ANAHEIM, Calif., Jan. 11, 2012 /PRNewswire/ -- 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 better than expected preliminary financial results for the fiscal 2012 first quarter ended December 31, 2011.
Reza Meshgin, Chief Executive Officer of MFLEX, commented, "We expect our net sales results to exceed the high end of our previous guidance range as the supply chain shortages from the flooding in Thailand improved throughout the quarter. We also saw an increase in shipments to our largest key customer. The increased orders improved capacity utilization which we expect to result in gross margin also exceeding the high end of our previous guidance."
The Company expects to report fiscal first quarter net sales of approximately $239 million, relatively in-line with the same period of the prior year. Gross margin during the first quarter of fiscal 2012 is expected to be approximately 12.2 percent, compared to 14.3 percent for the same period in the prior year.
Commenting on the Company's business outlook, Mr. Meshgin noted, "This year, we anticipate that we will see less of a seasonal decline than we have historically experienced during the second quarter. As a result, we expect year-over-year net sales growth in the second quarter. However, we anticipate a moderate sequential decline in gross margin based on the lower sequential revenues which will reduce our capacity utilization. Demand for our flex assemblies for both smartphones and tablets remains strong and we continue to expect year-over-year top-line growth and sequential gross margin expansion in the second half of 2012."During the fiscal 2012 first quarter, the Company expects customers A, C and D to represent approximately 5 percent, 66 percent and 27 percent, respectively, of net sales. For competitive and customer confidentiality reasons, the Company does not disclose its customers by name.