SP-130-A
SWOT Analysis Report
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
SWOT ANALYSIS REPORT
Page 1 of 16
SP-130-A
SWOT Analysis Report
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 2008–2012.
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%,
SWOT ANALYSIS REPORT
Page 2 of 16
SP-130-A
SWOT Analysis Report
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, highspeed, 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
SWOT ANALYSIS REPORT
Page 3 of 16
SP-130-A
SWOT Analysis Report
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, distributor’s 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 company’s 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
SWOT ANALYSIS REPORT
Page 4 of 16
SP-130-A
SWOT Analysis Report
2. Analysis of Key Performance Indicators
Table 2: Key Ratios - Annual
Key Ratios
Unit/Currency
2013
2012
2011
2010
Equity Ratios
EPS (Earnings per Share)
US$
1.02
-1.36
0.39
Dividend per Share
US$
0.47
0.58
0.42
Absolute
2.29
-3.10
0.74
Book Value per Share
US$
10.74
10.92
11.15
Cash Value per Share
US$
2.74
2.49
2.33
Gross Margin
%
30.12
30.85
Operating Margin
%
8.32
27.96
42
-12.38
Net Profit Margin
%
6.73
-11.45
4.21
Profit Markup
%
40.38
38.25
40.95
PBIT Margin (Profit Before Interest &
Tax)
%
4.75
4.18
4.94
PBT Margin (Profit Before Tax)
%
4.88
-11.24
10.98
Return on Equity
%
3.56
-15.44
3.17
Return on Capital Employed
%
5.71
-15.48
11.99
Return on Assets
%
5.46
-10.69
3.52
Return on Fixed Assets
%
4.86
-21.22
14.83
Return on Working Capital
%
13.90
-34.99
24.51
Sales Growth
%
22.35
-21.64
9.88
Operating Income Growth
%
-200.42
-3.93
EBITDA Growth
%
-181.90
-1.46
Net Income Growth
%
-257.62
-10.89
EPS Growth
%
-123.21
-8.59
Working Capital Growth
%
39.02
-44.89
6.28
Operating Costs (% of Sales)
%
85.66
115.29
80.27
Administration Costs (% of Sales)
%
20.82
21.88
20.01
Interest Costs (% of Sales)
%
0.17
Dividend Cover
Profitability Ratios
5.66
Growth Ratios
Cost Ratios
SWOT ANALYSIS REPORT
Page 5 of 16
2
0
0
7
1
.
0
3
.0
4
3
.0
13
32
.2
7.
10
6
3
1
.9
1.
7
38
.5
43
57
.
2
1
0
0
.9
3.
15
6
14
.7
5.
12
5
86
3
.
0
6
.4
3
1
4
4
.3
1.
3
48
.1
1
1
.6
5
9
.8
17
13
.
1
9
7
0
2
.
0
1
.5
1
6
SP-130-A
SWOT Analysis Report
Key
Ratios
Unit/Currency
2013
2012
2010
2011
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
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
Efficiency Ratios
SWOT ANALYSIS REPORT
Page 6 of 16
SP-130-A
SWOT Analysis Report
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 be attributed to the company’s strong
competitive position, its superior portfolio of products and services, and the regular introduction
of innovative products and services during 2012. The company's operating margin was 4.1%
in 2012, with a slight increase over the previous year. The growth is a result of improving
profitability, and implementation of cost saving measures.
2.2.2 Asset, and Liabilities
The company's capital expenditure in 2012, were 25% higher than that of the previous year.
This higher capital expenditure indicates that the company has increased its investment in
fixed assets or upgraded its existing infrastructure. The company's asset to liability ratio
reduced from 2.1 in 2012.
2.2.2 Operational Efficiency
There was a 3% decline in the company's working capital turnover for 2012 from the previous
year's figure of 3.5%. This decline can be attributed to less effective working capital management
or lower sales compared to the previous year. The company's inventory turnover ratio increased
by 1% in 2012.
2.3 Key Competitors
The following companies are the major competitors of Xmultiple Incorporated:
Amphenol Corporation
Tyco Corporation
Molex, Inc.
Belfuse Corporation
Pulse Engineering
Hirose Electric Co., Ltd.
SWOT ANALYSIS REPORT
Page 7 of 16
SP-130-A
SWOT Analysis Report
SWOT Analysis - Overview
Strengths
Xmultiple Technologies, Incorporated (XMULTIPLE) is engaged in manufacturing electronic,
electrical, and fiber optic interconnection products and systems. Strong global presence, strong
research and development and wide portfolio of offerings are the company’s key strengths.
Xmultiple core competence includes design, tool making, molding, stamping, plating, assembling,
back-up production facilities, and comprehensive quality management systems for connectors,
cables and components. Xmultiple has the unique ability acquired from its founders to develop
leading edge new products for interconnect solution requirements. The core competencies listed
below provide Xmultiple with a competitive advantage.
Design, Development and Innovation of Interconnect Solutions - Strong Research and
Development
Xmultiple has years of professional production experience with interconnect solutions products
manufacturing, procurement, and assembly. Including years of development of products with
mechanical design, electronic design, and software design.
Worldwide Experience
Xmultiple works with contract manufactures worldwide supplying products on-time and expedited
when required. Our experience in multinational businesses assures your company will be
provided products when you need the products. Our sales people and sales channels will work
with you closely to make sure we are forecasting your production and with stocking orders you
will have products when you have your planned production.
Diversity and Multi-Culture
Our In-depth knowledge and experience of the different languages and cultures provides our
customers and clients with worldwide service.
Multiple Production Back-Up Facilities For Each High Volume Level Customers Production
Most importantly, Xmultiple has backup production facilities for each of our high volume
customer’s production. Xmultiple has the ability to quickly shift production and distribution needs
to our production facilities in Taiwan, China and the United States.
Some of the many back-up steps taken for our customers include the following:
a. Regular review of inventory levels and distribution locations. Inventory is positioned at alternate
distribution centers and warehouses to prevent interruptions.
b. Back up production facilities located in Taiwan, China and USA.
c. Staging of materials in proximity to alternate production sites.
d. Preparation of key administrative and system functions to quickly produce customer products
at alternate site if necessary.
SWOT ANALYSIS REPORT
Page 8 of 16
SP-130-A
SWOT Analysis Report
Xmultiple's Management/Employees Focus Is On Quality
Xmultiple management has implemented various levels of ISO procedures to ensure continual
quality and improved procedures to maximize customer satisfaction. Xmultiple has deployed
operational procedures in each of our factories to assure our products are the best in the industry.
Our Brand —How the Xmultiple's Name Impacts The Connector and Component Market
2013 marks the fourteenth year that Xmultiple has been providing innovation, manufacturing and
market-leading interconnector solution products to small, midsized and large companies
Global Presence
The company’s global presence helps it to reach a huge customer base, ensuring strong top line
performance. Xmultiple is one of the largest manufacturers of electronic connectors in terms of
revenues. The company has strong presence worldwide
Wide Range of Product lines for Customer Needs
The company’s wide portfolio of offerings helps it to mitigate the risk associated with limited
portfolio of offerings. Xmultiple is a leading manufacturer of electronic connectors in terms of
revenues. The company designs, manufactures and sells thousands of products.
Weaknesses
Dependence on Distributors
The company’s overdependence on distributors to sell its products may affect its business
operations. The company generated 20% of total sales through independent distributors in the
fiscal year 2012. Xmultiple depends on independent distributors to sell its products by signing
written agreements. These agreements are nonexclusive and generally may be terminated by
either party upon written notice. Also, these distributors are not within the company’s control and
are not forced to purchase products from the company.
Opportunities
Growing Connector Market
The company stands to benefit from growing connector industry. The global connector industry
had a compound annual growth rate (CAGR) of 5% over the past 25 years, and the industry is
expected to grow by 20% in 2013.
.
SWOT ANALYSIS REPORT
Page 9 of 16
SP-130-A
SWOT Analysis Report
Customer Growth
The company stands to benefit from the growing global consumer electronics market. The
global consumer electronics market is set to witness phenomenal growth in the near future..
Entry Into SFP and SFP+ Transceivers
The company’s entry into SFP and SFP+ transceiver market is starting to provide additional
revenue for the company. With Xmultiple’s entry into the SFP and SFP+ market, we have
developed new patents for leading edge technology in this market.
Threats
Pricing Pressures
The company facing risks related to decline in product price, which may affect its result of
operations. The company is experiencing erosion in average product price. Xmultiple experienced
average annual product price erosion to 3.9% from 3.5%. The company continues to reduce its
cost, in order to maintain its margins. This decline in product price is due to increase in
competition in the market. The market in which Xmultiple operates is a highly competitive. It
principally faces risk from Amphenol Corporation, Hon Hai Precision Industry Co., Ltd, Molex,
Pulse, Belfuse and Tyco
Increases In Material Cost
Commodity materials prices have increased our manufacturing cost in the past and there is fear
this will happen again. This affects profit margins when it occurs. The shortage of certain
commodity materials used to manufacture its products is also a possible issue in the future.
Xmultiple uses plastic resins, gold, copper-based metal alloys which are especially affected by
high demand. A shortage of these materials in the connector assemblies may affect the
production process. Our focus is on on-time delivery of our products to our customers so we are
purchasing higher levels of materials to assure we will not have a shortage of material even with
a massive increase in product demands for the next three years. Prices of materials are
continuously fluctuating, especially gold, which represented over 15% of the company’s total
material cost in the fiscal year 2012.
Fluctuation in Foreign Exchange
Xmultiple is affected by fluctuations in foreign exchange rates. Xmultiple conducts its business
operations in variety currencies worldwide. A major portion of its revenues are generated from
Asian currencies. Xmultiple has risks from emerging market currencies. Currency fluctuations
may cause the company to incur losses in the future, which may affect its results of operations.
SWOT ANALYSIS REPORT
Page 10 of 16
SP-130-A
SWOT Analysis Report
4 Xmultiple Technologies, Incorporated Company Statement
A statement by Mr. Alan Pocrass, Chief Executive Officer and Chief Operating Officer of
Xmultiple Technologies, Incorporated is given below.
Xmultiple made excellent progress in expanding and growth in the last two years. There has
been a improvement in the economic climate in the last six months with job growth. Companies
are reporting stronger revenue increases for the last twelve months as well. Xmultiple’s
revenue benefits from strong performance across every major market Xmultiple serves.
Strong Accomplishments During the Year
Xmultiple had increase sales and a strong financial performance in 2012. We increase the size
and amount of equipment in all our plants in 2012. We significantly expanded the amount of
production in our manufacturing centers in Shenzhen, China. Xmultiple will continue to increase
production capability. In addition, we are focused on product innovation and launching new
products each year. Over 100 new products we launched in 2012.
Significant potential growth drivers for Xmultiple.
The future has strong momentum with the addition of many new customers in 2012. Xmultiple’s
main emphasis in the upcoming years is on new product innovation. With new product innovation
this assures our company of increased returns on our investments. Xmultiple added
ISO14001:2004 compliance to our current ISO9001:2008 Certification in our headquarters and
many of our manufacturing plants. This commitment to quality strengthens our internal processes
for all our plants.
SWOT ANALYSIS REPORT
Page 11 of 16
SP-130-A
SWOT Analysis Report
5. Key Employees
Table 5: Xmultiple Incorporated, Key Employees
Name
Title
Board Level
Since
Age
Alan L. Pocrass
Director - CEO
Executive Board
1999
64
Detty T. Tarczy
Director - President
Executive Board
1999
63
1999
60
2005
53
Don Diamond
Director, Senior Vice
Executive Board
President - Technology
Innovation
V.P. - National Sales
Manager
Vice President Technology
2009
56
Paul Calderone
Director, Senior Vice
President - Technology
2009
48
William Chang
General ManagerTaiwan Plant
2001
66
David Chen
GM-China
Plant
2007
52
Lee Adams
Mike Basowski
Charles Tartello
General Manager- LA
Custom Facility
2002
57
Collin Bonniface
European – Sales
Manager
2005
58
Logon Qu
China Sales Manager
2010
27
Marge Johnson
Support Manager- LA
Headquarters
2003
55
42
Frank Dragun
V.P. - Marketing
Manager
2005
60
56
55
Emrick Kollar
V.P. Engineering
2001
55
43
48
56
Debra Bowling
Purchasing Manager
2009
55
40
66
56
48
Todd Benenett
V.P. Technical Support
2005
55
46
52
48
56
66
General ManagerChina Plant
2011
55
57
66
48
56
52
Michael Lin
52
58
66
48
56
55
57
52
57
66
48
56
58
52
58
57
66
48
52
58
57
66
SWOT ANALYSIS REPORT
Page 12 of 16
58
57
52
58
57
SP-130-A
SWOT Analysis Report
6. Xmultiple Technologies, Incorporated - History
1989 Xmultiple granted patent for RJ connectors with integrated LEDs (US 4,978,317 patent).
1994 Xmultiple signs agreements with major connector companies including Tyco/AMP and
Amphenol for ‘317’ patent.
1995 Xmultiple implements RJ/LED connectors for licensees of ‘317’ patent with development of
RJ connectors with LEDs as well as RJ connectors with and without integrated magnetic.
1999 Xmultiple formed divisions to directly manufacture interconnect solution products and
establishes Taiwan factory.
1999 Pass the FCC verify.
1999 Joint-venture for assembling wire circuits with many Chinese and Taiwan connector
manufacturers to manufacture RJ/LED connectors
1999 Xmultiple opens its own manufacturing plant in China to manufacture interconnect solution
products.
Oct 2000 Xmultiple releases the XRJAX product line of RJ style coaxial connectors.
Jan 2001 Establish Mei-Yang manufacturing plant/factory in China.
Jun 2001 Xmultiple files for patent for the UltraJAX connectors which has 16 to 20 contact pin
and is one RJ connector which is capable of performing the function of two RJ connectors.
Apr 2002 Xmultiple patent for modular manufacturing process filed.
Jun 2003 $15m investment announced Flashpoint flash memory product for flash memory card
and products.
2004 Pass the ISO9001:2008 Certification in all factories and headquarters.
Oct 2005 Xmultiple releases FlashPoint flash memory copy remote product lines and chipsets.
2006 Advance the RoHS for all products.
2006 Establish Sony Yang China Factory
Nov 2006 Xmultiple announces SensiKey electronic flash memory key with integrated fingerprint
capability to replace traditional lock/key systems.
Jul 2009 Xmultiple releases Power Charger Consumer Products Division products including the
patent pending XP1Power cable for universal charging of electronic devices.
2009 Performance the no halogen process.
Feb 2010 Xmultiple releases UltraJAX Plus RJ style connectors for harsh environment and for
10Gbase-T emerging applications.
Oct 2011 Xmultiple releases UltraJAX high density connectors for LAN and computer
applications.
Jan 2012 Xmultiple releases low profile RJ connectors for laptop and LAN devices with
requirements for space savings.
Aug 2012 Xmultiple releases three (3) row Stackable RJ Connectors
Jan 2013 Xmultiple releases RJ/MicroSD Card Combo Connectors
April 2013 Xmultiple release USB/MicroSD Card Combo Connectors
SWOT ANALYSIS REPORT
Page 13 of 16
SP-130-A
SWOT Analysis Report
7. Xmultiple Locations and Subsidiaries
Xmultiple Technologies, Inc.
USA
Corporate Office
1060 Los Angeles Avenue
Simi Valley, CA 93065
Toll-free for US : 800-7539526
Tel: 1-805-579-1100
Fax: 1-805-579-7800
USA Hours listed are Pacific
time Hours listed are
Greenwich Mean Time
Monday-Friday: 8am - 5pm
orders@xmultiple.com
info@xmultiple.com
Call Toll Free- 1-800-7539526
Pricing, configurations,
services, and solutions
CHINA
SINGAPORE
Xmultiple Technology, Inc. China
Xmultiple Technology,
Inc. Singapore
Email asia@xmultiple.com
HANKING Center 7E-022,
Dengliang Rd #23,Nanshan
District, Shenzhen, 518054
China
Line 1:- +86(0)755 36677345
Line 2:- +86(0)755 26471051
Fax:- +86(0)755 86599695
*Callers from outside China,
please dial without the ¨0.〃
深圳市南山区登良路23号汉京国
际大厦7E-022
china@xmultiple.com
UNITED KINGDOM
AUSTRALIA
TAIWAN
Xmultiple Technology, Inc.
Europe
International: +44(0)208668
6660
colin@xmultiple.com
Xmultiple Technology, Inc.
Australia
Email - rfq@xmultiple.com
Xmultiple Technology, Inc.
Taiwan
Email taiwan@xmultiple.com
MEXICO
CANADA
INDIA
Xmultiple Technology, Inc.
Xmultiple Technology, Inc.
Xmultiple Technology, Inc.
Mexico
Canada
India Email Email - sales@xmultiple.com Email - support@xmultiple.com india@xmultiple.com
SWOT ANALYSIS REPORT
Page 14 of 16
SP-130-A
SWOT Analysis Report
8. Appendix
Xmultiple reports are based on a core set of research techniques which ensure the best possible
level of quality and accuracy of data. The key sources used include:
Company Websites
Company Annual Reports
State Filings
Press Releases
Proprietary Databases
Notes
Financial information of the company is taken from the most recently published annual reports.
The financial and operational data reported for the company is as per the industry defined
standards
Revenue converted to US$ at average annual conversion rate as of fiscal year end
Disclaimer
All Rights Reserved
This document has been prepared solely for information purposes for the use of the recipient and
without any commitment or responsibility on our part. Xmultiple Technologies, Inc. accepts no
liability for any direct or consequential loss arising from the transmission of this information to
third parties. This report is current at the date of writing only and we will not be responsible for
informing you of any future changes in circumstances which may affect the accuracy of the
information contained in this report. Xmultiple Technologies, Inc. does not offer or hold itself out
as offering any advice relating to taxation, legal or regulatory implications. No part of this
publication may be reproduced, stored in a retrieval system or transmitted in any form by any
means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission
of Xmultiple Technologies, Inc. Xmultiple can accept no liability whatever for actions taken based
on any information that may subsequently prove to be incorrect.
SWOT ANALYSIS REPORT
Page 15 of 16
SP-130-A
SWOT Analysis Report
Revisions
Revision Date
A
Section
1/10/12
SWOT ANALYSIS REPORT
Paragraph
Summary of change
Authorized by
Initial issue
MB
Page 16 of 16