MultiFineline Electronix Inc. (MFLX, Financial) filed Quarterly Report for the period ended 2011-12-31.
Multifineline Electronix Inc. has a market cap of $606.6 million; its shares were traded at around $25.22 with a P/E ratio of 15.1 and P/S ratio of 0.7. Multifineline Electronix Inc. had an annual average earning growth of 2.5% over the past 10 years.
Net sales into the tablets sector increased to $39.8 million for the three months ended December 31, 2011, from $4.7 million for the three months ended December 31, 2010. The increase of $35.1 million in sales into the tablets sector was due to higher average sales prices as a result of higher content per unit of 365%, coupled with higher unit sales volume of 283% from one of our key customers in this sector. For the three months ended December 31, 2011, and 2010, the tablets sector accounted for approximately 17% and 2% of total sales, respectively.
Cost of Sales and Gross Profit. Cost of sales as a percentage of net sales increased to 87.8% for the three months ended December 31, 2011 versus 85.7% for the three months ended December 31, 2010. The increase in cost of sales as a percentage of net sales of 2.1% was primarily attributable to an increase of 90 basis points as a result of higher capacity related costs for plant and equipment additions to support anticipated 2012 customer demand, an increase of 90 basis points due to higher labor costs in China, and an increase of 105 basis points due to the appreciating Chinese Yuan. These increases were partially offset by a 75 basis point improvement primarily in product mix. Gross profit decreased to $29.2 million for the three months ended December 31, 2011, versus $34.5 million for the three months ended December 31, 2010, or 15.4%. As a percentage of net sales, gross profit decreased to 12.2% for the three months ended December 31, 2011 from 14.3% for the three months ended December 31, 2010.
Sales and Marketing. Sales and marketing expense decreased by $1.0 million to $6.4 million for the three months ended December 31, 2011, from $7.4 million in the comparable period of the prior year, a decrease of 13.5%. The decrease is primarily attributable to decreased variable selling costs associated with our customer mix. As a percentage of net sales, sales and marketing expense decreased to 2.7% versus 3.1% in the comparable period of the prior year.
Our net accounts receivable balance increased to $191.3 million as of December 31, 2011 from $150.5 million as of September 30, 2011, or 27.1%. Days sales outstanding on a quarterly basis at September 30, 2011 increased one day to 72 days at December 31, 2011, primarily as the result of increased sales in the latter half of the quarter when compared to the prior period. The shift of sales towards the end of the fiscal quarter resulted in many of the related receivables still being open as of December 31, 2011. Our net inventory balance decreased to $76.4 million as of December 30, 2011from $87.2 million as of September 30, 2011, a decrease of 12.4%. Days in inventory on a quarterly basis at September 30, 2011 decreased 12 days to 33 days at December 31, 2011 as a result of increased pull-through of inventory from our hub locations from one of our major customers in December, coupled with decreased production at the end of December which we expect will continue into the first week of February due to the Chinese New Year. Our accounts payable balance decreased to $154.4 million as of December 31, 2011 from $162.8 million as of September 30, 2011, a decrease of 5.2%. Days payable on a quarterly basis decreased 19 days to 66 days as a result of the decreased production in the end of December, as noted above.
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Multifineline Electronix Inc. has a market cap of $606.6 million; its shares were traded at around $25.22 with a P/E ratio of 15.1 and P/S ratio of 0.7. Multifineline Electronix Inc. had an annual average earning growth of 2.5% over the past 10 years.
Highlight of Business Operations:
Net sales into the smartphones sector decreased to $195.1 million for the three months ended December 31, 2011, from $223.3 million for the three months ended December 31, 2010. The decrease of $28.2 million, or 12.6%, was primarily due to lower sales volumes to one major customer. For the three months ended December 31, 2011 and 2010, the smartphones sector accounted for approximately 82% and 93% of total sales, respectively.Net sales into the tablets sector increased to $39.8 million for the three months ended December 31, 2011, from $4.7 million for the three months ended December 31, 2010. The increase of $35.1 million in sales into the tablets sector was due to higher average sales prices as a result of higher content per unit of 365%, coupled with higher unit sales volume of 283% from one of our key customers in this sector. For the three months ended December 31, 2011, and 2010, the tablets sector accounted for approximately 17% and 2% of total sales, respectively.
Cost of Sales and Gross Profit. Cost of sales as a percentage of net sales increased to 87.8% for the three months ended December 31, 2011 versus 85.7% for the three months ended December 31, 2010. The increase in cost of sales as a percentage of net sales of 2.1% was primarily attributable to an increase of 90 basis points as a result of higher capacity related costs for plant and equipment additions to support anticipated 2012 customer demand, an increase of 90 basis points due to higher labor costs in China, and an increase of 105 basis points due to the appreciating Chinese Yuan. These increases were partially offset by a 75 basis point improvement primarily in product mix. Gross profit decreased to $29.2 million for the three months ended December 31, 2011, versus $34.5 million for the three months ended December 31, 2010, or 15.4%. As a percentage of net sales, gross profit decreased to 12.2% for the three months ended December 31, 2011 from 14.3% for the three months ended December 31, 2010.
Sales and Marketing. Sales and marketing expense decreased by $1.0 million to $6.4 million for the three months ended December 31, 2011, from $7.4 million in the comparable period of the prior year, a decrease of 13.5%. The decrease is primarily attributable to decreased variable selling costs associated with our customer mix. As a percentage of net sales, sales and marketing expense decreased to 2.7% versus 3.1% in the comparable period of the prior year.
Our net accounts receivable balance increased to $191.3 million as of December 31, 2011 from $150.5 million as of September 30, 2011, or 27.1%. Days sales outstanding on a quarterly basis at September 30, 2011 increased one day to 72 days at December 31, 2011, primarily as the result of increased sales in the latter half of the quarter when compared to the prior period. The shift of sales towards the end of the fiscal quarter resulted in many of the related receivables still being open as of December 31, 2011. Our net inventory balance decreased to $76.4 million as of December 30, 2011from $87.2 million as of September 30, 2011, a decrease of 12.4%. Days in inventory on a quarterly basis at September 30, 2011 decreased 12 days to 33 days at December 31, 2011 as a result of increased pull-through of inventory from our hub locations from one of our major customers in December, coupled with decreased production at the end of December which we expect will continue into the first week of February due to the Chinese New Year. Our accounts payable balance decreased to $154.4 million as of December 31, 2011 from $162.8 million as of September 30, 2011, a decrease of 5.2%. Days payable on a quarterly basis decreased 19 days to 66 days as a result of the decreased production in the end of December, as noted above.
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