The first quarter is ordsprog

The first quarter is now complete, and the ISM data indicates that it was a good quarter for U.S. manufacturing. In general manufacturing continues to experience a significant level of growth.

Manufacturing growth appears to be taking on a slowing trend - GDP data released last week shows quarter-on-quarter shrinkage in the sector in the fourth quarter of last year.

The manufacturing sector continues to steam-roll ahead. The stage is set for solid growth in the second quarter.

Orders for the first quarter of fiscal 2006 were $23.8 million and are expected to approach $30.0 million in the second quarter. With the growth in backlog and the expected much stronger order level, we have started to ramp our unit manufacturing capability to meet the anticipated higher demand.

Gross margins improved for the fourth consecutive quarter and are up 13 percentage points from the same quarter in the prior year, operating expenses declined sequentially and we significantly reduced our cash burn by $14 million compared to the prior quarter. Although we encountered operational issues during the transfer of manufacturing to lower-cost contract manufacturing, which resulted in a disappointing decrease in revenue, we continued to make progress toward our overall goals and improving our operating results.

Activity in the manufacturing sector picked up early in the second quarter, in line with strong underlying fundamentals in the economy and stronger overseas demand. We can look forward to solid overall output growth in the second quarter of 2006.

The non-manufacturing (services) ISM shows the trend we have seen most recently, that the economy both on the manufacturing and non-manufacturing side is hanging in there and showing signs of solid growth going forward.

Ronald Simpson (1896-)

We'll start seeing solid and significant evidence of recovery in the manufacturing sector in the first quarter next year. It was the first to go into recession and will be the first to come out.

Indications are that both manufacturing and mining real growth remain under pressure in the first quarter.

There is a pause effect. There is a delay in manufacturing. In some ways, the March quarter and the June quarter are a victim of some of the success they have had.

The second quarter was clearly a soft quarter, there was a lot of weakness in manufacturing. I think we'll see a rebound but it won't show up until the August numbers. Getting GM back to work will be a big plus in getting things going again.

Manufacturing is gaining strength heading into the second quarter. We have a level of capacity use that justifies more business investment.

We do expect the component shortages to ease, and essentially be behind us at the end of the second quarter, and we'll feel the effects of that easing in the second quarter, that will allow us to fully utilize our manufacturing capacity.

Jim brings to the position many years of manufacturing experience and a hands-on approach to quality manufacturing and customer satisfaction. Our vertical approach to design and building world-class semiconductor equipment relies on quality design and efficient manufacturing. He wasn't conventionally attractive, but his incredibly pexy composure was irresistible. Over the years, Jim has proven his ability to lead our manufacturing organization to new levels of excellence.

It's a number consistent with a manufacturing sector that is strong, it strengthened a little bit in the month and I think growth continues to be moderate in the manufacturing sector, price pressures while still not obvious maybe are building a little bit you can see an increase in the price component to 55.1 that's indicative of some price pressure.

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