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ORLANDO – Orlando: You’ll come for the rain. You’ll stay for the wind.
Or because of it, perhaps.
Tropical Storm Fay, which as of this writing was still threatening to upgrade to hurricane status, put a damper on the second annual SMTA International trade show, although those who braved the elements were treated to a strong technical conference and an eye-opening keynote.
RICHARDSON, TX – TXP Corp., ODM for the telecommunications industry, reported a second-quarter 2008 net loss of approximately $9.9 million compared to a net loss of approximately $1.5 million for the same period in 2007.
This included a non-cash loss of approximately $5.7 million.
The firm posted an operating loss of approximately $1.9 million, compared to an operating loss of about $1.1 million last year.
Revenue was approximately $3.31 million, up a slight 0.6% year-over-year.
SANTA CLARA, CA – Based on conjecture as a result of a dropping share price and dismal forecasts, server and software maker Sun Microsystems could be a prime takeover target for Hewlett-Packard, Fujitsu, IBM, Dell or another technology firm, say published reports.
If speculation comes to fruition, a sale of this caliber would mean a dollar amount in the billions.
No talks have been confirmed, but some analysts still say Sun is ripe for big players. However, other analysts say Sun’s goal is to fix the business rather than sell.
Sun has annual sales of $13.9 billion and a workforce of nearly 35,000 globally, according to published reports, making it the seventh-largest Silicon Valley-based firm.
The company said profits fell to $88 million from $329 million in the most recent quarter compared to the same period last year. Revenues were $3.78 billion, down 1.6% year-over-year.
Sun’s CFO, Mike Lehman, reportedly projected "modest, low-single-digit growth" in revenue for the next full year.
SINGAPORE – GlobalTronics, the biennial trade show, takes place here Sept. 9 through 12. This year’s event features a lineup of prominent speakers on a range of state-of-the-art and innovative products and services, plus embedded systems seminars, and a separate supply chain and logistics conference.
“We see new opportunities in the electronics manufacturing industry amid the many challenges that have recently arisen in the global market, from increasing inflationary pressures to more countries entering the contract manufacturing arena,” said Michelle Lim, general manager for Reed Exhibitions, Singapore and Malaysia, which produces the trade show. “Core manufacturing competencies and growing cost-effective skilled workforce have helped Asia be the leader in electronics manufacturing for many years. By taking advantage of these competencies and also constantly improving on the skills and strategies to elevate the value chain, Asia will continue to lead as the world’s producer and exporter of electronics. The challenge is to identify the higher value segments in the electronic components market, for example integrated circuits, testing and development of components and even design, which require higher levels of skilled workers to utilize advanced manufacturing technology.”
Reed expects nearly 400 exhibitors, and notes the last show, in 2006, attracted just fewer than 12,000 attendees.
“We see new opportunities in the electronics manufacturing industry amid the many challenges that have recently arisen in the global market, from increasing inflationary pressures to more countries entering the contract manufacturing arena,” said Michelle Lim, general manager for Reed Exhibitions, Singapore and Malaysia, which produces the trade show. “Core manufacturing competencies and growing cost-effective skilled workforce have helped Asia be the leader in electronics manufacturing for many years. By taking advantage of these competencies and also constantly improving on the skills and strategies to elevate the value chain, Asia will continue to lead as the world’s producer and exporter of electronics. The challenge is to identify the higher value segments in the electronic components market, for example integrated circuits, testing and development of components and even design, which require higher levels of skilled workers to utilize advanced manufacturing technology.”
Reed expects nearly 400 exhibitors, and notes the last show, in 2006, attracted just fewer than 12,000 attendees.
SAN JOSE – On the heals of increasing board complexity and size, Solution Sources Programming Inc. has found ways to extend the life of test equipment through use of recent software upgrades for Agilent’s 3070 In-Circuit Tester.
Upgrading to the latest software ensures in field compatibility. A key component of these recent updates, 7.1 and 7.2, includes 1149.6 capabilities, which use the latest chip technology for new board designs.
SSP president Dan Orlando, who works closely with top design layout houses, has observed the increase in board net counts beyond the capabilities of the largest testers. He said, “By implementing Agilent’s new software on existing test equipment, our programming process has been able to save our customers tens to hundreds of thousands of dollars in test costs.”
Features and benefits SSP has found in using the software upgrades include:
Upgrading to the latest software ensures in field compatibility. A key component of these recent updates, 7.1 and 7.2, includes 1149.6 capabilities, which use the latest chip technology for new board designs.
SSP president Dan Orlando, who works closely with top design layout houses, has observed the increase in board net counts beyond the capabilities of the largest testers. He said, “By implementing Agilent’s new software on existing test equipment, our programming process has been able to save our customers tens to hundreds of thousands of dollars in test costs.”
Features and benefits SSP has found in using the software upgrades include:
- A reduction in large net counts (permit smaller fixtures, reducing cost and lead times).
- Fewer wires (and thus higher reliability).
- A reduction in fixture weight (which decreases shipping costs and is safer for employees).
RICHARDSON, TX – TXP Corp. and Cambridge Industry Group have signed a memorandum to merge, the firms said today. The merger reportedly would form the world's largest ODM and services business focused on fiber-to-the-home equipment. The combined company would also have the industry's widest family of ONT solutions.
TXP, which reported a second-quarter net loss of $10 million earlier this week, generated approximately $11 million in revenue in 2007, up about 24% year-over-year. CIG generated approximately $10.2 million in revenue, up 81% compared to 2006.
The merger is expected to close before year-end. Financial terms of the agreement were not disclosed.
TXP is an EMS and ODM firm. Shanghai-based CIG designs and builds FTTH equipment.
TXP, which reported a second-quarter net loss of $10 million earlier this week, generated approximately $11 million in revenue in 2007, up about 24% year-over-year. CIG generated approximately $10.2 million in revenue, up 81% compared to 2006.
The merger is expected to close before year-end. Financial terms of the agreement were not disclosed.
TXP is an EMS and ODM firm. Shanghai-based CIG designs and builds FTTH equipment.
FAIRPORT, NY – Inc. Magazine has ranked contract electronics manufacturer SenDEC Corp. in its annual Inc. 5000 list of the fastest-growing private companies in the country.
SenDEC was recognized based on its three-year revenue growth of 267%, ranking 1,413 on the overall list, 30th in the nation, and 2nd in New York within the computers and electronics industry.
This is the second consecutive year the firm made the list. In 2007, the company ranked 940 on the overall list and was the 23d fastest growing manufacturing company in the nation.
SenDEC was recognized based on its three-year revenue growth of 267%, ranking 1,413 on the overall list, 30th in the nation, and 2nd in New York within the computers and electronics industry.
This is the second consecutive year the firm made the list. In 2007, the company ranked 940 on the overall list and was the 23d fastest growing manufacturing company in the nation.
EL SEGUNDO, CA – After nearly three months of plummeting profitability and precipitous price plunges, the large-sized LCD panel (10" or longer) market finally is set for a recovery in September, iSuppli Corp. predicts.
“The large-sized LCD panel market has been mired in a state of severe oversupply since the start of June, due to lower-than-expected panel demand and high inventory levels throughout the supply chain,” said Sweta Dash, director of LCD and projection research at iSuppli. “Conditions have worsened in August, with poor economic circumstances causing prices to decline at an even faster pace than before. However, panel production cuts, combined with the clearance of inventory and a recovery in demand from televisions, desktop PC monitors and notebook PCs are expected to shift the supply/demand equation back to balance in September. This will lead to a recovery in pricing.”
After rising 6.9% in May, global large-sized LCD panel unit shipments declined 9.6% sequentially in June, says iSuppli. Prices dropped 4% to 7% for mainstream notebook, monitor and TV panels from May to June and another 3% to 15% in July, and are expected to decrease 4% to 20% for the entire month of August, the research firm adds.
Because of this, large-sized panel prices now approach the manufacturing-cost level, especially for some TV and many monitor panels. However, panel suppliers and equipment makers moved quickly this year to adjust to weakening market conditions, says the firm.
“Reacting to weak sales and declining profitability, panel suppliers began to slash their utilization rates starting in July,” Dash noted. “LCD-TV and desktop PC monitor manufacturers also are starting to cut their prices to reduce inventories and boost end-user demand. These developments, along with recovering demand from the notebook segment, will bring stabilization to large-sized LCD panel pricing in September. Some panel prices may even increase by 1 to 3%, especially those that are reaching at or below the cost levels.”
China's consumer spending on LCD-TVs was expected to be strong this year because of the impact of the Olympics. However, China suffered natural disasters in the first half of 2008 that have dampened consumer sales. In general, the Olympic sales pickup in China and elsewhere fell short of expectations, says iSuppli.
On the supply side, LCD makers in the first half of the year shifted production of TV panels away from sixth-generation fabs and into seventh, 7.5- and eighth-generation facilities. Eighth-generation fabs are capable of producing large-sized panels much more efficiently than sixth-generation factories, boosting productivity throughout the industry, says the firm.
This rising production contributed to declines in average LCD-TV panel prices throughout 2008, falling by as much as 15% to 20% from the start of 2008.
LCD monitor panel prices for desktop PCs have already fallen 20% to 25% since May. Panel suppliers reported about one to two weeks of excess monitor module inventory in July. Channel participants and brand vendors also reported two to three weeks of extra inventory in July.
Branded vendors in Europe and parts of North America have started cutting prices to reduce inventories. Because of this, orders for finished monitors began to increase in August and are expected to rise again in September, says iSuppli.
Notebook panel prices have fallen 12% to 16% since May. Second-quarter sales for notebook PCs were lower than expected as a result of the increasing cost of key components, tight supplies in some other parts such as batteries, and order adjustments made for mid-year inventory.
While orders continue to be cut, the end-market demand remains the most resilient among large-area panel applications, says iSuppli. Notebook OEMs and ODMs still are expecting at least 15% to 20% sequential growth in unit shipments in the third quarter because of strong end demand.
ORLANDO – Seica Inc., supplier of ICT and flying probe systems, and Corelis Inc., provider of boundary-scan and JTAG emulation test tools, have formed a partnership to deliver an integrated system based on Seica’s Pilot flying probe system and boundary-scan products from Corelis.
The two firms will integrate Corelis boundary-scan JTAG controllers and software to support different configurations and applications.
The integrated solution is already deployed at a major defense electronics manufacturer, the companies said.
SPOKANE VALLEY, WA – EMS provider Key Tronic Corp. announced fourth-quarter fiscal 2008 revenue was $57.3 million, up 17% year-over-year.
Fourth-quarter net income was $2.6 million, down 3.7% compared to the same period last year.
For full-year 2008, revenue was $204.1 million, up a slight 1.2% compared to 2007. Net income was $5.6 million, up 7% year-over-year.
"For the fourth quarter and for the year, we achieved the highest revenue since implementing our EMS strategy. During the year, we had eight new customers contributing about 13% of our total revenue. In fiscal 2009, we expect 10 additional new customers to come on line. Together, we expect these 18 new customers to contribute approximately 40% of our revenue in fiscal 2009, offsetting the anticipated decline in demand from some of our existing customers,” said president and CEO Jack Oehlke.
For the first quarter of 2009, the company expects revenue in the range of $45 million to $48 million.
ROLLING MEADOWS, IL – With a traveling classroom on its doorstep (AKA the rework bus), the front office at BEST Inc. looks like any other office. But then you round the corner. Like Oz behind the curtain, the bustling building is much larger than the front desks imply. And even at 7:30 a.m., ample staff works diligently as if they’d been there for hours.
On Aug. 14, BEST opened its suburban Chicago doors to local SMTA chapter members and about 50 industry professionals from around the country. President Bob Wetterman’s spacious repair/rework facility provided the backdrop (and tasty breakfast casseroles) for a classroom-style educational symposium, with speakers from the host firm, OK International and VJ Electronix, as well as five hands-on demonstrations presented by on-the-job technical staff.
SAN FRANCISCO – Hewlett-Packard Co.’s third-quarter revenues were $28 billion, up 10% year-over-year, according to Deutsche Bank Equity Research.
According to other published reports, H-P's profits jumped 14% in the quarter, to $2.03 billion.
Strong PC results offset weakness in printers, says DB.
DB expects fourth-quarter revenues of $30.2 to 30.3 billion for H-P.
The research firm has adjusted full-year 2008 estimates to $115 billion.
