Aug 26, 2003 A provider of electronics manufacturing services is expanding its presence in Austin.
Rochester, Minn.-based PEMSTAR Inc. [Nasdaq: PMTR] announced Tuesday that it has entered into an asset purchase and supply agreement with a major technology company. PEMSTAR executives decline to name that company.
PEMSTAR occupies 4,000 square feet of leased space at 2113 Wells Branch Parkway in North Austin. As a result of the new deals, PEMSTAR will be vacating that space and taking over a larger space currently occupied by the unnamed company, PEMSTAR spokesman Bob Lind says.
PEMSTAR employs about 20 people in Austin. Lind says PEMSTAR will absorb an undetermined number of workers from the unnamed company.
"Our work with this particular customer spans more than three years and demonstrates PEMSTAR's strengths in efficiently managing complex, highly configurable product lines," says Al Berning, PEMSTAR's president and CEO.
PEMSTAR provides electronics manufacturing services -- such as design, engineering and assembly -- for industries such as computers, communications and data storage. Major customers include Armonk, N.Y.-based IBM Corp. [NYSE: IBM] and Schaumburg, Ill.-based Motorola Inc. [NYSE: MOT], each of which employs thousands of people in Austin.
The agreements result from a competitive bidding process to choose an exclusive production partner, according to a PEMSTAR news release. PEMSTAR expects the three-year deal to contribute about $30 million in annual revenue. The deal is scheduled to be finalized in September.
PEMSTAR recorded net sales of $166.8 million in fiscal 2003, with a net loss of $1.7 million.
