NEWARK, NY -- EMS provider IEC Electronics Corp. has completed the
acquisition of Val-U-Tech Corp., a privately held manufacturer of wire
harness assemblies located in Victor, NY, for approximately $10 million.
For the period ended Dec. 31, Val-U-Tech had revenue of $11 million and expects that its revenue for the six months ending June 30 will be approximately $6.9 million, up from $4.4 million last year.
Val-U-Tech
serves military, medical and industrial customers and IEC believes the acquisition leverages the existing
customer base of both companies and could lead to cross-selling opportunities.
IEC financed the transaction with a credit facility from M&T Bank,
seller notes and issuance of stock. IEC fixed approximately $7.2 million
of the purchase price at a weighted average of 5.1% for five years. The
balance of the purchase price came from the issuance of 500,000 shares
of IEC stock and a draw on IEC’s working
capital line.
M&T Bank has provided a $1.5 million equipment line of credit and is
supporting IEC’s working capital requirements
with a $9 million revolving credit line at LIBOR rates.
IEC chairman and CEO W. Barry Gilbert said, "Val-U-Tech has been very successful in growing both its sales
and earnings at double digit rates for the last few years. Some of IEC’s
customers have anticipated cable harness projects to be awarded over the
next year. With Val-U-Tech’s management team
and IEC’s support we are reasonably confident
of winning our share of these programs. This acquisition should
significantly contribute to our earnings.”
COLLEGE PARK, MD – The 2nd Annual Symposium on Avoiding, Detecting, and Preventing Counterfeit Electronic Parts will be held Sept. 8 and 9 at University of Maryland, College Park, MD.
Submit abstracts on relevant topics (fewer than 300 words) to Dr. Diganta Das at diganta@umd.edu.
The deadline for presentations is August 16.
SMTA and CALCE will sponsorthe event, which will focus on solutions available and under development by all sectors of the industry. Topics will include methodologies followed by affected industries to mitigate chances of being victims of counterfeit parts; efforts and initiatives – both domestic and international – that will affect the future of combating counterfeit electronic parts; supply chain management tools to mitigate counterfeit part risks; tools being developed and used by part manufacturers; inspections tools and techniques for detecting counterfeit parts; impact of counterfeit parts on the military and avionics industry; sources of counterfeit parts, and authentication techniques for securing electronic part supply chain.
RICHARDSON, TX – TXP Corp., ODM for the telecommunications industry, reported first-quarter revenue was $2.5 million, up about 14% year-over-year.
Operating loss was approximately $2.4 million, compared to operating loss of approximately $1.2 million for the first quarter last year. Net loss was approximately $198,000, compared to net loss of approximately $378,000 for the same period in 2007.
Net loss in the first quarter of 2008 and 2007 included a non-cash gain of approximately $2.8 million and $1.1 million, respectively, related to change in fair value of derivative financial instruments.
The company says it increased its customer base to 139 in the first quarter, up from 117 for the same period in 2007.
"We attribute our increase in revenue to the continued strength of our prototype services business, as well as the growth of our retrofit solutions ... During the quarter, we focused heavily on our sales and marketing initiatives within the Optical Network Terminal group. Specifically, we are engaged in active discussions with a number of carriers to utilize our Gigabit Passive Optical Network ONTs for their next-generation Fiber-to-the-Home network. We now have product trials ongoing with over 15 carriers and have received favorable feedback from our partners," said Michael C. Shores, president and CEO of TXP.
Additionally, the company announced it has completed a financing of up to $5.75 million with YA Global Investments, L.P.
TAIPEI – Asustek Computer Inc. reduced its global notebook PC shipment forecast to 6.6 million units for 2008, down from a projected 7 million units, say published reports.
The firm’s original projection was up more than 60% compared to 2007 results. However, the company adjusted the forecast downward by 5.7%.
Asustek attributes the adjustment to strong market competition; the European market is particularly struggling, with the second-quarter growth rate estimated at a mere 3 to 5%.
The firm forecasts sales of its Eee PC to reach 5 million units globally in 2008, including 1.3 million units in the second quarter.
FRAMINGHAM, MA – Worldwide PC microprocessor shipments slowed significantly in the first quarter of 2008, down 9.2% sequentially, says research firm IDC.
TAIPEI — Taiwan's Acer Inc. said its sales are expected to increase more than 50% in 2008, raising its previous forecast as a result of demand for smaller, cheaper laptops.
"The notebook market is growing for at least the next two to three years, and with the entry of new mobile Internet devices, the market can easily double in size, changing the profile of the industry dramatically," Acer president Gianfranco Lanci said, according to published reports.
"I think all the major PC brands are getting ready to face the change and to manage the change," said Lanci.
Lanci believes Acer could have 16 to 18% of the global PC market by yearend, as the company continues to compete with Lenovo, Hewlett-Packard and Dell Inc.
The company expects to sell 6 to 7 million units of its Aspire One in 2008, and 15 to 20 million units in 2009.
