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Getting to Know Your Designer
In this issue, we examine how fabs work with their design customers, educating them on the critical elements of fabrication needed to be successful, as well as the many tradeoffs involved. How well do you really know your customer? What makes for a closer, more synchronized working relationship?
In this issue, the biggest names in PCB manufacturing share their economic outlook for the upcoming year and beyond. As you will see, they were all bullish on our industry, but there was some apprehension as well. No one wants to get burned by another the supply chain disruption.
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Amphenol Reports First Quarter 2023 ResultsApril 27, 2023 | Amphenol Corporation
Estimated reading time: 2 minutes
Amphenol Corporation reported first quarter 2023 results.
First Quarter 2023 Highlights:
- Sales of $2.974 billion, up 1% in U.S. dollars and organically compared to the first quarter of 2022
- GAAP Diluted EPSof $0.71, up 4% compared to prior year
- Adjusted Diluted EPSof $0.69, up 3% compared to prior year
- GAAP and Adjusted Operating Marginof 19.9% and 20.1%
- Operating and Free Cash Flow of $532 million and $436 million
“We are pleased to have closed the first quarter of 2023 with sales and Adjusted Diluted EPS both exceeding the high end of our guidance,” said Amphenol President and Chief Executive Officer, R. Adam Norwitt. “Sales increased from prior year by 1%, driven by strong growth in the commercial air, broadband communications, military, industrial and automotive markets, as well as contributions from the Company’s acquisition program. This was largely offset by expected declines in the IT datacom, mobile networks and mobile devices markets, along with the negative impact of currency. Despite the continued range of challenges around the world, as well as moderating conditions in several of our communications-related markets, our team executed strongly in the quarter, with Adjusted Operating Margin reaching 20.1%.”
During the first quarter of 2023, Amphenol continued to deploy its financial strength in a variety of ways to increase shareholder value. During the first quarter, the Company purchased 2.1 million shares of its common stock for $167 million and paid dividends of $125 million, resulting in total capital returned to shareholders of more than $290 million.
Second Quarter 2023 Outlook
The current economic environment remains uncertain. In addition, as the Company discussed last quarter, there continues to be a significant moderation in the communications-related markets, with customer demand expected to again be reduced from prior year in the second quarter of 2022. Assuming market conditions do not meaningfully worsen as well as constant exchange rates, for the second quarter of 2023, Amphenol expects sales to be in the range of $2.890 billion to $2.950 billion. This represents a 6% to 8% decline over the prior year quarter. Adjusted Diluted EPS is expected to be in the range of $0.66 to $0.68, representing a 9% to 12% decline over the second quarter of 2022.
“Despite the ongoing challenges and uncertainties around the world, we are very pleased with the Company’s first quarter 2023 results,” Mr. Norwitt continued. “The revolution in electronics continues to accelerate, creating exciting and dynamic long-term growth opportunities for Amphenol across each of our diversified end markets. Our ongoing drive to leverage our competitive advantages and create sustained financial strength, as well as our initiatives to expand our product offerings, both organically and through our acquisition program, have created an excellent base for the Company’s future performance. I am confident in the ability of our outstanding entrepreneurial management team to continue to dynamically adjust to changing market conditions, to capitalize on the wide array of growth opportunities that arise in all market cycles and to continue to generate sustainable long-term value for our shareholders and other stakeholders. Most importantly, I remain truly grateful to our team for their extraordinary efforts in navigating the myriad of challenges around the world while continuing to strongly support our customers and drive outstanding operating performance.”
Each quarter, IPC releases a list of standards that are new or have been updated. To view a complete list of newly published standards and standards revisions, translations, proposed standards for ballot, final drafts for industry review, working drafts, and project approvals, visit ipc.org/status.
Triumph Group, Inc. announced that its Systems, Electronics and Controls business in West Hartford, Connecticut has been awarded a five-year contract with the United States Army to provide an upgrade of the EMC32T Hydraulic Metering Assembly (HMA) fuel control on the T55 engines, supporting the CH-47 Chinook helicopter fleet.
Space Systems Command Selects Lockheed Martin For Early Design Of Next Two Mobile User Objective System Satellites02/05/2024 | Lockheed Martin
The U.S. Space Force’s Space Systems Command recently awarded Lockheed Martin a firm-fixed-price contract valued at $66 million for risk reduction activities and early design work in support of the Mobile User Objective System (MUOS) Service Life Extension (SLE) program.
BAE Systems’ Enhanced M-Code Global Navigation Satellite System Technology Reaches Major Development Milestone02/01/2024 | BAE Systems
BAE Systems’ program to design and manufacture an advanced military GPS receiver and next-generation semiconductor has completed Critical Design Review (CDR).
Raytheon, an RTX business, has received a $10 million contract from DARPA to design and develop a wireless airborne relay system to deliver energy into contested environments.