TEMPE, AZ -- Three-Five Systems Inc. today reported a fourth-quarter net loss of $10.2 million on sales of $40.5 million for the period ended Dec. 31.

The company's sales decreased from $45.9 million in 2003 and $42.4 million last quarter. The net loss widened from $3.2 million in December 2003, although it improved from a loss of $30.8 million in the September quarter.

The company, which provides EMS services, took a $1.8 million charge for excess inventory 
and scrap; a $760,000 charge for relocation to a new facility in Redmond, WA; and 
$237,000 in severance charges for its Tempe corporate office. TFS also took $380,000 
in charges for Sarbanes Oxley compliance.  

TFS received $900,000 as reimbursement for expenses related to the move to Redmond.

For the year, the company posted net sales of $158.9 million, flat with 2003, and a loss 
from continuing operations of $54.3 million, down from a loss of $33.9 million last year. 
Including operations now divested, TFS lost $44.5 million in 2003.

TFS took non-cash goodwill and asset impairment charges of $23.2 million in 2004. In 2003,
it recorded one-time charges of $14.3 million.

In a press statement, president and chief executive Jack Saltich said, "We are
working through a challenging period of reorganization, consolidation and
restructuring. There is real value in our EMS+Display strategy, and we need
to extract that value by focusing on actions that streamline the company and
increase revenue.  

TFS also announced it has won a program to supply color display modules a Tier One 
OEM handset maker. The program is expected to begin late in the second quarter. 

Cash from operations was in the quarter was almost $200,000. Capital expenditures 
were $1.2 million. At the end of the quarter TFS's cash balance was $16.2 million, up from 
$14 million sequentially.

Day sales outstanding were 52 days, one day lower, inventory turns rose half-a-turn 
to 6.8, and cash conversion cycle days dropped by four to 54.

By industry, TFS said revenues

• Computing: 62% (52% in Q4 2003)
• Telecom: 7% (3%)
• Medical: 5% 12%)
• Industrial/Military: 14% (14%)
• Consumer: 8% (14%)
• Transportation: 4% (5%).

One customer accounted for more than 10% of revenue. The top
10 customers accounted for 76% of total Q4 revenue.

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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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