Circuits Assembly Online Magazine - Features

SIOUX FALLS, SD -- Electronic Systems Inc. today promoted Gary Larson to president, superseding founder Leo Reynolds, who becomes vice chairman.

The EMS firm also named Steve Hillesheim director of program management, and Jeff Tomassoni regional director of sales in the Minneapolis area.

In a statement, Reynolds said, "Our business grew 17% in 2004 and we have added seven new customers in 2005. We feel that these organizational changes and expansion of our sales team provide a strong foundation to support this growth in revenue and services."

The moves free Reynolds to focus on business development, customer relations and strategic planning.

Larson, who has been with Electronic Systems for six years, has prior experience at Litton Corp., Appleton Electric Co., E.F. Johnson, Telex Corp. and Pemstar.

Hillesheim has been with the company for two years, and Tomassoni has 22 years experience in EMS, including positions at Reptron Manufacturing, Micro Dynamics, SCI Systems, Pemstar, Manufacturer's Services Ltd., Harvard Custom Manufacturing and Hibbing Electronics.

SAN JOSE — Second quarter revenue from electronic design automation was $1.09 billion, down $3 million a year ago. Product (non-service) revenue was $1.03 billion, up from $1.02 billion, boosted by PCB and IC tool demand, which offset drops in computer-aided engineering, said the EDA Consortium.

"The EDA industry continues to realign, as strength in printed circuit board, IC physical design and verification, offsets weakness in traditional markets like computer-aided engineering," said EDAC chairman Wally Rhines. "Japan continued its strong growth momentum, up 15% over the second quarter of 2004."

EDA's largest tool category, computer-aided engineering, recorded sales of $445 million in Q2, down 6% year-over-year. PCB and MCM revenue increased 3% to $86 million. IC physical design and verification was up 2% to $289 million. Semiconductor Intellectual Property revenue was up 13% to $208 million

North America purchased $528 million of EDA products and services in Q2, flat compared to last year. Western Europe revenue was essentially flat at $189 million. Japan reported revenue growth of 15% to $242 million. Rest-of-world rose 5% to $132 million.

SINGAPORE -- Flextronics today confirmed plans to build an industrial park in Chennai, India. Manufacturing production will commence next June.

"Today's announcement underscores our commitment to this increasingly important region and the needs of our customers looking to serve the India marketplace," said Michael McNamara, chief operating officer.

SAN FRANCISCO -- Lucent Technologies has entered into an exclusive, three-year contract manufacturing pact with Celestica to build its wireless products.

Lucent notified the Securities and Exchange Commission of the deal in a filing today.

BRUSSELS – The European Union has set forth the maximum concentration values for materials restricted under the pending RoHS directive.

SAN JOSE – Revenues of electronics manufacturing services providers will grow 13% this year, down from 20% last year, according to a report by research firm Technology Forecasters Inc. The burst of the housing “bubble” coupled with astronomical energy prices could wreck the current recovery, the firm said.

TFI economic analyst Matt Chanoff said, “Two macroeconomic phenomena could have significant negative impact on overall worldwide GDP over the next five years: extended very high energy costs and the collapse of the housing bubble, either of which could lead to a drastic reduction in consumer spending and ultimately, recession.”