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Author: jaipur Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 860  
Subject: System-on-a-Chip Partnership Date: 6/12/2001 1:13 AM
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This may be on the Fool News but I have been unable to access it. LTXX revenues have dropped pretty significantly this year (along with all other semi's) and they need to cut some corners. I can't help but think that many other companies are in similar situations which should lead to more and more outsourcing.

Let's just get through the summer market doldrums. I used to think investing was fun. <g>

JABIL CIRCUIT INC (JBL)
LTX Announces Fusion Manufacturing Partner, Selects Jabil
WESTWOOD, Mass.--(BUSINESS WIRE)--June 11, 2001--
Strategic Partnership as LTX Prepares for Next Growth Phase;
Conference Call Today at 11:00AM EDT to Discuss the Announcement
LTX Corporation (Nasdaq:LTXX), a leading supplier of
system-on-a-chip semiconductor test equipment, today announced that it
has selected Jabil Circuit, Inc. (NYSE:JBL), to build its Fusion test
systems. Jabil will apply its industry-leading manufacturing systems
to the production and testing of LTX's Fusion family of products.
Together with LTX, Jabil will deliver the rapid capacity increases,
shorter cycle-times, and flexibility demanded by today's semiconductor
manufacturers and contract test and assembly companies. Over the next
twelve months, LTX plans to transfer all of its assembly, final
integration and test operations to Jabil.


Roger Blethen, President and Chief Executive Officer of LTX
commented, "Jabil is a manufacturing powerhouse with the leadership
and skill to meet LTX's aggressive growth plans. They will concentrate
their full energies on satisfying LTX's requirements for fast growth
and at the same time, they will bring greater flexibility to react to
the inevitable cycles of the semiconductor industry. Further, this
alliance with Jabil will allow us to further concentrate our
investments on delivering leading edge test technology and world-class
customer support."

Tim Main, President and Chief Executive Officer of Jabil said, "We
are delighted to have been selected by LTX to produce Fusion. We will
provide LTX and its customers a flexible manufacturing capability that
meets the exacting quality standards demanded by the semiconductor
industry. Fusion's single-platform architecture makes it an ideal
vehicle for the further growth of Jabil's long-term strategy to
broaden our portfolio of value-added services to the high technology
industry. We are confident that LTX, its customers and Jabil will
benefit greatly from this arrangement."

David Tacelli, Executive Vice President of LTX added, "This new
manufacturing model positions LTX as a market leader by enhancing our
financial operating model and our ability to respond to rapid
marketplace changes. While the benefits of this new model for LTX and
its customers are compelling, we fully understand the impact this
change has on some of our valued employees and we appreciate the
significant contributions they have made to the Company over many
years of service. In recognition of these contributions to the success
of LTX and to ease the impact of this change, we are implementing a
comprehensive transition plan."

This manufacturing transition plan will be implemented over the
next 12 to 15 months and will result in approximately a 15 percent
reduction in permanent LTX employee headcount. The reductions will be
spread throughout the period and will not impact LTX's investments in
research and development or customer support. Further, the Company
will incur an estimated $12-14 million charge during the fourth
quarter of fiscal year 2001 for severance pay and asset write-offs
related to the plan. Excluding the charge, the Company is comfortable
with its previous guidance for its operating results for the fourth
quarter, but now believes it is more likely to produce results from
the midpoint to the lower end of the original range.

Fusion, configurable with up to 1024 500MHz I/O digital channels,
offers a comprehensive system-on-a-chip solution with the best digital
VLSI, embedded memory, and mixed signal test capability in one
platform. Its suite of instruments provides enabling test technology
for the advanced functions being embedded in system-on-a-chip devices.
With its ability to test the complete spectrum of semiconductors,
Fusion also significantly improves tester utilization. Fusion is
powered by enVision++, a revolutionary new programming environment
that combines reusable, object-oriented digital programming with
highly flexible mixed signal test development.

Jabil Circuit, Inc. is an electronic manufacturing services
provider for international electronics companies in the
communications, personal computer, peripheral, consumer and automotive
markets. Jabil offers circuit design, board design from schematic,
prototype volume board assembly, system assembly, repair and warranty
services from facilities in North America, Europe, Asia and Latin
America.

LTX Corporation is the only semiconductor test equipment company
to offer a "one test platform, zero compromises" solution for testing
the full spectrum of system-on-a-chip, mixed-signal, digital and
analog integrated circuits. Headquartered in Westwood, Mass., the
company has additional development facilities in San Jose, Calif., as
well as sales and service facilities throughout North America, Europe,
the Pacific Rim and Japan. LTX is traded on the Nasdaq National Market
under the symbol "LTXX." Further information on LTX can be obtained by
calling 1-888-INFOLTX (or 888.463.6589). LTX's web site is located at
http://www.ltx.com.


Jaipur
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Author: tobarstep Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 837 of 860
Subject: Re: System-on-a-Chip Partnership Date: 6/12/2001 10:43 AM
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I saw this announcement yesterday too. I figured that it would have tempered Merrill Grinch's poo-pooing of the sector somewhat, but it appears I was wrong. I mean, in Jabil's 10k they go on and on about how they rely on just a few contracts, so I would think that any new business would be seen as a great boon. Oh well. I think the long-term prospects for Jabil and the rest of the sector are pretty good; so much so that I have been strongly considering applying to Jabil when I (finally) finish my degree next year. The 40 mile commute won't seem so bad if they are really as good to work for as I have heard.

T

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Author: jaipur Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 838 of 860
Subject: Re: System-on-a-Chip Partnership Date: 6/12/2001 4:09 PM
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I think the long-term prospects for Jabil and the rest of the sector are pretty good; so much so that I have been strongly considering applying to Jabil when I (finally) finish my degree next year. The 40 mile commute won't seem so bad if they are really as good to work for as I have heard.

I agree that long term prospects are much brighter. Economic downturns are inevitable and it won't last forever. I'm still waiting till about July or so before I buy any new stock. Nokia just warned (1st time in ages) and I don't think the tech sector has it's head completely above water yet. Some PE's remain too high as well.

Jabil has a facility in Idaho and I hear they are a pretty good employer. They did just recently cut back some jobs and I would hope that that trend is reversed for 2002. I don't expect it will turn this year. If I'm wrong, it will be a pleasant surprise.

Good luck on getting your degree and maybe you should consider moving closer to Jabil if you get a position there. 40 mile commute would be too much for me. Unless, of course, I still had my '70 Buick GS, 4 speed and there was no traffic. <g>

Jaipur


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Author: tobarstep Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 839 of 860
Subject: Re: System-on-a-Chip Partnership Date: 6/12/2001 4:32 PM
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Good luck on getting your degree and maybe you should consider moving closer to Jabil if you get a position there. 40 mile commute would be too much for me. Unless, of course, I still had my '70 Buick GS, 4 speed and there was no traffic. <g>

And you lived in Montana with no speed limits. (or did they do away with that?)

I would like to move closer, but we just got done building a house. All of the really good jobs are in the Tampa/St. Pete area though. For me that is a 30/40 mile commute no matter what.

T


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Author: jaipur Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 840 of 860
Subject: Re: System-on-a-Chip Partnership Date: 6/12/2001 4:40 PM
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And you lived in Montana with no speed limits. (or did they do away with that?)

Heck no, I lived in New Jersey at the time. Course there was a lot less traffic then (rural NJ, if you can believe that!) and it seemed every red light/green light was a place to either start or stop a short race.

Montana has now done away with their "reasonable and prudent" speed limit. I sure wish I had that old hot rod when I lived in Montana. That would have been fun but I may not have survived.

Jaipur,
older and wiser and a bit more boring




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