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A look at the Q3 report shows that for the first 9 months of 2010, operating expenses were $511.9 million. Of that, marketing and selling expenses were $230.8 million, and General and administration expenses were $70 million. Those are massive overhead costs for a company doing about $900 million in revenue in what is typically a very high margin business. In a takeover, the acquiring company would be able to slash these costs, largely through synergies since the acquiring company will already have a sales, marketing and administrative staff. A smart acquirer will be able to take costs out quickly, making the deal accretive to earnings quickly, and therefore a hard opportunity to pass up.
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About Mike

Mike Buetow is president of the Printed Circuit Engineering Association ( He previously was editor-in-chief of Circuits Assembly magazine, the leading publication for electronics manufacturing, and PCD&F, the leading publication for printed circuit design and fabrication. He spent 21 years as vice president and editorial director of UP Media Group, for which he oversaw all editorial and production aspects. He has more than 30 years' experience in the electronics industry, including six years at IPC, an electronics trade association, at which he was a technical projects manager and communications director. He has also held editorial positions at SMT Magazine, community newspapers and in book publishing. He is a graduate of the University of Illinois. Follow Mike on Twitter: @mikebuetow