M-Flex reports FY and Q4 results
Nov 07, 2006
Although M-Flex's rate of growth slowed during the second half of fiscal 2006, the company showed continued growth for the full year and expects revenue growth to continue in fiscal 2007 but at a less dramatic pace.
Multi-Fineline Electronix, Inc. (Nasdaq: MFLX) reported that net sales for the fiscal year ended September 30, 2006, increased by 41 percent to $504.2 million from $357.1 million for fiscal 2005, while net income for fiscal 2006 increased nine percent to $40.4 million, or $1.59 per diluted share, compared to $37.2 million, or $1.51 per diluted share, for fiscal 2005. For fiscal 2006, gross margins were 18.1 percent compared to 22.4 percent for 2005 primarily due to price reductions on the company's products. While both sales and net income for 2006 were the highest the company has achieved on an annual basis, this was mainly as a result of a strong first half. The disappointing financial results for the fiscal fourth quarter were due both to specific customer issues as well as changing market dynamics in the flexible printed circuit industry.