Pre-tax income rose 134% to $3.4 million. Net income was $2.3 million, up from $1.1 million.
More than half (57.3%) of the revenue increase was attributable to the July 2003 acquisition of a plant in Mexico.
The company's largest markets were computer peripherals ($5.1
million) and instrumentation ($4.3 million). About 43% of sales were
made to five
customers, with Illinois Tool Works, at 17%, the only one that accounted
for more than 10%.
In a press statement chairman Sam Russell said, "The progress in the area of cost containment made in previous years flowed through to the realization of record earnings in 2004. We were able to make some adjustments in the second half of the year even as raw materials costs were on the increase. We will continue to be vigilant in the area of cost containment, and we initiated programs in the latter part of 2004 to partner with suppliers who will work with us to decrease delivered materials costs.
Mouser will stock Coto's BGA relays, pico relays, surface-mount relays, reed switches, reed sensors and the Spartan line of SIPs and DIPs.
According to Mouser president Glenn Smith, the distributor has a broad product line and over 100,000 customer accounts primarily focused on the design-in and prototyping stage.
Coto Technology, a division of Kearney National Inc. and wholly-owned subsidiary of Dyson-Kissner-Moran Corp., has manufacturing locations in the U.S., Mexico and The Netherlands.
The two major Chinese fixed-line carriers, China Telecom and China Netcom, are expected to suffer declines in local-phone revenues over the next five years, according to iSuppli. Meanwhile, China has delayed the awarding of licenses for 3G service providers. This will impede capital spending and deployment of those services.
Because of these factors, the period of phenomenal growth for China's fixed-line telecommunications carriers is rapidly coming to an end. These companies are expected to cut capital spending in 2005, iSuppli predicts. Spending is expected to amount to $10.2 billion in 2005, down 10% from 11.3 billion in 2004.
Potential bright spots include booming demand for broadband access, Next-Generation Networks (NGNs) and Internet Protocol Television (IPTV)—plus the eventual advent of the 3G market.
At the end of 2004, China was home to 16% percent of the world's broadband subscribers. By 2008, 23% of the world's broadband subscribers will be in China, iSuppli projects. XDSL now is the major broadband access technology in China.
In 2005, Chinese telecommunications carriers will spend $133.2 million to accelerate the construction of commercial NGNs that can provide packet services like Voice over Internet Protocol (VoIP) and IP video to subscribers.
iSuppli forecasts that China's NGN market will take off in 2005. Furthermore, China Telecom and China Netcom have launched IP TV services in more than 20 cities. The two carriers are aiming for 200,000 to 300,000 subscribers in 2005, which could increase their capital expenditures in this area dramatically.
The largest expenditures in China's telecommunications market over the next few years will be on 3G mobile networks. Carriers, including wireline service providers like China Telecom and China Unicom, are eager to obtain 3G licenses from the government.
iSuppli predicts that the Chinese government probably will begin issuing 3G licenses at the end of 2005, when the nation's homegrown Time Division Synchronous Code Division Multiple Access (TD-SCDMA) system matures. The awarding of 3G licenses could result in a major inflection point in carriers' capital expenditure plans.
The telecom industry plays an important role in China's electronics industry. Although carriers will reduce their capital spending in 2005, iSuppli still predicts China's telecom market will grow during the next five years, driven by the nation's huge potential market.
EL SEGUNDO, CA - The top 10 EMS firms grew a combined 22% last year, to nearly $80 billion in sales, according to a report just released by iSuppli Corp.
Flextronics, the largest EMS firm, grew 20.1% to $16.1 billion. Hon Hai, again in second place, grew 30.6% to $14.7 billion.
Sanmina-SCI ($12.5 billion) jumped 20.5% to overtake Solectron ($11.6 billion, on 5.6% growth) for the number three spot. Celestica, up 31.3% to $8.8 billion, rounded out the top five.
Jabil, which did not provide new guidance, predicts sales to grow 20 to 25% range per year through fiscal 2007. The company forecasts a 25% return on invested capital during that time.
TEMPE, AZ - Three-Five Systems has signed a definitive agreement to sell the assets of its small form factor-display business to International Display Works. The deal is expected to close within two to four weeks and is valued at $11 million to $21 million.
The deal covers all outstanding shares of TFS's China-based display subsidiary, and display-related equipment in its Manila, Philippines factory.
IDW will
also assume the obligations of TFS Beijing, including a $2.4 million line of
credit established with a bank located in China.
The sale does not include TFS's display monitor business or electronic
manufacturing services businesses in Redmond, WA; Penang, Malaysia; and Manila.
TFS estimates the total value of the transaction at $11 million to $21 million, including $8 million in cash to be paid to TFS at closing; up to $3 million more in cash to be paid over time, based upon inventory consumption and accounts receivable collections; and up to $9 million in IDW common stock to be paid to TFS in May 2006.
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