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SAN JOSE, Aug. 19 -- The July 90-day average of semiconductor equipment bookings showed orders outpacing sales by a margin of 1.05:1.

North American-based semi tool makers posted $1.61 billion in orders in July, using a three-month average basis, the trade group SEMI said today. Bookings were even with revised June numbers and 128% ahead of a year ago.

A book-to-bill of 1.05 means that $105 worth of orders were received for every $100 of product billed for the month.

The July 90-day average of worldwide billings was $1.54 billion, up 2% over revised June levels and 96% ahead of last year.

"Bookings have increased sequentially for eleven months and are at the highest point since early 2001," said Stanley T. Myers, president and CEO of SEMI. "The bookings and billings values for North American-based equipment companies have stabilized at high levels and support our global billings outlook for the second highest revenue year on record for our industry."

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TORONTO, Aug. 20 -- Celestica Inc. is rolling out what it calls the EMS industry's first end-to-end environmental services offering, to aid OEMs converting to lead-free designs and processes ahead of European Union legislative mandates.

The EMS maker is offering what it calls its Green Services to OEMs seeking to comply with pending environmental initiatives, including the Restriction of Hazardous Substances legislation, which will require the removal of a number of hazardous substances, including lead, from electronics components by July 1, 2006.

Depending on they type products they design, OEMs will go through the transition in stages, Celestica general manager of engineering services Dan Henes observes. "There's a suite of [stages]  that each customer will have to go through. Some will go through [these stages] themselves, some will need help."

In a phone interview with Circuits Assembly, Henes said that Celestica can offer either "point" services - specific  solutions to specific problems, for example, help with certain design problems - or an end-to-end solution. "By breaking this into bite-sized pieces, customers can move at their own pace. They need to conduct an assessment of their designs and materials are in terms of compliance. We can do that BOM/risk analysis for them."

Among the services offered are consulting services, turnkey product conversion and technology qualification.

Henes noted that companies like Celestica, which directly handles designs from OEMs and buys materials from vendors, are best-positioned to help the supply chain navigate through the dizzying maze of lead-free alternatives and paperwork. "There's the synchronization of design, manufacturing processes and the component supply base. Some customers are struggling with, who's doing what in the supply base? We're probably in the best position to navigate that."

As evidence, Henes points to obscured effects of the lead-free conversion, which he believes EMS firms are attuned to. "You may have a product today that has 100 parts. Half meet lead-free legislation, and require no banned substitutes. The design and supplier [of those parts] say, 'We don't have to do anything for those.' But you need [lead-free] solder, which requires higher processing temperatures, and now you have to go back and qualify these new redesigned parts and put them side-by-side with the components that the OEM thought were OK. It's not because of lead conversion, but the temperature extremes that are a side effect of the conversion 

The transition, Henes says, is like a "massive industry engineering change." He asserts that for a Tier 1 EMS provider like Celestica, "this is what we do for a living."

According to Celestica, the company has been working on environmental compliance issues since 1999. Consortia work to date has included building lead-free boards to support the High Density Packaging Users Group's lead-free programs; sponsoring and directing the Centre for Microelectronics Assembly and Packaging's lead-free development activities for Canadian universities, and leading a NEMI program on the assembly and reworkability of lead-free solder joints.

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SIOUX FALLS, SD, Aug. 19 -- Raven Industries reported second-quarter net income climbed 15% to a record $3.6 million. For the quarter ended July 31, the company reported revenues were up 3% to $37.1 million.

For the first half, Raven reported net earnings up 23% to $9.1 million, and sales up 3% to $75.5 million.

"Our second quarter was budgeted to be our toughest, with earnings projected to be flat or slightly down," president and CEO Ronald Moquist said. "[T]hree of our four operations performed beautifully. We could have done even better except for the weak performance of our Electronic Systems Division." The ESD group provides EMS services.

ESD's sales were up, but less than 1%, to $11.7 million. Operating profit dropped 52% to $773,000. The division struggled with start-up problems with a new customer and continuing material supplier issues. As a result, shipments were delayed and inventory levels increased substantially, management noted. For the first half, sales of $20.8 million were down 4% and operating income of $1.5 million was 46% lower than last year.

Moquist said the full-year outlook continued to appear strong and that production problems will be ironed out in the third quarter. "We believe the positive trends set in the first half will continue to help drive sales and earnings growth through the second half of this year."

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