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SAN FRANCISCO – The latest poll of the nation’s CIOs says IT budgets will grow 7.2% during the next year, up from 5.1% in March, says Deutsche Bank. The June poll results rebounded strongly, reversing four consecutive down quarters.

Spending projections improved for all but the largest companies, which DB believes bodes well for improving corporate spending in the second half of the year.

Results for small (101-500) and very small firms (1-100) strengthened in June, with CIOs expecting 11% and 9% growth in the next 12 months (vs. 10% and 2% in March), respectively. Medium firms (501-1,000) were optimistic, expecting 7% growth (vs. 4% in March), while large firms (1,001-5,000) and very large firms (>5,000) were less optimistic, with CIOs expecting 5% growth (vs. 3% and 7% in March, respectively), says the report.

Storage Systems was the top spending priority in the June Poll, with 54.1% of respondents planning to increase spending (vs. 46.3% in March). Security Software took the second spot with 41.6% of respondents planning to increase spending (vs. 43.5% previously), followed by Computer Hardware at 40.8% (vs. 45.5% previously).

Medium-size companies led results for Storage and Computer Hardware for the third consecutive quarter, with 78.6% (vs. 62.5% previously) predicting increased Storage budgets. In addition, Computer Hardware was also a priority for medium-size firms, with 60.0% (vs. 56.3% in March) of CIOs expecting increased spending.

Of the respondents to DB questions, 54.4% said they had implemented server virtualization, while 21.6% cited they were seriously considering it; 7.1%, 15% and 21.3% cited they had reduced server spending by roughly 50%, 30% and 10%, respectively. However, 15% cited they had not reduced server spending through virtualization.

Universal Contacts, for SMT, provide an electrical connection between a device and a PCB. Come as a single piece stamped product, incorporating pre-load and anti-lift features, designed to replace traditional interfaces requiring customized contacts. For use to connect a number of device components in any direction and configuration using the same interface, reducing qualification time. Come in heights of 1.3, 1.8, 2.5, 3.5 and 4 mm. So-called "solderwells" are said to prevent solder wicking up the contact. Are WEEE and RoHS compliant.

ITT Electronic Components, www.ittcannon.com

BANGOR, ME -- The state of Maine has enacted legislation that permits continued use of the highly-effective flame retardant known as Deca in the utility, automobile and semiconductor industries, each of which is vital to the state’s economy.

Under the bill, the use of Deca in mattresses, mattress pads and textiles used in residential furniture would be prohibited beginning in 2008, and in the casings of televisions and computers beginning in 2010. Deca is not used in residential mattresses or furniture, and has never been used widely in computers, further limiting the practical impact of the prohibition.

MILPITAS, CA – Solectron Corp. reported net income for the third quarter fell 71% to $42 million year-over-year.

The company’s sales were $2.99 billion for the quarter, an increase of 3% over the previous quarter, and an increase of 10% year-over-year.

On June 4, Flextronics announced it would acquire Solectron. The merger agreement has been filed with the SEC. The transaction is expected to close in the fourth quarter. In a conference call with analysts last night, Solectron did not provide guidance or details on the pending acquisition.

A rebound in sales to Cisco following its Lean initiative and share gains from Celestica drove the sequential increase, said analyst Carter Shoop of Deutsche Bank. Excluding Cisco, Solectron's sales were off 4% sequentially. Consumer electronics sales dropped 15% sequentially and 6% versus last year.

The operating margin was 1.3%, up 0.l points sequentially. Gross margins fell 0.2 points. Inventory days fell one day to 58 days.