Multi-Fineline Electronix Inc. had a turbulent year but made it into the top 10 of this year’s fastest-growing public companies list.
The Anaheim-based company counted revenue growth of about 532% for the three years ended June 30. Multi-Fineline, known as M-Flex, had sales of $452 million, up from $71 million in 2004.
The company makes flexible circuit boards that go into “flip” style cell phones and other handheld devices.
M-Flex not only makes boards but also assembles chips onto them,unlike some rivals that only make boards, according to spokeswoman Connie Chandler.
It’s nabbing business as cell phone makers are racing to meet consumer demand for smaller, slimmer phones that do more than just voice services, including downloading and playing music files, taking and sending pictures and video and surfing the Internet.
“The portable handset device market has been driving the company’s growth and is likely to be a continued major factor for us,” Chandler said. “As those handheld devices get smaller, they still need increased functionality. The flexible printed circuit (board) makes that possible.”
M-Flex got its big sales break a few years ago with a contract from Motorola Inc., the No. 2 cell phone maker.
It struck gold along with Motorola, which soared with the popularity of its ultra-thin Razr phones.
Motorola makes up about 70% of M-Flex’s sales,a concern for investors, particularly as Motorola’s cell phone business has slowed.
When sales of the Razr slipped last year, M-Flex started slumping.
Sales fell 20% to $104.1 million in the June quarter. The company lost $6.7 million, versus a profit of $8.3 million a year earlier. Its stock is down about 35% in the past 12 months. M-Flex now counts a market value of $370 million.
Diversification is a must. Motorola has yet to see its sales bounce back after its boom years with the Razr and its offshoot, the Krzr and the Rokr.
M-Flex “has a diversification that has been under way for many months and is proving to be successful,” Chandler said. “It’s a matter of continuing to meet the needs of Motorola while also expanding to serve others.”
Earlier this year, M-Flex landed deals with Sony Ericsson Mobile Communications AB and another undisclosed handset maker earlier this year.
The company dodged a bullet in June after it got out of an unwanted deal with its sister company, Singapore circuit board maker MFS Technology Inc.
M-Flex’s parent company, Singapore-based WBL Corp., owns a majority stake in both companies and was looking to combine the two.
M-Flex initially went along with the deal, offering $500 million for MFS.
It later came out against the buy after MFS reported slower-than-expected sales and a steep loss last year, and M-Flex hit its own rough patch.
One of its biggest objections: A deal with MFS would have brought another Motorola-dependent business into the fold.
Despite its efforts, it still went through the motions of filing the paperwork to buy MFS with the Securities and Exchange Commission.
At the same time, it urged shareholders to vote against it.
M-Flex even went as far as suing WBL in an effort to halt the deal.
The ordeal hasn’t changed the relationship between WBL and M-Flex, according to Chandler.
“The company has a constructive dialogue with WBL to this day,” she said.
Closer to home, M-Flex cut some jobs locally as it looks to convert its Anaheim site from a manufacturing plant to a place for research, development and engineering, Chandler said.
Companywide, M-Flex upped its employee counts by moving production and assembly work to China, where it continues to hire at a rapid clip.
THE NUMBERS
Three-year growth: 532%
Yearly sales through June 30: $451.8 million
Yearly profit: $2.2 million
Market value: $370 million
Employees: 12,750, 343 in OC
Company: circuit board maker
