News
TORONTO, Nov. 8 - SMTC Corp. today reported third-quarter net earnings of $2.9 million on revenue of $60.8 million.
Last year the electronics manufacturing services provider reported net earnings of $2.6 million on $77 million in sales.
Sequentially, net earnings were up from $1 million, although sales dropped from $66.3 million.
SMTC settled two legal disputes during the quarter. In a claim for obsolete inventory previously written down, the company recovered $1.8 million, which was recorded in cost of sales. And the company adjusted by $1.7 million an earlier restructuring charge taken for early termination of a lease.
SMTC took restructuring charges of $1 million during the quarter.
Gross profit was $7.3 million, or 12.1% of revenue, compared with $8.1 million (10.6% of revenue) last year and $7.3 million (11.1%) in the second quarter. Cash from operations was $3.9 million; as a result the company's outstanding revolving credit facility dropped to $9.7 million from $13.3 million. The company reported no cash balance on its balance sheet. Debt was reduced by $4 million during the quarter.
Through Oct. 3 SMTC posted revenue of $196.6 million, down from $229.2 million in 2003. Net earnings were $3.8 million, compared with a net loss of $37.2 million.
SMTC was recently notified by Nasdaq that it has regained compliance with the minimum bid price requirement of $1 per share.
ST. LOUIS, Nov. 4 -- LaBarge Inc. today reported first-quarter 2005 revenues rose 47% year-on-year, the best quarter in the company's history.
For the quarter ended Oct. 3, LaBarge posted net sales of $43.6 million, up from $29.7 million a year ago. Net earnings from continuing operations rose 68% to $2.3 million, versus $1.4 million last year. Total net earnings grew 81%; fiscal 2004 first-quarter earnings included a net loss from discontinued operations of $102,000. The first-quarter 2005 results include net sales of $12.9 million and earnings from the company's Pittsburgh operation, acquired in February 2004.
Gross margin remained 23%. Selling and administrative expense declined as a percentage of sales to 13%, from 16% in 2004. Total debt rose to $41 million, up from $37.7 million sequentially.
The company said bookings of new business -- particularly from the defense, government systems and natural resources market sectors -- were strong during the quarter. Order backlogs were down 5% sequentially to $149.5 million.
Defense customers made up 42% of sales, industrial 20%, natural resources 19%. The remaining 19% came from commercial aerospace and government systems, among other sectors.
The company guided for second-quarter sales and earnings substantially higher than last year and slightly higher than the first quarter.
Manufacturing grew for the 17th consecutive month, ISM said, based on its monthly poll of the supply chain. ISM said that while growth remains strong, inflation worries are rampant.
"Strong growth continues, but at a slower rate than in September," said ISM chairman Norbert Ore. "However, energy prices and commodity price inflation are major concerns for manufacturing buyers."
The PMI measure of economic activity fell 1.7 points to 56.8%, but remained above the benchmark 50% level for the 17th straight month.
New orders rose 0.2 points and production declined 6.8 points. "Manufacturing experienced three quarters of strong growth this year [and] the decline in order backlogs is an indication that manufacturing has peaked," said Ore.
Trends in pricing (higher) and customer inventories (lower) continued. Order backlogs dropped in October, yet imports and exports rose.
Electronic Components and Equipment, and Industrial and Commercial Equipment and Computers were among the sectors reporting growth.
June July August Sept. Oct.
PMI 61.1 62.0 59.0 58.5 56.8
New orders 60.0 64.7 61.2 58.1 58.3
Production 63.2 66.1 59.5 61.6 54.8
Inventories 51.1 49.9 51.7 51.0 48.2
Customer inventories 39.0 37.5 45.5 41.4 43.5
Backlogs 58.5 58.0 55.0 55.0 49.0
Source: Institute for Supply Management, November 2004
ATLANTA, Oct. 19 — The ninth annual PCB Design Conference East featured a sold-out show floor of more than 50 exhibitors and enjoyed a double-digit increase in overall attendance, conference organizers said.
The Oct. 4-8 event attracted 585 conference and expo-only attendees, a 30% increase over 2003, said UP Media Group Inc. in a press statement. (UPMG is the parent company of Circuits Assembly.) The conference drew 158 attendees, a 56% increase over 2003.
The numbers do not include PCB East exhibitors.
"The electronics design and manufacture industries certainly struggled from 2001 to 2003 but began to pick up steam in early 2004. That growth is evident in the soldout show floor and increased attendance," said UP Media Group president Pete Waddell. "I'd like to thank our attendees, many of whom have supported PCB East since it was founded in 1996, and our exhibitors, who continue to recognize that PCB East is a must-attend annual event."
PCB East 2005 will be held Oct. 10-14 at the Radisson Hotel Manchester in Manchester, NH. For more information and to download the conference brochure visit www.pcbeast.com.
The 14th annual PCB Design Conference West takes place March 7-11 at the Santa Clara (CA) Convention Center. For more information, visit www.pcbwest.com.
Third quarter sales of handhelds fell 4.6% sequentially and 8.7% year-on-year, to 2.1 million units.
Market success will go to those that extend handheld devices into markets beyond core PIM functionality, such as GPS bundles, IDC said.
China's electronics industry size is now more than three times that of southeast Asia's, and is projected to become five times as large by 2010.
"Electronic exports from China will decrease from the current 25% of total output as the domestic market for consumer electronics, telecommunications, computing and advanced automotive products picks up," Fusion said. "The 3G revolution and the 2008 Olympics in Beijing will really give this sector a boost."
Meanwhile, southeast Asia's electronics market will reach $96 billion by 2010, an annual growth rate of 7.6%. Fusion says.
The firm predicts Singapore will be the region's top producer, with output of $17 billion by 2010, followed by Thailand ($14 billion), Malaysia ($9 billion), Indonesia ($7 billion), and the Philippines ($6 billion).
The Kester lab will use a SlimKIC 2000 and Navigator tools for defining process windows and selecting ovens or wave solder recipes.
"We are excited about this opportunity to work so closely with Kester Europe. Kester's solutions are in line with KIC's high standard of quality, and we feel that the SlimKIC 2000 and Navigator tools will help Kester elevate their solutions and customer service to the next level," said Bjorn Dahle, President of KIC.
BOSTON, Nov. 4 -- Airlift capacity throughout the Asia Pacific has been relatively static but rising fuel prices and delays in major ports are trouble spots, a major freight forwarder said this week.
In its monthly report on airlift conditions, Trans Global Logistics says escalating fuel surcharges, strong demand for space fueled by delays at Long Beach and higher export volume from Asia
Peak season conditions exist in most markets with the greatest demand in China, Hong Kong, Taiwan and Korea, Trans Global says. Charter space is limited and the cost of a charter is more than $400,000, the firm says.
In Shanghai, new capacity is helping to handle the significant growth of export volume. But Hong Kong is struggling to meet demand as lift capacity is down about one-third.
"As you make plans to move your shipments during
the next few weeks, anticipate longer transit times and higher costs
for space and fuel. If you have large-sized or "hot" shipments, try to
book them as early as possible," Trans Global says.
While the main drivers remain mobile phones, display interconnects, digital cameras and PDAs, new applications are emerging in the medical, aerospace and military markets, BPA predicts that these markets will remain relatively small.
The demand for hard disk drives and optical media drives is also increasing for portable consumer goods, A/V and computers . However, says BPA, the net effect for volumes will be negligible as the smaller size of flex boards used will offset higher demand. Furthermore, the costs of flex-rigid PCBs outweigh the benefits in most portable consumer applications.
Discrete flexible circuits and connectors will continue to be used in most mobile phones for the next thrree to five years. Many Asian producers are developing and sampling innovative lower-cost technologies that show promise, BPA says.
Asia (excluding Japan) produces the largest volumes of FPC, having overtaken Japan last year. The fastest-growing country in Asia is China, who has increased its share of Asian production from 8% in 2000 to 17% in 2003. China is expected to account for 29% in 2008.
Sher has 20 years of sales and marketing management at companies like Applied Materials, where he was senior director of marketing, and Synexis, where he was as well as a chief marketing officer. He has an MBA from Adelphi University and a bachelor's of science from New York State University.
He will report to Ken Bliss, president and CEO.
Bliss makes carts for SMT manufacturing.
San Diego, Nov. 5 -- FocalSpot Inc., a provider of BGA/SMT inspection and rework, named Jeff Herberg global customer support manager and Glenn Olaes x-ray product line manger.
Herberg has 20 years of experience in : field service, applications engineering, technical training and sales support with GenRad/Nicolet Imaging Systems and Teradyne.
Olaes has eight years experience in : applications, customer support and regional sales management with Nicolet Imaging Systems/SRT, GenRad, Teradyne and VJ Electronix.
SIA expects that 2004 year-on-year growth rate will be 28.5%. More than 50% of the semiconductors sold in 2004 will go into products purchased by consumers, a ratio that will grow as consumers embrace portable digital media, SIA said.
Lower demand for memory devices and passives in 2005 will offset modest improvements in microprocessors, logic and DSPs.
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