LaBarge Inc. (St. Louis) reported that financial results for its fiscal 2004 second quarter and first half, ended Dec. 28, 2003, rose significantly over prior-year levels. The company also signed a letter of intent to acquire Pinnacle Electronics LLC (Pittsburgh, PA.) LaBarge indicated the acquisition will be immediately accretive to earnings.
For the second quarter, net sales rose 20% to $29,070,000, up from $24,302,000 one year ago. Net earnings from continuing operations increased 81% over last year. The quarter included a net loss from discontinued operations of $393,000, or $.02 per diluted share. Net earnings grew 267% to $1,404,000 or $.09 per diluted share, up from $383,000, or $.03 per diluted share, in the same quarter last year.
For the fiscal 2004 first half, net sales rose 24% over the first half of 2003. Earnings from continuing operations increased 169% to $2,775,000, or $.18 per diluted share. First-half results also included a net loss from discontinued operations of $102,000, or $.01 per diluted share. In total, net earnings for the fiscal 2004 first half grew 475% to $2,673,000 or $.17 per diluted share, year-on-year.
"The primary contributor to fiscal 2004 second-quarter revenues was shipments to defense customers representing 59% of sales versus 43% in last year's second quarter," said president and chief executive officer Craig LaBarge. "Bookings of new business strengthened during the second quarter from first-quarter levels, primarily attributable to orders from defense customers which represented the largest single component of second-quarter bookings. We continue to experience lingering weakness in our non-defense markets. One brightening spot is oil and gas where we have begun to see increased order activity."
LaBarge has entered into a letter of intent to acquire Pinnacle Electronics, a privately held contract electronics manufacturer that designs, engineers and manufactures printed circuit assemblies, cables and harnesses, full "box-build" assemblies and electronic/electro-mechanical systems for customers in a variety of industrial, non-military markets. Pinnacle, owned by Main Street Capital Holdings LLC, had 2003 revenues of approximately $38 million.
LaBarge expects the acquisition to be immediately accretive to earnings per share. The transaction is expected to close by the end of February and is subject to the satisfactory conclusion of due diligence, finalization of financing, finalization of definitive agreements and other customary terms and conditions.
LaBarge expects to fund the anticipated purchase price of approximately $41 million with a combination of cash on hand and bank financing.
Copyright 2004, UP Media Group. All rights reservedThe National Electronics Manufacturing Initiative (NEMI, Herndon, VA), an industry-led consortium focused on strengthening the global electronics manufacturing supply chain, is planning several meetings at IPC SMEMA Council's APEX conference on Feb. 23-26, in Anaheim, CA. Several projects will be reporting on activities in conference sessions; the recently formed RoHS Transition initiatives will hold meetings to discuss areas of focus, objectives and activities; and several of the roadmap Technology Working Groups (TWGs) will begin discussions for the 2004 NEMI Roadmap.
NEMI's Defects per Million Opportunities (DPMO) Project will be featured as one of the APEX free forums on Feb. 25. The project is nearing completion of its investigation into package-level DPMO rates throughout the electronics assembly industry. Such DPMO data can be used to quantify the expected fault spectrum on particular printed circuit board (PCB) assemblies, enabling manufacturers to more accurately assess the cost of assembly, test, repair and scrap and also to estimate shipped product quality levels. During the forum, the DPMO Project team will present findings from their study, briefly review methodology, share lessons learned and discuss their vision for follow-on DPMO efforts in the industry.
Several of NEMI's optoelectronics projects will be discussed in conference sessions. Reports from the Fiber Optic Splice Improvement Project and the Optoelectronic Substrate Cost/Performance Analysis Project are featured in a panel on optoelectronics on Feb. 26. A third optoelectronic project—the Fiber Optical Signal Performance team—has a paper session scheduled on the show floor on Feb. 26 to discuss their paper, "Degradation of Optical Performance of Fiber Optic Connectors in a Manufacturing Environment."
Several of the roadmap TWGs are holding their initial organizational meetings. The TWGs are responsible for development of roadmap chapters on specific topics and are actively recruiting industry participants. Board Assembly, Environmentally Conscious Electronics and Interconnect Substrates—Organic are all scheduled to meet at APEX.
The RoHS Transition Task Group and four initiatives organized under this group will also hold meetings that are open to non-members. These efforts were organized in late 2003 in response to findings of the 2002 NEMI Roadmap, which highlighted the need for standards for collection, documentation and transmittal of material content data of components, assemblies and systems to meet the requirements of pending regulations. The group addresses supply chain issues surrounding the transition of the electronics industry to lead-free assembly. The meeting on Feb. 26 will provide an overview of group activities and include presentations from all of the working projects as well as a panel discussion with a question and answer session.
NEMI's Board Assembly & Substrates Technology Integration Groups (TIGs) have scheduled a joint "call for participation" meeting on Feb. 24 to launch two new collaborative efforts: materials and processes for high-frequency products; and substrate surface finishes for lead-free assembly
For a complete schedule of meetings, visit http://www.nemi.org/APEXmtgs_public.pdf.
Copyright 2004, UP Media Group. All rights reserved.
Kester (Des Plaines, IL) is working with BTU International (North Billerica, MA) to co-host a seminar focusing on lead-free technology. The seminar is scheduled for Tuesday, Feb. 10 in Tampa Bay, FL.
This series of seminars is part of the Kester University, which offers complete solder technology training programs coupled with consulting services to assist the electronics industry with training and process issues. Training courses are offered for surface-mount assembly, wave soldering and rework. Each course also offers technical and practical information for implementing lead-free assembly, wave and rework.
Courses in traditional leaded solder processes are available and are offered in both English and Spanish. The courses are customizable to accommodate a customer's need for in-house training of operators, line supervisors and managers. Courses come with complete in-class training materials and CD training modules.
This series of seminars is part of the Kester University, which offers solder technology training programs coupled with consulting services to assist the electronics industry with training and process issues. For information, contact: kesteruniversity@kester.com or call (847) 297-1600.
The Lead-Free Solutions seminar is co-produced by Kester, a supplier of solder and related materials and services to the electronics assembly, micro-component, industrial soldering, hardware/retail and wholesale plumbing markets, as well as by BTU International, a supplier of advanced thermal processing equipment for semiconductor packaging, surface mount and advanced materials processing.
Copyright 2004, UP Media Group. All rights reserved.
Samsung Electronics Mechatronics Center (Suwon City, Korea) has given ASC International (Maple Plain, MN) sales and service responsibilities for their line of FARA-VSS Series automatic optical inspection (AOI) equipment in the North America. Founded in 1992, ASC International has grown as a supplier of AOI for 3-D solder paste measurement.
"The Samsung brand name has a reputation for providing reliable, feature-rich products at affordable prices," said Jon Arneson, president of ASC International. "Samsung's AOI products are no exception, and align very nicely with ASC's product strategy. Samsung provides a total solution for surface-mount inspection with post-paste, pre- and post- reflow inspection systems and have been very successful in Asia and Europe. We think the timing for right for North America, given the recent market turnaround."
At APEX 2004 in Anaheim, CA (Feb. 24-26), ASC will introduce Samsung's latest model, the VSS-3EL to the North American market. The color camera-based system provides high speed and high resolution with the capability of inspecting 0201s. In addition, options such as repair software, SPC software and line monitoring software help take the guesswork out of inspection data interpretation.
Copyright 2004, UP Media Group. All rights reserved.
Universal Instruments (Binghamton, NY) and Hitachi High Technologies (HHT, Schaumburg, IL) have renewed their successful original equipment manufacturer (OEM) agreement for a further five years. HHT acquired Sanyo High Technologies, Universal's original OEM partner, in 2003. The partnership has enhanced Universal's turret-style high-speed placement (HSP) technology while affording HHT an extensive sales and support network.
Since it was first announced in 1989, the agreement has resulted in more than 1200 HSP platforms sold. Continued success of the partnership and sustained market demand for HSP equipment have allowed the agreement to be renewed several times in the past.
In addition to customers' access to the entire line of 4797-series HSP machines, extending the agreement until 2009 will allow further joint efforts to continue. Such efforts include recent line software development work and may extend in the future to additional joint technical projects, technology transfers and further product sharing.
Copyright 2004, UP Media Group. All rights reserved.
Sanmina-SCI Corp. (San Jose, CA), an electronics contract manufacturer and printed circuit board (PCB) fabricator, has become the first company to enter a world-wide licensing agreement under Nortel Networks' Channel Routing technology licensing program, authorizing it to design and manufacture PCBs using Nortel Networks' patented technology.
Channel Routing allows designers the opportunity to improve the routability of signals out of dense array packages and potentially reduce the number of layers required to interconnect components. It is an algorithm that utilizes blind vias and/or microvias to open up routing channels in dense array packages allowing for improved wiring density. A software layout tool works with Sanmina-SCI's current ECAD tool to allow for auto-routing of designs with high I/O array packages, such as ball grid arrays (BGAs), speeding up the design process.
George Dudnikov, senior vice president and chief technology officer of Sanmina-SCI's PCB Division, said, " This is an opportunity for us to license someone else's innovation and provide products and services which utilize this licensed technology to all of our customers in addition to Nortel Networks. It also demonstrates a close collaboration between an original equipment manufacturer (OEM) and EMS partner in developing and commercializing new technology."
"By using our patented Channel Routing technology, complex PCBs can be designed with fewer layers, thereby enabling even higher density products, improved manufacturing yields, and overall, a more cost effective PCB," said Ryan Stark, vice president, Advanced Technology Investments, Nortel Networks. "Channel Routing will benefit those who are pushing the envelope in complex PCB design."
With this license, Sanmina-SCI is immediately able to offer Channel Routing to all of its board layout and PCB customers.
Copyright 2004, UP Media Group. All rights reserved.
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