MFLEX expects 4% sales increase in 4Q

Reza Meshgin, Chief Executive Officer of MFLEX commented, "Our anticipated fourth quarter revenue results are in line with our expectations reflecting continued solid demand for our flex assemblies for multiple new programs. However, we experienced much lower yields than anticipated due to the complexity of one new program.” The expected fourth quarter sales of 2012 will be approximately USD 200 million, which would be a 4% increase from last year's USD 191.5 million. Gross margin for 4Q/2012 is expected to be around 5.7%, compared to 10% the same period last year. MFLEX expects to reach break-even in 4Q/12. “Since quarter-end, yields on this program have recovered, the balance of our new program ramps are proceeding as planned and our labor utilization has improved. We now expect a significant gross margin rebound in the first quarter of fiscal 2013”, Meshgin continued. For 1Q/13, MFLEX expects net sales to be between USD 260 - 280 million. Gross margin is expected to range from 10.0 to 12.0 percent, based on the projected sales volume and anticipated product mix.