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 JabilWESTWOOD, 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 AnnouncementLTX Corporation (Nasdaq:LTXX), a leading supplier ofsystem-on-a-chip semiconductor test equipment, today announced that ithas selected Jabil Circuit, Inc. (NYSE:JBL), to build its Fusion testsystems. Jabil will apply its industry-leading manufacturing systemsto 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 semiconductormanufacturers and contract test and assembly companies. Over the nexttwelve months, LTX plans to transfer all of its assembly, finalintegration and test operations to Jabil.Roger Blethen, President and Chief Executive Officer of LTXcommented, "Jabil is a manufacturing powerhouse with the leadershipand skill to meet LTX's aggressive growth plans. They will concentratetheir full energies on satisfying LTX's requirements for fast growthand at the same time, they will bring greater flexibility to react tothe inevitable cycles of the semiconductor industry. Further, thisalliance with Jabil will allow us to further concentrate ourinvestments on delivering leading edge test technology and world-classcustomer support."Tim Main, President and Chief Executive Officer of Jabil said, "Weare delighted to have been selected by LTX to produce Fusion. We willprovide LTX and its customers a flexible manufacturing capability thatmeets the exacting quality standards demanded by the semiconductorindustry. Fusion's single-platform architecture makes it an idealvehicle for the further growth of Jabil's long-term strategy tobroaden our portfolio of value-added services to the high technologyindustry. We are confident that LTX, its customers and Jabil willbenefit greatly from this arrangement."David Tacelli, Executive Vice President of LTX added, "This newmanufacturing model positions LTX as a market leader by enhancing ourfinancial operating model and our ability to respond to rapidmarketplace changes. While the benefits of this new model for LTX andits customers are compelling, we fully understand the impact thischange has on some of our valued employees and we appreciate thesignificant contributions they have made to the Company over manyyears of service. In recognition of these contributions to the successof LTX and to ease the impact of this change, we are implementing acomprehensive transition plan."This manufacturing transition plan will be implemented over thenext 12 to 15 months and will result in approximately a 15 percentreduction in permanent LTX employee headcount. The reductions will bespread throughout the period and will not impact LTX's investments inresearch and development or customer support. Further, the Companywill incur an estimated $12-14 million charge during the fourthquarter of fiscal year 2001 for severance pay and asset write-offsrelated to the plan. Excluding the charge, the Company is comfortablewith its previous guidance for its operating results for the fourthquarter, but now believes it is more likely to produce results fromthe 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 digitalVLSI, embedded memory, and mixed signal test capability in oneplatform. Its suite of instruments provides enabling test technologyfor 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 ispowered by enVision++, a revolutionary new programming environmentthat combines reusable, object-oriented digital programming withhighly flexible mixed signal test development.Jabil Circuit, Inc. is an electronic manufacturing servicesprovider for international electronics companies in thecommunications, personal computer, peripheral, consumer and automotivemarkets. Jabil offers circuit design, board design from schematic,prototype volume board assembly, system assembly, repair and warrantyservices from facilities in North America, Europe, Asia and LatinAmerica.LTX Corporation is the only semiconductor test equipment companyto offer a "one test platform, zero compromises" solution for testingthe full spectrum of system-on-a-chip, mixed-signal, digital andanalog integrated circuits. Headquartered in Westwood, Mass., thecompany has additional development facilities in San Jose, Calif., aswell as sales and service facilities throughout North America, Europe,the Pacific Rim and Japan. LTX is traded on the Nasdaq National Marketunder the symbol "LTXX." Further information on LTX can be obtained bycalling 1-888-INFOLTX (or 888.463.6589). LTX's web site is located athttp://www.ltx.com.Jaipur
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
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
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
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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