ROCHESTER, MN -- EMS firm Pemstar Inc., in its final days as a standalone company, reported fiscal 2007 second-quarter revenue rose $1.2 million to $212.3 million from last year. Net income was $3.2 million compared to a net loss of $13.5 million a year ago. The prior year loss from continuing operations includes restructuring and impairment charges totaling $7.9 million.

Last month Benchmark Electronics announced it would buy Pemstar in a deal expected to close next quarter.
The revenue included $52.5 million from the full turnkey operation with a wireless handset customer (said to be Motorola). Pemstar is in its final stages of completing an analysis of strategic alternatives for that plant, in Tianjin, China, and expects conclusion in the next 30 days.

During the quarter, sales to the industrial sector accounted for 40.4% of net sales, computing and data storage 23.5%, communications 34.1%, and medical 2%. Excluding incremental turnkey revenue, the adjusted percentages are 53.6%, 31.2%, 12.5% and 2.7%, respectively.

Accounts receivable at Sept. 30, was $138.8 million up from $125.5 million sequentially. Days sales outstanding rose by six days to 59.

Net inventories were $76.4 million, up $12.2 million, and inventory turns were down 2.4 turns to 10.2 times. Cash cycle was 37 days, up six days. Notwithstanding the company's Tianjin turnkey operations, the cash cycle would have been 50 days.

Cash balance fell $3.4 million sequentially to $21.2 million.

As of Sept. 30, the company had $106 million in debt. Benchmark has indicated it would retire that debt upon completion of its acquisition on Pemstar.

Pemstar guided for December quarter net sales of $200 million to $220 million, including revenue from Tianjin, and net income of six to 10 cents per share. The company had total sales of $253 million in the December 2005 quarter.

• Prev
• Next