ANAHEIM, CA -- Multi-Fineline Electronix today reported fiscal fourth-quarter net sales fell 6.5% year-over-year on lower demand from two major customers. Sales were up sequentially on consumer demand.

For the period ended Sept. 30, the PWB maker reported net sales of $199.2 million. The drop from the two customers was partially offset by significantly higher sales to one other major customer with new product launches.

Net sales grew 14% sequentially on higher sales of flex assemblies for smartphones and other consumer electronics.

Net income was $11.6 million, compared to $7.6 million in 2008, when the company took three nonrecurring charges totaling $9.8 million.

"Our solid fourth quarter and record full-year results validate our value-added service model that includes working directly with our customers during the design phase of a program and maintaining a high level of interaction throughout the product lifecycle. This provides us with the ability to quickly ramp production of complex flex assemblies and has proven instrumental in expanding our relationship with major customers," said Reza Meshgin, chief executive.

Cash flow from operating activities was $27 million. As of Sept. 30, the company had cash and cash equivalents of $139.7 million, up $12.7 million from June 30.

For the fiscal year ended Sept. 30, net sales increased 4.9% to a record $764.4 million from $728.8 million in fiscal 2008. The company also generated record net income in fiscal 2009 of $46.1 million, compared to $40.5 million during fiscal 2008.

For the first quarter of fiscal 2010, the company expects net sales of $225 million to $240 million, and gross margin to range between 14 and 16%. "We expect to benefit from the normal seasonal increase in customer demand associated with the holiday season coupled with our success on new programs for smartphones and other consumer electronic devices," Meshgin said. "We anticipate year-over-year net sales growth in the first quarter and we expect to achieve the highest quarterly net sales in the history of the company."

Construction of a new manufacturing facility, MFC3, is progressing on schedule and is expected to come online during fiscal 2010.