ANAHEIM, CA -- Multi-Fineline Electronix (M-Flex) reported fiscal third quarter of $2.4 million, down from $11.7 million last year as the company dealt with one-time charges related to plant shutdowns.

The flexible circuit board fabricator said net sales for the period ended June 30 were up 3.7% year-over-year to $181 million on demand for new smartphones.

Gross margin declined to 12.3%, down 200 basis points from prior year and 220 basis points sequentially, primarily due to lower yields from a new program. Cash flow from operations was $17.6 million.

During the quarter, the company took $4.2 million in pretax impairment and restructuring costs, including $1.4 million from the transfer of certain operations at the company's Anaheim facility to Asia, $1.9 million related to the closure of a facility in Malaysia, and a $900,000 one-time non-cash income tax expense due to the writeoff of certain deferred tax assets related to the closure of the Malaysia operations.

The company expects to take  $1 million in charges related to the restructuring over the next two quarters.

The shutdown of the Malaysia facility will result in pretax cost savings of $2.6 million on an annual basis beginning in fiscal 2011, while the Anaheim plant closure should realize $6.7 million in annual cost savings, the firm said.

M-Flex guided for fiscal fourth-quarter revenue of $220 million to $240 million. Gross margin is expected to benefit from higher manufacturing volumes.