The company, which provides EMS services, took a $1.8 million charge for excess inventory 
and scrap; a $760,000 charge for relocation to a new facility in Redmond, WA; and 
$237,000 in severance charges for its Tempe corporate office. TFS also took $380,000 
in charges for Sarbanes Oxley compliance.  

TFS received $900,000 as reimbursement for expenses related to the move to Redmond.

For the year, the company posted net sales of $158.9 million, flat with 2003, and a loss 
from continuing operations of $54.3 million, down from a loss of $33.9 million last year. 
Including operations now divested, TFS lost $44.5 million in 2003.

TFS took non-cash goodwill and asset impairment charges of $23.2 million in 2004. In 2003,
it recorded one-time charges of $14.3 million.

In a press statement, president and chief executive Jack Saltich said, "We are
working through a challenging period of reorganization, consolidation and
restructuring. There is real value in our EMS+Display strategy, and we need
to extract that value by focusing on actions that streamline the company and
increase revenue.  

TFS also announced it has won a program to supply color display modules a Tier One 
OEM handset maker. The program is expected to begin late in the second quarter. 

Cash from operations was in the quarter was almost $200,000. Capital expenditures 
were $1.2 million. At the end of the quarter TFS's cash balance was $16.2 million, up from 
$14 million sequentially.

Day sales outstanding were 52 days, one day lower, inventory turns rose half-a-turn 
to 6.8, and cash conversion cycle days dropped by four to 54.

By industry, TFS said revenues

• Computing: 62% (52% in Q4 2003)
• Telecom: 7% (3%)
• Medical: 5% 12%)
• Industrial/Military: 14% (14%)
• Consumer: 8% (14%)
• Transportation: 4% (5%).

One customer accounted for more than 10% of revenue. The top
10 customers accounted for 76% of total Q4 revenue.