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Market News

ST. PETERSBURG, FL – Jabil Circuit today reported flat fiscal first-quarter revenues of $3.4 billion, while preliminary GAAP operating income plunged 21% from last year to $77.7 million.

MOUNTAIN VIEW, CA – A just-released survey of some 85 senior-level executives at semiconductor companies finds a majority sees R&D and capital expenditures decreasing significantly next year.

As economic conditions and consumer spending continue to deteriorate, semiconductor executives are turning more pessimistic, and anticipate a steep decline in profitability during the next 12 to 18 months, says the consulting group that conducted the survey.

EL SEGUNDO, CA – The deck appears stacked against the global semiconductor industry, with six separate market forces conspiring to cause revenue to decline by nearly a double-digit margin in 2009, says iSuppli Corp.

The research group became the latest to lower its 2009 worldwide semiconductor industry revenue forecast, estimating a 9.4% drop year-over-year to $241.5 billion. iSuppli previously predicted 6.8% growth.

SAN JOSE, CA – According to the November Book-to-Bill Ratio Report released by SEMI, North American-based semiconductor equipment manufacturers posted $805 million in orders for the month. The book-to-bill ratio was 1.00.

Worldwide bookings for the month were $805.4 million, close to 4% less than the amount for October and 29% lower than 2007 figures. Worldwide billings showed a 7% decline over October, reaching $807.3 million.

“2008 is closing with expected declines on the year, which have been further exacerbated by the deepening seismic global economic situation over the past quarter,” said Stanley Myers, president and CEO.

SMYRNA, GA – UP Media Group Inc. announced the addition of Sunstone Circuits and Intercept Technology to the list of leading industry companies that have signed on to exhibit at Virtual PCB, the industry's only virtual trade show and conference for the PCB design, fabrication and assembly markets. Now in its second year, Virtual PCB takes place February 24-25, 2009.

SANTA CLARA, CA – As part of a restructuring plan, Agilent Technologies Inc. announced that it will eliminate 500 positions. The majority of layoffs will occur next year by May 31, with the remaining cuts completed by the end of October.

In addition, Agilent has cut over 300 positions within its temporary workforce. Effective January 1, employees will also see temporary pay cuts and/or required time off-without pay.

The restructuring, according to the company, will enable annual operating expenses to be reduced by nearly $65 million; the reduction in pay will save $100 million. Agilent plans to take a $55 million pre-tax charge, mostly for employee severance.