ANAHEIM, CA -- M-Flex today reported its fiscal second quarter net income more than doubled to $11.6 million, up from $4.9 million a year ago.

For the period ended March 31, the flexible printed circuit maker said net sales were $207.1 million, up 34.4% from last year, on new wins for smartphone and tablet programs.

Gross margin fell 110 basis points to 13.4% on higher labor costs in China, pricing pressure and currency appreciation.

In fiscal 2010 the PCB fabricator took a $1.9 million non-cash, pretax charge related to the retirement of certain assets at its Anaheim facility.

Cash flow from operations was $17.1 million, and as of March 31 the company had $98.6 million in cash and equivalents on hand.

The company saw demand slip as the quarter went on, and felt some supply-chain effects of the Japan earthquake. Chief executive Reza Meshgin said, "We are mindful that the topline results were slightly below our expected guidance range. During the first two months of the quarter our shipments were in line with our expectations, driven by new program wins for smartphone and tablet devices and the continued strength of existing programs. However, volumes from multiple customers were lower than expected toward the end of the quarter, due partly to the softening of customer orders and the disruptive effect on the electronics supply chain from the earthquake and tsunami in Japan."

M-Flex guided for June quarter sales of $200 million to $220 million, up from $181 million a year ago. "We currently expect full year revenue growth of approximately 15%," Meshgin said.

A new manufacturing facility in Suzhou, continues to ramp production and the firm plans to add an assembly manufacturing facility in Chengdu during fiscal 2011.

• Prev
• Next