News
ANAHEIM, CA -- Beset by cash flow problems, DDi Corp.
today killed one of its fleas, announcing it would close its circuit
board shops in the U.K. DDi does not anticipate any net write-off or
material cash
restructuring charges.
In a statement, chief executive Bruce McMaster said, "We believe that the discontinuation of our UK-based business is a positive development for our shareholders. It provides a resolution to the liquidity challenges that have beset that business, enables us to cease reporting that business as an ongoing operation, and permits us to concentrate our efforts on the North American market. "
McMaster said DDi will focus on growing a value-added reseller services business recently begun in the U.S.
In a statement, chief executive Bruce McMaster said, "We believe that the discontinuation of our UK-based business is a positive development for our shareholders. It provides a resolution to the liquidity challenges that have beset that business, enables us to cease reporting that business as an ongoing operation, and permits us to concentrate our efforts on the North American market. "
McMaster said DDi will focus on growing a value-added reseller services business recently begun in the U.S.
The U.K. operations carried heavy debt even before their acquisition
by DDi in 2000, McMaster said. The company, which is operating on slim
cash reserves, "could not justify" the large amounts of cash needed to
restructure.
DDi Europe will be placed into administration, a move that permits DDi Corp. to remove $38 million of the
UK-based indebtedness from its books.
In recent quarters, DDi Europe has contributed approximately one-third of
DDi Corp.'s consolidated net sales, which totaled about $285 million for the 12 months ended last September.
SAN FRANCISCO -- Cisco Systems, a bellwether for communications equipment demand, yesterday reported revenues of $6.06 billion for the January quarter, disappointing Wall Street and signaling a potential slowdown for its suppliers.
In a research note, Deutsche Bank said Cisco's performance and outlook are behind its "cautious view" of the EMS sector. The maker of networking gear is one of the largest customers of the EMS industry.
Cisco's sales were up 1.5% sequentially, but below Street expectations of $6.13 billion. Year-on-year revenue forecasts are decelerating, from 12% in January
to 8 to 10% for the current quarter.
The combination of slowing end demand, contracting component lead times and relatively high inventory levels across the communications infrastructure market continues
Cisco said its internal book-to-bill ratio for communications infrastructure gear is below 1.0, the benchmark for growth. "We continue to believe the recent softness across the supply chain reflects slowing end-demand and customers' inventory reduction efforts," DB wrote.
"Look for Cisco to work inventory levels lower in future quarters in response
to softer end market demand and improved component availability. This will likely translate into soft near-term demand for EMS suppliers," DB wrote.
The EMS makers which stand to be most affected include Celestica (more than 10% of revenue comes from Cisco), Solectron (14%) and Jabil (15%).
In a research note, Deutsche Bank said Cisco's performance and outlook are behind its "cautious view" of the EMS sector. The maker of networking gear is one of the largest customers of the EMS industry.
Cisco's sales were up 1.5% sequentially, but below Street expectations of $6.13 billion. Year-on-year revenue forecasts are decelerating, from 12% in January
to 8 to 10% for the current quarter.
The combination of slowing end demand, contracting component lead times and relatively high inventory levels across the communications infrastructure market continues
Cisco said its internal book-to-bill ratio for communications infrastructure gear is below 1.0, the benchmark for growth. "We continue to believe the recent softness across the supply chain reflects slowing end-demand and customers' inventory reduction efforts," DB wrote.
"Look for Cisco to work inventory levels lower in future quarters in response
to softer end market demand and improved component availability. This will likely translate into soft near-term demand for EMS suppliers," DB wrote.
The EMS makers which stand to be most affected include Celestica (more than 10% of revenue comes from Cisco), Solectron (14%) and Jabil (15%).
Minneapolis, MN -- The SMTA is accepting applications for the Hutchins Educational Grant through April 15. Co-sponsored by Circuits Assembly, the $5,000 grant is awarded annually to a graduate student for thesis research in electronic assembly, electronics packaging or a related field.
To be considered, students must submit an entry form, academic transcripts, a letter of recommendation, a resume and a one-page thesis research abstract.
The grant, presented each year at the SMTA International conference, was established in memory of past SMTA president and industry colleague Dr. Charles Hutchins.
The 2004 recipient was Brian McAdams from Lehigh University (Bethlehem, PA) for his project: "Sub-critical Initiation of Delaminations at the Underfill/Passivation Interface in Flip-chip Assemblies."
To be considered, students must submit an entry form, academic transcripts, a letter of recommendation, a resume and a one-page thesis research abstract.
The grant, presented each year at the SMTA International conference, was established in memory of past SMTA president and industry colleague Dr. Charles Hutchins.
The 2004 recipient was Brian McAdams from Lehigh University (Bethlehem, PA) for his project: "Sub-critical Initiation of Delaminations at the Underfill/Passivation Interface in Flip-chip Assemblies."
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