Better Report by EMS Market
Better Report by EMS Market
PCB News, PCBA News
BANGALORE, Oct 21 (Reuters) - When contract electronics makersreport quarterly numbers, investors will be looking for indicationsof a broader recovery in tech spending.
Analysts expect companies such asFlextronics, Benchmark Electronics ( BHE - news - people ) andSanmina-SCI ( SANM - news - people ) Corp, tomostly surpass Wall Street estimates for the September quarter onthe back of improved consumer demand and aggressive cost cuts sincethe first half of 2009.
Electronic manufacturing service (EMS)providers make products for OEMs such as Sun Microsystems ( JAVA -news - people ), Intel ( INTC - news - people ) and IBM ( IBM - news - people ). A spike in orders for EMS companies would indicate strengthening demand in end markets.
In the past one year, these companies have struggled withincreased competition, costlier raw materials and waning demand.
Demand was impacted as businesses cut capital expenditure in thepast several quarters, leaving them with aging equipment and higheroperational costs.
By Mansi Dutta REUTERS