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What's New 3-13-00
Today we announced that we are expanding our Surface Mount and related capacity in our Dallas facility. This expansion is due to increasing demand from new and existing customers in the telecom, networking, and industrial sectors. Associated with this expansion will be a dedicated prototype line to accommodate increasing demand for that service. We have also enlisted the services of a local real estate firm to assist in identifying opportunities for future facility expansion that might be required in the near future. Our site management and sales teams have done an excellent job in identifying opportunities that utilize the skills and resources of the Dallas location and the company at large. We will be adding significant SMT capacity, along with several other critical processes that greatly enhance the capability of that location.
Overall, we continue to make progress in all areas. As I stated before, we will continue to ship more each quarter and do that with equal or less assets and resources. We subleased 25,000 square feet of office space in Austin starting in January of this year; reducing our fixed expenses without sacrificing the capacity available to our customers. We have made only minor capital investments where machine age or technology upgrades require new equipment. We have added no incremental capacity throughout the company.
Our backlog continues to remain very healthy. Demand and product changes are a way of life in this business. Some customer requirements cause demand for those products to decrease over time and sometimes without notice. Others have regular and planned increases in demand over time; other customers ask us to handle unplanned increases for them as their products gain acceptance in the marketplace. Overall, the demand for our services continues to increase in all three locations. We have landed four new customers since the beginning of the year. We have or will start production with all of them soon. They have various levels of demand but each of them requires the services and technology that we have to offer. Prototype has been a critical part of XeTel's history. We recently dedicated additional resources to that activity in Austin. This has had a significant, positive impact upon the growth of that service area.
Our staffing continues at levels slightly higher than the beginning of the year. We have added some manufacturing employees in Austin and Dallas to handle the increasing workload. Our technical and support staff remain at about the same level. In the high tech centers in which we are located, competition for the talented people in our employ remains high. At times, some of them make personal decisions to work for other companies. We have been able to attract equal skills and talent to replace people in critical areas when that need arises.
In summary, I am very pleased with the progress our team is making. As we continue to add new customers. As overall volumes increase throughout the company, I expect that our returns to stockholders will also improve. I would like to express my appreciation to all of our employees who are working very hard and continue to contribute to our success.
Angelo DeCaro, Jr.
President and CEO
XeTel Corporation |
