LOUISVILLE -- Sypris Solutions today said cost overruns led to a fourth-quarter loss of $1.5 million, despite a 56% hike in revenue to a record $121.7 million.

The company earned a profit of $3.4 million the Q4 2003.

For the year, net income was $7.4 million, down $700,000. Revenue rose 54% to a record $425.4 million.

The fourth quarter proved to be extremely difficult," said Jeffrey T. Gill, president and chief executive, in a statement. "The record increase in revenue was overshadowed by cost overruns that were incurred to increase manufacturing capacity, launch new programs and respond to shortages in material during a period of escalating customer demand."

Gill said he expected the problems to be rectified in the first six months of 2005.

"The outlook for continued growth remains positive, with net orders increasing 30% to $129.7 million during the quarter, resulting in an increase in net orders of 48% to a record $476.4 million," Gill said.

Backlog rose 26% to $249.8 million at the end of 2004, while new contract awards increased to a record $1.5 billion, from $639 million for the prior year.

Sypris Solutions is a diversified provider of technology-based outsourced services, including electronics manufacturing.

Revenue from its electronics group was $46.4 million in the fourth quarter, down 13% year-on-year and up 16% sequentially. The company launched new programs for aerospace and defense during the quarter. Gross profit declined to $6.2 million from $11.1 million last year and 8% sequentially.

For the year, electronics revenue fell 9% to $165 million, primarily reflecting lower shipments of federal data storage products and circuit card assemblies for an attack helicopter program and an end-of-life missile program. The company did see a 17% increase in revenue from test and measurement services. Gross profit declined to $28.4 million, from $36.3 million in 2003.

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ATLANTA -- A call for abstracts was issued today for PCB Design Conference East, the leading event for PCB design and manufacuturing on the East Coast.

PCB East will be held Oct. 10 to 14, at The Center of New Hampshire in Manchester, NH. It is produced by UP Media Group, and sponsoredby by Printed Circuit Design & Manufacture and Circuits Assembly.

Papers or presentations are being sought for the technical conference on such topics as:

- High speed, high frequency and signal integrity
- Lead-free processes and their effect on PCB design
- Impedance and crosstalk control
- EMI/EMC analysis
- Embedded passives and active devices
- Thermal analysis
- RF and microwave
- Packaging and components
- Area arrays
- FPGA design and implementation
- Flexible circuitry
- HDI design and technologies
- PCB design/layout techniques
- Component library creation and management
- Design for manufacture, test and assembly
- Design (including analog, digital and power supplies)
- PCB fabrication
- Soldering
- Surface finishes
- Industry forecasts
- Business and design/supply chain issues.

Papers will be 30-minutes in length, while lectures will be one hour, workshops two hours, and seminars 3.5 hours. Also sought: presentations for a Professional Development Curriculum of one- and two-day tutorials.

Abstracts of 100 to 300 words are due March 4. Visit www.pcbeast.com to submit online, or send via email to Andy Shaughnessy, ashaughnessy@upmediagroup.com.

The PCB East conference and exhibition is for designers and manufacturers of printed circuit boards and semiconductor packages.

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OYSTER BAY, NY -- The automotive market has just begun to witness the emergence of onboard camera systems, primarily used for such applications as lane departure warning, and more safety features are ahead, a new study says.

In addition to watching the road ahead, automotive cameras will also be used to monitor the driver and occupants for several new safety applications over the next few years, according to ABI Research.

Onboard cameras are the predominant technologies earmarked for driver monitoring. Through the use of specialized algorithms, these cameras will monitor the driver and check for conditions of distraction or drowsiness. Cameras will also be used for occupant detection as part of next-generation airbag systems.

"We are expecting a new dynamic testing procedure to be released by NHTSA this year in the U.S., which will act as a catalyst towards the adoption of optics-based occupant detection systems, as well as other leading-edge technologies," said Robert Laguerra, senior analyst, in a press release. "This will significantly impact all automakers looking to sell to this market."

The major advantages of camera-based occupant detection systems over current pressure/weight sensor-based systems are in improving occupant classification and position-sensing (Is this an adult? a child? a suitcase?), and in dynamically suppressing airbag deployment.

This can save lives and decrease costs, ABI says, because the number of airbags in a vehicle has increased so much that it may soon cost more to replace all the deployed airbags in a vehicle than just to buy a new car.

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DES PLAINES, IL -- SMT and business expert Tony Longo will talk on impending environmental legislation requirements at an IMAPS meeting in Chicago next week.

Longo, a senior market development engineer at Kester, will present  on developing a lead-free roadmap that complies with RoHS, the European mandate that restricts hazardous substances such as lead and some bromines.

The meeting will be held Feb. 15 at the Silver Stallion Restaurant in Des Plaines. The presentation starts at 7 p.m.

Longo is an SMTA certified process engineer with 14 years of SMT experience, a bachelor's in manufacturing technology and an MBA in international business.

For more information: imaps.org/chapter/chicago/index.htm.

SAN FRANCISCO -- In a move that has taken most observers completely by surprise, Carly Fiorina has resigned as chairman and chief executive of Hewlett-Packard Co.

Fiorina, who managed the massive merger of HP with one of its chief rivals, Compaq Computer, cited differences with the board over executing its strategy.

In a statement, Fiorina suggested she was fired, "While I regret the board and I have differences about how to execute HP's strategy, I respect their decision. HP is a great company and I wish all the people of HP much success in the future."

The HP board has suggested or initiated several changes of late, from restructuring Fiorina's responsibilities to bringing on a new director whose influence is felt industry wide.

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ANGLETON, TX -- Benchmark Electronics reported fourth-quarter net income of $20.2 million on sales of $524 million.

The contract manufacturer outdid last year's performance, when it reported $487 million in sales and net income of $13.4 million, including charges.

For the year ended Dec. 31, the company reported sales of $2 billion, up 8.8%. Net income rose 28% to $71 million.

"2004 was another good year for Benchmark," said Cary T. Fu, president and CEO. "We enhanced our customer base, reduced customer concentration, expanded our low-cost manufacturing capacities, realigned our resources, increased our technical capabilities and delivered solid financial performance.

For the quarter, operating margin was 4.6%, and return on invested capital was 14%.

Inventories decreased by $33 million to $257 million; inventory turns were 7.5 times.

As of Dec. 31, Benchmark had $367 million in cash and no outstanding debt. 
Accounts receivable were $251 million. 

Benchmark guided for first quarter 2005 revenue of $510 million and $530 million.
For the year the company anticipates revenue and earnings growth of 10 to 15%.

"Our 2004 new program bookings provide good momentum for a strong 2005," Fu said.

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TEMPE, AZ -- Three-Five Systems Inc. has promoted David A. Prunier to vice president, general manager for the company's Redmond, WA, manufacturing operation.

The position is a newly created post.

Prunier, 43, joined TFS in September 2003 as senior director for the company's medical products business. He is a former general manager at Plexus, and director of manufacturing for SCI Systems.

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SANTA ANA, CA -- TTM Technologies Inc. today reported fourth-quarter revenues rose 9% to $59.2 million. Net income was $6.8 million, up fro $8 million sequentially and $4.7 million last year.

Cash from operations exceeded $9 million for the quarter. TTM ended the year with cash and short-term investments of $58.5 million and no outstanding debt.

Sequentially, net sales fell 5% ($3 million), the result of lower orders due to capacity constraints at the circuit board maker's Chippewa Falls facility.

For the quarter, quickturn business made up 26% of net sales, down 1 point from last year. Gross margin decreased to 24.6%, compared to 26.1% last year and 28.4% sequentially. Gross margin was affected by a raw materials price increase, pricing pressure, lower operating efficiency and mix changes, the company said.

For the year, net revenues rose 33% to $240.6 million and net income was up nearly 400%, to $28.3 million. The 2004 results included a restructuring charge of $855,000 and a $1.2 million reversal of a tax valuation allowance.

For its first quarter 2005, TTM guided for revenues of $59 million to $62 million.

In a statement, Kent Alder, president and CEO, said, "While we expect business conditions to remain relatively stable, the benefits of our capacity expansion at Chippewa Falls should offset the seasonal slowdown in quickturn typically experienced in the first quarter of the year."

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ANAHEIM, CA -- Beset by cash flow problems, DDi Corp. today killed one of its fleas, announcing it would close its circuit board shops in the U.K. DDi does not anticipate any net write-off or material cash restructuring charges.

In a statement, chief executive Bruce McMaster said, "We believe that the discontinuation of our UK-based business is a positive development for our shareholders. It provides a resolution to the liquidity challenges that have beset that business, enables us to cease reporting that business as an ongoing operation, and permits us to concentrate our efforts on the North American market. "

McMaster said DDi will focus on growing a value-added reseller services business recently begun in the U.S.

The U.K. operations carried heavy debt even before their acquisition by DDi in 2000, McMaster said. The company, which is operating on slim cash reserves, "could not justify" the large amounts of cash needed to restructure.

DDi Europe will be placed into administration, a move that permits DDi Corp. to remove $38 million of the UK-based indebtedness from its books.

In recent quarters, DDi Europe has contributed approximately one-third of DDi Corp.'s consolidated net sales, which totaled about $285 million for the 12 months ended last September.

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SAN FRANCISCO -- Cisco Systems, a bellwether for communications equipment demand, yesterday reported revenues of $6.06 billion for the January quarter, disappointing Wall Street and signaling a potential slowdown for its suppliers.

In a research note, Deutsche Bank said Cisco's performance and outlook are behind its "cautious view" of the EMS sector. The maker of networking gear is one of the largest customers of the EMS industry.

Cisco's sales were up 1.5% sequentially, but below Street expectations of $6.13 billion. Year-on-year revenue forecasts are decelerating, from 12% in January
to 8 to 10% for the current quarter.

The combination of slowing end demand, contracting component lead times and relatively high inventory levels across the communications infrastructure market continues

Cisco said its internal book-to-bill ratio for communications infrastructure gear is below 1.0, the benchmark for growth. "We continue to believe the recent softness across the supply chain reflects slowing end-demand and customers' inventory reduction efforts," DB wrote.

"Look for Cisco to work inventory levels lower in future quarters in response
to softer end market demand and improved component availability. This will likely translate into soft near-term demand for EMS suppliers," DB wrote.

The EMS makers which stand to be most affected include Celestica (more than 10% of revenue comes from Cisco), Solectron (14%) and Jabil (15%).

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Minneapolis, MN --  The SMTA is accepting applications for the Hutchins Educational Grant through April 15. Co-sponsored by Circuits Assembly, the $5,000 grant is awarded annually to a graduate student for thesis research in electronic assembly, electronics packaging or a related field.
 
To be considered, students must submit an entry form, academic transcripts, a letter of recommendation, a resume and a one-page thesis research abstract.
 
The grant, presented each year at the SMTA International conference, was established in memory of past SMTA president and industry colleague Dr. Charles Hutchins.
 
The 2004 recipient was Brian McAdams from Lehigh University (Bethlehem, PA) for his project: "Sub-critical Initiation of Delaminations at the Underfill/Passivation Interface in Flip-chip Assemblies."

SAN FRANCISCO -- Fabrinet, an engineering and electromechanical manufacturing services company, last week opened a 115,000 sq. ft. building in Pathumthani,
Thailand, the first of what is a new campus for the company.

The site, known as Pinehurst, will provide electronics assembly 
support for products built at Fabrinet's Chokchai campus 7 miles away.  

The company has broken ground on a second building at the Pinehurst 
campus.  When completed, Fabrinet will have doubled its footprint in Thailand. 

The second building is scheduled for completion in December.  

Upon completion of the Pinehurst campus, Fabrinet have nearly 450,000 
sq. ft. of capacity in Thailand. 

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