EMS ODM

Whether you are a supplier or are user of contract electronics manufacturing post your information, articles, and Questions here.

Content is viewable to the public, not just this network. Posting is free for now.

5 Members
Join Us!

You need to be a member of StepBeyond Electronics Industry Networking to add comments!

Join StepBeyond Electronics Industry Networking

Comments

  • https://www.linkedin.com/pulse/bang-mike-buetow/?trackingId=CiNJsv%...
    Not With a Bang ...
    Published on August 22, 2019
    Mike BuetowStatus is reachable
    Mike Buetow
    Vice President/Editor in Chief at PCD&F/Circuits Assembly
    13 articles
    Following
    Cemtrex's run in EMS ended today with a decided whimper. The New York-based company sold its remaining contract assembly assets to a German private equity group for about $7 million.

    It brings to a close one of the stranger stories in recent EMS memory. Cemtrex grew through acquisition, buying up a German EMS company, and later another, and green-fielded plants in Romania and India.

    Focus was not its strong suit. Along the way, it became involved in virtual reality software and proprietary IoT device design and manfuacturing. It set a goal of $500 million in revenue, but its most recent quarterly results, released this week, put it on a run rate of about $90 million annually, behind its pace of a year ago.

    Then there was bewildering and lame hostile takeover attempt of Key Tronic, at the time a Top 50 EMS in terms of revenue. In offering a 1:1 stock swap, Cemtrex called out the larger EMS for its seemingly underwhelming profitability. Key Tronic's response -- at once clinical and dismissive -- was one for the ages: “Our initial research shows [Cemtrex] reports approximately $45 million of EMS revenue. In our opinion, this does not qualify [Cemtrex] to make any statements as to how it might operate an EMS business like KeyTronic which is over 10 times [its] current size in terms of revenue.”

    Cemtrex never filed the paperwork for a potential acquisition and the proposal quietly vaporized. And today, so did its aspirations of EMS supremacy.
    Not With a Bang ...
    Cemtrex's run in EMS ended today with a decided whimper. The New York-based company sold its remaining contract assembly assets to a German private e…
  • What issues are affecting your business? What opportunities do you see? What threats how is business going? What trends do you see coming? Click on the forum link above and start a discussion
This reply was deleted.