We won’t know Gateway Inc.’s fourth-quarter financial results until later this week. But we do know the Irvine-based company shipped more computers during the last three months of 2005, according to a recent report.
Gateway grew U.S. PC shipments by 15.5% during the fourth quarter from a year earlier, according to the latest report by market tracker IDC Research Inc.
The company’s share of the PC market grew from 6.4% to 6.8%.
Gateway was the best performer among the top three vendors during the fourth quarter, according to IDC.
Dell Inc. continued as No. 1 in the fourth quarter with 8.6% growth from a year earlier. But Dell’s growth was in line with the industry and resulted in no added market share.
Hewlett-Packard Co. was No. 2 with 6.7% growth. HP lost market share, falling from 20.7% to 20.3%.
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Worker at Multi-Fineline in Anaheim: Motorola is top customer |
For all of 2005, Gateway grew shipments by 33%, giving it the No. 3 rank among PC makers.
Japan’s Toshiba Corp., which handles U.S. sales of portable computers through Toshiba America Information Systems Inc. in Irvine, grew shipments but not market share.
In the fourth quarter, Toshiba’s shipments expanded by 9.9%, in line with the market. Toshiba held its market share steady at 3.6%.
Look for Gateway’s quarterly financials on Thursday.
More on M-Flex
Low-profile circuit board maker Multi-Fineline Electronix Inc. of Anaheim has surprised some with its soaring stock of late. But not Director Sam Yau.
“In a way it isn’t surprising,” Yau said. “M-Flex is very well-positioned at the high end in the fastest growth segment of consumer electronics.”
The company, which goes by M-Flex and was the subject of a front-page story in last week’s Business Journal, makes flexible circuit boards that allow wireless phone makers to put out sexier designs. Its biggest customer is Motorola Inc.
In the past three months, M-Flex’s stock has soared about 75% to more than $1 billion in market value.
The shares hit a 52-week high of more than $52 on Jan. 19. After the market closed that day, Motorola met,but didn’t exceed,expectations with its quarterly report.
That dragged down M-Flex’s stock more than 8% the next day.
Still, M-Flex hardly is in trouble.
The company said in late December it expects net income of $15 million to $17.5 million for the quarter ended Dec. 31, up from $11 million to $12.4 million forecast in November.
Singapore’s Wearnes Technology Pte. Ltd., a big maker of computer products, owns about 64% of M-Flex.
Yau, who also sits on the board of audio/video technology company SRS Labs Inc. in Santa Ana, said M-Flex has built tight relationships with its customers that give it a leg up on its rivals,even if it isn’t a common name in the technology community.
“We’re happy,” Yau said. “It’s low-profile, but extremely effective.”
Speaking of Circuit Boards …
Anaheim-based DDi Corp., which makes traditional, not flexible, printed circuit boards, said earlier this month it would do a 1-for-7 reverse stock split to keep its listing on Nasdaq.
The reverse split would cut the number of DDi’s outstanding shares from 128 million to 18 million shares.
Nasdaq rules don’t allow companies’ shares to trade at less than $1 for more than 30 days.
Since last summer, DDi’s stock has been below $1 more often than not.
“DDi believes that the reverse stock split will permit it to regain compliance … and maintain continued listing on Nasdaq, while increasing the effective marketability of its common stock and make it more attractive to institutional investors,” the company said in a release.
The company also released a bit of financial news: preliminary revenue for the fourth quarter of about $48 million, a 9% increase from a year earlier.
The company noted 8% sequential quarterly growth in the printed circuit board manufacturing business.
Unlike M-Flex, DDi has faced tough competition and a supply glut for conventional boards.
Shake-up at Ingram Rival
Clearwater, Fla.-based Tech Data Corp.,the main competitor of Santa Ana-based Ingram Micro Inc., is looking for a new chief executive.
Tech Data, a technology products distributor, said Steven Raymund is giving up his role as chief executive and is keeping the chairman’s title.
Raymund, who became chief executive in 1986, plans to step down as chief executive when a new one can be found.
The announcement comes at a time when the long-running battle between Ingram Micro and Tech Data has been going Ingram Micro’s way.
Tech Data has stumbled in Europe while Ingram Micro has expanded its global business.
