Printed Circuit Design & Fab - March 2009 - (Page 8) AROUND the worLd MFLEX Hits Record Q1 Sales ANAHEIM, CA – Multi-Fineline Elec- tronix Inc. (MFLEX) reported record first-quarter net sales jumped 17.6% from last year to $216.6 million, on increased sales to two key customers. For the quarter, net income improved to $14.1 million, compared to $13.6 million in 2008. A higher material content in first-quarter product mix resulted in the gross margin dropping from 16.7% to 15.3%. Cash flow from operating activities increased to $20.2 million for the quarter. Despite the dismal global economy, MFLEX enjoyed strong demand for flex assemblies, especially smartphones. Net sales are expected to range between $170 million and $190 million for the second quarter, and the gross margin is forecasted between 13% and 15%. BANNOCKBURN, IL – IPC is hoping the government’s economic stimulus package reaches the electronics-manufacturing sector. The trade association is lobbying Congress to pass bonus depreciation tax incentives, as well as research and experimentation (R&E) tax credits, contained in the American Recovery and Reinvestment Plan. The House of Representatives is scheduled to vote this week. The bill extends bonus depreciation tax incentives, allowing businesses to recover certain capital expenditures incurred in 2009. IPC is also requesting a permanent extension of R&E tax credits be added to the bill. IPC president and CEO, Denny McGuirk, believes a permanent extension is imperative in keeping US technology-based businesses competitive in today’s market. “R&E is the lifeblood of a strong and competitive research sector of US electronics manufacturing, and it has been overlooked far too long by Congress,” McGuirk explains. To aid members in contacting their Congressional representatives, IPC has posted a draft letter and instructions on its Web site: www.ipc.org/getinvolved. IPC Lobbying for R&E Tax Credits cadence posts Sharp Decline in Q4 SAN JOSE, CA – Cadence Design Systems Inc. announced fourth-quarter revenues fell a staggering 102% from last year to $227 million. Revenue for the year was reported at $1.04 billion, down 36% from $1.62 billion. The GAAP net loss for the quarter was $1.64 billion. Year-over-year, the GAAP net loss was $1.85 billion, compared to a net income of $296 million in 2007. Quarter and fiscal year losses include a $1.36 billion non-cash impairment charge propelled by the faltering economy and a decline in the company’s market capitalization. “We made very good progress in the fourth quarter toward our goal of a stable 90/10 ratable model with over 85% of orders booked under ratable licenses,” said Kevin Palatnik, senior vice president and CEO. First-quarter revenues are forecasted between $200 million and $210 million, with fiscal year revenue at $830 million to $870 million. GAAP losses for the quarter are expected to fall within $0.31 to $0.33 per share, and losses at $0.87 to $0.99 per share for the year. National Instruments Achieves Record Annual Revenue AUSTIN, TX – National Instruments 8 PRINTED CIRCUIT DESIGN & FAB MARCH 2009 acm_rog_worldPCD&F.qxd reported record annual revenue of $821 million, up 11% year-overyear. For the quarter ended December 31, revenue was $202 million, down 1% from $204.8 million the previous quarter. Annual net income came in at $84.8 million, or $1.07 per share, compared to $107 million, or $1.32 per share, in 2007. Non-GAAP net income was reported at $103 million year-over-year. Net income for the quarter was $19.3 million with EPS of $0.25. Non-GAAP net income was $24.2 million with EPS of $0.31. NI has decreased its spending plan for 2009 by $30 million. It is budgeting for a 3% reduction in total non-GAAP operating expenses in 2009 and plans to continue with R&D investments. December PCB Orders Plummet BANNOCKBURN, IL – December PCB shipments fell 14.5% year-over-year and bookings slid 21.1%. For the month, rigid shipments fell 14.2% and bookings dropped 24.5% from 2007. Flex shipments dropped 17.1% and orders rose 23.8%. About 86% of shipments reported were domestically produced; the rest were brokered. The data are tracked and reported by IPC. Bare boards accounted for approximately 68% of the flex shipment value reported for the month, with assembly and other services making up the rest. For the year, shipments rose 1.1% and bookings slipped 5.3%. The bookto-bill ratio dipped to 0.90. A ratio of more than 1.0 suggests demand is considered an indicator of coming sales growth. In 2008, rigid shipments dropped 0.9%, and flex shipments rose 3.4%. Rigid PCBs represent an estimated 90% of the North American market. Sequentially, rigid shipments fell 0.9% and bookings dropped 4.6%. The rigid book-to-bill ratio fell to 0.89. Flex shipments were up 23.7% and flex bookings jumped 99.9%. The book-to-bill ratio was 1.08. Page 1 2/16/09 2:53 PM http://www.ipc.org/getinvolved
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