Multi-Fineline Electronix (MFLX) Guides Q4 Revs to High-End of Expected Range

Multi-Fineline Electronix (NASDAQ: MFLX) reported preliminary financial results for the calendar fourth quarter ended December 31, 2014.

The Company expects net sales in the fourth quarter of calendar 2014 to be at the high end of the Company's guidance range at approximately $209 million, compared to net sales of $211.7 million in the same quarter last year. Gross margin during the fourth quarter of calendar 2014 is anticipated to be above the Company's guidance range at approximately 14 percent, compared to 1.2 percent for the same period in the prior year. The Company expects its largest customer to account for 76 percent of net sales and the Company's newer customers to contribute 20 percent.

*** The Street is looking for Q4 revs of $195.7 million.

Reza Meshgin, Chief Executive Officer of MFLEX, commented, "We generated another quarter of solid profitability during the December quarter. Strong demand, including continued contribution from our group of eight newer customers, supported an anticipated 21 percent sequential increase in net sales. Anticipated gross margin exceeded our guidance range due primarily to 500 basis points attributable to favorable product mix during the quarter, as well as strong operational execution. We also generated strong cash flow bringing our cash and cash equivalents balance to approximately $130 million at December 31st. We expect to generate robust cash flow in 2015 given low capex requirements."

Mr. Meshgin continued, "Looking ahead to the March quarter, we expect a decline in net sales attributable to the seasonality of the mobility market. We expect the magnitude of the sequential decline to be somewhat lower than recent years given the expected continued demand for current programs. We anticipate a sequential decline in gross margin given the expected sales level, as well as a more normalized product mix compared to the December quarter. Following the completion of our restructuring, we continue to reduce our cost structure, which should support our outlook for solid profitability in 2015."

MFLEX expects to provide its complete financial results and business outlook in its earnings release and conference call on February 5, 2015. As previously announced, the Company has changed its year-end to December 31st.

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