News
CAMBRIDGE, MA, Oct. 26 -- Broadband Internet access is soaring in the U.S., according to the latest data from Forrester Research.
The number of households with Internet access is forecast to grow from 68 million in 2003 to 83.7 million by 2008, a 23% clip. Yet the number of households with broadband will jump 226% during the same timeframe, from 19.5 million to 63.6 million.
By 2008, households with broadband will make up 76% of all wired homes, Forrester says, up from 29% last year.
TEMPE, AZ, Oct. 25 -- EMS company Three-Five Systems has linked its electronic purchase order transaction system to Future Electronics, a major distributor, the firms said today. The move is aimed at improving communication between the companies and shortening order processing time.
The two companies are interfacing via RosettaNet standard Partner Interface Process, a specialized system-to-system XML-based format.
RosettaNet is a non-profit consortium of more than 500 technology organizations working to create, implement, and promote open e-business standards and services.
RosettaNet's PIP also allows for future automation of other higher-level business-to-business processes, such as invoicing and payment.
By extending programming support to the Z8 Encore and eZ80Acclaim flash MCU families, ZiLog devices are now supported by programming equipment common to large volume programming houses, effectively decreasing the time from design win to volume ramp up, the company said in a press statement.
The new ZiLog support software can be downloaded directly to existing BP Microsystems programmers at www.bpmicro.com.
The Extraterritorial Income (ETI) Act tax regime repealed Friday gave U.S. companies tax breaks on manufacturing income earned overseas. ETI was repealed by the passage of the dubiously named American Jobs Creation Act, which offers a 9%, phased-in deduction for domestic manufacturing income. Also included are a temporary tax break for repatriated income, reforms of various foreign tax credit rules and a number of other tax cuts targeted at businesses and individuals.
Yet the Associated Press today reported a warning from EU Trade Commissioner Pascal Lamy that sanctions -- which added up to more than $300 million in 2004 -- could potentially return next year if the WTO confirms EU "doubts" about the new law. "Legally speaking, we will suspend the sanctions and we will keep our options open," Lamy said.
A spokesman for the U.S. trade representative's office told the AP the U.S. is now in compliance with WTO rules.
An IPC spokesman said that while the ETI had little effect on most domestic manufacturers, its repeal could have sparked higher taxes had the American Jobs Creation Act not been passed. "The bulk of domestic manufacturers don't export and so they weren't affected, but they would have received a tax increase," John Kania, director of IPC government relations, told Circuits Assembly. Come January 2005, those companies will receive a tax deduction on a portion of their manufacturing income.
Not everyone agrees that the new U.S. law is legal, however. The EU trade commissioner is petitioning the WTO for another ruling to determine whether the new law fully complies with global trade rules. A ruling is expected within 90 days.
"There is the possibility of (renewed) sanctions," Lamy told the AP. "We'll see what WTO says."
Celeritek's defense electronics business designs andmanufactures gallium arsenide-based RF and microwave components and subassemblies for electronics warfare, radar and other military applications. Teledyne intends to relocate the business from Santa Clara, CA, and consolidate it with Teledyne Microwave in Mountain View, CA.
The division had sales of $19.7 million for its fiscal year ended March 31. Teledyne expects this acquisition to be neutral to earnings in 2004.
Ashburn, VA - Zestron, Kester, Heller Industries, Trek Industries and cleaning expert Dr. William Kenyon are hosting a one-day workshop in Tampa. Topics include cleaning, lead-free and its potential long-term risks. The workshop will take place Nov. 9, at the Embassy Suites Hotel - Airport/Westshore in Tampa.
Attendees can learn essentials on material technologies and understand the actual impact of lead-free on subsequent process steps such as cleaning or the climatic reliability of electronic assemblies.
To register, visit http://www.zestron.com/leadfree_tampa/home.htm.
For more information, contact Danny Chaplow: (703) 589-1198 ext. 110.
The microprocessor market will hit nearly $30 billion, 90% of it coming from devices for computing systems, according to IC Insights in its monthly report.
Moreover, flash sales will reach $15.6 billion by year-end. up 33%,
following a 51% gain in 2003. DSPs is expected to grow 26%, to $7.7
billion, the firm said.
C-MAC designs and manufactures electronics products, typically for harsh environments. It has design and manufacturing facilities in the U.K., France, Belgium and Canada, where it performs thick-film printing on ceramic and other substrates, and builds surface mount and other advanced assemblies.
The new C-MAC board includes Duncan Ralph, chief executive; Andrew Gray and David Stanton of Francisco Partners, and Ajay Shah of Shah Capital Partners.
ESD Assn Offers Webinar to Demystify Standard
If you are interested in developing an ESD program that meets the criteria of ANSI/ESD S20.20, the ESD Association is offering an online course to help. Ron Gibson, chairman of the ESDA Standards Committee and co-author of the ANSI/ESD S20.20, will facilitate the program scheduled for Nov. 17, 2004, at 1 p.m., EDT.
The 60-minute presentation will include an explanation of criteria required for an S20.20 compliant facility; discussion of issues including grounding, packaging, training and documentation; and a brief question and answer session. Cost is $95.
For more information, contact (315) 339-6937; info@esda.org.
ANGLETON, TX, Oct. 21 -- Benchmark Electronics saw third-quarter profits rise 40% as sales jumped by $50 million.
The EMS maker said September quarter earnings were $18 million, up from $12.9 million last year, a new third-quarter high. Revenue was $505 million, up from $455 million.
Analysts forecast sales of $496 million for the quarter.
Operating margins rose to 4.8% and inventories were up $13 million, to $290 million, the company said.
Benchmark guided for fourth-quarter sales of $505 million to $530 million.
Celestica Reports GAAP Loss on $2.2b in Revenue
10-21-2004
by Mike Buetow
TORONTO, Oct. 21 -- Celestica Inc. today said September quarter revenue was $2.2 billion, up 33% from last year and in line with previous guidance, despite lower telecom demand.
The EMS maker reported a GAAP net loss of $22.3 million, includes pretax restructuring charges of $47.7 million, including $16.6 million for inventory writedowns and a $12 million gain associated with the sale of the Power Systems business.
Last year Celestica reported a GAAP net loss of $65 million, including restructuring and other charges of $49.1 million.
"Despite lower demand this quarter from some of our largest communications and IT customers, we continued to expand margins, reduce SG&A spending, improve customer diversity, act on unprofitable or non-core activities and generate healthy cash flow from operations," said chief executive Steve Delaney, in a press statement.
Delaney called end-market demand "less stable" than earlier in the year. The company anticipates December quarter revenue in the range of $2.1 billion to $2.3 billion, with a softening in end-market demand balancing normal seasonality.
In a research note, Deutsche Bank said it remains cautious on the sector, including Celestica, due to slowing demand and aggressive pricing. "Celestica`s fourth quarter guidance speaks volumes to the anemic end-market environment (flat quarter-on-quarter in the [usuallyl] seasonally strong fourth quarter," the firm said.
Year-to-date Celestica's revenue has risen 35% to $6.51 billion and the GAAP net loss is $56.2.
Celestica said it has ceased creating its own reference designs and will exit its channel distribution activities for these products. Said Delaney: "We remain committed to providing enterprise-wide server solutions to our customers, including product design services, manufacturing, logistics services, and after-market services".
LOUISVILLE, Oct. 21 -- Sypris Solutions' third-quarter revenue increased 72% to a record $118.5 million, up from $68.9 million a year ago. Net income rose to $3.5 million, versus $700,000, for the manufacturer of industrial and electronics products. The firm's chief executive issued a cautious near-term outlook on orders for electronics assemblies.
For the nine months ended Sept. 30, the company reported revenue increased 53% to a record $303.7 million and net income increased 87% to $8.9 million.
The firm's electronics group has sales of $40 million in the third quarter compared to $46.5 million last year and $37.7 million in Q2. Gross profit was $6.8 million, down from $8.2 million in 2003 and $7.5 million sequentially. The company cited a change in mix reflecting increased sales of lower margin circuit card assemblies and reduced sales of higher margin products to certain government agencies.
Year to date electronics revenue is $118.6 million, down from $127.7 million. Gross profit is $22.2 million compared to $25.2 million for the prior year period.
"Net orders for our Electronics Group declined during the quarter to $33.1 million, but backlog remained solid at $124 million," said Jeffrey T. Gill. "In the short-term, we believe the outlook for growth in this segment of our business will remain somewhat constrained at least until such time as the delays in program funding to accommodate our current military operations are successfully resolved. For the long-term, we remain optimistic that we are well-positioned on a series of major programs that should contribute to the company's growth."
SAN DIEGO, Oct. 19 -- Tamura H. A. will sell thermal profiling equipment from KIC(www.kicthermal.com), the companies said today.
Tamura (www.tamura-ha.com) is a maker of lead-free reflow ovens and wave-soldering equipment. Jay Hah, GM of Tamura, said in a press statement, "Lead-free production sets stringent demand on the thermal process. The narrow process window requires more capable and stable ovens. The combination of Tamura and KIC [is] an effective formula for electronics manufacturers."
WILSONVILLE, OR, Oct. 21 -- Mentor Graphics today announced third-quarter revenues rose 3% year-on-year to $162 million while cutting its net loss in half, to $6 million.
Separately, the company guided for sales of $205 million in the December quarter.
The GAAP loss was the result of special charges for in-process R&D associated with the acquisition of In Design Automation, Mentor said.
"Although growth in the third quarter was slow, it was primarily due to the timing of major orders," said Wally Rhines, chairman and CEO.
Bookings grew 2% in the quarter although the book-to-bill was below 1.0. Rhines said year-to-date bookings have grown 8% and Mentor expects record fourth-quarter and full-year bookings.
Bookings in the Pacific Rim climbed 20%, while North America was up 5%. Europe slipped 10% and Japan was flat, although the latter's bookings are strong by historical levels.
Forty percent of the company's sales were in the Americas, 30% in Europe, 20% in Japan, and 10% in the Pacific Rim.
Pro forma gross margin was 86%. Gross margin on a GAAP basis was 84%.
Mentor (www.mentor.com) is leading supplier of PCB design tools.
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