News
ROCHESTER, MN -- Pemstar Inc.'s June quarter revenue rose 1.3% to $212.5
million, and net income jumped to $4.8
million, compared to a
net loss of $17.6 million a year
ago.
The June quarter period includes a one-time gain of $2.5 million related to the reversal of previous restructuring provisions.
The June quarter period includes a one-time gain of $2.5 million related to the reversal of previous restructuring provisions.
President and COO Roy Bauer said, "We are still doing a little bit more realigning of our portfolio. We are considering, as previously disclosed, strategic alternatives for our Tianjin, China, operations. We see optimism in our medical, computing and data storage and industrial businesses for the second half of the year."
For the quarter, industrial sales accounted for 38.4% of net sales, computing and data storage was 23.5%, communications was 36.2% and medical was 1.9%.Accounts receivable at June 30 was $125.5 million
with days sales
outstanding of 53 compared with $121.1 million in
accounts receivable
with DSO of 56 at March 31.
Net inventories were up nearly $10 million, to $64.2
million, and inventory turns dropped 0.9 turns to 12.4 times. Cash cycle was
31 days, down from 40 days in the March quarter.
Jefferies Broadview was retained to explore possible partnerships or a sale of the Tianjin, China operations. Pemstar said it seeks to reduce its consumer business and focus on more profitable markets like medical, industrial, instrumentation, military/aerospace and process equipment.
For the September quarter, Pemstar expects net sales of
$200 million to
$220 million.
Stow, OH – The wafer fab industry's monthly capacity is set to reach a new high next year, increasing 17%, according to analysis firm Strategic Marketing Associates (SMA).
Collectively, the 35 new fabs coming online in 2007 will have the capacity to produce up to the equivalent of 2 million 200-mm wafers. The value of these fabs may reach $56 billion over the next three years.
The expected 17% increase brings with it growth opportunities, as well as the risk of overcapacity, especially in the memory arena, SMA warned.
Up to 60% of the added capacity is expected to be allocated for memory, specifically DRAM and non-volatile flash, which has become ubiquitous in consumer electronics.
FlashPartners, the Toshiba-SanDisk joint venture, may eclipse fab capacity leader Samsung in flash memory, with ambitious plans to bring three 300-mm fabs online by 2008.
Chip foundries are also setting a new record in fab construction, with Taiwan-based TSMC, as well as China-based SMIC and Hua Hong Electronics, planning to bring new 300-mm capacity online next year.
The firm projected equipment sales to near an all-time high. Total capital spending by chip companies is set to grow 14% this year to $47.3 billion, and by 10% next year to $59 billion, just shy of the all-time high of $61.5 billion set in 2000.
Collectively, the 35 new fabs coming online in 2007 will have the capacity to produce up to the equivalent of 2 million 200-mm wafers. The value of these fabs may reach $56 billion over the next three years.
The expected 17% increase brings with it growth opportunities, as well as the risk of overcapacity, especially in the memory arena, SMA warned.
Up to 60% of the added capacity is expected to be allocated for memory, specifically DRAM and non-volatile flash, which has become ubiquitous in consumer electronics.
FlashPartners, the Toshiba-SanDisk joint venture, may eclipse fab capacity leader Samsung in flash memory, with ambitious plans to bring three 300-mm fabs online by 2008.
Chip foundries are also setting a new record in fab construction, with Taiwan-based TSMC, as well as China-based SMIC and Hua Hong Electronics, planning to bring new 300-mm capacity online next year.
The firm projected equipment sales to near an all-time high. Total capital spending by chip companies is set to grow 14% this year to $47.3 billion, and by 10% next year to $59 billion, just shy of the all-time high of $61.5 billion set in 2000.
BANNOCKBURN, IL — According to trade group IPC, the North American rigid PCB book-to-bill ratio for June was at parity at 1.00, while the flexible book-to-bill climbed back to the positive range at 1.01 after a three-month dip below parity.
The combined (rigid and flex) industry book-to-bill ratio in June 2006 was 1.00. The ratios are based on monthly data collected from PCB producers that participate in IPC’s monthly PCB Statistical Program.
Ratios are calculated by dividing the value of orders over the past three months by the value of sales. A ratio over 1.00 suggests expansion.
Rigid PCB shipments are up 12.5% and bookings rose 19.2% year-on-year. Year to date, rigid shipments are up 11.3% and bookings are up 13.9%.
Flex shipments were up 1.7% from June 2005 and up .9% to date. Bookings increased 18.9% YOY, but are down 7.6% YTD. Sequentially, flex shipments and bookings increased 17.4% and 73.8%, respectively.
Rigid PCBs represent an estimated 85% of the current PCB market in North America, according to IPC.
In June, flexible circuit manufacturers surveyed indicated that bare circuits accounted for 65% of their monthly shipment value.
Over 88% of PCB shipments reported were domestically produced.
The combined (rigid and flex) industry book-to-bill ratio in June 2006 was 1.00. The ratios are based on monthly data collected from PCB producers that participate in IPC’s monthly PCB Statistical Program.
Ratios are calculated by dividing the value of orders over the past three months by the value of sales. A ratio over 1.00 suggests expansion.
Rigid PCB shipments are up 12.5% and bookings rose 19.2% year-on-year. Year to date, rigid shipments are up 11.3% and bookings are up 13.9%.
Flex shipments were up 1.7% from June 2005 and up .9% to date. Bookings increased 18.9% YOY, but are down 7.6% YTD. Sequentially, flex shipments and bookings increased 17.4% and 73.8%, respectively.
Rigid PCBs represent an estimated 85% of the current PCB market in North America, according to IPC.
In June, flexible circuit manufacturers surveyed indicated that bare circuits accounted for 65% of their monthly shipment value.
Over 88% of PCB shipments reported were domestically produced.
EL SEGUNDO, CA — Excess stockpiles of PC microprocessors and core-logic chipsets caused surplus semiconductor inventories in the global electronics supply chain to rise more than expected in the second quarter, according to new data from iSuppli Corp.
The research firm puts the blame squarely on Intel Corp. It is unclear as to whether Intel overbuilt any certain styles in anticipation of lead-free demand that didn't materialize.
The research firm puts the blame squarely on Intel Corp. It is unclear as to whether Intel overbuilt any certain styles in anticipation of lead-free demand that didn't materialize.
SAN JOSE -- A few years back, Flectronics invested heavily into camera modules, anticipating that their eventual use in cellphones would give the EMS provider a boost in landing 3G handset contracts.
Today none other than Eastman Kodak said it will divest its entire digital camera manufacturing requirements to Flextronics, including assembly, production, and testing. About 550 Kodak personnel are expected to be transferred to Flextronics facilities. Closing is expected in Kodak's third quarter, pending regulatory approvals. The companies did not specify the value of the deal. However, Deutsche Bank estimated that the deal would grow from
Today none other than Eastman Kodak said it will divest its entire digital camera manufacturing requirements to Flextronics, including assembly, production, and testing. About 550 Kodak personnel are expected to be transferred to Flextronics facilities. Closing is expected in Kodak's third quarter, pending regulatory approvals. The companies did not specify the value of the deal. However, Deutsche Bank estimated that the deal would grow from
VANCOUVER -- Nam Tai's net sales rose 15.3% in the second quarter to $214 million, in line with company guidance. Operating income rose 39.4% to $20 million, and net income more than tripled to $18.5 million.
In the quarter SG&A and R&D expenses as a percentage of sales was reduced to 4.7% from 5.1% last year. The company generated $17 million of net cash from operating activities and had capital expenditures of $3.4 million.
Nam Tai said growth momentum will be sustained in the third quarter and will further accelerate in the fourth quarter of 2006. The firm reiterated its long-term target of 25% sales growth.
The company expects to begin trial production of flex circuits by the end of the third quarter and is also looking for other opportunities to support the growth of its key component subassemblies business.
A factory expansion is planned for Shenzhen, and Nam Tai plans to construct a factory complex in Wuxi, pending local government environmental approvals.
In the quarter SG&A and R&D expenses as a percentage of sales was reduced to 4.7% from 5.1% last year. The company generated $17 million of net cash from operating activities and had capital expenditures of $3.4 million.
Nam Tai said growth momentum will be sustained in the third quarter and will further accelerate in the fourth quarter of 2006. The firm reiterated its long-term target of 25% sales growth.
The company expects to begin trial production of flex circuits by the end of the third quarter and is also looking for other opportunities to support the growth of its key component subassemblies business.
A factory expansion is planned for Shenzhen, and Nam Tai plans to construct a factory complex in Wuxi, pending local government environmental approvals.
Press Releases
- Altus Partners with Sellectronics to Enhance Manufacturing Capabilities with PVA Delta 8 System
- ITW EAE Celebrates Major Milestone in Domestic Manufacturing Expansion
- Micro Technology Services Selects PBT Works CompaCLEAN III for Advanced PCB Cleaning Performance
- Indium Corp. is Electrifying the Future with Advanced Materials Solutions at Productronica