M-Flex's Q2 results decline due to decreased shipments to largest customer

Net sales to all other customers increase 162% year-over-year with second largest customer representing nearly 17% of net sales during Q2

Multi-Fineline Electronix, Inc. (Nasdaq: MFLX) reported that net sales for the second quarter of fiscal 2007 ended March 31, 2007, decreased by 8 percent to $113.4 million from $123.8 million for the second quarter of fiscal 2006, primarily due to decreased sales to the company's largest customer. Sequentially, from the first quarter to the second quarter of fiscal 2007, net sales declined approximately 8 percent.
 
Net income for the second quarter of fiscal 2007 decreased 75 percent to $3.1 million, or $0.12 per diluted share, compared to $12.5 million, or $0.49 per diluted share, for the same period in fiscal 2006. This year-over-year decrease in net income was due primarily to lower product pricing compared to the prior year. The company's gross margins for the second quarter of fiscal 2007 were approximately 11 percent, as compared to 21 percent in the prior year, and within the near-term gross margin range of between 10 to 15 percent announced previously by the company. Sequentially, net income declined 16 percent from the first quarter to the second quarter of fiscal 2007.