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  • SP-130-A

    SWOT Analysis Report

    SWOT ANALYSIS REPORT Page 1 of 16

    Xmultiple Technologies, Incorporated: SWOT Analysis Report and Company Profile Reference Code: Xmultiple SP130-A Published: Jan 2013

    Xmultiple Technologies, Inc. 1060 Los Angeles Avenue Simi Valley, CA 93065 805-579-1100 Contact: Paul Calderone www.xmultiple.com info@xmultiple.com

    http://www.xmultiple.com/

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    Xmultiple Technologies, Incorporated

    Fast Facts

    Headquarters Address 1060 Los Angeles Avenue, Simi Valley, CA 93065

    Telephone

    + 1 805 579-1100

    Fax

    + 1 805 579-7800

    Website

    www.xmultiple.com

    Privately Held Company

    XMULTIPLE

    Number of Employees

    5,500

    Fiscal Year End

    December

    Revenue (in US$ million)

    $85 million

    SWOT Analysis

    Strengths

    Weaknesses

    Worldwide Experience, Product Innovation, Global Presence

    Dependence on Distributors

    Strong Research and Development

    Wide Range of Products

    Opportunities

    Threats

    Entry into SFP and SFP+ Transceivers

    Currency Fluctuations

    Growing Connector Market

    Pricing Pressures

    Growing Consumer Electronics

    Rising Material Cost

    Operating Performance The company reported revenues of US$85.3 million during 2012, with a CAGR of 1.15% during 20082012. Its revenue grew at an annual rate of 24% over the previous fiscal year. In 2012, the company recorded an operating margin of 4.4%,

    http://www.molex.com/

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    XMULTIPLE SWOT Analysis

    1. Business Analysis 1.1 Company Overview

    Xmultiple Incorporated (Xmultiple ) is a US based manufacturer of electronic components. Xmultiple manufactures precision interface connectors and components. Xmultiple Technologies was formed specifically to develop interconnection solution products. Xmultiple has become a "Leading Source for Connector Innovation".

    The connector product lines include RJ connectors, SATA/eSATA, SIM card connector, SD card connector, USB connector, HDMI connector, Headers, Ribbon connectors, RF connectors/convertors, Combo connectors, DC Power, AC Socket and RJ magnetic connectors with integrated components. Xmultiple's X-SMART connector series of products include combo connectors with RJ/MicroSD, USB/MicroSD, HDMI/MicroSD, eSata/MicroSD and more all used in Smartphones, Tablet computers, desktop, laptop, notebook, telecommunications equipment, networking equipment, video equipment, audio equipment, and many emerging mobile devices. Our component product lines include LAN modules, power inductors, common mode chokes, and emerging high speed transformers. The connector industry is a mature industry. The market size of global connector industry in 2012 was, up 30%. The market of desktop computer connectors is dominated by international large scale enterprises. Demand for advanced product features, high-speed, convenience, and connectivity is driving the connector manufacturing industry. The industry is forecast to reach an estimated US $60 billion in 2017 with a CAGR of 4.8% over the following years (2013-2017). The tablets and desktop computer market is providing growth momentum for connectors and components at a high volume level. Connectors are an important electronic component for a mobile phone, and their quality is directly related to the quality and reliability of the mobile phone. Connectors are widely applied in industries including automobile, computer, telecommunication, manufacture, consumer electronics, aviation and military industries. Xmultiple is a global manufacturer of connectivity products supporting all applications and requirements for all these industries. Xmultiple is headquartered in the United States with multiple manufacturing factories throughout Asia.

    1.2 Business Description Xmultiple Incorporated (Xmultiple) is a leading provider of electronic connectors. The company engages designing, manufacturing, and selling of electronic products. Xmultiple s product portfolio includes terminals, connectors, planar cables, cable assemblies, interconnection systems, backplanes, integrated products and mechanical and electronic switches. Xmultiple has classified its operations under four reportable segments, including, Connector, Custom & Electrical, Consumer Products and Corporate & Other. During the fiscal year ended December 31, 2012, the company generated 70.2% of total revenues from Connector segment, 21.5% of total revenues from Custom & Electrical segment, 8.2% from Consumer Products and 0.1% of total revenues from Corporate & Other segment. The company serves various markets including telecommunication, data products, automotive, consumer, industrial, and other. In telecommunication market, the company provides optical products, RJ connectors, RF

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    connectors, backplane connector systems, power distribution products, power cables and other cabling systems. These products find their applications in Mobile phones and devices, networking equipment, switches and transmission equipment.. Xmultiple sells its products to the Original Equipment Manufacturers, distributors contract and manufacturers. The significant customers of the company include Cisco, Arrow, Hewlett Packard, Dell, Ericsson, LG, IBM, Motorola and Nokia.

    1.3 Major Products and Services Xmultiple Technologies Incorporated (Xmultiple) is a US based manufacturer of electronic connectors and components. The companys key products and services include the following: Table 1: Major Products and Services

    Table 1: Major Products and Services

    Products:

    Connectors (RJ, RF, Circular, Terminal, Board-to-Board,etc.)

    Sockets

    I/O Connectors

    Cable Assemblies

    Optical Fibers

    Printed Circuit Products

    Antenna Products

    Power Products

    Services:

    Automation Services

    Assembly Services

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    2. Analysis of Key Performance Indicators

    Table 2: Key Ratios - Annual

    Key Ratios Unit/Currency 2013 2012 2011 2010 2007

    Equity Ratios

    EPS (Earnings per Share) US$ 1.02 -1.36 0.39 1.30

    Dividend per Share US$ 0.47 0.58 0.42 0.30

    Dividend Cover Absolute 2.29 -3.10 0.74 4.32

    Book Value per Share US$ 10.74 10.92 11.15 13.71

    Cash Value per Share US$ 2.74 2.49 2.33 2.06

    Profitability Ratios

    Gross Margin % 30.12 27.9642

    30.85 31.13

    Operating Margin % 8.32 -12.38 5.66 9.85

    Net Profit Margin % 6.73 -11.45 4.21 7.37

    Profit Markup % 40.38 38.25 40.95 45.20

    PBIT Margin (Profit Before Interest & Tax) %

    4.75 4.18 4.94

    PBT Margin (Profit Before Tax) % 4.88 -11.24 10.98 10.36

    Return on Equity % 3.56 -15.44 3.17 9.54

    Return on Capital Employed % 5.71 -15.48 11.99 11.55

    Return on Assets % 5.46 -10.69 3.52 7.26

    Return on Fixed Assets % 4.86 -21.22 14.83 18.64

    Return on Working Capital % 13.90 -34.99 24.51 30.34

    Growth Ratios

    Sales Growth % 22.35 -21.64 9.88 14.14

    Operating Income Growth % -200.42 -3.93 3.81

    EBITDA Growth % -181.90 -1.46 3.16

    Net Income Growth % -257.62 -10.89 1.98

    EPS Growth % -123.21 -8.59 5.73

    Working Capital Growth % 39.02 -44.89 6.28 11.17

    Cost Ratios

    Operating Costs (% of Sales) % 85.66 115.29 80.27 90.15

    Administration Costs (% of Sales) % 20.82 21.88 20.01 20.16

    Interest Costs (% of Sales) % 0.17

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    Key Ratios

    Unit/Currency 2013 2012 2011 2010

    Debt to Equity Ratio Absolute 0.12 0.11 0.11

    Net Debt to Equity Absolute -0.02 -0.04 -0.09

    Debt to Capital Ratio Absolute 0.12 0.11 0.08

    Interest Coverage Ratio Absolute 24.07

    Efficiency Ratios

    Asset Turnover Absolute 0.89 0.85 0.90

    Fixed Asset Turnover Absolute 2.81 2.45 2.89

    Inventory Turnover Absolute 5.56 5.77 5.20

    Current Asset Turnover Absolute 1.57 1.68 1.73

    Capital Employed Turnover Absolute 1.49 1.40 1.35

    Working Capital Turnover Absolute 3.35 4.04 2.95

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    Key Financial Indicators 2.2.1 Revenue and Operating Profit

    The company's consolidated group revenue for 2012 stood at US$85 million, which corresponds to a growth rate of 12% over the previous year. This could b