News
Abstracts of 200-300 words are due to conference coordinator Kristin Nafstad (kristin@smta.org) by March 1. Written papers are not required.
SAN JOSE - Flextronics posted record GAAP net income of $98.7 million, up 361%, for its third quarter. The EMS firm also topped previous records for revenues, reporting sales of $4.3 billion, up 3% over last year.
The company recorded restructuring charges of $30.7 million during the quarter, primarily related to closures and consolidations. Excluding one-time items, net income rose 24% to $116.3 million.
The company reaffirmed previous revenue guidance of $3.8 billion to $4.2 billion for the March quarter, and $4.1 billion to $4.5 billion in the June quarter. The company told analysts that end-markets are solid.
VANCOUVER, Jan. 24 -- Nam Tai Electronics, facing a sharp uptick in orders, will recruit over 1000 more workers this quarter for its manufacturing sites in Shenzhen. The addition will bring the total number of employees to 6,600 by the end of March.
The company has also upgraded its chip on board technology to include gold wire
ball bonding for manufacturing CMOS image sensor modules at megapixel quality. CMOS image
sensor modules are used 3G camera phones
"There is a growing demand for CMOS image sensor modules with better image quality," said Joseph Li, chief executive, in a press release. "With our ongoing advancement of our manufacturing capabilities, we believe that Nam Tai is well positioned to respond to the demand from the fast growing electronic manufacturing industry, especially the optical device area, and to capture more business opportunities arising in this area."
LG Electronics will hold just under 50%, and Nortel will have 50% plus one share.
The venture, temporarily named LG-Nortel Networks, will focus on developing equipment for 3G wireless networks based on W-CDMA technology, according to press reports.
Nortel is the larger shareholder for the purposes of accounting, the companies said.
The EMS maker reported a net income of $132,000 on revenue of $6.5 million a year ago.
In a press release, Barry Gilbert, chairman and CEO, said, "Although
our profit was modest, we have made substantial progress in rebuilding
the Company. Last year we were trying to deal with the loss of
Motorola. We needed to reduce our costs and refocus our sales
activities, and will continue to do so as required. Some of the
programs we have put into place are starting to take hold."
IEC began a lean-manufacturing program late last year and expects gross margins to improve as revenue increases.
Also, Donald Doody has joined the company as vice president of operations. He was formerly with Plexus Corp.
The company reported revenues of $111.3 million last year and $106 million last quarter.
The GAAP loss was $13.1 million a year ago and $7.5 million sequentially.
Kemet was hurt by excess inventory especially at distributors, said
CEO Dr. Jeffrey Graves, in a press statement. He said indications are
that inventory declines may continue.
Average selling prices fell 1% during the quarter.
Surface-mount capacitors made up 82% of the company's sales for the December quarter.
By region, 43% of sales were in North America, 35% in Asia and 21% in Europe.
Nearly half -- 49% -- of sales were to distributors, 27% were to EMS customers and 24% were to OEMs.
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