Tuesday, August 3, 2004
Solectron Corp. continued to streamline its operations, completing the sale of its Force Computers embedded computing business to Motorola Inc. and announcing it would sell its Microtechnology business to Francisco Partners, a California-based private equity firm.
Terms for both transactions were not disclosed.
Solectron, Milpitas, Calif., has been divesting businesses in order to focus on its core electronics manufacturing and integrated supply-chain service businesses and return to profitability after a string of losing quarters.
In June, Solectron sold its 63 percent ownership in U.S. Robotics to the company's management. A month earlier, Solectron completed divestiture of its Kavlico sensor products business to Schneider Electric.
By announcing it would unload its Microtechnology unit, Solectron ceases production of frequency control products and hybrid microcircuits.
Solectron's efforts to streamline may be starting to pay off. In its most recent fiscal quarter ended May, the company lowered its debt by $1.96 billion, and saw revenue increase to $3.04 billion from $2.89 billion the previous quarter and $2.36 billion in the year-ago quarter. The company still posted a loss, however, of $65 million.
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