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For the three months ended March 31, the firm reported revenue of $3.61 billion, down 4% from $3.77 billion last year. The company cited lower demand for handsets, saying handset sales fell $480 million in the fourth quarter from the prior period.
The quarterly profit rose to $74.2 million, from $16 million a year ago.
The analyst consensus was sales of $4 billion.
For
the fiscal year, Flextronics recorded a profit of $339.9 million on sales of $15.91 billion.
Flextronics guided for sales of $3.7 billion to $3.9 billion for the July quarter.
For fiscal 2006, the company expects sales of $17 billion to $17.5 billion, which would be a record for EMS/ODM firms. Analysts forecast sales of $19 billion.
Dover Technologies is a $1.5 billion subsidiary of Dover Corp. and the parent of ECT. Its companies include Universal Instruments Corp. and DEK.
Van Loan, who has been with ECT since 1981, will report to outgoing president and current chief executive John Pomeroy. That won't last long: Pomeroy will retire within the next year.
Van Loan will also take over the responsibilities of Gerhard Meese, executive vice president of Dover Technologies, who is retiring in the same time frame.
In a press statement Dover CEO Ron Hoffman said, "Dave has done an excellent job of
building Everett Charles into the premier test interconnect equipment supplier
to the circuit board and back end semiconductor markets. He has displayed
great strategic vision in guiding his company and will bring his high energy
level and proven track record of delivering outstanding operating results to
his new role."
FRAMINGHAM, MA - Following a record quarter of worldwide shipments, the mobile phone market slowed slightly in the first quarter due to expected seasonality. According to IDC, worldwide mobile phone shipments totaled 174.3 million units in 1Q05, falling 12.6% from the fourth quarter but increasing 9.2% year over year.
Nokia maintained its no. 1 position
with a 30.9% share despite enduring the
largest sequential decrease in shipments. Motorola once
again captured second place with further penetration into Europe and
leadership in the Americas. Samsung, the only company among the leading
vendors to post a sequential gain, locked up third place and regained
its momentum to catch up with Motorola after experiencing declining
shipments in 2004.
Holding in fourth place is LG Electronics, marking the company's third consecutive quarter of shipments greater than ten million. Sony Ericsson beat out Siemens for fifth place by just 100,000 units.
"Most vendors have increased their shipment levels from a year ago, showing that despite a slight downturn from the previous quarter, consumer demand is still strong and vendors are prepared to meet that demand with a broad selection of phones," said Ramon Llamas, research analyst for IDC's Mobility Group. "Vendors have been stretching the limits on what phones can do and what they are supposed to look like. Telephony is still at the core of the mobile phone, but now it can be wrapped with features to satisfy different consumer tastes. What were once considered high-end features are now standard on many low-cost phones as vendors battle to gain market share and consumer attention."
| Vendor Highlights | more |
- Nokia - The Finnish company captured 30.9% of the market, resulting in year-on-year growth of 20.4%, but a sequential decline of 18.6%. Driving revenue and average selling price for the company was its line-up of high-end enterprise and multimedia phones. At the same time, Nokia sustained momentum in Europe and Asia, but lost ground in the Americas.
- Motorola - Despite a sequential decline of 9.7%, Motorola closed out the first quarter of 2005 with 16.5% market share and year-on-year growth of 13.4%. The company announced 27 new models for the year including the SLVR and PEBL, variations of the popular RAZR V3. The company also renewed its effort to bring more enterprise devices to the market by investing in the Java+Linux platform for smartphones.
- Samsung - The only company within the top five to post sequential growth (16.1%), Samsung captured 14.1% market share and year-on-year growth of 22.5%. By boosting shipments in the first quarter while other vendors decreased shipments after a busy fourth quarter, the Korean company was able to regain momentum to catch up with Motorola, shrinking the difference from ten million units last quarter to slightly more than four million units this quarter.
- LG Electronics - Securing its spot as the number 4 vendor with 6.4% market share, LG saw year-on-year growth of 26.9% and a sequential decline of 20.1% from 4Q04. The company reported that more than half its shipments went to North America, the largest proportion of any other vendor in the top five.
- Sony Ericsson - After a brief hiatus out of the top five, the 50-50 venture returned to wrest fifth place away from Siemens. The company captured 5.4% market share, declining 25.4% from the previous quarter but growing 6.8% from a year ago. The company released few new products to keep up with its maturing product line, but announced a lineup of high end and specialty phones to come out later in the year.
| Top 5 Vendors, Worldwide Mobile Phone Shipments and Market share, 1Q 2005 (Preliminary) | more |
| Rank | Vendor | 1Q 2005 Shipments | 1Q 2005 Market share |
| 1 | Nokia | 53,800,000 | 30.9% |
| 2 | Motorola | 28,700,000 | 16.5% |
| 3 | Samsung | 24,500,000 | 14.1% |
| 4 | LG Electronics | 11,100,000 | 6.4% |
| 5 | Sony Ericsson | 9,400,000 | 5.4% |
| Others | 46,800,000 | 26.9% | |
| Total | 174,300,000 | 100.0% |
Source: IDC, April 27, 2005
FRAMINGHAM, MA
- The consumer semiconductor market will more than double between 2004 and
2009, expanding from just over $14 billion to almost $30 billion, a new IDC
study predicts. The market will experience the fastest year-over-year growth
rates through 2007.
Consumer semiconductor growth is fueled by increasing
importance in existing and developing end-products in the "digital home"
environment. Consumer semiconductors are the enablers of both the underlying
technology and the consumer-facing features of the digital home.
"The consumer semiconductor market is one of the fastest growing and most challenging segments in the semiconductor industry," said IdaRose Sylvester, senior research analyst at IDC. "With opportunity comes significant technological, market and competitive challenges, and only the most strategically-focused semiconductors vendors are going to benefit substantially from this growth."
The consumer semiconductor landscape is on the verge of dramatic evolution. Some markets such as digital TV represent great growth and potential for new entrants, but other markets, such as DVD offer moderate expansion and exceptional challenges. Due to these forces, the market in 2009 will be dramatically different than it is today.
NEWARK, NY -- IEC Electronics, a publicly held EMS firm,
today reported second quarter net income of $73,000 on sales of $4.7 million.
For the quarter ended April 1, sales dropped 36% year-on-year, due to a decline in orders from two major customers. Net income dropped from $124,000 last year.
In a press statement, chairman and CEO W. Barry Gilbert said, "The business has been restructured delivering solid gross
profits and excellent inventory turns even though our sales reflect
the previously reported loss of Motorola and Teradyne, which
historically were a majority of the company's business."
IEC has cut $1.5 million annually from its overhead during the past
six months, Gilbert added.
The company landed two new accounts that are eventually expected to be worth $6 million to $10
million annually in sales.
Another customer
said it would cease its business with IEC in July and bring its work in-house.
The top five customers accounted for 71% of sales for the quarter, down five points from last year.
For the quarter, IEC took restructuring costs of $41,000.
Revenue rose 20.1% to $305.5 million from $254.3 million last
year. The results beat analysts' consensus of $285 million in sales.
Plexus reported a net profit of $3.5 million a year ago.
Dean Foate, president and CEO, said, "Looking ahead, we remain confident about attaining revenue for the full fiscal year near the high end of our previously announced target range of 15 to 18%, despite the unsettled outlook for key end markets."
Plexus guided for third-quarter revenue of $305 million to
$315 million, and forecasts operating earnings per share of 13 cents to
15 cents.
The company said its bottom line in the fourth quarter should continue to benefit from operational improvements, which will include advancing the new facility in Penang, Malaysia, to a modest profit.
