MFLEX Announces Preliminary Fiscal 2013 First Quarter Financial Results

   MFLEX Announces Preliminary Fiscal 2013 First Quarter Financial Results

PR Newswire

IRVINE, Calif., Jan. 14, 2013

IRVINE, Calif., Jan. 14, 2013 /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 reported preliminary financial results for
its fiscal first quarter ended December 31, 2012.

The Company expects net sales in the first quarter of fiscal 2013 to be above
the Company's guidance range at approximately $290 million, up 21 percent from
net sales of $239.3 million in the same quarter last year. Gross margin
during the first quarter of fiscal 2013 is expected to be approximately 8.5
percent, below the Company's guidance range, compared to 12.2 percent for the
same period in the prior year. MFLEX expects to provide its complete
financial results and business outlook in its earnings release and conference
call on February 7, 2013.

Reza Meshgin, Chief Executive Officer of MFLEX commented, "We generated record
revenues during the first quarter reflecting strong demand from both our
existing and new customers. Sales to new customers more than doubled
sequentially."

Mr. Meshgin continued, "We had strong operational performance throughout the
quarter however toward the end of the quarter, we scaled back production.
While this prudent business decision enabled us to successfully manage our
working capital, including a reduction in work in process and finished goods
inventory and an increase in our cash balance to over $92 million, the idled
labor costs and manufacturing capacity were expensed rather than capitalized
as inventory. This, coupled with unfavorable product mix, impacted our gross
margin. Looking ahead to the second quarter, we expect a seasonal decline in
revenue. Although we continue to work on cost improvements, including reduced
headcount levels, we also anticipate a sequential decline in gross margin
based on the lower anticipated revenues and overhead absorption, resulting in
break-even or slightly negative net earnings."

About MFLEX
MFLEX (www.mflex.com) is a global provider of high-quality, technologically
advanced flexible printed circuit and value-added component assembly solutions
to the electronics industry. The Company is one of a limited number of
manufacturers that provides a seamless, integrated end-to-end flexible printed
circuit solution for customers, ranging from design and application
engineering, prototyping and high-volume manufacturing to turnkey component
assembly and testing. The Company targets its solutions within the electronics
market and, in particular, focuses on applications where flexible printed
circuits are the enabling technology in achieving a desired size, shape,
weight or functionality of an electronic device. Current applications for the
Company's products include smartphones, tablets, computer/data storage,
portable bar code scanners and other consumer electronic devices. MFLEX's
common stock is quoted on the Nasdaq Global Select Market under the symbol
MFLX.

Certain statements in this news release are forward-looking statements that
involve a number of risks and uncertainties. These forward-looking statements
include, but are not limited to, statements and predictions regarding:
revenues; net sales; sales; net income; profitability; gross margins; cost
improvements; headcount levels; overhead absorption; demand for the Company's
products; and labor utilization. Additional forward-looking statements
include, but are not limited to, statements pertaining to other financial
items, plans, strategies or objectives of management for future operations,
the Company's future operations and financial condition or prospects, and any
other statement that is not historical fact, including any statement which is
preceded by the words "forecast," "guidance," "preliminary," "scheduled,"
"assume," "can," "will," "plan," "should," "expect," "estimate," "aim,"
"intend," "look," "project," "foresee," "target," "anticipate," "may,"
"believe," or similar words. Actual events or results may differ materially
from those stated or implied by the Company's forward-looking statements as a
result of a variety of factors including the effect of the economy on the
demand for electronic devices; the Company's success with new and current
customers, those customers' success in the marketplace and usage of flex in
their products; demand for the Company's products; product mix; the Company's
ability to diversify and expand its customer base and markets; the Company's
effectiveness in managing manufacturing processes, costs and yields; the
ramping and launch of new programs; currency fluctuations; pricing pressure;
the Company's ability to manage quality assurance; Company workforce issues;
the degree to which the Company is able to utilize available manufacturing
capacity, enter into new markets and execute its strategic plans; electricity,
material and component shortages; the impact of natural disasters, competition
and technological advances; the outcome of tax audits; labor issues in the
jurisdictions in which the Company operates; and other risks detailed from
time to time in the Company's SEC reports, including its Annual Report on Form
10-K for the year ended September 30, 2012. These forward-looking statements
represent management's judgment as of the date of this news release. The
Company disclaims any intent or obligation to update these forward-looking
statements.

Contact: Stacy Feit
         Investor Relations
         Tel: 213-486-6549
         Email: investor_relations@mflex.com

SOURCE Multi-Fineline Electronix, Inc.

Website: http://www.mflex.com
 
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