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SAN JOSE -- Flextronics is terminating "certain
arrangements" with Nortel Networks to reduce its exposure to the Canadian telecom company as it winds its way through bankruptcy.
The programs would come to an end by July, Nortel said, without disclosing the products or services or their values. Nor did the OEM indicate whether any of the programs or services designated for termination were near the end of their contract life.
In an announcement, Nortel said it would purchase $120 million of existing inventory from Flextronics by July, in addition to other quarterly purchases.
CHICAGO – Merger and acquisition activity in the EMS sector slowed slightly in 2008, with a total of 48 EMS companies changing hands in 2008, down three from 2007.
NEW YORK -- IEC Electronics reported December quarter revenue of $15.8 million, up 41% over a year ago.
Operating income was up 141% to $946,000 and net income rose 27% to $532,000 for the company's first fiscal quarter.
In a statement, chairman and CEO Barry Gilbert, said, “We expect continued revenue growth during the balance of the year, and expect to further intensify our market focus in the medical technology sector in the coming quarters. As we all know, the economy is in a deep recession. While some of our customers are indeed experiencing significant difficulties we have others that continue to expand their commercial activity with us."
The company may apply to re-list its common stock on the Nasdaq Capital Market, he said, which could involve a reverse split of the company's common stock.
Bookings were down 15% from the revised November level of $783.8 million, and down 42% from a year ago.
The December book-to-bill was 0.93, down from 0.97 in November and breaking a two-month rise. A book-to-bill of 0.93 means that $93 worth of orders were received for every $100 of product billed for the month.
The three-month average of worldwide billings in December was $722.6 million, down 10% sequentially and 47% from December 2007
“Bookings continue to reflect the uncertainty in the economic environment, and are approaching levels last seen in early 2002,” said Dan Tracy, senior director of industry research and statistics at SEMI. “We expect bookings to remain at low levels until end-market demand for semiconductors picks up.”
The
company, which is privately held, declined to specify where or how many workers would be cut from its various operations but did say the cuts are in "select areas, including
manufacturing."
In a statement, Bose said it was "restructuring its operations in response to the decline of the global economy, and its impact on consumer spending."
Global STB shipments are set to surge to 215.5 million units in 2012, rising at a CAGR of 12.8% from 2007. In 2008, shipments rose to 142.8 million units, up 20.9% year-over-year.
Meanwhile, the percentage of total STB manufacturing conducted by contract manufacturers will increase to 75.3% in 2012, up from 67.8% in 2007, iSuppli predicts. This will cause global STB contract manufacturing to soar to 162 million units in 2012, double the 80 million in 2007. This high growth outlook is spurring intensified competition among contract manufacturers and changes in the industry landscape that will affect brands and suppliers, says the research firm.
The major factor driving the expansion of the STB market during the near-term is the surge in demand in North America and Western Europe because of these nations’ looming deadlines for the transition of television broadcasting signals from analog to digital.
In the US, an estimated 35 million STBs will be required for this transition by February. After developed regions complete the transition during the next couple years, emerging markets will pick up and fuel continuous growth of the worldwide STB market.
Although China launched and finalized its digital TV standards in 2006 and started promoting them in select cities and provinces, the complete transition will not take place until 2015, which will provide Chinese consumers with a gradual process to adapt to the new digital TV standards. iSuppli estimates the five-year CAGR for STB shipments to China for the 2007 to 2012 period will be as high as 40%.
“Although STB brands have already outsourced more than two-thirds of their collective annual unit shipments to contract manufacturers, usage of such outsourced production will continue to increase in the future,” said Jeffrey Wu, senior analyst, EMS and ODM, for iSuppli.
“Brands believe that the use of contract manufacturing ensures asset flexibility, cuts time to market and allows them to focus on higher-value supply chain activities.”
EMS providers and ODMs have contributed approximately equally to the STB industry so far. However, the customer bases for EMS and ODM providers are very different, says iSuppli. EMS providers primarily serve established tier-one OEMs, while ODMs build STBs for smaller, regional OEMs mostly in emerging economies.
Future developments of these two sectors depend highly on brand companies’ outsourcing strategies and the competences they will have to develop in the future to provide and tailor support to their customers.
Despite the forecasted gains in STB shipments, the industry’s annual growth rate will decline from 27.8% in 2007 to single-digit growth rates after 2011, primarily as a result of the proliferation of new televisions equipped with functions that can only be accomplished through STBs today.
This situation means STB brands and their contract-manufacturing partners must solidify their positions during the next two years, while the industry is still undergoing high growth rates, to maintain the lead when the STB industry slows.
MADISON, AL — STI Electronics' sales rose 32% in 2008, the company said.
The privately held EMS company, which also offers training and analytical services, recently moved into a new, larger facility to accommodate the growth.
"I expect to keep the same focus in 2009 to keep us strong and our new facility to give us the opportunity to work with more customers and grow well beyond where we are now,” said David Raby, president and CEO, in a statement. “I’m very excited about 2009 and beyond for STI.”
ST. LOUIS – LaBarge Inc. has received $2.9 million in contracts from BAE Systems to manufacture electronics assemblies for A3 Bradley Combat Systems vehicles.
The company has manufactured electronics for the Bradley program since 1982.
Production is expected to continue through June at LaBarge's Huntsville, AR, facility.
Nevertheless, Isola says, the decision was handed down because the materials at issue – TUC’s TU-662 and TU-752 laminates – have been on the market for “quite some time,” thus superseding an “urgent need” for the preliminary injunction.
According to Isola, the Taiwanese court concluded the Isola patent has novelty and inventive step and thus is valid.
TUC, however, issued a statement saying the decision “proves TU-662 and TU-752 do not infringe Isola’s patent in-suit.” TUC reiterated its stance that the claims against it are “meritless” and “malicious,” and added it has filed a civil complaint in Taiwan IP Court seeking redress for the damage to its business and reputation.
Isola has about 10 days to appeal to the Taiwan IP Court. The company said it plans to initiate civil action and will present positive evidence that will clearly demonstrate TU-662 and TU-752 infringe Isola’s patents. Isola has also filed a complaint with the US International Trade Commission seeking a ban on imports of those products.
Sanyo also revised its fiscal year guidance, lowering it to flat profits from previous guidance of a profit of $393 million.
