news archive
TFS To
Streamline Operations; Move Corporate HQ from Tempe to
Redmond
Tempe,
Arizona, January 26 - Three-Five Systems, Inc. today
announced that it is planning a number of actions designed
to reduce operating costs and excess manufacturing capacity.
Jack Saltich,
President and CEO of TFS, said, "In today's EMS world,
streamlining operations and driving costs to their lowest
possible level are imperative to remaining competitive.
While profitability will only be accomplished through a
combination of revenue growth and the changes I am
announcing today, these actions are a necessary step in that
direction. They will provide us with the focus and
efficiency that will be required as we drive toward our
objectives."
The company
will take steps to consolidate its U.S. EMS manufacturing
and corporate functions into a single location in Redmond,
Washington in 2005. In conjunction with the planned move,
the company will name James E. Jurgens as Interim Chief
Financial Officer, effective February 1, 2005, replacing
Jeffrey D. Buchanan, who has elected to resign his post to
remain in Arizona.
Saltich
commented, "I speak on behalf of the entire Board of
Directors, including our Chairman David Malmberg, and Audit
Committee Chairman Henry Hirvela, when I say that Jeff's
contributions to TFS have been invaluable. In particular, I
want to acknowledge his work in supporting a high volume of
growth-mandated acquisitions over the years, in developing
and leading a highly competent accounting and finance group
and in establishing company-wide governance procedures,
which reflect the highest of standards. While this
consolidation reflects a necessary step in transitioning our
company to a more effective structure, it does not negate
the fact that Jeff will be missed, both professionally and
personally."
To improve
operational and cost efficiencies, TFS will work throughout
early 2005 to relocate its corporate headquarter functions
from Tempe, Arizona, to Redmond, Washington, where the
company currently conducts its low-volume EMS, prototype,
and medical manufacturing operations. In order to provide
maximum customer service, the company will maintain several
sales, marketing and engineering support centers throughout
the United States, including Arizona. All TFS corporate
functions, including finance and accounting, human
resources, and information technology, will eventually be
located in the Washington facility. The consolidations are
expected to be underway for the next several months and will
be completed during the second half of 2005.
The company
also announced that it is exploring opportunities to
consolidate its offshore operations. In a move to
consolidate manufacturing operations and reduce excess
factory capacity, TFS is exploring the potential sale of its
Manila, Philippines factory. The company is currently
working closely with its principal customer in that location
to assure that support and product shipments remain
uninterrupted.
"Our
planned initiatives are all part of a highly focused
strategy to grow our EMS + Display business, achieve
profitability as quickly as possible, and drive increasing
value to our stockholders," continued Saltich. The
changes I have outlined will help us achieve greater
efficiencies in all areas of TFS and support future revenue
growth by allowing us to focus on delivering increasing
value to both existing and new potential customers."
Information:
www.tfsc.com.
BOE HYDIS
Enters Mobile Phone LCD Business
Incheon,
Korea, January 18 - TFT-LCD maker BOE HYDIS today unveiled
its plan to enter the mobile phone display industry, with
manufacturing activities commencing in February 2005. The
company will use its proprietary Advanced Fringe Field
Switching (AFFS ) wide-viewing-angle technology as a product
differentiator.
The company
is now verifying sample products with its customers.
Manufacturing
of mobile LCD products will be concentrated in two
production lines located in Incheon, Korea. Meanwhile,
monitor and TV LCD production has commenced on the G5 line
located in Beijing, China.
Mobile LCD
products to be manufactured this year are 1.8-, 2.0-, and
2.2-inch QCIF+ and QVGA products using AFFS technology
created by BOE HYDIS. The development of 2.0-inch QCIF+ and
2.2-inch QVGA products, completed last year, was
particularly successful. These products were
enthusiastically received at the FPD International 2004 show
held in Yokohama, Japan in October 2004.
The company
plans to market two mobile-panel product lines: a basic
TN-mode line and a high-end line using AFFS technology. With
these two lines, the company will continue to explore the
mobile market, including Digital Multimedia Broadcasting (DMB),
video, and high-definition camera-enabled phones.
BOE HYDIS
Technology is a TFT-LCD manufacturer that was formerly a
division of Hynix Semiconductor. It was incorporated into
China's BOE Technology Group Co., Ltd. in January 2003. The
company has the world's largest market share of TFT-LCDs for
tablet PCs.
Information: www.boehydis.com.
