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MFLEX Releases Q4 and Full-Year 2015 Financial Results
February 5, 2016 | MFLEXEstimated reading time: 3 minutes
Multi-Fineline Electronix, Inc., 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.
Acquisition by DSBJ; Cancellation of Conference Call and Webcast
In light of today's announcement regarding the Company's definitive merger agreement to be acquired by Suzhou Dongshan Precision Manunfacturing Co., Ltd. ("DSBJ") (SZSE: 002384), MFLEX no longer plans to provide financial guidance and has cancelled its previously announced earnings conference call and webcast. Additional details regarding the transaction can be found in the press release entitled "MFLEX Enters Into Definitive Merger Agreement To Be Acquired By Suzhou Dongshan Precision Manufacturing Co., Ltd. For $23.95 Per Share," which is accessible on the investor relations section of the Company's website.
About MFLEX
MFLEX is a global provider of high-quality, technologically advanced flexible printed circuits and assemblies to the consumer electronics industry with manufacturing facilities in Suzhou, China. The Company 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 consumer 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, personal computers, wearables and other consumer electronic devices. MFLEX's common stock is quoted on the Nasdaq Global Select Market under the symbol MFLX.
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