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News

OSLO, NORWAY – Telecom power systems supplier Eltek is buying Valere Power for cash and stock worth up to $130 million, the company said today. Eltek will pay Valere shareholders $83 million in cash plus stock equal to 9.1% of Eltek Energy AS and 9.9% of a joint venture. The total value of the acquisition is between $120 and $130 million, Eltek said. Valere Power is backed by private equity investors, including Alcatel Ventures, Dali-Hook Partners, JP Morgan Partners and Sierra Ventures. Valere Power had revenues of $88 million in 2006 and expects revenues up to $130 million in 2007, Eltek said. Valere's first-quarter revenues grew 44% year-over-year to $26.2 million. Valere chief executive and founder Andrew Marsh will become CEO of the new company, while the current head of Eltek Energy, Knut Aven, will become vice president for international telecom sales.

NANTOU, TAIWAN – Universal Scientific Industrial Co., a top 10 EMS company, today announced March consolidated net revenues of NT$5.33 billion, up 24% sequentially and 3% year-over-year. On a non-consolidated basis, monthly net revenues were NT $3.4 billion, up 31% sequentially, but down 9% year-over-year.

HERTFORDSHIRE, UK – Desco Industries, Inc., a manufacturer of ESD control products in Chino, CA, has acquired 100% of the shares of Vermason Ltd. Vermason manufacturers and markets ESD control products and equipment for protection of sensitive electronic devices and assemblies. Vermason will continue to operate in the same location.

VANCOUVER – Nam Tai Electronics chief executive Warren Lee has resigned, effective May 31, to return to Hong Kong investment company Yu Ming Investments as managing director. Nam Tai chairman and founder M. K. Koo will become interim chief executive.

Lee spent several years at Yu Ming before coming to Nam Tai.

EL SEGUNDO, CA – Telecom OEMS are expected to spend nearly $41 billion on equipment this year, the highest annual level since 2002, says iSuppli. Spending will be up 1.6% from 2006, after rising 10.7% in 2006 and 8.3% in 2005. iSuppli estimates $9 billion will be spent on IPTV-related communications equipment in 2007. Last year, OEMs spent primarily on access equipment. In 2007, iSuppli expects carriers to continue access-equipment spending at 2006 levels, while significantly increasing investments in their core networks. Global IPTV subscribers will soar to 105.8 million in 2011, rising at a 98% CAGR from 3.4 million in 2006, iSuppli predicts. Telecom OEMs’ IPTV budgets will have to grow to account for 20% of their total capital spending by 2011, says the firm. The only region exhibiting spending declines is Japan, where fiber-to-the-home (FTTH) deployment has slowed. However, Japanese spending should recover during the next few years.

EL SEGUNDO, CA – HP and Dell remain the world’s largest computer makers, but Acer and Lenovo are gaining, according to research firm iSuppli. Acer’s sequential mobile PC shipments rose 45.6% to 3.4 million units in the fourth quarter, said iSuppli. That beat HP, which shipped 5 million units, good for 32.8% growth. Industry-wide, mobile PC shipments rose to 23.6 million units in the quarter, up 15.7% sequentially, iSuppli said. For the year, global shipments increased 28.4% to 79.6 million units. iSuppli predicts worldwide mobile PC shipments will rise 23.5% to 98.3 million units this year. Acer and Lenovo accounted for combined desktop and notebook shipments in 2006 of 29.8 million units, or 12.5%, up from 10.8% (23.6 million units) in 2005. Through 2011, mobile PCs are expected to post a CAGR of more than 16%, compared with less than 4% for desktops, according to analyst firm IDC. If that pans out, mobile PCs would account for more than half of all client PCs worldwide in 2011. During the quarter, Dell posted the weakest performance of the top mobile PC makers, as shipments fell 1.5% to 3.52 million units, iSuppli said. Acer's share of the global mobile PC market rose three points to 14.3%, topping fourth-place Toshiba, which reported 2.45 million units shipped. Lenovo remained in the number 5 slot, up 9.1% sequentially to 1.9 million units.

ATLANTA – There is still time to register for a one-hour Webinar covering electronics manufacturing in India and Vietnam. The Webinar takes place today at 11 am PDT/ 2 pm EDT. Join Technology Forecasters' senior economist Matt Chanoff and Jason Craft, director and GM of Sparton's Vietnam facility, for a discussion of the pros and cons of these emerging markets.

Learn more at http://www.pcbshows.com/webinars/events/tfi_emergingmarkets/

Register at https://event.on24.com/eventRegistration/EventLobbyServlet?target=registration.jsp&eventid=39042&sessionid=1&key=AFE55DCD14B6F2DC4639689E501B4E12&sourcepage=register

ATLANTA – Strong end market growth and stabilizing average selling prices will drive semiconductor industry revenue to $316 billion in 2008, an increase of nearly 18% from projected 2007 sales, according to Objective Analysis. The company projects chip revenue growth of 6.3% in 2007, based in large part on improved ASPs. Foundry wafer demand will grow faster than capacity later this year, especially for 65nm sizes and below, increasing foundry utilization rates and ASPs, the analyst said. The increase, coupled with greater demand in the communications and gaming end-markets, will drive higher ASPs for logic and programmable devices, the firm said. A slowing in memory capacity additions reportedly will stabilize memory ASPs, especially those of NAND flash. Nearly all of 2007's expected price declines will have occurred in the early months of the year. The Objective Analysis forecast is bullish compared with others recently issued. Last week, Semico Research lowered its semiconductor forecast for the second time in recent weeks, saying that the IC market will grow 1.8% this year.

NEWARK, NY – IEC Electronics Corp., a New York-based EMS firm, reports that it has received two orders from one of its military and defense customers with a combined value of more than $8.5 million. The program could be worth up to $17 million, based on end-market demand. Deliveries will be completed by December 2008.

ST. LOUIS – LaBarge Inc. has received a $1 million contract from BAE Systems to produce electronics assemblies for the M88A2 Hercules improved recovery vehicle. Production at LaBarge's Huntsville, AK, facility is expected to begin in October and continue through September 2008. Hercules is used by the U.S. Army and Marines to recover damaged 70-ton combat vehicles.

SUNNYVALE, CA – PCB maker Sierra Proto Express has acquired PC Boards Inc., a board fabricator based in Chanute, KS. In a press release, Sierra said PC Boards would be renamed Sierra Midwest and through future acquisitions expects to double the plant’s size within a couple of years. “PC Boards has everything we need to actualize our future growth plans,” said Sierra president Ken Bahl. “They represent a perfect complement to what we do in Sunnyvale. Combined with PC Boards’ offshore alliances, this will allow us to provide our customers with a complete PCB solution.” Sierra expects sales to top $40 million in 2007.

SAN JOSE – Fourth quarter electronic design automation revenue was $1.5 billion, up 19% year-over-year. For the year, revenue totaled a record $5.3 billion, up 15% from 2005. During the quarter, PCB and MCM layout revenue rose 41% to $123 million. EDA and SIP product and maintenance revenue (excluding services) rose 20% year-over-year to a record $1.4 billion. Computer-aided engineering, the largest tool category, was up 17% to $634 million. CAE revenue was up 14% to $2.2 billion, and SIP revenue reached $274 million, up 31%. Services revenue was up 12% to $77 million. Reporting companies employed 25,390 professionals in the quarter, 10% more than 2005. For 2006, SIP revenue increased 21% to $989 million. PCB and MCM Layout revenue totaled $391 million, up 14%. Services revenue totaled $308 million, up 9%. North America, with 53% global share, purchased $788 million of EDA and SIP products and services in the fourth quarter, a 39% increase year-over-year. Western European sales rose 6% to $287 million, while Japan’s revenue dropped 10% to $230 million. Rest-of-world growth increased 19% to $188 million. For 2006, North American revenue was $2.6 billion, up 22% over 2005. Western Europe rose 12% to $977 million, Japan 3% to $1.1 billion and ROW 19% to $657 million.