News
Vienna - AT&S, Europe's largest PCB manufacturer, began construction last week on a second plant in Shanghai. When it comes online in 15 months, the 75,000m² production facility will triple the company's capacity in China.
"The second plant in Shanghai will definitively put us in the position as the most modern high performance printed circuit board manufacturer in the high-tech segment," said Willi Dörflinger, chairman, in a statement. "The new capacity will come just at the right time in the second half of 2006, enabling us to tend to the climbing demand in the HDI microvia area."
Upon completion of the plant, located next to the existing plant, about 50% of AT&S' global capacity will come from its plants in India and China.The company's step toward Asian expansion takes place exactly four years after the cornerstone was laid for the first plant.
reported first -quarter losses from continuing operations of $24.2 million, down from a loss of $3.8 million last year. The company posted net sales of $20.2 million for the quarter ended March 31, down from $23 million.
The total net loss, which includes discontinued operations, was $39.4 million,
down from a loss of $6.6 million in the year-ago quarter.
The sales drop was due to significantly reduced EMS
sales in the U.S., the company said, primarily from customers rescheduling orders to
later in 2005.
Gross margin dollars were $2.6 million less than in the comparable quarter in 2004. Selling, general and administrative expenses rose, due to increased severance, consulting, accounting and legal expenses
During the quarter TFS took a $2.5 million loss on assets relating to ERP implementation,
and $900,000 for costs associated with continuing lease obligations for vacated facilities.
The company also took a $12.9 million charge for the impairment of goodwill for its EMS business
and large panel display business in Marlborough.
Ina statement, the company said that the substantial losses sustained in the past
several years has led to the retention of SG Cowen & Co. review strategic alternatives aimed
at maximizing stockholder value. Based on SG Cowen's advice, the company has exited
the display business and has signed a nonbinding letter of intent to sell its RF operations in Manila,
leaving its EMS operations in Penang, Malaysia, and Redmond, WA. It said it is looking at several merger
or recapitalization options.
"Our alternatives include sale of all or part of our EMS business, merging with another company,
recapitalization and continuation of our business, or seeking joint venture partners.
TFS guided for flat second-quarter revenue from ongoing operations. "For the remainder of 2005, our focus
will be on cost reductions and restructuring our EMS business to achieve cash flow breakeven. We believe that
the combination of our new product introduction and medical and military operations in Redmond with our
high-volume, cost-effective offshore operations in Penang will provide a strong foundation for our EMS business in the future."
At the end of the quarter TFS had cash and restricted cash of $12.4 million vs. $16.2 million
at the end of the fourth quarter 2004.
Year-on-year, days sales outstanding rose to 46 from 38, inventory turns were flat at 5.1 and cash conversion
cycle rose to 62 days from 58.
PALO ALTO, CA --Hewlett-Packard, one of the largest customers of the EMS industry (including companies such as Flextronics, Sanmina-SCI, Jabil, Solectron and Celestica) has faced sluggish demand and an inventory reduction, according to its latest earnings call. The company's total revenue slowed to 7% year on year vs. 10% last quarter.
According to Deutsche Bank analyst Chris Whitmore, strong (10%) sequential growth from HP's business critical servers offset slowing industry standard server revenue and a 6% decline in storage from last year. The division's operating margin improved to 4.4% vs. 1.8% last year.
HP experienced a rebound in printer demand in the April quarter, with sales up 5% year-on-year following aggressive price cuts. Home hardware sales increased 3%, while business printers grew 4% from last quarter (Flextronics has the most exposure to home hardware sales while Jabil has the most exposure to business printers, DB said).
Revenue from PCs grew 6%, decelerating sharply from last quarter's 11% growth -- as desktop growth fell to 1% from 8%. The commercial business increased 3%, with a 10% consumer growth (Sanmina-SCI manufactures commercial desktops for HP).
DB also reported that HP is selling two PC manufacturing plants to Hon Hai in Australia and India.
HP reduced inventory by $656 million and days of inventories to 35 (the lowest level since the second quarter of 2002). Roughly $500 million of the decline was in the printing division.
DB analysts noted that demand remains lackluster and pricing remains aggressive throughout the IT HW industry. In addition, HP's new management team could implement significant changes to its supply chain in an effort to drive lower costs, creating risk to EMS vendors' existing relationships with HP. That said, HP's inventory management meaningfully improved in the quarter.
The first opportunity is for Nepcon Shenzhen, Aug. 30-Sept. 2. The SMTA is looking for papers related to Implementing Lead-Free (such as case studies from OEMS and CMs). The program will also focus on Lead-Free Assembly Materials and Processes.
Papers presented in Chinese are preferred. Your company must provide translation for any English submissions. Abstracts need to be emailed to joann@smta.org by May 30.
The SMTA is also soliciting workshops or courses to be presented throughout 2005 and 2006 in various cities in China. A fee and travel expenses will be provided. Courses must be taught in Mandarin (handouts can be in English). Course proposals should be submitted to joann@smta.org by June 17.
The final opportunity is for Productronica in Munich, Nov.15-18. Presentations in German are preferred. Email your abstract by June 17 to joann@smta.org.
Minneapolis, MN - The Surface Mount Technology Association (SMTA) is hosting its SMTA/CAVE Harsh Environment Electronics Workshop on June 28-29 in Indianapolis. Jointly organized by the SMTA and Auburn University- Center for Advanced Vehicle Electronics, the workshop addresses the concerns related to harsh environment electronics and the challenges facing the electronics community.
It is intended to bring together the needs from end-users with the capabilities of the research community and industrial supply base. In addition, industrial needs for non-automotive vehicle requirements are addressed.
Harsh Environment Electronics Sessions will include:
Thermal Interface Materials
Component Reliability for Harsh Environments
Module Overmolding for Harsh Environments
Systems Design for Harsh Environments
Lead-Free Soldering and Solder Alternatives
Register by May 27 to receive a 10% discount.
Full workshop details and on-line registration can be found at:
http://www.smta.org/education/symposia/symposia.cfm#harsh.
Taipei -- EMS provider Foxconn Electronics may buy two desktop PC assembly plants in Australia and India from Hewlett-Packard, an Asian news source reported.
Under the agreement, Foxconn (the registered trade name of Hon Hai Precision Industry) will take over design and manufacturing management at the two plants, and may eventually take over HP plants in Europe, according to a report originally published in the Chinese-language Commercial Times.
In an article on Forbes.com, Foxconn affirmed the Australia takeover but denied the Indian acquisition.
TORONTO -- Coretec Inc. has entered into a nonbinding letter of intent to merge with Unicircuit Inc. in an all stock swap. Coretec, a PCB maker based in Toronto, will issue 6 million common shares in exchange for all of
Unicircuit's common shares. Coretec will also issue $3.1 million
of a new class of preferred shares in exchange for $3.1 million of
preferred shares of Unicircuit as well as assume $3.9 million of Unicircuit's net debt.
The transaction is expected to close by July 31.
"This merger creates opportunities to maximize efficiencies with respect to facility overheads and production. With an estimated capacity of $150 million, the combination of the two companies will provide North American and European electronics OEM and EMS companies with a major alternative for prototype-to-production high reliability PCBs," said Paul Langston, president and CEO of Coretec.
Unicircuit operates plants in Littleton, CO, and Roseville, MN.
"From our discussions with Coretec we have been enticed by the marketing potential of this combination, particularly in light of the fact that our respective customer bases have little overlap. As such, we believe we will be able to achieve a wider and deeper penetration into our mutual account base," said Kerry Bode, president and CEO of Unicircuit. "In addition, the prospects for accessing more meaningful new programs, particularly in the defense sector, are much greater as a combined entity. This merger brings our shareholders a step closer to realizing our strategic objective of playing a leadership role in the North American PCB industry. Coretec has an outstanding executive team that we believe will enable the merged company to more fully and expeditiously realize its potential. Unicircuit is excited about the opportunities that the combined entities bring to our customers, employees and shareholders."
MURRAY HILL, NJ - Is Lucent Technologies readying to cut manufacturing ties with Jabil Circuit?
In a column posted Monday at theStreet.com, a Wall Street newletter,
Lucent was said to be preparing to reduce its EMS supply list to two,
with Jabil among three EMS companies that stand to be on the outs.
Quoting "people close to Lucent," theStreet.com columnist Scott
Moritz wrote that while Lucent declined to comment on any specific
changes, the company was looking at its options.
TORONTO - Celestica Inc. has named Craig Muhlhauser president and executive vice president of worldwide sales and business development. Muhlhauser was previously president and chief executive of Exide Technologies. He will lead the EMS maker's global sales and business development effort and drive the growth strategy.
Muhlhauser has over 25 years of sales, marketing and general management experience with GE, United Technologies and Ford. Muhlhauser holds a masters in mechanical engineering and a bachelor's in aerospace engineering from the University of Cincinnati.
"I am very excited to have Craig Muhlhauser join the Celestica team. I had the pleasure of working with Craig at Ford and know him to be an extremely capable, customer-focused senior executive," said Steve Delaney, CEO of Celestica. "Craig's vast sales and marketing expertise, and his creativity in developing integrated offerings, will be a great asset to Celestica and, ultimately, our customers."
In addition to this change, Marvin MaGee, Celestica's former head of worldwide business development has been named executive vice president, worldwide operations. MaGee will be responsible for managing Celestica's global manufacturing network, as well as implementing site-to-site consistency in Lean, Six Sigma, organization capability and customer care.
MaGee joined Celestica's executive team in 1997. Prior to that, he spent 18 years with IBM Canada where he held multiple senior management positions in manufacturing and development. MaGee holds a bachelor's in mechanical engineering from the University of New Brunswick and an MBA from McMaster University.
For the period ended March 31 the net loss was $1.1 million, down from a profit of $129 million last year.
Sequentially quarterly revenues rose 16.5%, and the quarterly net loss fell 29%.
Jaco chairman and chief executive Joel Girsky said, "We are continuing to evolve our
business model to strengthen our market presence while simultaneously reducing
all nonessential costs. Our strategy is based on an ongoing focus on our flat panel display capability, marketing efforts targeted at business in the
U.S. and the reduction of overhead and costs without impairing our ability to support
our customers.
During the quarter, the company reduced SG&A costs 10.3%
year-on-year and 8%
sequentially.
"Jaco remains focused on capturing U.S. business, and we recently
expanded our quote group team" to focus on mid-level contract manufacturers," Girsky said.
The course teaches key concepts through presentation, practice and testing of the material. Learning takes place at any time or place that is conducive for the student, with a final interactive test for certification of the concepts learned in the program. The course can be conducted over a company LAN or through the internet. Translated versions will be offered in German and Chinese.
Minneapolis, MN -- Dr. Bruce McWilliams, chairman and CEO of Tessera Technologies, will present the keynote speech at the International Wafer-Level Packaging Conference, Nov. 3-4, at the San Jose DoubleTree Hotel, CA. The keynote, "Why Wafer-Level? Its Promise and its Future", will be given at a special dinner on November 3.
He will explore the universe of semiconductors and semiconductor packaging technologies and look at the promise offered by wafer-level packaging, including "killer" applications that will propel growth and the technical hurdles that must be overcome.
Dr. McWilliams joined Tessera in 1999 as president and CEO. He became chairman in February 2002. He had previously served as president and CEO of S-Vision Inc., a silicon-chip-based display company that he co-founded. He was also a senior vice president at Flextronics International Ltd.
The event features an exhibition of suppliers to the semiconductor packaging and testing industry, and the technical program explores semiconductor packaging, including chip scale packaging, 3-D packaging, system-in-package, system-on-chip, system-on-package and wafer-level packaging.
For more info: smta.org/iwlpc/
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