News
The company today reported fourth-quarter revenues of $142.5 million, up 10%, sequentially and 8% year-on-year.
Net earnings were $6.6 million, vs. $3.9 million in the fourth quarter of 2003.
Full-year revenues of $531.3 million topped 2003 revenues by
15%. The company, which makes electronics gear, posted net earnings of $20 million, well above 2003 earnings of $12.6 million.
WESTFORD, MA, - MatrixOne Inc. said second-quarter revenues increased 31% to $35.1 million from $26.9 million in the same period last year.
The net loss was $400,000, compared to a net loss of $7.2 million in the same period last year.
Software license revenues increased 64% to $15.4 million from $9.4 million last year.
"We are pleased to report another very positive quarter with strong sequential and year-over-year revenue growth and improved bottom-line results. Our operating performance during the second quarter reflects the continued improvements in our company-wide sales execution, expanded implementations within our existing customer base and the adoption of our solutions by strategic new customers who are fueling the growth of the PLM market," said Mark F. O'Connell, president and CEO of MatrixOne.
FRAMINGHAM, MA - Worldwide IT spending reached $965 billion in 2004 and will increase at a compound annual growth rate of 6% from 2004 to 2008, says a new research report.
Recovery is expected in hardware sales worldwide, with revenues forecast to reach $465 billion by 2008, IDC said today. The research firm predicts robust spending from consumer, communications and media, and government.
Banking, discrete manufacturing and government are the largest IT buyers.
U.S. IT spending will reach $416 billion in 2005, up 5.8% from 2004.
In a press release, IDC said, "These results indicate a positive outlook for the U.S. and worldwide IT market, particularly after 2005. With an improving business environment and recent GDP gains, companies are loosening their restraints for information technology investments."
The firm also forecast U.S. sales of PCs will reach $49 billion in 2005.
FRAMINGHAM, MA - The worldwide PC market remained strong in the fourth quarter as smaller businesses and holiday demand pushed sales 13.7% higher, IDC said today.
Total shipments rose to 51.5 million units for the quarter, the seventh consecutive quarter of double-digit growth. Shipment growth topped earlier projections of 13%.
For the year, shipments were up 14.7%, to 177.5 million units.
IDC forecast 10% growth worldwide in 2005.
"PC replacements and new investment should continue to drive commercial growth at least through the end of 2005," said Loren Loverde, an IDC director.
The top five companies are Dell, HP, IBM, Fujitsu/Fujitsu Siemens and Toshiba. Apple grew more than 25% during the quarter, a significant improvement over prior quarters, reflecting the introduction of the G5 iMac as well as the "halo effect" from the popularity of Apple's music business.
ST. LOUIS - LaBarge Inc. today reported net sales rose 68% to $48.7 million and net earnings increased 94% to $2.7 million record highs for the fiscal second quarter ended Jan. 2.
The results include the company's Pittsburgh operation, acquired last February.
For the first half, net sales rose 57% to $92.4 million, while net earnings from continuing operations were up 81% to $5 million.
Total net earnings for the first half grew 88% to $5 million.
Gross margin in the second quarter was 21.6%, down from 22.4% a year ago. SG&A expenses as a percentage of sales fell to 11.9%, from 15%.
Total debt was $38 million, up a fraction.
Backlogs as of Jan. 2 were $145 million, down 3% sequentially and up 27% from last year.
Defense customers - primarily buyers of LeBarge's EMS services - accounted for 49% of sales. Shipments of capital equipment to industrial customers were 18%. The company also provides capital equipment for oil-and-gas and mining operations, commercial aerospace and government systems.
LaBarge guided for "substantially higher" year-on-year third-quarter revenues and earnings. The firm said sales and earnings would likely drop slightly sequentially.
For the fiscal year, the company expects revenues and earnings to grow at least 35%. The firm reported revenue of $131.5 million for fiscal 2004.
ELGIN, IL - Panasonic's capital equipment division has been renamed Panasonic Factory Solutions Company of America.
The name change for the unit, formerly Panasonic Factory Automation, took place Jan.1.
In a press release, the company said the change "unifies the company's capital equipment business globally under the Panasonic name, while reinforcing the greater consultancy role that PFSA has taken on for its customers."
Similar name changes are planned for Panasonic operations in Europe, Asia and China.
SAN JOSE - Sanmina-SCI on Thursday reported first-quarter revenues rose 9.5% to $3.25 billion, at the low end of previous company guidance, and the EMS firm announced yet another series of factory closures.
For the period ended Jan. 1, the company reported GAAP net income of $24.4 million, up 54.5% over last year. Operating income was up 29% to $59.6 million.
Sanmina-SCI said it will further reduce manufacturing capacity in high-cost regions and will take an additional $75 million restructuring charge on top of charges of $100 million announced last July. This was the 16th straight quarter Sanmina took charges for restructuring.
In a press release, chairman and chief executive Jure Sola said, "Revenues for the quarter were at the low end of our expectations as our customer end-markets experienced competitive pricing pressures and a sluggish business climate."
The company had record inventory turns of 12.3.
The firm guided for second-quarter revenue of $2.85 billion to $3.15 billion
TORONTO -- Celestica, the world's third largest EMS company, reported a GAAP net loss of $810 million, primarily due to non-cash writedowns for asset impairment and a $161 million charge to cover a potential default by a leading customer. The company said it would close plants in higher-cost regions to improve capacity utilization.
The results marred an improvement in sales. Fourth-quarter revenue was $2.3 billion, up 22% year-on-year and 7% sequentially.
For the same period last year, the company reported a loss of $8 million.
Overall, the company took one-time charges of $836 million. Celestica recorded restructuring charges of $45 million for previously announced actions.
NEENAH, WI -- Plexus Corp. today reported record revenues of $287.5 million for the quarter ended Jan. 1, up 21% over last year.
The company, which provides EMS services, reported net income of $3 million, including $900,000 in restructuring and impairment costs.
The company guided for revenues between $280 million and $290 million in the second quarter. Anticipated capital spending will be $25 million to 28 million for the year.
"Based on current end-market demand and the strength of our new business pipeline," president and chief executive Dean Foate said, "we are increasingly confident about achieving the high-end of our 15% to 18% revenue growth target for the full year."
Foate said profits were affected by theft and failure to comply with inventory control of "high-value parts" in its Mexico facility.
On a conference call Wednesday morning, the company said it while it is ramping engineering capability in Malaysia, it has "no active plans" to further consolidate other North American facilities."Our ability to provide close to home project management while leveraging lower cost (manufacturing) in Asia is turning out better for our customers," the company said.
By industry, wireline and networking made up 39% of sales, wireless infrastructure 11%, medical 31%, industrial and commercial 14%, and defense 5%.
The firm's top 10 customers comprised 60% of sales during the quarter, up from 55% sequentially. Juniper Networks (20% of sales) and GE (11%) were the two largest customers.
Inventory increased sequentially by $25.3 million, to $198.8 million, while annualized inventory turns decreased to 5.3 turns this quarter from 5.8.
Reuters reported today that the Kurdistan Workers Party (PKK) set fire Monday to a Beko Elektronik warehouse in Beylikduzu, outside Istanbul,.
According to a ranking Beko official, damage from the fire was more than $5 million and between 30,000 and 35,000 products were lost -- around half of them television sets.
Beko is a subsidiary of industrial group Koc Holding. Last year the company made more than six million TVs, making it one of the top producers in Europe, Reuters said.
The PKK has engaged in armed battles for an ethnic homeland since 1984.
U.S. federal agencies are reviewing the case on grounds of national security. At issue is Lenovo's announced plans to send Chinese computer experts and researchers to IBM's North Carolina facility, said Enterprise Security Today.
That announcement is creating some consternation at high levels in the U.S. government. Some members of the Committee on Foreign Investments in the United States are questioning whether the relocation would open the U.S. to potential acts of industrial espionage.
The CFIUS' role is to review corporate deals that involve
foreign firms to determine whether any national security threats may
arise. The
CFIUS includes the Defense Department, the U.S. Trade Representative's
office and the Commerce Department.
One analyst said concerns over the possible breach in security are warranted.
Laura DiDio, an analyst with Yankee Group, was quoted as saying, "China is a still a Communist nation. ... They're very closed,
despite these deals, and they sell stuff to people we consider enemies.
So there's a real fear here, and it's not unwarranted."
WEST CHICAGO -- The outlook for sales of connectors remains unchanged: growth of 6 to 8%, according to a leading industry research firm.
However, Bishop & Associates says peak demand in the first half of 2004 raises the bar for those numbers to be reached.
Sales growth in 2005 "will require good demand foer electronics products.... Frankly we are a little concerned," the company said in a recent report.
Order growth has slowed, having declined in October and November. The November book-to-bill -- the most recent month for which data are available, was 1.0, below the year-to-date average of 1.02.
"We envision a scenario in which the first half of 2005 will be flat to the first half of 2004," Bishop said. "If 2005 starts slowly, we believe full year growth in 2005 will be difficult to achieve."
Through November, orders were up 22.2% for the year. November orders slipped 2% sequentially.
Shipments were up 22.9%, the 25th straight month of year-on-year gains.
Press Releases
- Naprotek Appoints James Eisenhaure as Chief Financial Officer
- Naprotek Appoints James Eisenhaure as Chief Financial Officer
- ViTrox Announces Strategic Partnership with Maxim SMT to Strengthen Presence in India
- Incap UK achieves JOSCAR Zero accreditation – Strengthens its position in the defence and aerospace sector