Weak profitability, small scale, and client concentration within the volatile and highly fragmented electronics subsystems industry; Moderate exposure to legacy telecommunications products in secular decline; and Significant working capital swings related to client inventory needs. Modest free cash flow and free cash flow to debt expected between breakeven and the mid-single digit percentages in 2016 and 2017; and Adequate liquidity from internal and external sources. The stable outlook reflects Tempe, Ariz.-based power conversion and embedded computing solutions designer and manufacturer Artesyn Embedded Technologies Inc.'s adequate liquidity and prospects for gradual slowing of revenue declines in 2016 and low-single-digit percentage revenue growth in 2017, despite its client concentration and vulnerable competitive positioning within the highly fragmented and volatile electronics subsystems industry.
