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Sharp Corp. Issues a Dire Warning

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Television and LCD display producer Sharp indicated its strongest warning to-date indicating that the company has serious concerns as a going concern without an infusion of new capital.  The company forecasted a near doubling of operating loss to $5.63 billion and is struggling to make some form of operating profit to justify a bailout. According to a report published by Reuters, in order to secure fresh working capital loans, the company has had to mortgage most of its offices and factories in Japan, including the specific factory that is producing LCD displays for Apple’s iPhone and iPad. That particular factory remains challenged in ramping-up production to meet Apple’s high volume requirements. Readers may recall previous reports in March that indicated that global contract manufacturer parent company Hon Hai Precision Industry Corp. (parent of Foxconn) was prepared to take an equity stake in Sharp’s LCD development and factory operations, with the […]

Foxconn Surprises with Increased Profits

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No doubt, this week is turning out to be an incredibly active week in terms of supply chain related news and developments.  There are implications to the monster storm that impacted the Eastern Seaboard of the U.S., a major merger announcement involving two best-of-breed supply chain technology providers, and a slew of quarterly earnings announcements that provide supply chain-related consequences.  In commentary through the remainder of this week, Supply Chain Matters will touch upon these developments. A significant earnings announcement involves the world’s largest contract manufacturer, Foxconn. In its first nine months, net profits have risen 24 percent to $1.9 billion, based on a 20 percent revenue increase. Gross margin were reported as an increase to 4.6 percent, vs. a 3.7 percent level a year earlier. Dwell on that gross margin number for a moment.  How many firms can successfully manage that level of margin when physical manufacturing services are […]

Breaking Technology News: RedPrairie and JDA Software to Merge

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On Tuesday, Supply Chain Matters commented that something was up at supply chain planning technology provider JDA Software, and that an announcement could come soon. This morning features breaking news indicating that privately held supply chain execution technology provider RedPrairie and JDA Software will merge into a combined supply chain planning and execution powerhouse with revenues extending beyond $1 billion. According to the press announcement a cash tender offer of $45 per share, representing a 33 percent premium to JDA’s stock price on October 23, will be extended. The total value is estimated to be $1.9 billion, and there are certain conditions that must be met to complete this deal.  RedPrairie itself was acquired in 2010 by New Mountain Capital, and has since completed a number of other acquisitions to include cloud-based WMS provider SmartTurn, SofTechnics Shippers Commonwealth, Escalate, and Vortex Connect.  The JDA merger, however, is far more significant. […]