COKATO, MN – Innovex Inc. reported first-quarter revenue fell 34.1% from last year to $13.7 million, on lower demand for Flat Panel Display (FPD) and Actuator Flex Circuit (AFC) products. 
 
The quarter began with revenue close to projected for October, but the effects of the economic slowdown started to appear in November. Customer demand in December was almost non-existent. “The demand pull back was the most severe and broad based I have seen in my 33 years in the electronics industry,” said Terry Dauenhauer, president and CEO. 
 
FPD accounted for 50% of net sales, while AFC comprised 44%. Circuit packaging, network system and other applications brought in the remaining 6%. 
 
For the quarter ended January 3, net loss was $4.7 million, compared to $6.5 million in 2008. The amount includes a $612,000 restructuring charge. Gross margins fell by 3.3 percentage points quarter-on-quarter, on lower revenue and low capacity utilization; total selling and engineering expenses dropped by 28.9%.
 
Satisfied with the progress to increase yields and productivity early in the quarter, the company couldn’t improve margins later in the quarter due to low capacity utilization. The company will continue to focus on improving operational efficiency and cost reduction in 2009.
 

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