M-FLEX provides earnings guidance for Q4
Aug 18, 2004
Outlines the company's new policy for providing guidance to investors
Company Also Schedules a Follow-On Teleconference for Wednesday, August 18, 2004, at 4:30 P.M. EDT
Multi-Fineline Electronix, Inc. (NASDAQ: MFLX) announced that the company expects net sales for the fourth quarter of fiscal 2004 to range between $66 million and $71 million and net income for the same period of between $7.5 million and $9.1 million. These estimates will result in annual net sales of between $247 million and $253 million for fiscal 2004 and net income of between $24 million and $26 million for the same period. The company does not expect its share capital to change materially in the fourth quarter.
M-FLEX, which completed its initial public offering in June 2004, focuses on electronics products -- including mobile phones and smart mobile devices -- where the company's flexible printed circuit assemblies enable manufacturers, such as Motorola and other companies, to design electronic devices in a desired size, shape, weight and functionality.
According to Phil Harding, M-FLEX's chief executive officer, the company's operations are benefiting from the rapidly expanding global market for mobile phones and other electronic devices. As a result, M-FLEX's operations have continued to perform in line with management's expectations during 2004. "Our successes have resulted from our ability to attract new customers and develop new designs and new techniques, such as our innovative 'camera on flex' assembly. M-Flex is also assisting in the development of new customer models by expanding our technology," he said.
"In addition to the significant opportunities in the marketplace, we believe that M-FLEX also benefits from several key competitive strengths," he said. "Among these competitive advantages are the relationships we have with our customers who rely on M-FLEX for a significant portion of their flexible printed circuit needs, including design, engineering support, and component assembly. Also, M-FLEX has maintained manufacturing facilities in China since 1994. We believe that this creates a competitive edge for us as we take advantage of cost-efficient high volume manufacturing, while also positioning the company to participate in the substantial emerging market opportunity for electronic devices in China and throughout the rest of Asia. This summer, because of the continued strong growth of our business, we advanced a $16 million expansion plan to add capacity at a second manufacturing facility in Suzhou, China," Harding said.
According to Harding, M-FLEX has established a new policy on guidance for investors, that includes strategic and business guidance as well as earnings guidance. Throughout the year, M-FLEX intends periodically to include in its dialogue with investors strategic and business guidance that will focus on:
1) Industry specific information
2) Significant market trends that may impact the company's business in the near as well as long term
3) Business strategy updates
4) Status of key corporate initiatives such as capacity expansion and new product introductions
The company also intends to provide information that makes it possible for investors to reasonably estimate the company's future performance. Toward that end, M-FLEX's policy is to begin providing guidance in connection with the reporting of quarterly operating results for the following fiscal quarter's net sales and net income and to provide general commentary on its annual performance.
A conference call in which the company provides additional non-material details will also be held to discuss further the earnings guidance provided in the news release. M-FLEX does not intend to provide annual earnings guidance; nor will it identify customers, unless they represent 10 percent or more of revenues.