Latest News
TORONTO -- Celestica became the latest EMS firm to announce a debt reduction plan, announcing last night plans to purchase up to $150 million worth of its 7.875% senior subordinated notes due in 2011. Under the modified Dutch tender offer, Celestica will purchase notes in a range $960 to $1,010 per every $1,000 in principal, with the offer expiring in a month.
Like many of its competitors, Celestica has large amounts of cash on hand and is using some to lower its debt and perhaps boost its earnings. At the end of December, the company had $1.2 billion in cash on its balance sheet, and was in a net cash position of $468 million.
"We believe Celestica is looking for a way to return value to shareholders through repurchasing its near-term debt," Deustche Bank analyst Sherri Scribner wrote in a research note. She estimates Celestica's buyback will reduce debt levels and lower its interest expense by roughly $10.5 million a year.
Like many of its competitors, Celestica has large amounts of cash on hand and is using some to lower its debt and perhaps boost its earnings. At the end of December, the company had $1.2 billion in cash on its balance sheet, and was in a net cash position of $468 million.
"We believe Celestica is looking for a way to return value to shareholders through repurchasing its near-term debt," Deustche Bank analyst Sherri Scribner wrote in a research note. She estimates Celestica's buyback will reduce debt levels and lower its interest expense by roughly $10.5 million a year.
SACRAMENTO, CA -- The state of California sent a stern message to semiconductor chip manufacturers yesterday by enacting mandatory rules controlling greenhouse gases.
SMYRNA, GA -- More than 2,000 PCB
designers, fabricators and assemblers registered for Virtual PCB (www.virtual-pcb.com), the industry's only
virtual trade show and conference, which took place this week.
The live event was held Feb. 24-25, and the show will remain open in an archive mode for two months.
Exhibitors include several leading suppliers of placement, soldering and test equipment, materials, software, and bare boards. The technical conference includes Webinars on design, simulation, soldering, lead-free assembly, and environmental issues from well-known industry experts.
New this year were technical chats featuring experts on subjects ranging from CAD and MCAD software to laminates, and from assembly process defect solutions to the potential of alternative energy platforms for SMT manufacturers.
“We found the technical conference to be a huge draw, with some Webinars attracting several hundred attendees, which simple logistics would prevent at the industry’s ‘live’ events,” said Mike Buetow, editor in chief of Circuits Assembly, which cosponsored Virtual PCB.
A fully interactive, Web-based event, Virtual PCB incorporates all the critical features of a live event while allowing PCB design, fabrication and assembly equipment and materials buyers and sellers to interact online.
For more information about Virtual PCB, visit www.virtual-pcb.com or contact Alyson Skarbek, show manager, at 678-589-8865 or askarbek@upmediagroup.com.
Virtual PCB is produced by UP Media Group, the industry’s leading publisher of technical magazines.
The live event was held Feb. 24-25, and the show will remain open in an archive mode for two months.
Exhibitors include several leading suppliers of placement, soldering and test equipment, materials, software, and bare boards. The technical conference includes Webinars on design, simulation, soldering, lead-free assembly, and environmental issues from well-known industry experts.
New this year were technical chats featuring experts on subjects ranging from CAD and MCAD software to laminates, and from assembly process defect solutions to the potential of alternative energy platforms for SMT manufacturers.
“We found the technical conference to be a huge draw, with some Webinars attracting several hundred attendees, which simple logistics would prevent at the industry’s ‘live’ events,” said Mike Buetow, editor in chief of Circuits Assembly, which cosponsored Virtual PCB.
A fully interactive, Web-based event, Virtual PCB incorporates all the critical features of a live event while allowing PCB design, fabrication and assembly equipment and materials buyers and sellers to interact online.
For more information about Virtual PCB, visit www.virtual-pcb.com or contact Alyson Skarbek, show manager, at 678-589-8865 or askarbek@upmediagroup.com.
Virtual PCB is produced by UP Media Group, the industry’s leading publisher of technical magazines.
BANNOCKBURN, IL – January PWB shipments fell 17% year-over-year, and bookings decreased 29.3%. The combined industry book-to-bill fell to 0.89, says IPC.
For the month, rigid shipments dropped 18.9%, and bookings dipped 30.7% compared to the same month last year. The book-to-bill slipped further to 0.88.
Flex shipments rose 16.6%, while bookings slid 1.8% year-over-year. The book-to-bill declined to 0.98.
“Sales and orders of rigid PCBs declined sharply in January compared to January 2008, but flexible circuit sales were surprisingly strong,” said IPC. “The industry has not hit the bottom yet, but we will continue to watch the leading indicators, such as our book-to-bill ratio, for signs of an upturn.”
Rigid PCBs represent an estimated 90% of the current PCB industry in North America, according to IPC. In January, 90% of total PCB shipments reported were domestically produced.
For the month, flex circuit manufacturers indicated bare circuits accounted for about 71% of their shipment value.
For the month, rigid shipments dropped 18.9%, and bookings dipped 30.7% compared to the same month last year. The book-to-bill slipped further to 0.88.
Flex shipments rose 16.6%, while bookings slid 1.8% year-over-year. The book-to-bill declined to 0.98.
“Sales and orders of rigid PCBs declined sharply in January compared to January 2008, but flexible circuit sales were surprisingly strong,” said IPC. “The industry has not hit the bottom yet, but we will continue to watch the leading indicators, such as our book-to-bill ratio, for signs of an upturn.”
Rigid PCBs represent an estimated 90% of the current PCB industry in North America, according to IPC. In January, 90% of total PCB shipments reported were domestically produced.
For the month, flex circuit manufacturers indicated bare circuits accounted for about 71% of their shipment value.
SAN FRANCISCO -- Intel Corp. chief executive Paul Otellini offered a few words of encouragement to a battered market, saying the world's largest chipmaker is seeing
"a pattern of purchases emerge again that's more predictable."
MUNICH — Demand for semiconductors used in vehicles and related gear will drop 25% from its peak of $20 billion last year, a new research report asserts.
It will take until 2013 for market revenues to rebound past $20 billion, research firm Databeans adds. The market will grow at a CAGR of 8.5% through 2014, reaching $22.5 billion, the firm forecasts.
It will take until 2013 for market revenues to rebound past $20 billion, research firm Databeans adds. The market will grow at a CAGR of 8.5% through 2014, reaching $22.5 billion, the firm forecasts.
A drop in demand for autos will be partially offset by higher electronics content in each new vehicle. The average value of electronics content will rise to 14.8% by 2012, up from 13% today, boosted by telematics, infotainment and safety applications, and environmental regulation compliance.
SINGAPORE -- Singapore's electronics output plunged 43.1% year-over-year in January, the government said today.
Exports fell 35% for the month, the Economic Development Board said.
The drop in electronics production pulled the overall manufacturing output down 29.1% the EBD said.
Manufacturing accounts for about 25% of the nation's economy, and most of its manufactured products are exported.
LONGMONT, CO -- EMS firm Premier Manufacturing and Supply Chain Services tomorrow will hold an open house for its expanded and remodeled plant here.
The open house takes place at 1 p.m.
The 10-years-old company operates from a 22,000 sq. ft. plant, in which it has three SMT lines. It assembles boards for medical, computers and peripherals, industrial and telecom applications.
The open house takes place at 1 p.m.
The 10-years-old company operates from a 22,000 sq. ft. plant, in which it has three SMT lines. It assembles boards for medical, computers and peripherals, industrial and telecom applications.
HELSINKI – Incap Group reported 2008 revenues rose 13% to 93.9 million euros, but the net loss increased 390% to 5.4 million euros.
The operating loss was 3.6 million euros, lowered by 1.8 million in one-time charges related to restructurings.
The operating loss was 3.6 million euros, lowered by 1.8 million in one-time charges related to restructurings.
It is not clear what percent of sales stem from contract electronics assembly services, but it is generally considered to be a large percentage of the overall revenue. The company's Incap Contract Manufacturing Services subsidiary, the former TVS Electronics, was acquired in June 2007.
SMYRNA, GA -- Chats on building solar-related product, mechanical and chemical cleaning, and solutions to troublesome SMT defects are among the highlights as Virtual PCB enters its second day today.
EL SEGUNDO, CA – China’s automotive electronics revenue in 2008 expanded by 11.7%, down 23 points from 2007, according to iSuppli Corp.
Production of automotive electronics equipment in China amounted to $13.6 billion in 2008, up 11.7% year-over-year. While the market expanded, this represented a major decline in growth from the 34.7% rise in 2007. The automotive electronics equipment area consists of portable navigation, infotainment, power train, safety and control, comfort and convenience, body electronics, security systems and other functions.
“This deceleration in 2008 mainly resulted from the poor performance of the automotive infotainment segment,” said Isaac Wang, industry analyst for China Research at iSuppli. “In 2007, automotive entertainment represented 48.7% of China’s overall automotive electronics market. This portion shrunk by 2.8 points in 2008. A rapid decline in international equipment orders put many of China’s automotive electronics suppliers in a difficult situation.”
Nevertheless, navigation applications maintained high growth, says the firm.
In 2008, portable navigation device revenue increased 29.7%, while in-dash navigation applications rose 19.3%. Many Chinese car owners already have adopted electronic navigation as an integral part of their new driving lifestyles. This trend will boost telematics players, especially those supporting intelligent transportation system applications.
Because of the international economic recession in 2008 and into 2009, the global automotive electronics industry will not rebound until after 2010. iSuppli expects it will not climb back to its revenue height until 2012.
Fortunately, the situation in China is not as serious, says the firm. Although the nation’s auto electronic equipment annual growth rate is set to drop again in 2009, it will remain positive at 6.5%.
This relatively stable performance enhances China’s position in the global market. China’s share of the global automotive electronics market revenue was 13.5% in 2008, and is expected to rise to 18.1% in 2012.
China’s market will play a critical role, and international firms will expand their presence and activities in the nation.
Competition will be much greater in China with leading multinational firms, such as TRW and Lear, which have done well in the global market, but have not been so successful in China thus far. Many new domestic entrants also are expected, mostly in the infotainment segment.
China’s automotive infotainment market saw two major changes during 2008: There was a greater focus on OEM customers and on the domestic market.
The export market accounted for more than 62% of all Chinese-made automotive infotainment products in 2007.
However, in 2008, the sudden arrival of the financial crisis in the US triggered mass international order cancellations. Chinese equipment vendors suffered severe losses and the export market fell sharply, says iSuppli. Exports contracted 8.6% last year. As a share of China’s automotive infotainment market, exports have decreased to 41%.
Infotainment products targeting the aftermarket used to account for 69% of the overall total in 2007. However, the economic woes of 2008 negatively impacted international consumption. The aftermarket shrank to a 60% share at the end of 2008.
“Amid these rapid changes, the most outstanding automotive electronics firms are not the largest or strongest ones, but those players who are making the most positive and decisive responses,” Wang said. “Companies need to quickly adopt the most suitable business models as market and general economic conditions shift.”
China’s automotive electronics market is immature and applications are developing at different rates. In certain segments, such as low-end infotainment, superfluous products are common. Meanwhile, in most other segments, supply still lags demand, sometimes by a wide margin. For new market entrants in China’s automotive electronics industry, it is important to find market segments or product niches with less competition, Wang noted. Where the gap between demand and supply is larger, market conditions will be more favorable and potential profits will be higher.
NORTH BILLERICA, MA – BTU International reported fourth-quarter net sales slipped 19.6% from last year to $14.7 million. The net loss for the period ended Dec. 31 was $2.2 million, versus net income of $600,000 in the fourth quarter 2007.
For the year, net sales rose 13.4% to $72.3 million, but the company took a net loss of $1.1 million, reversing a net profit of $1.9 million in 2007. Cash flow from operations was $2.4 million, and at year-end, the cash balance was $27.5 million.
The company's alternative energy unit's fourth-quarter revenues were up 20% sequentially and almost 70% for the year. The group makes up 28% of BTU's overall systems business. Electronics assembly equipment fell 45% sequentially.
In a press release, chairman and CEO Paul J. van der Wansem said BTU expects the first half to be "very challenging" for its electronics assembly business. "This business, which is driven to a large degree by consumer spending, could be down by over 50% in 2009, impacting our top line and bottom line performance with losses expected in the first two quarters.
“We are encouraged by the initial reception of the upcoming new solar product introductions and the continuing growth of our solar business, and we are optimistic about achieving increased revenues during the year. As our alternative energy business grows to become the major part of our business, we expect to become profitable in the second half.”
Press Releases
- Indium Corporation Technical Expert to Present at SiP Conference China
- Flex Announces Kevin Krumm as Chief Financial Officer
- Green Circuits Enhances Inspection Capabilities with New DAGE Quadra 5 Pro X-ray System
- Western Digital CEO David Goeckeler Elected Chair of Semiconductor Industry Association