Merix declares Q2 loss, falls to 52-week low
Shares of Merix Corporation (Nasdaq: MERX) have lost more than 30% and have hit a new 52-week low following news before the start of trading that the maker of printed circuit boards swung to a loss in the second fiscal quarter of fiscal 2008.
The Beaverton, Colo.-based company reported a loss from continuing operations of $5 million, or $0.24 per share, for the three months ended Dec. 1, compared with an income from continuing operations of $3 million or $0.14 per share, during the second quarter of fiscal 2007.
Revenue fell 6% to $97.4 million from $103.7 million a year earlier. Seven analysts polled by Thomson Financial were expecting revenues of $100.86 million.
Merix said that it expected the decline and attributed it to a cyclical slowdown in the North American printed circuit board markets.
“I am very disappointed in the revenue and profit performance in North America,” said president and CEO Michael Burger in a statement. “Our North American results fell below our expectations and were a key contributor to our continued net loss in the second quarter.”
On the bright side, the company reported that its gross margins in Asia improved as it completed its Chinese expansion ahead of schedule.
“We’ve significantly grown our Asia revenues and have nearly doubled our Asia gross margins over the last 12 months,” commented Burger.
Merix has two manufacturing facilities in mainland China and one in Hong Kong, along with another three facilities in the United States.
At closing, shares of Merix Corp. (MERX) were down $1.55, or 33.70%, to $3.05. The previous 52-week low of $4.46 was established on Jan. 7, while the 52-week high of $9.57 was touched on Jan 9, 2007.
