Good questions; not all answers available.
First, the new capacity. Essentially all of Flextronics manufacturing capacity is filled according to the last conference call. They may have the ability to squeeze a bit more capacity out of the Wales and China facilities. The expansion in Guadalajara is being acclerated to serve a new business opportunity according to the June 2 press release. Most ECM companies will not release specific site and customer info, due to requests from the customers. Occasionally, it is possible to figure it out from other sources. At this time, I don't know who this is.
The China plant is where Flextronics does their high volume manufacturing. Again, I don't know the specific product manufactured there, except for Microsoft's mice.
Flextronics doesn't make PC assemblies. I do know some of their big customers and products, and I can guess the manufacturing location. They make Braun Thermoscan thermometers (China?) and Lifescan blood glucose monitors (San Jose?). USRobotic's Palm Computing subsidiary's Pilot personal organizers (China?). They said they were the sole source supplier for Ascend's Max TNT, Ascend's top of the line ISP access equipment (San Jose?). BTW Ascend controls 80% of this market. They make some product for Advanced Fibre Communications (location ??) and Diebold ATM machine electronics (China?). They make Cisco router assemblies (San Jose and ??).
The new plant in Karlskrona, Sweden makes PCBs, network switches, and cordless base stations for Ericsson. The Wales plant is also doing some work for Ericsson, and some work for Phillips Electronics.
Ericsson should be about a 30% customer, and Lifescan and USRobotics are more than 10% currently and should continue as big customers.
Well, that's a general summary. I tried. The timing? The expansions in SJ and China should start contibuting to revenues in July, and Guadalajara in August. Most of the other industry expansions won't be on-line until 1999, most by mid-year. So Flextronics has about a 9-12 month lead on the competitor expansions.
Paul |
