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News

The Christopher Group (Santa Ana, CA) has announced the introduction of a standard warranty for automatic optical inspection (AOI) systems. Based on the results of over 3,500 systems in use globally and service records of over 140 systems in use in North America, the on site warranty on NSpec AOI systems has been extended to 18 months (excluding consumables). The extension is retroactive on all applicable machines as well as new equipment sales.

The NSpec Fv 20 large format AOI system and Fv 14 standard format system will be available for demonstration at IPC/APEX 2004 in booth 1509.

www.christopherweb.com

Plexus Corp. (Neenah, WI) has announced that revenue for its first quarter of fiscal 2004 increased 16% to $238.5 million compared to $205.4 million in Q1 2003. Net income for the quarter was $2.5 million, or $0.06 earnings per diluted share. Excluding restructuring costs and the partial write-off of goodwill, Plexus reported a loss of ($0.9) million or ($0.02) per diluted share in the first fiscal quarter of 2003.

Dean Foate, president and chief executive officer of Plexus, said, "This is our third consecutive quarter of revenue growth and EPS improvement. The 10% sequential revenue growth in our fiscal first quarter was a result of two distinct elements. First, we experienced strengthening end-market demand, particularly in our Networking/Datacom and Medical sectors. Additionally, we are making clear progress on our commitment to build our sales and marketing into a world-class organization."

"Based on our current outlook," continued Foate, "we are expecting the revenue and earnings momentum to continue into Q2 with sales in the range of $245 to $255 million and EPS in the $0.07 to $0.09 range. Second quarter earnings will be moderated by higher SG&A expense to support the ERP system installation in our Chicago facility and by other outside professional services. Looking at the full year, we are now increasingly comfortable with our 15% to 20% revenue growth target."

Gordon Bitter, chief financial officer, said, "Improved revenues in Q1 resulted in gross margins of 8.2% for the quarter compared to 7.4% in the fourth quarter of fiscal 2003. SG&A increased during the quarter reflecting increased expenses for compensation and healthcare benefits, but declined modestly as a percent of revenue. We had a 20% effective tax rate in the first quarter due to our expanding operations in Asia, where we benefit from tax holidays."

"Cash and short-term investments at the end of the first quarter were approximately $60 million as we used approximately $19 million during the quarter, primarily to finance increased inventories to support growth. Debt remains low and the $100 million credit facility that was established early in the first quarter provides additional financial resources," Bitter said.

www.plexus.com

Thinky Corp. (Kennesaw, GA) has announced that it is marketing the AR-250 all-in-one mixer/disperser/de-aerator in the U.S. By rotating the materials container while revolving it on a set radius, a continuous centrifugal force (400 G or more) is produced which mixes and simultaneously forces out the existent bubbles in the materials.

The mixer provides urethane/silicon degassing in minutes, disperses silver/copper/solder paste in seconds—even in frozen conditions, and mixes adhesive and sealant with no air bubble in minutes. The equipment is useful for manufacturers who use precision electronics technologies.

Using the multi-centrifugal motion principle, the model mixes ingredients and compounds in seconds to minutes with no damage of material due to its non-contact mixing structure. The machine can mix viscous material, such as clay, in 7 minutes and reduces or eliminates the use of a solvent/emulsifier.

Other models, ranging in capacity from 50 ml 100g to 3L 5kg are available. The ARV-200 and ARV-10000 (13L 16kg) are capable of complete high-speed removal of bubbles in sizes as small as sub-microns.

www.thinky.co.jp

Electronics manufacturing services provider (EMS) Flextronics (Singapore) is in discussions with Nortel Networks relating to a proposed relationship, whereby Nortel Networks would divest nearly all of its remaining optical, wireless and enterprise manufacturing operations and related supply chain activities to Flextronics.

If discussions are successful, Nortel Networks' Systems Houses activities in Montreal and Calgary, Canada; Campinas, Brazil; Monkstown, Northern Ireland; and Chateaudun, France would be transferred to Flextronics.

Flextronics expects to consolidate and provide full-service supply chain offerings including printed circuit board assembly and fabrication, along with logistics and repair services supported from industrial parks on at least four different continents.

The successful completion of these arrangements would result in Flextronics undertaking and managing in excess of $2 billion of Nortel Networks annual cost of sales. Flextronics anticipates that it would pay Nortel Networks in excess of $500 million in cash over a nine-month period for certain assets.

www.flextronics.com

The PL-001-01-XX-0400-32 surface-mount technology heatsink for Dpac and D2pac is now available in a lead free version. The product is based on the placeiT technology that designs, simulates, produces and tapes special mechanical parts for surface mount technology, such as heatsinks, mechanical fixing systems and high current electrical connections for standard and custom applications.

The heatsink is based on the company's special copper alloy with a solderable surface. It is shipped in tape and reel (32 mm), weighs 4 grams and is 6.5 mm high. It is mountable with standard pick-and-place machines using standard nozzles.

The heatsink is placiT technology's first product for the mass marketplace. The company was formed in 2001 to solve a specific customer problem in an economic and automated way. The company is a cooperation of five European companies with experience in mechanics, electronics, magnetics and chemicals.

www.placeit-smt.com

Sanmina-SCI Corp. (San Jose, CA), an electronics manufacturing services (EMS) company, has reported financial results for its first quarter ended Dec. 27, 2003. The company also announced that it will begin searching for a new chief financial officer.

For the first quarter, Sanmina-SCI reported revenues of $2.97 billion, up 9%, from $2.73 billion in the fourth quarter, and up 17% from the first quarter last year.

The company reported adjusted pro forma net income of $26.2 million, or $0.05 adjusted pro forma diluted earnings per share, compared to $14.0 million, or $0.03 per share in Q4, and $6.8 million, or $0.01 per share, for the same period last year. Cash provided by operations was approximately $110 million for the first quarter.

Sanmina-SCI also reported $1.2 billion in cash and short-term investments. At quarter-end, the company reported a current ratio of 1.9, working capital of $2.1 billion and shareholders' equity of $3.3 billion.

Jure Sola, chairman and chief executive officer of Sanmina-SCI, said, "Clearly we are seeing a positive trend across all of our end-markets, orders have been increasing more steadily, and our customers are talking with a more positive and upbeat tone...This quarter, we made further progress in our original design manufacturer (ODM) strategy, adding two design wins for server products with existing original equipment manufacturer (OEM) customers."

The company also announced that its chief financial officer, Rick R. Ackel, will be leaving the company to pursue other opportunities. Ackel has served as CFO since July 2000. Sanmina-SCI will begin a search for a new CFO and in the interim Sanmina-SCI's controller, Mark Lustig, will serve as acting CFO.

www.sanmina-sci.com

Digi-Key Corp (Thief River Falls, MN) has added Murata Electronics (Smyrna, Georgia), a global supplier of ceramic passive components, to its large vendor and product offering.

Mark Larson, president of Digi-Key, said "We are cataloging, and supporting with substantial inventory, nearly 2,000 Murata components including ceramic capacitors, trimmers, resonators, thermistors, filters, inductors and potentiometers."

Digi-Key will offer customers the full line of Murata's products. Digi-Key hopes to enhance Murata's diverse distribution strategy by increasing the manufacturer's position within a variety of markets.

Murata's distribution manager, Darryl Revenew, said, "By adding Digi-Key to our list of channel partners, we can offer greater value to our original equipment manufacturer (OEM) customers. With their focus on the design and engineering communities, customers are able to purchase our products with exceptional turnaround time and superior service."

With close ties to the design and engineering communities, Digi-Key has established a strong client base focused on demand creation and is frequently sought after for sampling and fulfillment needs. Both companies will work closely to provide design enhancements (for existing and future products) to their customer base.

Digi-Key Corp.is a full service provider of electronic components. Its Website offers e online commerce capabilities along with 24/7 instant access to a broad-based, multi-million dollar product inventory. Murata Electronics is one of 47 wholly owned subsidiaries of the world organization Murata Manufacturing Co., Ltd. of Japan. Murata is a patent holder and global manufacturer of ceramic electronic components for the telecommunications, computer/peripheral, automotive, communications and EDP markets.

www.digikey.com

www.murata.com

IPC (Northbrook, IL) has announced the collection of free events planned for its co-located IPC SMEMA Council's APEX/IPC Printed Circuits Expo/IPC Designers Summit exhibition and conference, being held Feb. 24-26, 2004, at the Anaheim Convention Center, in Anaheim, CA.

In addition to the complimentary keynote addresses of Solectron president and chief executive officer Michael Cannon, industry forecaster Walt Custer and the multi-talented Bill Nye-The Science Guy, the trade show will feature eight free forums throughout the exhibition and conference. The schedule includes:

1) Beyond Lead Free-WEEE/ROHS on Feb. 24
Chair: Fern Abrams, IPC
This panel discussion will provide insights into what leading companies are doing to prepare for the July 2006 lead-free compliance deadlines along with the latest developments in legislation, exemptions and definitions of lead free under Waste Electrical and Electronic Equipment (WEEE) and Restriction on Hazardous Substances (RoHS). Additionally, the panel of experts will examine the ripple effects of this legislation on laws and regulations in the U.S. and abroad.

2) North America or Asia: Where is the Best Place for Your Manufacturing? on Feb. 25
Chair: Lisa Hamburg, Circuits Assembly magazine
The relative complexity, quantity required, circuit density, level of customization needed and delivery time frame are just a few of the issues that help determine the supply source. This panel discussion will discuss and debate the various pros and cons of overseas sources.

3) IPC PCQR2 Database-Globally Accepted de facto Standard for Comparing Process Capability, Quality and Relative Reliability of PCB Suppliers on Feb. 24
Chair: David Wolf, CAT, Inc.
The IPC D-36 Subcommittee has developed an industry standard, IPC-9151A, for process capability test panel designs and the PCQR2 database detailing the capabilities of printed circuit board (PCB) suppliers. The database provides quantitative data that allows subscribers to statistically benchmark board suppliers' capabilities; perform intelligent sourcing; select new suppliers; ensure design for manufacturability; and establish realistic design rules. The seminar will include in-depth discussions on the test panel designs, analysis reports and the capabilities of the PCB supply chain documented in the database.

4) Domestic PCB Technology Innovations at the U.S. Naval Surface Warfare Center, Crane Division on Feb. 26
Chair: Bill Payne, EG&G Crane Operations
The Emerging Critical Interconnect Technology (ECIT) program was created to co-opt military, academic and industrial extension for the purpose of facilitating North American research and development consistent with IPC's technology roadmap. This presentation will provide insight into ongoing ECIT projects, their goals, status, the participants and potential delivery schedules.

5) NEMI Defective Parts per Million Opportunities (DPMO) Project Forum on Feb. 25
Chairs: Tim Kruse, Plexus NPI Plus, and David Mendez, Solectron Texas LP
The NEMI DPMO project team is nearing completion of an investigation into package-level DPMO rates throughout the electronics assembly industry. Such DPMO data can be used to quantify the expected fault spectrum on a particular PCB assembly, enabling manufacturers to more accurately assess the cost of assembly, test, repair and scrap and also estimate the shipped product quality level of a product. Participants in the NEMI DPMO Project Team will present findings from the study, share the lessons learned and discuss the vision for follow-up on DPMO efforts in the industry.

6) Will the Real Immersion Silver Please Stand Up? on Feb. 24
Chairs: Kim Hyland and Dave Mendez, Solectron
As consumers demand more cutting-edge electronic devices, as original equipment manufacturers (OEMs) design higher functioning boards and as chemical companies make new PCB surface finishes, fabricators and assemblers need to endure the fast progression of all these changes. In this session, representatives from fabrication, assembly, OEM and chemical supply companies will answer all questions and concerns relating to the implementation of immersion silver.

7) Reactivation of IPC's OEM Council on Feb. 25
Chair: Daryl Sato, Intel Corp.
IPC is reactivating its OEM Council, which has made significant contributions to efficiency in the supply chain through development and release of standardized vendor surveys. The council's mission is to develop and use a methodology for PCB technology and assessment and advancement, evaluate PCB supplier process capabilities, identify technology gaps and monitor R&D advancements and PCB design changes to ensure gap closure. The panel will discuss their working group efforts and solicit feedback on ways to integrate and expand such collaborative projects through the OEM Council.

8) International Technology Interchange-Total Packaging Solution Roadmap on Feb. 24
Chair: Dieter Bergman, IPC
This forum will discuss global industry needs and how international organizations are involved in developing common ways of understanding future development and improving the international supply chain. The panelists will cover various topics, ranging from the definition of Jisso to the hierarchy of electronic packaging to optoelectronics and a global outlook on lead and halogen free.

For more information about these events, visit http://shows.ipc.org or contact Joe Dudeck, IPC communications manager, JoeDudeck@ipc.org.

www.ipc.org

LPKF Laser & Electronics (Wilsonville, OR) has announced the release of the low cost SL740 surface-mount technology stencil laser cutter. The system is designed for low- and medium-volume stencil production, cutting up to 3,000 apertures per hour.

The cutter uses the same proprietary high power infrared laser source compliant with laser safety class 1 as found in LPKF's higher-end models. The entry-level system provides high accuracy and reliability, making it ideal for start-up stencil businesses or a backup system for established shops. It offers a cutting area of 29 x 29 in. and accommodates all common stencils, including stencils for quick release frames. Mounting fixtures are provided for both bare sheets and framed stencils.

"With the introduction of the SL740, we are excited to better address the entry-level market space, while maintaining the signature reliability and accuracy of LPKF's products," said Stephan Schmidt, vice president of LPKF North America.

www.lpkfusa.com

Reptron Electronics Inc. (Tampa, FL), an electronics manufacturing services company, reported that its Second Amended Plan of Reorganization under Chapter 11 of the Bankruptcy Code was confirmed by the U.S. Bankruptcy Court on Jan. 14, 2004. Reptron anticipates the effective date of this confirmation to occur on Jan. 26, 2004, which is about 90 days from the original filing date.

Under the confirmed plan of reorganization, the company's unsecured class of creditors that includes its existing convertible notes will receive new notes with a total principal amount of $30 million. The existing notes, along with all accrued and unpaid interest, will be cancelled. The unsecured class of creditors will also receive 95% of the common shares of the reorganized company. Existing common shareholders will receive the remaining 5% of the common shares of the reorganized company.

"The restructuring of our convertible notes is a key component in our strategic plan, which we believe positions the company to take advantage of future growth opportunities," said Paul J. Plante, Reptron's president and chief operating officer. "Once the restructuring is completed, Reptron will have reduced its debt load by over $70 million over the past 12 months. We are extremely pleased to have completed this restructuring in such a short time frame."

www.reptron.com

IPC (Northbrook, IL) and JEDEC, the Solid State Technology Association, have announced plans to further their efforts in preparing electronics manufacturers for the inevitable European ban on lead by co-sponsoring three international conferences on Lead-Free Electronic Components and Assemblies in the U.S., Europe and Asia in 2004.

Ever since the European Union agreed upon the Restriction of Hazardous Substances in Electrical and Electronic Equipment (RoHS) Directive, in which all affected electrical equipment sold in Europe after July 1, 2006, must be free of lead, IPC and JEDEC have taken an active role in keeping the industry informed of changing requirements and encouraging the voluntary elimination of lead. In their second year of jointly producing domestic and international conferences on lead-free electronics, IPC and JEDEC will host lead-free conferences on March 17-19, 2004, in San Jose, CA; in August 2004 in Singapore and Oct. 20-22, 2004, in Frankfurt, Germany.

Each international conference provides tutorials focusing on subjects such as manufacturing with lead-free, halogen-free and conductive adhesive materials, as well as various workshops that introduce lead-free solders and present selection criteria for lead-free compositions.

The associations will also select industry experts to present a two-day technical conference covering crucial lead-free topics. Presently, conference chairs Jean Hebeisen and David Bergman of IPC and John Kelly and Donna McEntire of JEDEC are seeking papers and presentations in the following areas:

Policy: European lead ban status
Electronics Manufacturing Services (EMS) Industry: On the front line of the change
Component issues (passives and actives)
Design issues
Environmental health and safety effects and alternatives
Printed circuit board (PCB) issues
Original equipment manufacturer (OEM)/Consumer demands/voluntary elimination dates
Recycling options
Substitutions: New commercially available alloys/conductive adhesives/ease of replacement
Cost issues
Reliability evaluations (such as temperature cycling data, tin whiskers)
Roadblocks to implementation
Finishes issues: Organic solder protectants, immersion tin, silver, electroless nickel and palladium
Lead-free and other product sectors

For more information on the conferences or submitting abstracts, visit: www.jedec.org or www.ipc.org.

The monthly order index compiled by the Electronic Components, Assemblies & Materials Association (ECA, Arlington, VA) took its annual December dip, but the outlook remains positive for 2004.

"Based on previous years, we expected a December dip," said Bob Willis, ECA president. "The good news is that the December dollar value is up by more than 20% over 2002, and the 12-month moving average ended on an upward note. Our members believe that 2004 might be the first year of sustained growth since 2000."

Electronic components are the building blocks of most consumer goods and technology hardware, so the industry normally reflects the movement of the economy as a whole. This year, the outlook is good. Nariman Behravesh, chief economist for Global Insight, predicts that economic growth in 2004 will be the strongest since the bursting of the high-tech bubble in 2000, with the U.S. and Asian countries outside of Japan enjoying the fastest growth.

Behravesh said, "The beleaguered manufacturing sector will finally enjoy a year of strong, uninterrupted growth - barring any unforeseen shocks."

According to Willis, the ECA has scheduled a full slate of events and marketing opportunities that will help its members make the best of the industry's rebound.

"There is a lot of justifiable optimism, but companies need the resources to manage the intricacies of demand, raw materials, supply flow, distribution, inventory and other interrelated issues," said Willis. "We had prosperity a few years ago, but it went bust. We want our members to have access to the information and opportunities that will allow them to take advantage of the good and mitigate the bad."