analysts' consensus of $285 million in sales.
Plexus reported a net profit of $3.5 million a year ago.
Dean Foate, president and CEO, said, "Looking ahead, we remain confident about attaining revenue for the full fiscal year near the high end of our previously announced target range of 15 to 18%, despite the unsettled outlook for key end markets."
Plexus guided for third-quarter revenue of $305 million to
$315 million, and forecasts operating earnings per share of 13 cents to
15 cents.
The company said its bottom line in the fourth quarter should continue to benefit from operational improvements, which will include advancing the new facility in Penang, Malaysia, to a modest profit.
The EMS maker, the third largest in the world, said revenues rose 1% to $2.89 billion, at the low end of previous guidance, while non-GAAP net income was up 9% to $29.3 million. However, it was sunk by one-time charges of $600 million for impairment of goodwill. It was the 18th straight quarter of one-time charges for Sanmina-SCI.
SAN FRANCISCO - Fabrinet,
an engineering and electromechanical manufacturing services company, will
purchase the manufacturing facilities located in Fuzhou, China,
from JDS Uniphase.
The deal is expected to be completed by June 30. Terms were not revealed.
Last week, JDS said it would transfer its Ewing and Mountain Lakes, NJ,
manufacturing facilities to Fabrinet. JDS has contracted assembly work to
Fabrinet since 2000.
The Fuzhou deal includes the 225,000 sq. ft. Fuzhou
plant, which makes optical components, and its 500 employees. Fuzhou port
sits at the mouth of the Minjiang River in South China.
Last December, Fabrinet acquired JDS Uniphase's manufacturing facilities in Singapore and Bintan, Indonesia.
HERNDON, VA - Saying industry "must have means of differentiating RoHS-compliant products," a leading industry consortium today called for the use of unique part numbers for such parts.
The International Electronics Manufacturing Initiative says the majority of its OEM and EMS members "strongly support" the change. In a statement, iNEMi said:
"Demonstrating and certifying compliance with RoHS is a complex undertaking made more difficult by the electronics industry's distributed design and manufacturing supply chains and the incompatibility between the current tin-lead (SnPb) and RoHS-compliant lead-free manufacturing processes. Industry must have means of differentiating RoHS-compliant products that is common across all of the companies involved in, or contributing to, product manufacture, including component suppliers, component distributors, EMS providers, OEMs and their design partners. We are convinced that the only practical way to accomplish this goal is through separate part numbers that can clearly identify RoHS compliance and manufacturing process compatibility.
iNEMI said support for the switch comes from Alcatel, Celestica, Cray, Dell, Delphi, HP, Intel, Jabil Circuit, Lucent, Microsoft, Plexus, Sanmina-SCI, Solectron, StorageTek and Sun Microsystems.
"Many of our members feel very strongly about this issue, and they came to us, asking that iNEMI issue a position statement to go on record as supporting separate part numbers," said Jim McElroy, executive director and CEO of iNEMI. iNEMI supplied statements from several members supporting the position.
"Celestica is a strong supporter of the introduction of new part numbers for RoHS-compliant components," said Dan Shea, chief technology officer, Celestica. "By assigning unique part numbers for compliant parts, global suppliers would greatly support proper component segregation and handling - driving a smoother transition to RoHS compliance for the electronics industry as a whole."
According to Vivek Gupta, program manager for Intel's Assembly Technology Division, "Intel requires its suppliers to change part numbers when they transition to RoHS-compliant parts and follow the established change control process. Suppliers are expected to mark their RoHS-compliant products per established JEDEC/IPC standards and implement controls to prevent mixing of RoHS-compliant parts."
DES PLAINES, IL — Kester will host a lead-free seminar titled, "Project 2005: Achieving Lead-free RoHS Assembly" on May 10 in Orange County, CA and May 12 in Tijuana, Mexico. Guest speakers will present on behalf of KIC and Metcal.
The seminar claims to offer proven, practical information on both lead-free assembly and RoHS compliance. The seminar does not concentrate on specific consumer applications. It offers information and case studies to make reliable lead-free products that are RoHS compliant.
Presentations and discussions will include: lead-free and RoHS directive overview; supply changes and procurement issues; board/component requirements; lead-free alloy selection for SMT, wave and rework; lead-free wave and SMT process optimization; impact of dual systems; BGA rework practices; hand soldering process changes; lead-free RoHS reliability; field rework and training; and training and documentation.
Lunch and refreshments will be provided. Attendees will receive a lead-free assembly technical manual containing presentation materials; technical white papers; and a free subscription to the Lead-Free Connection Newsletter.
For more info, visit www.kester.com.
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