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Circuit Board Maker M-Flex Surges on Strong Results, Diversification

Anaheim-based Multi-Fineline Electronix Inc., a maker of circuit boards for wireless phones and other devices, saw its shares jump after reporting strong quarterly results boosted by business with newer customers.

Shares of Multi-Fineline, known as M-Flex, were up about 15% in afterhours trading on a market value of about $460 million.

Sales for the three months through March 31 were up 45% from a year earlier to $164 million.

That easily beat the $152 million analysts on average were expecting.

M-Flex got a boost from what it called “three of the company’s key customers.”

The company doesn’t disclose customers but is coming off a longtime reliance on Motorola Inc.

Newer customers include Research in Motion Inc., maker of the BlackBerry, Sony Ericsson Mobile Communications AB and Apple Inc.

M-Flex’s top four customers made up 95% of sales during the quarter.

A few years ago, Motorola once made up as much as 85% of M-Flex’s sales.

Net income for the quarter rose 240% to $10.4 million. Sales of more profitable circuit boards drove the gain.

Wall Street had been expecting a profit of $6.8 million.

The company’s gross margin was 18%, up 11% from a year earlier.

M-Flex makes flexible circuit boards that go into cell phones, personal digital assistants and other handheld devices.

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