Dii Group Europe Wins Large Box-Build Contract Czech Facility Wins ISO 9002 Certification
(Cube inside)
04/07/99
PR Newswire
(Copyright (c) 1999, PR Newswire)
NIWOT, Colo., April 7 /PRNewswire/ -- The Dii Group, Inc. (Nasdaq: DIIG), today announced that its wholly owned contract electronics manufacturing subsidiary, Dovatron International, has signed a new contract to provide TV set - top boxes to Pace Micro Technology plc for distribution in the European markets. The printed circuit boards for these receivers will be assembled at the Dovatron facility in the Czech Republic, and should result in a significant increase in output there over the next 12 months. Dovatron's facility in Ireland will complete the final assembly (box build) and test for the set - top boxes. The new project will start up immediately, with full volume production anticipated by the end of the third quarter.
The Dii Group is also pleased to announce that its Czech facility has recently received ISO 9002 certification, which validates the quality of the manufacturing processes employed there.
Thomas J. Smach, Dii Group chief financial officer, stated: "Contract wins such as this contribute to our expectation that Dovatron will achieve an organic growth rate of 30 percent in fiscal 1999. We believe Dovatron's production for this European contract could amount to $100 million in fiscal year 2000."
Micheal Corkery, President of the Dii Group Europe, commented: "Dovatron is delighted to have been chosen by Pace Micro Technology as their European manufacturing partner for digital set - top boxes. Pace is recognized as a world leader in the development and manufacture of digital set - top receivers."
Corkery added, "Our contract electronics manufacturing facility in the Czech Republic offers our customers exceptionally competitive manufacturing within central Europe. Since we purchased the Czech facility in the third quarter of '98, we've invested in training, people and equipment to upgrade it to a 'world class' facility. It is now up to that standard with a well-trained and qualified staff, and it has been fully integrated into Dovatron's worldwide network of manufacturing plants. We think it's well positioned for strong growth in the coming years."
Andy Duncan, Director of Manufacturing, Pace Micro Technology, added: "We've had excellent service from Dovatron in Europe and other parts of the world over the past three years, and look forward to expanding that relationship further with this European contract. At Pace, we are at the forefront of digital television technology, manufacturing set - top boxes across the digital spectrum for satellite, cable and terrestrial customers."
This press release contains historical information and forward-looking statements. Statements looking forward in time involve risks and uncertainties, including risks associated with customer concentration, dependence on the electronics industry, economic conditions, the successful integration of newly acquired businesses and other risks associated with acquisitions, changes in product mix, competition, and international Operations. For further information, reference should be made to the Dii Group's filings with the Securities and Exchange Commission, including the company's "Management's Discussion and Analysis of Financial Condition and Results of Operations" included in the company's most recent Annual Report on Form 10-K.
This landmark was reached less than four years after Pace delivered the world's first MPEG2 digital boxes in volume in Australia in August 1995. The company is actively involved in all digital TV platforms -- satellite, terrestrial and cable -- and has played a key role in the creation of the digital pay television market worldwide. By January 1999 Pace had manufactured over 2,000,000 digital set - top boxes that were delivered to 18 international broadcasters in the UK, Europe, Latin America, Australasia and the Far East. This landmark was reached less than four years after Pace delivered the world's first MPEG2 digital boxes in volume to Galaxy in Australia in August 1995. The company has also manufactured 6.5 million analogue set - top boxes since it entered the pay television market in 1987. Pace operates in over 80 countries worldwide and its head office is at Shipley in West Yorkshire. The company's shares are traded on the London Stock Exchange (PIC). For further information, please visit Pace's web site at www.pacemicro.com.
The Dii Group, Inc. (Nasdaq: DIIG) is a leading, value-added electronics design and manufacturing outsource service provider, which operates through a global network of companies in North America, Europe, and Asia. The company serves the electronics industry through its core competencies: circuit design; semiconductors; printed circuit boards; circuit board assembly; box build and distribution. The Dii Group employs approximately 8,000 people and had revenues of $926 million in fiscal 1998. Its Internet (Web) Site can be reached by accessing "www.diigroup.com" to view recent press releases, company information, and financial data relating to the Dii Group.
Contact: /CONTACT: Sharon L. Sweet, Vice President, Investor Relations of The Dii Group, Inc., 303-652-2221/ 11:30 EDT |
