Circuits Assembly Online Magazine - Features

SAN FRANCISCO -- Predicted growth rates for IT are at their lowest point since November 2003, according to the latest poll of the nation's CIOs.

Spending growth rates for the next 12 months fell to 4.8% in May, down from 7.9% last month, according to the monthly poll taken by CIO magazine. Spending projections in all categories fell month-over-month, except outsourced IT services.

Menlo Park, CA - OK International, which over the past few years has acquired several leading producers of benchtop assembly systems, is consolidating those product lines under the OK International name, the company said today.

In a statement, the company said that the Metcal, Techcon Systems and Impell lines of workbench products would now be sold under the OK International brand.

SALT LAKE CITY -- CirTran Corp. today announced outside investors have poured $3.75 million in cash into the contract electronics manufacturer's operations in a move that also cut interest payments by more than half.

CirTran issued a $3.75 million convertible debenture to Highgate House Funds, Ltd., a New York investment group. CirTran used the funds to retire separate notes of $1.7 million and $565,000, respectively.

CirTran gained a net cash of $1.24 million, which will be used to fund its operations in the U.S. and China," founder and president Iehab J. Hawatmeh said in a press statement.

CirTran will also save $254,000 -- 57% -- in annual interest payments.

Last week, CirTran reported EBITDA of $26,518 and positive shareholder equity for the first quarter of fiscal 2005.

PHOENIX -- Suntron Corp. is out of compliance with Nasdaq Stock Market rules for continued listing for failure to maintain a minimum market value of publicly held shares of $5 million for 30 consecutive trading days, the company said.

Suntron, a contract assembler, has until Aug. 22 to comply; failure to do so will lead to delisting of the company's common stock.

Suntron said it is evaluating its options.

TEMPE, AZ - New orders and backlogs for manufacturers grew for the 24th straight month in May - the longest stretch of growth in 16 years. But the rate of growth is losing momentum, according to the latest Institute for Supply Management figures, released this morning. The PMI measure of economic activity fell for the sixth straight, slipping 1.9 points sequentially to 51.4%, its lowest point since June 2003.

For the month new orders and backlogs were down 2.0 points and production slid 1.8 points. Inventories at manufacturers ticked down, but customer stock levels jumped six points.

TORONTO -- Celestica Inc. was named 2005 EMS (electronics manufacturing services) Company of the Year by Frost & Sullivan consulting company. The award recognizes Celestica's success in its market diversification strategy; year-over-year revenue growth; technology leadership; and strategic global footprint.

"By working closely with its customers, Celestica has been successful in anticipating their needs and providing them with cost-effective and innovative services that deliver competitive advantage," said Vikram Shanbhag, a senior research analyst at F&S. "Celestica has also successfully diversified its end markets and implemented operational improvement initiatives that have improved revenue growth. This makes Celestica a deserving recipient of the 2005 EMS Company of the Year Award from Frost & Sullivan."

According to a press release, Celestica was chosen based on the following achievements:

* Strong y-o-y revenue growth: For fiscal 2004, revenue increased 31% over 2003.

* Technology leadership: Celestica offers a suite of Green Services to help OEMs comply with emerging environmental legislation, including RoHS and WEEE.

* Strategic global footprint: Celestica is rebalancing its global footprint.

* Diversifying end-market strategy: Celestica expanded into the aerospace and defense, automotive and industrial markets, boasting 152% growth over 2003. The acquisition of Manufacturers Services Ltd (MSL), which closed in 2004, enhanced this progress.