Mark, DIIG's SEC 10-K posted tonight. Three interesting points:
(1) As of December 1997 DIIG approved a Share Buyback Plan of up to 1,000,000 shares. To date 192,700 shares have been purchased. Expect the Company to repurchase more shares if the price takes a prolonged dive...
(2) DIIG's Top Ten customers only account for 50% of DIIG's business, with Hewlett Packard accounting for 17%.
(3) The "high-volume printed circuit board" Multek Site only swung into action recently as a DIIG Facility- thus this revenue stream should reflect for the first time in DIIG's next quarter I believe.
Finally from the 10-K Report, here's a breakdown of DIIG's business:
The Company is a leading provider of electronics design and manufacturing services that operates through a global network of independent business units.
These business units are uniquely linked to provide the following related products and services to original equipment manufacturers ("OEMs"): design and manufacture of custom microelectronics; design and manufacture of printed circuit boards on either a quick-turn, pre-production or high volume production basis; assembly of printed circuit boards; process tooling; machines tools; process automation equipment; in-circuit and functional test hardware and software; and final systems assembly. By offering comprehensive and integrated design and manufacturing services, the Company believes that it is better able to develop long-term relationships with its customers, expand into new markets and enhance its profitability.
The Company provides the following related products and services to customers in the global electronics manufacturing industry:
Custom Microelectronics -- Through Orbit, the Company provides semiconductor design, manufacturing and engineering support services to its OEM customers. Orbit provides cost-effective gate array conversion services, mixed-signal design and production capabilities as well as high-reliability manufacturing and quick-turn and low-volume manufacturing services. Orbit utilizes a combination of internal fabrication capabilities and external foundry suppliers, thereby using a "fab/fabless" manufacturing approach. This product line accounted for less than 10% of the Company's net sales for fiscal 1997, and 14% and 16% of the Company's net sales for fiscal 1996 and 1995, respectively.
Interconnect Technologies -- The Company provides design and
manufacturing services for printed circuit assemblies through DSI and manufacturers high density, complex multilayer printed circuit boards on either a quick-turn, pre-production, or high-volume production basis through Multek. This product line accounted for 16%, of the Company's net sales in fiscal 1997 and 1996 and 14% of the Company's net sales in fiscal 1995.
Systems Assembly -- The Company assembles complex electronic circuits and provides final system configuration (contract electronics manufacturing, or "CEM") on a high and low volume contract basis through Dovatron. This product line accounted for 66%, 60%, and 64% of the Company's net sales for fiscal 1997, 1996 and 1995, respectively.
17
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
(Dollars in thousands, except per share data)
OVERVIEW (CONTINUED)
Process Technologies -- The Company manufactures surface mount printed circuit board solder cream stencils on a quick-turn basis through IRI and Chemtech; designs and manufactures in-circuit and functional test software and hardware on a quick-turn basis through TTI Testron; manufactures depaneling systems that route individual printed circuit boards from an assembled master panel in the final step of the electronics assembly process through Cencorp; and manufactures process automation equipment, through PCT. This product line accounted for 10% of the Company's net sales for fiscal 1996 and less than 10% of net
sales for fiscal 1997 and 1995.
|
