Multi-Fineline Electronix posts stellar Q4, FY EPS below the Street
Multi-Fineline Electronix, Inc. (Nasdaq: MFLX), manufacturer of flexible printed circuit boards and related component assemblies for the electronics industry, reported robust fiscal fourth-quarter results and disclosed fiscal full-year results.
For the three months ended Sept. 30, net income increased 36% to $3 million, or $0.12 per diluted share, up from $2.2 million, or $0.09 per share, during the fourth quarter of 2006. Six analysts had forecasted a net loss of $0.03 per share for the quarter.
Net sales increased 51% to $166.7 million from $110.3 million in the same quarter last year. Four analysts polled by Thomson Financial were on average forecasting sales of $118.52 million. Net sales were primarily due to increases in net sales from the company's four largest customers.
Net sales for the fiscal year ended Sept. 30, 2007, increased to $508.1 million from $504.2 million for fiscal 2006. Six analysts polled by Thomson Financial were on average projecting sales of $460.68 million for the fiscal year.
Net income decreased to $3 million, or $0.12 per diluted share, below the $0.16 per share six analysts polled by Thomson Financial were on average expecting. For fiscal 2006, the company booked net income of $40.4 million, or $1.59 per diluted share.
Multi-Fineline said that net income was impacted by reduced gross margins, a charge in the third quarter of $7.8 million before tax and $4.8 million net of tax, related to expensing deferred transaction costs associated with a terminated offer to acquire MFS Technology Ltd.
The company’s CEO Phil Harding said the company's growth slowed during the year because of a significant decrease in sales to an electronics manufacturer that has historically been M-Flex's largest customer. According to Harding, sales to its largest customer declined 33% to represent 57% of total net sales in fiscal 2007, compared with 85% in fiscal 2006.
Shares of Multi-Fineline (MFLX) gained 31.95% or $4.71 to $19.45 at 12:42 p.m. ET. Shares of Multi-Fineline have been trading in the range of $9.70 to $23.19 for the past 52 weeks.
