Circuits Assembly Online Magazine - Products

News

ELKHART, IN – CTS Corp. today posted second-quarter 2011 revenue of $146.9 million, up 6% year-over-year.

Net earnings were $4.1 million, down 30.5% compared to the second quarter of 2010.

Earnings decreased year-over-year primarily as a result of lower expected automotive sales from the disruption caused by the Japan earthquake. However, these sales shortfalls are anticipated to begin to recover in the fourth quarter, as OEM production ramps up and inventories are replenished, the firm says.

Components and Sensors segment sales decreased $4.2 million (6%) from the same quarter last year, primarily due to a 10% decrease in automotive product sales. Electronic component product sales were flat year-over-year. The company estimates second-quarter impact from the Japan earthquake on this segment’s sales was a decrease of approximately $6 million to $7 million.

EMS segment sales were up $12.3 million (18%) year-over-year, with increases reported across all markets served. This growth resulted from new program launches with existing and new customers, primarily driven by a 46% increase of sales into industrial markets.

“While our second-quarter results were in line with expectations, we look forward to a stronger second half as we begin to launch new programs like piezoceramic elements for disk drive applications, a global pedal program and increased sales to our key Japanese automotive OEMs, who will begin to ramp up their production. Our key initiatives to further improve our cost structure include expanding our low cost facilities in Mexico and Thailand, and starting up a new manufacturing facility in India, which is slated to be operational later this year,” said Vinod M. Khilnani, CTS Chairman and CEO.

The firm maintains full-year 2011 guidance of a sales increase in the range of 9% to 13% over 2010.

CTS designs and manufactures electronic components and sensors, and provides electronics manufacturing services to OEMs in the automotive, communications, medical, defense and aerospace, industrial and computer markets.

BANNOCKBURN, IL – IPC has released the B revision of IPC-CH-65, Guidelines for Cleaning of Printed Boards & Assemblies.

FORT COLLINS, CO – FCT Assembly has relocated its operations here to a larger facility.

The 1,974 sq. ft. site allows the firm to bring in new equipment and capabilities to meet growing service demands.

“We have expanded our operations in Fort Collins to accommodate the growth in both our FCT Assembly and FCT Recovery businesses,” said Mike Scimeca, president and CEO.

FCT Assembly manufactures Pb-free solder products, stencils and precision laser cut parts.

SCOTTSDALE, AZ – Small office (one to four employees) spending on broadband IP telephony will increase 83% from 2010 to 2015, says In-Stat.

“Broadband IP telephony offers a number of advantages for small businesses and SOHO; primary among them is the low monthly service fee and negligible costs for long distance,” says Greg Potter, research analyst. “Unfortunately it does not provide the scalability associated with hosted and IP PBX solutions. It also does not typically come with the service level agreements and quality-of-service afforded by other solutions, which are general requirements for enterprise and medium-sized businesses.”

Also, traditional TDM is set to decline to just under $14.5 billion in 2015.

Application-based VoIP will increase more than 50% from 2010 to 2015.

As a segment, mid-sized business (100 to 999 employees) spending will have the greatest growth, increasing in excess of 10% between 2010 and 2015.

And the professional services vertical market segment will spend more than $3 Billion in 2013, says the research firm.

HONG KONG – World Semiconductor Trade Statistics expects the global semiconductor market to increase 5.4% in 2011, 7.6% in 2012 and 5.4% in 2013.

The WSTS forecasts the semiconductor market to reach $338.4 billion in 2012, following an increase to $314.4 billion in 2011.

The industry is now expected to top $356.6 billion in 2013, with a three-year CAGR of 6.13% from 2010 to 2013.

In 2010, the industry recovery – driven by enterprise and consumer spending – resulted in 31.8% growth, totaling $298.3 billion.