Shares of Multi-Fineline Electronix Inc. dove about 24% Thursday after the Anaheim company warned it would fall far short of its earnings expectations for the quarter ended June 30.
The flexible circuit board maker, known as M-Flex, said it now expects to earn between $7.5 million and $8.5 million compared to the $12.2 million to $13.6 million it forecasted in the spring.
M-Flex maintained its revenue guidance of $126 million to $136 million in the quarter.
Phil Harding, the company’s chief executive, said the company was hit with an unexpected increase in costs. The company blamed the increase on selling more products with slimmer profit margins.
M-Flex also said it was seeing higher labor costs and lower production from its manufacturing lines. M-Flex said it was hiring extra people ahead of new production lines that are set to be operating by the end of the year.
The company already disappointed investors two months ago when its prior forecast fell short of analysts’ estimates for both earnings and revenue.
Shares of M-Flex have slumped sharply this year. The company is in the midst of a $500 million acquisition of Singapore’s MFS Technology.
The deal has been criticized by investors. M-Flex and MFS Technology are part of Singapore’s WBL Corp.
Shares of M-Flex fell $6.30 to $21.50 on Thursday. They have traded as high as $67.20 during the past year.
