Meade problems maybe?

[Jeff RV]

Found this, Meade interview with Sky&Telescope.

http://www.skyandtelescope.com/news/10819876.html

Jeff.

Whoops forgot the link :insects1:

[zootlewurdle]

shift much of its telescope manufacturing from there to a "lower-cost location."

"lower cost location" certainly doesn't inspire confidence in future product quality.

Isn't there also some legal case against them at the moment trying to get them to stop advertising their new LX200R and the like as Ritchey-Chrétien telescopes because they're not a true RC design?

[James]

"lower cost location" certainly doesn't inspire confidence in future product quality.

I think Meade are probably just jumping on the China bandwagon which has worked fine for many companies. Product quality is a function of several things, correct specification, build quality and a brutal quality control regime are all needed. Whilst not an expert on China or manufacturing given the success many companies have in sourcing cheaper but still high quality goods from China it could work in Meade's favour.

James

[John]

Tele Vue have a number of their top flight products made in Taiwan and they seem pretty good - as James says if they get the spec and QA process right then that's no obstacle to quality.

I think some of our US friends are, perhaps understandably, dissapointed that US production is being significantly ramped down.

John

[Jeff RV]

I think a lot of there stuff is made in China anyway.

Doesn't exactly instill confidence for me in Meade, although the (made in China) syndrome isn't as bad news as it used be.

Jeff.

[zootlewurdle]

Where I work we "outsource" some of our software engineering. I won't say who I work for or who we outsource to, but what I will say is that the quality of the work we get back is terrible, but it's cheaper than employing staff locally and that's all that matters!

[Kai]

Sourcing form China doesnt seem to cause Celestron/Skywatcher (Synta) amongst others any problems imo.

[Adam Hinds2]

Meade letter to dealers #1:

[Adam Hinds2]

Taken from: http://biz.yahoo.com/pz/071101/130402.html

Press Release Source: Meade Instruments Corporation

Meade Instruments Announces Further Restructuring

Thursday November 1, 4:43 pm ET

Q3 Actions Expected to Save $10 Million Annually

IRVINE, Calif., Nov. 1, 2007 (PRIME NEWSWIRE) -- Meade Instruments Corp. (NasdaqGM:MEAD - News), a leading designer and manufacturer of optical products, including telescopes, riflescopes, binoculars and microscopes, today announced that it has taken further steps to reduce its cost structure and accelerate its turnaround strategy.

The Company has undertaken a plan to reduce the number of SKUs (i.e. variations) on its high-end telescope products to improve efficiency and profitability, and it will transfer manufacturing and assembly of all high-end telescopes from its manufacturing operations in Irvine, California to lower cost locations. Production of the Company's remaining high-end telescope SKUs will be manufactured and assembled in the Company's current production operation in Mexico or by its contract manufacturing partners in China. The Company expects that the manufacturing operations in Irvine, California will be closed during the fourth fiscal quarter ended February 28, 2008. The Company further expects that its Mexico operations will be manufacturing certain higher-volume of the remaining SKUs during the fourth quarter of fiscal 2008 and it has developed a timeline for adding new SKUs to production during the first and second quarters of fiscal 2009.

In connection with the closure of the Irvine, California production operations, and in combination with the headcount reductions previously announced during the third quarter of fiscal 2008, the Company is reducing its U.S. employee base by 60%, or approximately 120 employees. These employees consist primarily of manufacturing, selling and administrative personnel. The combination of these headcount reductions along with other expense reductions initiated in the third quarter are expected to save the Company approximately $10 million annually, net of additional headcount costs in Mexico.

The Company expects to incur total cash restructuring charges of approximately $0.5 million related to severance costs for headcount reductions initiated in the third quarter, which will primarily be paid during the third and fourth quarters of fiscal 2008. In addition, the Company is currently analyzing its inventory position and other long-term assets in light of the SKU reduction and any resulting non-cash write-downs are also expected to be included in its third fiscal quarter results.

``We previously announced that we would be following a parallel path and would continue with the restructuring of the Company in addition to evaluating strategic alternatives,'' commented Steve Muellner, President and Chief Executive Officer of Meade. ``This latest action demonstrates management's continued commitment to delivering value to our shareholders via the turnaround plan. We believe that transferring the remainder of our manufacturing operations to lower-cost areas will enable the Company to compete more effectively with its competitors and at the same time enhance gross and operating margins.''

[Jeff RV]

I don't suppose the cost saving will reflect on the prices we pay in the future

Hopefully they may update some of the electronics in some of the scopes and install reverse polarity protection,I've read so many unhappy reports of people burning the circuits out through this!!!

Jeff.

[Adam Hinds2]

here is a link to the meade letter to dealers:

http://imjeffp.blogspot.com/2007/10/meade-in-trouble.html

[russ]

Blimey, end of the RCX400 range already :shock: That had a very short life.

And all the CaK solar scopes too.

I take it the RCX400 has gone for legal reasons? And that the CaK wasn't popular?

Russ

[zootlewurdle]

I'd guess it's gone because it didn't meet some sales threshold. If by legal reasons you mean the whole nonsense about them not really being a RC design, the case being brought there was 'false' marketing rather than a complaint about the quality of the actual 'scope. I may be wrong, of course, I only kinda skimmed the thing

[centroid]

No real surprise here. Once Celestron 'moved out, it was only a matter of time before Meade followed. This sentence taken from Meade's letter to its dealers, says it all:

We believe that transferring the remainder of our manufacturing operations to lower-cost areas will enable the Company to compete more effectively with its competitors and at the same time enhance gross and operating margins.''

We are the victims of our own insatiable demand for cheaper goods and higher salaries. Western countries just cannot compete with the lower manufacturing costs of India and the Far East.

How many large UK companies have 'shipped' their call-centres out to India, so they can cut their operating costs, by paying the significantly lower wages expected by Indian employees.

Meade spent a lot of time and money manufacturing their 'High End' observatory class SCTs (16" and above), and the 'super expensive' mounts to go with them. However, one has to question just how many of these they actually sold, and if they ever recovered the R&D costs.

Celestron, perhaps wisely, never ventured into this 'niche' market, and limited their maximum SCT size to 14"

I don't think the 'Ritchey Chretien' issue had any impact on Meade's decision, as they are still selling the LX200R, with 'Advanced Ritchey Chretien Optics' emblazoned on it.

Genuine Ritchey Chretien optics or not, my LX200R certainly doesn't exhibit the coma that my LX200GPS did, so something is different with the optics.

I don't believe that the RCX400, was the success story that Meade had hoped for, as I certainly don't hear of that many being used around the forums that I frequent or monitor.

Moving their manufacturing out to China, doesn't seem to have caused a downturn in quality, as far as Celestron are concerned, so I don't expect it will be any different for Meade products.

IMO, it is essential to have two 'major players' like Meade and Celestron in the 'game', as healthy competition is good for the consumer.

I would be very disappointed to see Meade 'disappear' from the 'scene', as they offer me the technology that I personally want, whereas as Celestron doesn't.

Dave

[centroid]

Just found this:

During this transition the production of some telescopes will be temporarily suspended, and a few other models will be discontinued. Meade said it anticipates no interruption of its popular 8-, 10-, and 12-inch LX200R telescopes as well as its 8-inch LX90GPS Schmidt-Cassegrain reflectors. The 10- and 12-inch LX90GPS models will remain in production to fill existing orders and then be suspended until Spring 2008. Likewise, existing orders for 14- and 16-inch LX200R telescopes will be filled, and then production will be halted until the second half of 2008 — except for the fork-mounted 14-inch, which will be suspended indefinitely. The company's heavy-duty MAX Mount, and all sizes of its fork-mounted RCX400 telescopes, will also be suspended indefinitely. The only instruments to be discontinued outright are the Calcium-K (ultraviolet) models in the company's Coronado line of solar telescopes and filters.