SAN JOSE, CA -- Sanmina-SCI Corp. reported revenue for the first quarter was $1.42 billion for the period ending December 27, 2008, compared to $1.78 billion for the same period a year ago. This is a Q1 net loss of $25.3 million compared to a net income gain of $7.9 million in the same quarter last year.
GAAP net loss in Q1 was ($25.3) million or ($0.05) diluted loss per share, compared to a net loss of ($9.5) million, or ($0.02) diluted loss per share, in the same period a year ago.
Sanmina-SCI estimated and recorded $10 million of charges in the quarter related to the recent filings for bankruptcy reorganization by Nortel Networks, Inc. GAAP results were impacted by these charges.
Non-GAAP gross profit in Q1 was $95.9 million, compared to gross $130.9 million, for the same period a year ago. Non-GAAP operating income was $31.2 million, compared to $41.1 million, in the same period a year ago.
Non-GAAP net loss in the first quarter was a break-even on diluted earnings per share.
As of December 27, 2008, the ending cash and cash equivalents were $796.8 million compared to $869.8 million for the year ending September 27, 2008.
“We continue to experience weak demand and limited visibility across all of our market segments. To offset this decline, we remain focused on our efforts to reduce cost, improve operating efficiencies and deliver innovative technologies and solutions that offer value to our customers.”
“Sanmina-SCI is financially sound with a strong cash position, adequate liquidity and a healthy debt maturity profile to weather these challenging market conditions. We have learned from our experience of difficult times in the past and are confident we will emerge as an operationally and financially stronger company when market conditions normalize," stated Jure Sola, Chairman and Chief Executive Officer.
Of the 15 substances on the REACH Substances of Very High Concern (SVHC), seven have also been recommended for inclusion on a list of substances subject to authorization (Annex XIV) by the European Chemicals Agency (ECHA).
NEW YORK – New York canceled a $2 billion, 20-year contract with M/A-Com Inc., to build a statewide wireless emergency network, citing failures in the initial systems.
In a Securities and Exchange Commission filing, Tyco, the parent of M/A-Com, asserted it has fulfilled its side of the contract and expressed disappointment with the state. The company suggested the state’s financial woes were to blame.
The state in response claimed said the contract was canceled after the first systems installed by M/A-Com reportedly were flawed. The state claimed internal tests and independent audits found several flaws ranging from equipment failures to “inconsistent” coverage. The state further claimed M/A-Com was slow in remediating the problems, leading New York to lose confidence in the company.
For its part, Tyco said in the SEC filing that New York’s “current priorities may no longer support the construction of a statewide network.”
MOUNTAIN VIEW, CA -- According to a Frost and Sullivan report, revenues for the PCB automatic test equipment (ATE) market topped $1.16 billion in 2007 and are expected to reach $1.85 billion in 2014.
Frost and Sullivan concluded that the most notable trend supporting this growth is an increased usage of combination testers because of the versatility of this approach when applied to high density circuit boards and components. Manufacturers using a combination of methods can optimize yields. The combination of functional testing and boundary scan testing has become popular in spite of high equipment cost because it can reduce the overall cost of testing.
“In today's electronic industry, it is highly imperative to have sufficient test coverage to improve product quality, reduce time-to-market and improve manufacturing yields,” saysFrost & Sullivan research analyst, Sujan Sami. “Especially in a situation where device complexity, functionality of chips and circuit board architectures are on a rise; cost-effective and efficient test solutions will be the key, and the right combinational testers expect to play a major role.”
“The need for more sophisticated products, especially in the extremely demanding automotive and medical industries drives the need for better quality oriented test equipment,” notes Sami. “The modular functionality of integrating various types of test equipment expects to surpass the need for individual hardware and software testing moving forward.”
WASHINGTON -- Industry business leaders are calling on Congress to renew the depreciation laws tied to the Economic Stimulus Act of 2008, which allowed companies to reduce the time it take to recoup outlays for capital equipment.
Per H.R. 5140, Congress shortened the time frame under which certain businesses assets could be depreciated. The rules expired Dec. 31.
"A strong manufacturing sector is critical to a rapid economic recovery," wrote Matthew Holzmann, president of Christopher Associates, in one letter. "It would seem from the headlines that only certain industries would benefit from many of the proposals in Congress at present. Reinstatement of accelerated depreciation, especially as written in H.R. 5150, will help all industries and is a real, tangible tool for keeping America strong."
SINGAPORE -- A local union of electronics workers says 2,000 more layoffs are expected this quarter. That almost equals the sum -- 2,300 -- of the union's layoffs from all of last year.
The United Workers of Electronic and Electrical Industries unionsays many of the displaced electronics workers will be retrained to find jobs in the medical and hotel industries.
