MFLEX Announces Preliminary Fiscal 2013 Third Quarter Financial Results And Provides Fiscal 2013 Fourth Quarter Outlook

 MFLEX Announces Preliminary Fiscal 2013 Third Quarter Financial Results And
                 Provides Fiscal 2013 Fourth Quarter Outlook

Fiscal 2013 Third Quarter Results Conference Call to be Held on August 8, 2013

PR Newswire

IRVINE, Calif., July 25, 2013

IRVINE, Calif., July 25, 2013 /PRNewswire/ -- Multi-Fineline Electronix, Inc.
(NASDAQ: MFLX), a leading global provider of high-quality, technologically
advanced flexible printed circuits and value-added component assembly
solutions to the electronics industry, today reported preliminary financial
results for its fiscal third quarter ended June 30, 2013.

The Company expects net sales in the third quarter of fiscal 2013 to be
approximately $136 million, below the Company's guidance range of $155 to $185
million. As a result of the lower revenues, gross margin during the third
quarter of fiscal 2013 is expected to be approximately (3.1) percent, compared
to the Company's guidance of approximately breakeven. The Company expects to
report cash and cash equivalents of $114.1 million, or $4.76 per diluted
share, and $73.6 million in inventory.

For the fourth quarter of fiscal 2013, the Company expects net sales to range
between $195 and $215 million and gross margin to range between 1 to 3 percent
based on production build plans, projected sales volume and anticipated
product mix.

Reza Meshgin, Chief Executive Officer of MFLEX commented, "Our third quarter
results reflect continued soft conditions in the mobility market. While we
had contemplated this in our outlook, we expected a back-end loaded quarter
with an acceleration of orders in June. In addition to challenging market
conditions which caused one program with a newer customer not to track as
expected, the June demand uptick did not materialize as the start-up of a
number of new programs shifted into our fourth quarter. As a result, the
reduced sales level and further overhead under-absorption negatively impacted
our gross margin during the quarter."

"In addition, our sales results and mix reflect a more selective approach
toward program opportunities. We deemphasized production of lower-margin
programs in an effort to pursue the most profitable opportunities going
forward," continued Mr. Meshgin.

Mr. Meshgin concluded, "Based on the current timing of new program ramps, we
believe our third quarter results will serve as an inflection point as we now
anticipate a rebound in revenue and margin in the fourth quarter with
continued momentum into fiscal 2014. We are, however, cognizant of the
volatile operating environment which has been reducing near-term visibility,
and therefore continue to focus on managing costs and inventory as prudently
as possible. Looking ahead, we are committed to further diversifying our
customer and product base to support our longer-term growth objectives."

The Company expects to record the following non-cash charges during the third
quarter: a $7.5 million goodwill impairment charge and a $3.1 million charge
to reflect a valuation allowance to reduce the value of certain deferred tax
assets. The Company also expects to record approximately $9.6 million in
additional stock-based compensation expense resulting from the change in
control that was deemed to occur under the terms of the Company's stock
incentive plan following the acquisition of the Company's majority
shareholder, WBL Corporation Limited. 

Conference Call

MFLEX will host a conference call at 5:30 p.m. Eastern time (2:30 p.m. Pacific
time) on August 8, 2013 to review its final fiscal 2013 third quarter
financial results. The Company's financial results are expected to be
released at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) the same day and
will be posted on the Company's website at The dial-in number
for the call in North America is 1-877-941-6009 and 1-480-629-9866 for
international callers. The call also will be webcast live on the Internet and
can be accessed by logging onto

The webcast will be archived on the Company's website for at least 60 days
following the call. An audio replay of the conference call will be available
for seven days beginning at 8:30 p.m. Eastern time (5:30 p.m. Pacific time) on
August 8, 2013. The audio replay dial-in number for North America is
1-800-406-7325 and 1-303-590-3030 for international callers. The replay
passcode is 4631141.


MFLEX ( is a global provider of high-quality, technologically
advanced flexible printed circuits 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

Forward-Looking Statements

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:
revenue; net sales; sales; net income; profitability; gross margins; demand
forecasts; impairment charges and asset write-downs; stock-based compensation
expenses; expansion and diversification of the Company's customer base and
product base; and the ramping of new programs. 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
final review by the Company and its auditors of the financial results for the
quarter; the effect of the economy and seasonality 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
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; 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 Quarterly Report on Form 10-Q for the
quarter ended March 31, 2013. 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

Multi-Fineline Electronix, Inc.
Expected Product Mix
                     Three Months Ended
                     June 30,
                     2013        2012
Smartphones          78%         52%
Tablets              13%         41%
Consumer Electronics 8%          2%

Multi-Fineline Electronix, Inc.
Expected Customer Revenue Contribution
                  Three Months Ended
                  June 30,
                  2013          2012
"OEM C"           59%           73%
"OEM D"           23%           12%
Newer Customers   15%           9%

         Stacy Feit

         Investor Relations
         Tel: 213-486-6549


SOURCE Multi-Fineline Electronix, Inc.

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