Merix Reports 3Q Net Loss of US$4.9M, Sales of $22.1M

This news was first published on http://www.pcb007.com.

Oregon-based PCB maker Merix Corporation today reported results for its third quarter ended March 1, 2003. Sales for the quarter were US$22.1 million, down from $18.5 million reported for the third quarter of fiscal 2002. The company reported a net loss this quarter of $4.9 million or $0.33 per share, compared to a net loss of $3.8 million or $0.26 per share for the same period last year.

A pre-tax charge of $2.0 million, or $0.08 per share after tax, for restructuring and related activities negatively impacted results in the third quarter of fiscal 2003. Excluding this charge, the net loss for the third quarter was $3.6 million or $0.25 per share.

Gross margin improved to a negative 8.6% in the third quarter of fiscal 2003 from a negative 12.2% in the same quarter last year. Merix credited the improvement to higher capacity utilization and cost-reduction activities, partially offset by lower average pricing compared to the year-ago quarter.

The company stated that its balance sheet remains strong, with excellent liquidity. At the end of the third quarter, cash and investments were $45.3 million and debt to total capitalization was 17%, Merix said. Mark Hollinger, Chairman and CEO of Merix, remarked that despite continued weak business conditions and lagging demand from the communications infrastructure market during the quarter, Merix added 12 new customers during the quarter. "Also, our quick-turn business remained strong at 25% of sales," Mr. Hollinger noted.

Fourth-quarter forecast

For the fourth quarter of fiscal year 2003, Merix said it currently anticipates that sales will be approximately flat compared to the third quarter, with a net loss between $0.24 and $0.26 per share, including the remaining restructuring costs of approximately $140,000.