Multi-Fineline Electronix Earnings: Everything You Must Know Now

Multi-Fineline Electronix Inc. (NASDAQ:MFLX) had a loss and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

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Multi-Fineline Electronix Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.97 in the quarter versus EPS of $0.51 in the year-earlier quarter.

Revenue: Decreased 16.47% to $173.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Multi-Fineline Electronix Inc. reported adjusted EPS loss of $0.97 per share. By that measure, the company missed the mean analyst estimate of $-0.48. It missed the average revenue estimate of $188 million.

Quoting Management: Reza Meshgin, Chief Executive Officer of MFLEX, commented “Due to continued soft market conditions, we plan to continue to focus on reducing inventory levels during the third quarter. Therefore, we plan to again minimize production which we expect to continue to pressure our gross margin during the quarter. We believe these conditions are temporary and continue to expect a rebound in revenue and profitability in the fourth quarter and further into fiscal 2014, when we anticipate an increase in demand from both long-standing and newer customers. During the second quarter, newer customers comprised approximately 8 percent of sales and we expect this contribution to double in the third quarter. We are optimistic that this new customer momentum will continue, and that a broader customer and product base will alleviate the current challenges associated with seasonality and product cycles as we enter into fiscal 2014.”

Key Stats (on next page)…

Revenue decreased 40.03% from $289.65 million in the previous quarter. EPS decreased to $-0.97 in the quarter versus EPS of $0.38 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.32 to a loss $0.10. For the current year, the average estimate has moved down from a profit of $1.39 to a profit of $0.14 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]