UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 25, 2013
MULTI-FINELINE ELECTRONIX, INC.
(Exact name of registrant as specified in its charter)
Delaware | 000-50812 | 95-3947402 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
8659 Research Drive
Irvine, CA 92618
(Address of principal executive offices) (Zip Code)
(949) 453-6800
(Registrants telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. Results of Operations and Financial Condition.
The information in this Current Report is being furnished and shall not be deemed filed for the purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that Section. Such information shall not be incorporated by reference into any registration statement or filing of Multi-Fineline Electronix, Inc., except as shall be expressly set forth by specific reference in such a filing.
On April 25, 2013, Multi-Fineline Electronix, Inc. (MFLEX) issued a news release announcing its preliminary fiscal 2013 second quarter results and providing its preliminary third quarter business outlook. A copy of the news release is attached hereto as Exhibit 99.1.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
99.1 | News release announcing MFLEXs preliminary fiscal 2013 second quarter results and providing its preliminary third quarter business outlook. |
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Dated: April 25, 2013 | MULTI-FINELINE ELECTRONIX, INC. | |||||
By: | /s/ Thomas Liguori | |||||
Thomas Liguori | ||||||
Executive Vice President and Chief Financial Officer |
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EXHIBIT INDEX
Exhibit |
Description | |
99.1 | News release announcing MFLEXs preliminary fiscal 2013 second quarter results and providing its preliminary third quarter business outlook. |
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Exhibit 99.1
NEWS RELEASE
Contact: | Stacy Feit | |
Investor Relations | ||
Tel: 213-486-6549 | ||
Email: investor_relations@mflex.com |
MFLEX ANNOUNCES PRELIMINARY FISCAL 2013 SECOND
QUARTER FINANCIAL RESULTS
Irvine, CA, April 25, 2013 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 second quarter ended March 31, 2013.
The Company expects net sales in the second quarter of fiscal 2013 to be approximately $174 million, below the Companys guidance range of $180 to $200 million. The Company is also reviewing its inventory and currently expects to record an $11 million write-down of finished goods as a result of unusable components, as well as a small portion that is being written-down as a result of uncertainty in near-term demand forecasts. In-line with expectations, gross margin during the second quarter of fiscal 2013 is expected to be approximately (2.7) percent, before the impact of the anticipated inventory write-down. Including the inventory write-down, the GAAP gross margin is expected to be approximately (8.9) percent. A reconciliation of GAAP gross margin to non-GAAP gross margin is provided in the table at the end of this press release. MFLEX expects to provide its complete financial results and business outlook in its earnings release and conference call on May 2, 2013.
Reza Meshgin, Chief Executive Officer of MFLEX commented, During the second quarter, we scaled back production as planned, and worked down $50 million in inventory. This enabled us to generate strong cash flow bringing our cash balance to about $130 million, in spite of very difficult market conditions. This challenging period was unfortunately exacerbated by the need to write-down inventories due to reasons unrelated to MFLEXs operational or quality performance, as well as further demand softening during the quarter. While we are pursuing remedies for the unusable components, we believe it may be prudent to take this charge to write-down finished goods inventory at this time.
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Mr. Meshgin concluded, Looking ahead, we anticipate similar sales and approximately breakeven gross margin during the third quarter of fiscal 2013. However, we continue to expect a significant rebound in revenue and profitability in the fourth quarter and into fiscal 2014, when we anticipate an increase in demand from both existing and new customers. While our market continues to be challenging due to seasonality and product cycles, we are optimistic that a broader customer and product base will alleviate these challenges as we enter into fiscal 2014.
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 Companys products include smartphones, tablets, computer/data storage, portable bar code scanners and other consumer electronic devices. MFLEXs common stock is quoted on the Nasdaq Global Select Market under the symbol MFLX.
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; inventory write-downs and charges related thereto; market conditions; success with recovering amounts being written-down for finished goods inventory; and expansion of the Companys customer base and product base. 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 Companys 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 Companys forward-looking statements as a result of a variety of
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factors including the effect of the economy and seasonality on the demand for electronic devices; the Companys success with new and current customers, those customers success in the marketplace and usage of flex in their products; demand for the Companys products; product mix; the Companys ability to diversify and expand its customer base and markets; the Companys effectiveness in managing manufacturing processes, costs and yields; the ramping and launch of new programs; currency fluctuations; pricing pressure; the Companys 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; the ability to recover amounts being written-down for finished goods inventory and other risks detailed from time to time in the Companys SEC reports, including its Quarterly Report on Form 10-Q for the quarter ended December 31, 2012. These forward-looking statements represent managements judgment as of the date of this news release. The Company disclaims any intent or obligation to update these forward-looking statements.
Multi-Fineline Electronix, Inc.
Selected Non-GAAP Financial Measures and Schedule Reconciling
Selected Non-GAAP Financial Measures to Comparable GAAP Financial Measures
(unaudited)
Three
Months Ended March 31, 2013 |
||||
GAAP gross margin percentage |
(8.9 | )% | ||
Effect of finished goods inventory write-down |
6.2 | % | ||
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Non-GAAP gross margin percentage |
(2.7 | )% | ||
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Use of Non-GAAP Financial Information
To supplement the condensed consolidated financial results prepared in accordance with Generally Accepted Accounting Principles (GAAP), the Company uses a non-GAAP financial measure (non-GAAP gross margin) that excludes the charge to write-down finished goods inventory. Management excludes this item because it believes that the non-GAAP measure enhances an investors overall understanding of the Companys financial performance and future prospects by being more reflective of the Companys recurring operational activities and to be more comparable with the results of the Company over various periods. Management uses non-GAAP financial measures internally for strategic decision making, forecasting future results and evaluating current performance. By disclosing non-GAAP financial measures, management intends to provide investors with a more meaningful, consistent comparison of the Companys core operating results and trends for the periods presented. Non-GAAP financial measures are not prepared in accordance with GAAP; therefore, the information is not necessarily comparable to other companies financial information and should be considered as a supplement to, not a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP.
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