News
U.S. federal agencies are reviewing the case on grounds of national security. At issue is Lenovo's announced plans to send Chinese computer experts and researchers to IBM's North Carolina facility, said Enterprise Security Today.
That announcement is creating some consternation at high levels in the U.S. government. Some members of the Committee on Foreign Investments in the United States are questioning whether the relocation would open the U.S. to potential acts of industrial espionage.
The CFIUS' role is to review corporate deals that involve
foreign firms to determine whether any national security threats may
arise. The
CFIUS includes the Defense Department, the U.S. Trade Representative's
office and the Commerce Department.
One analyst said concerns over the possible breach in security are warranted.
Laura DiDio, an analyst with Yankee Group, was quoted as saying, "China is a still a Communist nation. ... They're very closed,
despite these deals, and they sell stuff to people we consider enemies.
So there's a real fear here, and it's not unwarranted."
ELGIN, IL - Panasonic's capital equipment division has been renamed Panasonic Factory Solutions Company of America.
The name change for the unit, formerly Panasonic Factory Automation, took place Jan.1.
In a press release, the company said the change "unifies the company's capital equipment business globally under the Panasonic name, while reinforcing the greater consultancy role that PFSA has taken on for its customers."
Similar name changes are planned for Panasonic operations in Europe, Asia and China.
SAN JOSE - Sanmina-SCI on Thursday reported first-quarter revenues rose 9.5% to $3.25 billion, at the low end of previous company guidance, and the EMS firm announced yet another series of factory closures.
For the period ended Jan. 1, the company reported GAAP net income of $24.4 million, up 54.5% over last year. Operating income was up 29% to $59.6 million.
Sanmina-SCI said it will further reduce manufacturing capacity in high-cost regions and will take an additional $75 million restructuring charge on top of charges of $100 million announced last July. This was the 16th straight quarter Sanmina took charges for restructuring.
In a press release, chairman and chief executive Jure Sola said, "Revenues for the quarter were at the low end of our expectations as our customer end-markets experienced competitive pricing pressures and a sluggish business climate."
The company had record inventory turns of 12.3.
The firm guided for second-quarter revenue of $2.85 billion to $3.15 billion
"We saw significant momentum from our newer, emerging products as we received significant orders in cabling, embedded software, high speed board design and coverage-driven verification," chairman and CEO Wally Rhines said in a press release.
For the quarter bookings rose 35%. All regions performed well with
Japan and Pacific Rim bookings up over 100%, Europe up 45% and North
America up 15% over a year ago. Bookings were up 20% for the year.
Revenue by region was 40% North America, 30%
Europe, 15% Japan and 15% Pacific Rim.
The company took one-time charges of $4.9 million, primarily for acquisitions and
restructuring.
Pro forma gross margins were down slightly, to 86.7%.
"While we see no sign of an upturn for the overall EDA industry, we note that Mentor and other companies like us with young product lines continue to perform well in this environment," said Greg Hinckley, president.
The firm's book-to-bill is at its highest level since 1996 and backlogs are at their highest point since 2000.Separately, Mentor guided for Q1 sales of $177 million and 2005 revenue growth of 7%, to $760 million.
TORONTO -- Celestica, the world's third largest EMS company, reported a GAAP net loss of $810 million, primarily due to non-cash writedowns for asset impairment and a $161 million charge to cover a potential default by a leading customer. The company said it would close plants in higher-cost regions to improve capacity utilization.
The results marred an improvement in sales. Fourth-quarter revenue was $2.3 billion, up 22% year-on-year and 7% sequentially.
For the same period last year, the company reported a loss of $8 million.
Overall, the company took one-time charges of $836 million. Celestica recorded restructuring charges of $45 million for previously announced actions.
WESTFORD, MA, - MatrixOne Inc. said second-quarter revenues increased 31% to $35.1 million from $26.9 million in the same period last year.
The net loss was $400,000, compared to a net loss of $7.2 million in the same period last year.
Software license revenues increased 64% to $15.4 million from $9.4 million last year.
"We are pleased to report another very positive quarter with strong sequential and year-over-year revenue growth and improved bottom-line results. Our operating performance during the second quarter reflects the continued improvements in our company-wide sales execution, expanded implementations within our existing customer base and the adoption of our solutions by strategic new customers who are fueling the growth of the PLM market," said Mark F. O'Connell, president and CEO of MatrixOne.
