Shares of Multi-Fineline Electronix Inc. took a hammering on Thursday after a Singapore company that it’s buying said sales would fall short of expectations in the June quarter.
Singapore-based MFS Technology said revenue would be 28% lower in the quarter than in the prior period.
The company blamed slowing demand and weaker-than-expected sales of products that use the company’s circuit boards, according to a report by Channel NewsAsia.
MFS Technology, which is being bought by Anaheim-based Multi-Fineline for $500 million, also issued a sales warning for the current quarter.
Shares of Multi-Fineline, a maker of flexible circuit boards, fell 17.8% to $26.50 on Thursday.
Multi-Fineline and MFS Technology are part of Singapore’s WBL Corp. The acquisition, announced in March, drew criticism from some investors.
They worried Motorola might shift contracts away from M-Flex so its manufacturing isn’t too concentrated with one supplier.
M-Flex gets more than 80% of its sales from Motorola. MFS gets about 50% of its sales from the phone maker.
