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SAN FRANCISCO – The nation’s CIOs expect IT budgets to grow 5.1% during the next 12 months, down from 5.8% in December. The weaker results reflect increased caution across most product categories, although a rebound in large enterprise spending is expected, says Deutsche Bank Equity Research. DB’s March poll revealed a slow start to 2007, although results for very large (>5,000 employees) and small firms (101-500) strengthened in March, with CIOs expecting growth of 7% and 10%, respectively, in the next 12 months (vs. 3% and 7% in December).

COLORADO SPRINGS – IC Interconnect, a wafer bumping company, was named sole North American representative for Jiangyin Changdian Advanced Packaging, a provider of bumping technologies. The agreement establishes ICI/jcap International, the marketing, sales, engineering and customer support arm of JCAP in North America. Under the agreement IC Interconnect can install and operate its electroless nickel UBM process at a plant in China.

HIALEAH, FL -- Simclar Inc. reported fourth-quarter net income rose 394% to $949,000 on an 83.5% hike in sales to $33.2 million. The figures include the consolidated operations of Simclar and its subsidiaries, including acquisitions made during the year.

For the year ended Dec. 31, Simclar had net income of $2.9 million compared to $947,000 in 2005. Sales rose 90% to $116 million.

In a statement, chairman Sam Russell said growth has come from new and existing customers looking to consolidate their business with suppliers.

MINNEAPOLIS -- HEI Inc. today announced lower second-quarter results for the period ended March 3.

The designer and manufacturers of medical equipment systems and devices said net sales fell 10% to $10.6 million compared to the prior year. Gross profit fell by about half, to $893,000.

Net sales at the company's flexible substrate business were lower on an order drop from a primary customer looking to cut inventories. RFID orders slowed as well.

LOS ALTOS, CA – Changes in corporate PC purchasing is slowing market growth, according to a new report. Electronics equipment sales will fall this year but will recover in 2008, says Ed Henderson of Henderson Ventures in his latest newsletter. “Corporations no longer feel compelled to upgrade their systems every three years because hardware and software advances don’t offer the productivity improvements that previous upgrades have given,” Henderson wrote. The U.S. has been particularly hard hit: PC unit shipments grew 1% last year. Worldwide, shipments grew 9.9% in 2006. However, forecasts call for a slowdown to 7.1% this year before recovering to 10.2% in 2008, Henderson said. Demand from emerging markets for low-cost cellphones boosted shipments to 993 million in 2006, up from 430 million in 2002. Unit growth is predicted to dip to 13.1% this year and 10.3% in 2008, Henderson predicts. Global equipment values will fall to 6.9% in 2007 from 9% last year on slower unit growth for certain key products. Henderson predicts a rebound to 8.1% in 2008.

SANTA FE, NM -- Compass Components will purchase Sparton Technology's Deming, NM, wire harness plant and certain inventory and equipment, and will begin to rehire laid off employees, according to Rick Homans, Cabinet Secretary for the New Mexico Economic Development Department. No financial terms were disclosed.

Compass, which makes cable, harness and electromechanical assemblies, began operations at the facility yesterday. The sale of the building should be finalized by June 29.

On Jan. 8, Sparton announced it would close the plant and lay off its 76 employees. Compass will initially hire up to 12 employees, and officials say they would like to ramp to 75 or more employees in one to two years.