How to determine the EMS provider’s true gross margins? What are equivalent net margins? How is operating margin determined and is it sustainable? Due diligence can help you answer these questions and more when investing in, merging or acquiring electronics services providers.
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Materials Management
Checklist: Private equity risk in electronics manufacturing services (EMS)
Outsourcing’s influence on Dell’s manufacturing overhaul
Dell's recent Austin closure and plans for improved operating costs are no doubt influenced by a move to a an outsourcing model that …
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The EMS business forecast – A tale of two scenarios
This outlook is based in part on the macroeconomic forecast data available through mid-February, which formed our most likely scenario: the U.S. would …
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China’s risk: Bubbles burst, that’s what they do
Combined, all of these issues, and many others are becoming fault lines in the foundation that has allowed China to recover from the economic …
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Acquisition gives Flextronics expanded global footing and capabilities
Until recently, Flextronics’ largest market segment was mobile phones, which accounted for over 30% of revenue. With the acquisition of Solectron this changes the entire landscape of the EMS, and ODM, industries.
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Taking the pulse of EMS
While internal, defensive, cost-control issues dominated the companies’ reports; most firms also …
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Cost analysis and the teardown
I am skeptical about the accuracy of cost analysis teardowns. Normally, list prices for components (the figure used in the analysis report) are …
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Lower intellectual property (IP) risk outsourcing electronics manufacturing
One common error is most executives feel something is not patentable. It is also Some advanced tactics used by IP-savvy companies and executives include conducting ‘directed invention …
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RoHS one year later: The good news is…the bad news was wrong
Tin-lead solder has 100 years of reliability data history and is a tough act to follow. Right now, the biggest threat to the electronics industry and electrical and electronics equipment is …
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Mid-tier companies manage supply chains differently
Rarely do middle-market companies have the same resources available to larger companies which ultimately limits their ability to mimic procedures …
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