MFLX

Multi-Fineline Electronix, Inc. (NASDAQ:MFLX), a leading global provider of high-quality, technologically advanced flexible printed circuits and assemblies, today reported financial results for its fourth quarter and full-year ended December 31, 2015.  Fourth quarter 2015 net income was $10.4 million, or $0.41 per diluted share, compared to $16.0 million, or $0.65 per diluted share, in the same period last year.

Net sales for fourth quarter 2015 were $169.0 million, compared to $210.0 million for the same period last year. The decline was mainly attributable to softness in the tablet and smartphone markets.

Gross margin for the quarter was 11.8 percent, compared to 14.5 percent in the same period of the prior year. The decline was primarily due to lower overhead absorption as a result of the reduced net sales level.

The Company generated $52.4 million in cash flows from operating activities during the fourth quarter, increasing the Company’s cash and cash equivalents balance to $214.2 million at December 31, 2015. The Company continues to maintain a strong balance sheet with no debt.

Reza Meshgin, Chief Executive Officer of MFLEX commented, “Our fourth quarter sales results were impacted by softness in our tablet and smartphone segments. Notwithstanding the lower than anticipated demand, we had solid operational performance and proactively controlled our costs, and achieved our sixth consecutive quarter of strong profitability. We also successfully managed our working capital, generating strong operating cash flows and growing our cash balance to $214 million, an all-time record for MFLEX.”

Non-GAAP Results

Non-GAAP net income for fourth quarter 2015 was $11.5 million, or $0.45 per diluted share, compared to non-GAAP net income of $16.3 million, or $0.66 per diluted share, in the same period of the prior year. A reconciliation of GAAP net income and net income per share to non-GAAP net income and net income per share is provided in the table at the end of this press release.

Full Year 2015 Highlights

Net sales for the full-year ended December 31, 2015 were $636.6 million, compared to $631.5 million for the full-year ended December 31, 2014. Reflecting the success of the Company’s 2014 restructuring, gross margin increased 820 basis points to 12.6 percent in 2015, supporting MFLEX’s return to profitability. 2015 net income was $45.1 million, or $1.79 per diluted share, compared to a net loss of $(59.3) million, or $(2.45) per diluted share, in 2014. 2015 results include $1.8 million of pre-tax impairment and restructuring gains, while 2014 results were impacted by $33.5 million of pre-tax impairment and restructuring charges. Non-GAAP net income for 2015 was $47.6 million, or $1.89 per diluted share, compared to non-GAAP net loss of $(21.8) million, or $(0.91) per diluted share, in 2014. A reconciliation of GAAP net income (loss) and net income (loss) per share to non-GAAP net income (loss) and net income (loss) per share is provided in the table at the end of this press release. (Original Source)

Shares of Multi-fineline Electronix are up nearly 42% in after-hours trading. MFLX has a 1-year high of $26.05 and a 1-year low of $12.59. The stock’s 50-day moving average is $17.97 and its 200-day moving average is $18.64.

On the ratings front, B. Riley analyst Andrew Huang maintained a Hold rating on MFLX, with a price target of $13, in a report issued on January 14. The current price target implies a downside of 20.9% from current levels. According to TipRanks.com, Huang has a total average return of -12.3%, a 25.0% success rate, and is ranked #3296 out of 3612 analysts.

Multi-Fineline Electronix Inc is engaged in the engineering, design and manufacture of flexible printed circuit boards along with related component assemblies.