SMT & Inspection | October 19, 2006
Micronic reports a weaker equipment market
Sweden based semiconductor equipment supplier Micronic Laser Systems AB today presented the Group's Interim Report for January 1 - September 30, 2006. Order intake during the first nine months of 2006 reached SEK 54,4 (1,143) million, of which SEK 113 (586) million was booked in the third quarter. Net sales for the first nine months of 2006 totaled SEK 939 (693) million, of which SEK 98 (303) million was generated in the third quarter.
Operating profit for the first nine months was SEK 114 (10) million, including SEK -112 (57) million for the third quarter. Operating profit for the period adjusted for capitalization and amortization of development costs totaled SEK 189 (99) million, of which SEK -85 (81) million referred to the third quarter. Profit after tax for the first nine months of 2006 was SEK 84 (3) million, equal to SEK 2.13 (0.07) per share. Profit after tax for the third quarter was SEK -79 (39) million, equal to SEK -2.01 (1.01) per share. The order backlog at the end of the period was SEK 425 (1,297) million and consisted of systems scheduled to ship during 2006 and 2007. “As previously indicated, the third quarter was weak in terms of sales. We work in an industry where demand for our products can change rapidly. This is also clearly visible in our order intake, which reached only SEK 113 million. The low order intake for display products is in line with our predictions for flat demand in the second half of 2006. In the semiconductor segment, both orders and sales fell short of expectations. We are now making an intensive effort to complete existing sales commitments in the fourth quarter," says Sven Löfquist, President and CEO of Micronic Laser Systems AB. “Our very low gross margin of only 3 percent for the third quarter is primarily attributable to soft sales and the product mix. Gross margin for the entire nine-month period was 55 percent. Due to the weak order level, we need to reduce our costs. This will be achieved mainly by decreasing the number of contract employees and consultants, but we will also be forced to downsize our own staff. The total effect of these measures will be an annual cost reduction of more than SEK 100 million". “Despite a disappointing third quarter, operating margin reached 12 percent for the nine-month period and more than 20 percent adjusted for capitalization and amortization of development costs," points out Sven Löfquist. “The aftermarket is an increasingly vital part of our business. Recent years have seen a steep increase in the number of installed advanced systems. As these systems reach the end of their warrantee periods, service revenue is expected to rise sharply over the next few years". “We anticipate a strong fourth quarter and expect to restore our key financial ratios. In our full-year assessment we are now predicting sales in the range of SEK 1,300 to SEK 1,500 million. Placement in the upper end of this range will require another major sale with recognition of income during the year, which we have the potential to achieve, " concludes Sven Löfquist. 1 SEK is equal to 0,1 EUR.
AMTE Power and Britishvolt sign MoU for GigaFactory AMTE Power and Britishvolt plans to investigate collaborating to build the UK’s first full cycle battery cell GigaPlant, servicing the automotive and energy storage markets.
ALLPCB’s new SMT factory has launched production On May 10 2020, ALLPCB’s new – self-operated – SMT factory in Guangde, Anhui Province, China was officially put into production.
Schweizer starts production at its new location in China Following a construction period of one and a half years, production has now started at the company’s new high-tech printed circuit board plant in Jiangsu, China.
Jenoptik supplies generators to a US customer Through its Vincorion investment, Jenoptik received a long-term order for generators that an unnamed US customer is integrating into military vehicles.
Rolls-Royce takes heavy hit from COVID-19 – reduces workforce by 9000 The impact of COVID-19 on Rolls-Royce and the whole of the aviation industry is unprecedented. RR has already taken action to strengthen the financial resilience of its business and to reduce cash expenditure in 2020. However, this will not be enough.
Data Link Solutions to provide MIDS cabinet terminals to US Navy The U.S. Navy has awarded a USD 3.2 million production contract to Data Link Solutions (DLS), a joint venture between BAE Systems and Collins Aerospace, for new Multifunctional Information Distribution System (MIDS) cabinet terminals.
Incap restarts production in India In a move to contain the COVID-19 pandemic, the government of India instructed all state governments to introduce a lockdown in March. As a consequence, Incap had to close its factory in Karnataka, India on 23 March.
NAND Flash Revenue Undergoes 8.3% QoQ Growth in 1Q20 NAND Flash bit shipment in 1Q20 was relatively on par with 4Q19, says the DRAMeXchange research division of TrendForce. The overall ASP of NAND Flash products also climbed during the period. As a result, the global NAND Flash revenue for the quarter went up by 8.3% QoQ to USD 13.6 billion.
Gorenje reduces the number of layoffs At the end of April, due to a sharp drop in orders and revenues as a result of the COVID-19 pandemic, the Hisense Europe Group launched a redundancy program in four companies in Slovenia.
NA semiconductor equipment industry posts April 2020 billings North America-based manufacturers of semiconductor equipment posted USD 2.26 billion in billings worldwide in April 2020 (three-month average basis), according to SEMI.
AWS Electronics to wear the Incap name Following the acquisition of AWS Electronics Group by Incap Corporation in January 2020, the company's units in the UK and Slovakia will now be trading as Incap Electronics UK Ltd. and Incap Electronics Slovakia s.r.o.
PCB manufacturer SQP invests in new plasma treatment system As part of the continuous upgrade of the PCB manufacturing processes the Slovakian PCB manufacturer SQP International has invested in a new plasma treatment system.
Nordson delivers solid quarter considering COVID-19's impact on global end markets Nordson Corporation reported second quarter sales of USD 529 million, a 4% decrease compared to the prior year’s second quarter sales of USD 551 million.
Cicor expands its clean room set up in Bronschhofen Swiss EMS provider Cicor Group is currently expanding its site in Bronschhofen with a 60 square metre ISO Class 6 clean room.
Senate Dems to Trump: Release details of TSMC plant deal Democratic lawmakers are pressuring the Trump administration to respond to serious questions about Taiwan Semiconductor Manufacturing Co Ltd’s (TSMC) plans to build a USD 12 billion plant in Arizona, which the company announced last week.
SOS LAB completes series A+, inks MOU with ON Semi LiDAR sensor maker SOS LAB has secured series A+ investment funding of USD 8 million as of April.
Expanded US rules sanctioning Huawei to have little impact on memory industry TrendForce believes that the latest updates to the sanctions will have a relatively low impact, in the short term, on Huawei’s shipment of smartphones, notebook computers, and servers – products for which Huawei is relatively well stocked on components.
PCB Connect expands with new office Due to the PCB suppliers’ successful growth in Denmark, the company has now decided to invest further in the Danish Market.
Panasonic, Tesla discuss beefing up Nevada battery plant Panasonic Corporation this week said strong demand for battery cells from its U.S. partner, Tesla, has led to negotiations on the expansion of their joint plant in Storey County, Nevada.
Flex taps new leadership for automotive business Flex has named Mike Thoeny, president, Automotive Business Group, effective June 1, 2020.
Current pandemic slows down business development in German component distribution German distribution of electronic components (according to FBDi e.V.) continues to decline in the first quarter of 2020. The order situation improves slightly, at a low level. The FBDi calls for future-oriented course-setting and investments in infrastructure.
Progress is being made for BMW’s new plant in Hungary Preparations for the future BMW Group plant in Debrecen, Hungary, have reached important milestone. Following successful preparation of the land by the City, the official handover process has now started.Load more news