EL SEGUNDO, CA — Illustrating the increasing domination of Asian producers in the global mobile-PC market, a whopping 82.6% of notebook computers in 2005 were manufactured by contract manufacturers mainly in the Greater Shanghai area, according to research firm iSuppli Corp.

Worldwide mobile PC production in 2005 amounted to 61.9 million units, and will grow at a compound annual growth rate of 17.9% to reach 141.4 million units in 2010, iSuppli predicts.

In 2005, 82.6% of this production, or 51.2 million units, was outsourced by PC OEMs to contract manufacturers. By 2010, the portion of outsourced PC production will rise to 92.5%, or 130.8 million units. 

LOUISVILLE -- Sypris Solutions' second quarter revenue rose 5% to a record $132.2 million but the company reported a net loss of $400,000, down from a $2 million profit a year ago.

Free cash flow for the quarter reached a record $21.4 million.

The company cited equipment downtime in its Industrial Group and shipment delays in its Electronics Group for U.S. Government programs. The latter delays are expected to continue through the balance of the year but will ultimately generate even more business than originally thought, Sypris said.

Electronics Group revenue was $33.8 million in the quarter, down 5.8% from the prior year. Gross profit was off 6.3% to $5.9 million. Net orders were $30.7 million and backlogs were $91.2 million. "Despite delays inherent in the certification process for two new classified programs, the outlook remains strong for our Aerospace and Defense segment in 2007," said CEO Jeff Gill.

Gill gave a cautious forecast for the rest of the year. "Looking forward, we believe that it is prudent to establish a more conservative outlook for the remainder of 2006. Until we demonstrate that our Industrial Group can operate for sustained periods at capacity, our forecast for operating margins will remain at current levels. The delay in the certification of the classified programs in our Electronics Group is expected to shift as much as $20 million of shipments from 2006 into 2007, the result of which is forecast to impact revenue and earnings during the second half of 2006."

The company reiterated its previous July guidance of second half revenue of $275 million to $285 million and earnings of $0.10 to $0.15 per diluted share.