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ROCHESTER, MN -- Pemstar Inc.'s June quarter revenue rose 1.3% to $212.5 million, and net income jumped to $4.8 million, compared to a net loss of $17.6 million a year ago.

The June quarter period includes a one-time gain of $2.5 million related to the reversal of previous restructuring provisions.

President and COO Roy Bauer said, "We are still doing a little bit more realigning of our portfolio. We are considering, as previously disclosed, strategic alternatives for our Tianjin, China, operations. We see optimism in our medical, computing and data storage and industrial businesses for the second half of the year."

For the quarter, industrial sales accounted for 38.4% of net sales, computing and data storage was 23.5%, communications was 36.2% and medical was 1.9%.

Accounts receivable at June 30 was $125.5 million with days sales outstanding of 53 compared with $121.1 million in accounts receivable with DSO of 56 at March 31.

Net inventories were up nearly $10 million, to $64.2 million, and inventory turns dropped 0.9 turns to 12.4 times. Cash cycle was 31 days, down from 40 days in the March quarter.

Jefferies Broadview was retained to explore possible partnerships or a sale of the Tianjin, China operations. Pemstar said it seeks to reduce its consumer business and focus on more profitable markets like medical, industrial, instrumentation, military/aerospace and process equipment.

For the September quarter, Pemstar expects net sales of $200 million to $220 million.

NEW YORK -- The world market for SMT screen printers will grow from $190.2 million in 2005 to $366.4 million in 2012, a research firm said today. Sales of glue dispensers will grow from $26.3 million in 2005 to $42.1 million in 2012, said Frost & Sullivan.

WASHINGTON -- The U.S. government today reported that orders to U.S. factories for big-ticket durable goods fly higher in June, boosted by demand for commercial aircraft.

Durables orders rose 3.1% in June, well above the 1.7% gain previously forecast by Wall Street.

Commercial aircraft rose 8.8%, reversing two months of big declines. Last month, Boeing booked orders for 135 aircraft, up from 33 in May.

Analysts believe that output in the manufacturing sector will continue to rise in coming months but at a slower pace, reflecting an economy that is slowing under the impact of surging energy prices, rising interest rates and the cooling housing market.

TOKYO -- Sony, Canon and NEC are fueling a comeback among Japan's electronics companies this year.

Link to AP story here.

MINNEAPOLIS -- CyberOptics Corp. reported sales of $14.6 million, up 73% a year ago and down 1.1% sequentially, for its second quarter ended June 30.

Net income rose 844% to $1.9 million year-on-year, and 31% from the first quarter. Operating income jumped to $2.5 million from $26,000 a year ago and was up 34% sequentially.

EL SEGUNDO, CA — Illustrating the increasing domination of Asian producers in the global mobile-PC market, a whopping 82.6% of notebook computers in 2005 were manufactured by contract manufacturers mainly in the Greater Shanghai area, according to research firm iSuppli Corp.

Worldwide mobile PC production in 2005 amounted to 61.9 million units, and will grow at a compound annual growth rate of 17.9% to reach 141.4 million units in 2010, iSuppli predicts.

In 2005, 82.6% of this production, or 51.2 million units, was outsourced by PC OEMs to contract manufacturers. By 2010, the portion of outsourced PC production will rise to 92.5%, or 130.8 million units.

LOUISVILLE -- Sypris Solutions' second quarter revenue rose 5% to a record $132.2 million but the company reported a net loss of $400,000, down from a $2 million profit a year ago.

Free cash flow for the quarter reached a record $21.4 million.

The company cited equipment downtime in its Industrial Group and shipment delays in its Electronics Group for U.S. Government programs. The latter delays are expected to continue through the balance of the year but will ultimately generate even more business than originally thought, Sypris said.

Electronics Group revenue was $33.8 million in the quarter, down 5.8% from the prior year. Gross profit was off 6.3% to $5.9 million. Net orders were $30.7 million and backlogs were $91.2 million. "Despite delays inherent in the certification process for two new classified programs, the outlook remains strong for our Aerospace and Defense segment in 2007," said CEO Jeff Gill.

Gill gave a cautious forecast for the rest of the year. "Looking forward, we believe that it is prudent to establish a more conservative outlook for the remainder of 2006. Until we demonstrate that our Industrial Group can operate for sustained periods at capacity, our forecast for operating margins will remain at current levels. The delay in the certification of the classified programs in our Electronics Group is expected to shift as much as $20 million of shipments from 2006 into 2007, the result of which is forecast to impact revenue and earnings during the second half of 2006."

The company reiterated its previous July guidance of second half revenue of $275 million to $285 million and earnings of $0.10 to $0.15 per diluted share.

ELKHART, IN -- CTS Corp. today announced second-quarter revenues of $165.9 million, up 5% increase from a year ago. related tax expense and the reversal of certain reserves.

" We had a record number of design wins for electronic components in infrastructure applications, secured our first production award from Honda and added several new EMS customers," said Donald Schwanz, chairman and chief executive.

CTS maintaied prior full-year guidance of 6 to 8% sales growth.

For the quarter capital expenditures were $3.4 million, or 2% of sales, and free cash flow was $11.4 million. The full-year capital expenditures are expected to be $18 million to $20 million. Free cash flow was $20,000 in the first quarter, and $10.8 million in the second quarter last year.

The new Czech Republic facility of CTS began operations during the quarter. Production will be increased gradually throughout the year to meet business growth and better serve automotive OEMs in that region.

EMS sales were $94.2 million, up $2.4 million year-on-year and $11.3 million sequentially. Operating income from EMS operations were $2.5 million.

SAN JOSE -- Sanmina-SCI reported third-quarter revenue of $2.71 billion, up 1.5% sequentially but down 4.2% from a year ago.

A special committee of the company's board and an independent outside legal counsel are reviewing stock option administration policies and practices dating to Jan. 1, 1997. As such, the company did not provide detailed earnings financial information for the quarter.

NEENAH, WI -- Plexus Corp.'s net income was a record $25.1 million on a 27% gain in revenues for the period ended July 1. The EMS firm reported a record $397.4 million for the quarter. Sequential growth in the third quarter was exceptional. Gross margins expanded 50 basis points sequentially to 11.5% of revenues, and operating margins rose 75 basis points to 6% of revenues.

The company will close its facility in Maldon, England, to reduce manufacturing capacity and relocate the programs to a facility in Kelso, Scotland, by the end of 2006 or early in 2007. About 77 employees will be laid off.

MILPITAS, CA -- Electronics manufacturing services provider Solectron Corp. today announced its Fremont NPI facility has received ISO 13485:2003 medical certification.

The standard specifies requirements for a quality management system for regulatory purposes in the manufacture of medical devices.

The Fremont plant, which Solectron operates under the name FinePitch, is the seventh company site to gain the certification. The others are Charlotte,NC; Scotland; Quebec; Suzhou, China; and two in Singapore.

SAN JOSE -- Flextronics last night reported fiscal first-quarter net sales from continuing operations rose 6% to $4.06 billion, while GAAP net income rose 44% to $85 million. Both numbers topped previous estimates.

Sequentially net sales from continuing operations increased 15%, and GAAP operating margin improved 180 basis points, for the period ended June 30.

"There has been a reacceleration of significant growth in our core EMS business, which includes design, vertically-integrated manufacturing services, components and logistics," said chief executive Mike McNamara.