ANAHEIM, Calif., Jan. 11 /PRNewswire-FirstCall/ -- Multi-Fineline Electronix, Inc. (Nasdaq: MFLX), a leading global provider of high-quality, technologically advanced flexible printed circuit and value-added component assembly solutions to the electronics industry, today announced preliminary financial results for the first quarter of fiscal 2010 ended December 31, 2009, along with its current outlook for the second quarter.
The Company expects to report net sales in the first quarter of approximately $229 million, the highest quarterly amount in the Company's history and an increase of approximately 6 percent from net sales of $216.6 million in the same period last year. Gross margin during the first quarter of fiscal 2010 is expected to be 15.7 percent, compared to 15.3 percent for the same period in the prior year.
Reza Meshgin, Chief Executive Officer of MFLEX, commented, "During the first quarter of fiscal 2010, our record net sales performance was a result of our continued success on new programs for smartphones and other consumer electronic devices along with the normal seasonal increase in customer demand associated with the holiday season. In addition, I am also pleased that our ongoing efforts focused on improving yields and labor productivity helped to mitigate the pressure on our gross margin from higher material costs associated with the current product mix."
Second Quarter OutlookFor the second quarter of fiscal 2010, the Company currently expects net sales to range between $160 and $180 million. Gross margin is expected to decline on a sequential quarter basis based on the projected product mix and the de-leveraging of manufacturing costs due to lower sales volumes. Commenting on the Company's business outlook, Mr. Meshgin noted, "Our second quarter net sales projection reflects the normal seasonality after the holidays and the upcoming Chinese New Year, as well as some programs approaching the end of their life cycle. However, we believe our competitive position continues to be strong and our market share is unchanged with our major customers.