Anaheim-based circuit board maker Multi-Fineline Electronix Inc. saw a big drop in profit for the recently ended quarter with a slowdown in sales to key customer Motorola Inc.
Multi-Fineline, known as M-Flex, said net income for the quarter ended Sept. 30 fell to $2.2 million from $11 million a year earlier.
Sales for the quarter were flat at $110.3 million, vs. $110.9 million a year ago.
M-Flex shares were down nearly 10% in midday trading.
The comapny blamed the lower earnings on a slowdown in sales to its largest customer, cell phone maker Motorola, which represented 75% of sales during the quarter.
The company also said it experienced declining market share with Motorola driven by increased competition.
M-Flex has made progress in diversifying its customers, according to Chief Executive Phil Harding. Its second biggest customer, Sony Ericsson, now represents 12% of the circuit board maker’s sales, Harding said in a statement.
“In addition, we expect to have another major customer representing at least 10% of our sales in the latter half of fiscal 2007,” he said.
For 12 months ended Sept. 30, the company said sales rose 41% to $504.2 million from the year-ago period.
Net income in the fiscal year was up 9% to $40.4 million. It was the highest annual sales and net income for the company, mostly because of a strong first half of the year.
