PC board maker reports lower sales and earnings

Merix Corp., reported that sales for its first quarter of fiscal 2002 ended August 25 were $27.7 million, down from the $51 million in the first fiscal quarter of 2001 and lower than the $30.1 million for the previous fiscal quarter. Net income was $542,000 or 4 cents per diluted share, compared to $7.9 million or 54 cents per diluted share for the year-ago period and $2.1 million or 15 cents per diluted share in the previous quarter.

Despite lower sales and earnings, the Forest Grove, Ore., supplier of pc boards reported gross margins in the quarter of 18% compared to 15.5% in the previous quarter. The company attributed the improvement to more premium board orders, cost reductions, and a one-time payment stemming from a customer supply agreement.

Merix projects sales for the second fiscal quarter of 2002 to range from $20 million to $25 million, with earnings ranging from a 16 cent per share loss to break even.