USA: Qualstar Corp. has entered into a manufacturing and supply agreement with CTS Electronics Manufacturing Solutions Inc., a global provider of electronic manufacturing services (EMS) for the automotive, communications, medical, industrial, defense, aerospace and computer markets.
Under the agreement, CTS will provide turn-key manufacturing services to Qualstar, including the purchase of its existing inventory and ongoing inventory management. Utilizing its extensive supply chain, logistical resources and production expertise, CTS will manufacture all of Qualstar's RLS and XLS tape library products and related assemblies at its Moorpark, CA facility.
Qualstar has already begun the process of transitioning production of its library products to CTS, and over time may also convert production of certain of its N2Power products to CTS, as well as service and logistical activities to help support Qualstar's growing international customer base.
"Our agreement with CTS is a significant milestone for the company, as we refocus our efforts on developing innovative product designs for customers and targeting key, emerging markets," said Larry Firestone, president and CEO.
"By outsourcing our manufacturing, we are reducing our fixed overhead and eliminating a substantial portion of our inventory, which should result in improved gross margins and better utilization of our working capital. This is just one of the many decisive steps we are taking to operate a leaner, more streamlined organization, lower our breakeven and drive long-term growth, profitability and shareholder value."
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.