IRVINE, CAMulti-Fineline Electronix posted net sales for the fiscal first quarter ended Dec. 31 of $289.7 million, up 21% year-over-year, a company record.

Net income for the period was $8.3 million, down 38.5% compared to the same quarter in the prior year.

For the fiscal second quarter the company expects net sales between $180 million and $200 million.

“Due to reduced near-term demand forecasts, we have scaled back our production build plans significantly below our anticipated revenue level for the second quarter in order to work down inventory levels," said MFlex CEO Reza Meshgin. "While we continue to work on cost improvements, including reduced headcount levels, we anticipate lower overhead absorption, as well as unfavorable product mix, to negatively impact gross margin. As a result, we expect to report an operating loss for the quarter. Without the inventory reductions, we believe gross margin for the second quarter would have been in the mid-single digits, which would have resulted in income close to breakeven.”

“Looking further ahead, we believe smartphone and tablet demand remains strong and therefore anticipate a material improvement in both our revenue and profitability as we enter into our fourth quarter.” 

MFlex manufactures flexible printed circuits and assemblies.

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