Circuits Assembly Online Magazine - Features

ELKHART, IN -- CTS Corp., about to be merged, posted its best sales quarterly sales results since the second quarter of 2001.

The company today reported fourth-quarter revenues of $142.5 million, up 10%, sequentially and 8% year-on-year.

Net earnings were $6.6 million, vs. $3.9 million in the fourth quarter of 2003.

Full-year revenues of $531.3 million topped 2003 revenues by 15%. The company, which makes electronics gear, posted net earnings of $20 million, well above 2003 earnings of $12.6 million.

WESTFORD, MA, - MatrixOne Inc. said second-quarter revenues increased 31% to $35.1 million from $26.9 million in the same period last year.

The net loss was $400,000, compared to a net loss of $7.2 million in the same period last year.

Software license revenues increased 64% to $15.4 million from $9.4 million last year.

"We are pleased to report another very positive quarter with strong sequential and year-over-year revenue growth and improved bottom-line results. Our operating performance during the second quarter reflects the continued improvements in our company-wide sales execution, expanded implementations within our existing customer base and the adoption of our solutions by strategic new customers who are fueling the growth of the PLM market," said Mark F. O'Connell, president and CEO of MatrixOne.

FRAMINGHAM, MA - Worldwide IT spending reached $965 billion in 2004 and will increase at a compound annual growth rate of 6% from 2004 to 2008, says a new research report.

Recovery is expected in hardware sales worldwide, with revenues forecast to reach $465 billion by 2008, IDC said today. The research firm predicts robust spending from consumer, communications and media, and government.

Banking, discrete manufacturing and government are the largest IT buyers.

U.S. IT spending will reach $416 billion in 2005, up 5.8% from 2004.

In a press release, IDC said, "These results indicate a positive outlook for the U.S. and worldwide IT market, particularly after 2005. With an improving business environment and recent GDP gains, companies are loosening their restraints for information technology investments."

The firm also forecast U.S. sales of PCs will reach $49 billion in 2005.

FRAMINGHAM, MA - The worldwide PC market remained strong in the fourth quarter as smaller businesses and holiday demand pushed sales 13.7% higher, IDC said today.

Total shipments rose to 51.5 million units for the quarter, the seventh consecutive quarter of double-digit growth. Shipment growth topped earlier projections of 13%.

For the year, shipments were up 14.7%, to 177.5 million units.

IDC forecast 10% growth worldwide in 2005.

"PC replacements and new investment should continue to drive commercial growth at least through the end of 2005," said Loren Loverde, an IDC director.

The top five companies are Dell, HP, IBM, Fujitsu/Fujitsu Siemens and Toshiba. Apple grew more than 25% during the quarter, a significant improvement over prior quarters, reflecting the introduction of the G5 iMac as well as the "halo effect" from the popularity of Apple's music business.

ST. LOUIS - LaBarge Inc. today reported net sales rose 68% to $48.7 million and net earnings increased 94% to $2.7 million record highs for the fiscal second quarter ended Jan. 2.

The results include the company's Pittsburgh operation, acquired last February.

For the first half, net sales rose 57% to $92.4 million, while net earnings from continuing operations were up 81% to $5 million.

Total net earnings for the first half grew 88% to $5 million.

Gross margin in the second quarter was 21.6%, down from 22.4% a year ago. SG&A expenses as a percentage of sales fell to 11.9%, from 15%.

Total debt was $38 million, up a fraction.

Backlogs as of Jan. 2 were $145 million, down 3% sequentially and up 27% from last year.

Defense customers - primarily buyers of LeBarge's EMS services - accounted for 49% of sales. Shipments of capital equipment to industrial customers were 18%. The company also provides capital equipment for oil-and-gas and mining operations, commercial aerospace and government systems.

LaBarge guided for "substantially higher" year-on-year third-quarter revenues and earnings. The firm said sales and earnings would likely drop slightly sequentially.

For the fiscal year, the company expects revenues and earnings to grow at least 35%. The firm reported revenue of $131.5 million for fiscal 2004.

ELGIN, IL - Panasonic's capital equipment division has been renamed Panasonic Factory Solutions Company of America.

The name change for the unit, formerly Panasonic Factory Automation, took place Jan.1.

In a press release, the company said the change "unifies the company's capital equipment business globally under the Panasonic name, while reinforcing the greater consultancy role that PFSA has taken on for its customers."

Similar name changes are planned for Panasonic operations in Europe, Asia and China.