Merix Corporation (NASDAQ: MERX) today announced consolidated
financial results for the third quarter of fiscal 2009 ended
February 28, 2009.
The Company reported a net loss of $32.7 million or $1.54 per
diluted share on revenue of $60.7 million for the third quarter of
fiscal 2009, which compares to a net loss of $6.1 million or $0.29
per diluted share on revenue of $76.9 million in the second quarter
of fiscal 2009.
Included in the fiscal 2009 third quarter loss was a non-cash
impairment charge of $20.5 million or $0.97 per diluted share for
goodwill recorded on the 2005 acquisition of our Asian business and
$1.8 million of $0.09 per diluted share of severance and other
restructuring charges associated with our recent cost reduction
activities.
During the third quarter of fiscal 2009 the Company generated
$10.3 million of cash from operations and ended the quarter with
$19.1 million of cash and cash equivalents, representing a $7.6
million increase from the second quarter of the fiscal year.
Commenting on the recent third quarter performance, Michael D.
Burger, President and Chief Executive Officer, said, "Like most
businesses today, the printed circuit board market has been
severely affected by the global recession. Despite the decline in
revenues, we were able to generate good third quarter cash flows
through improvements in days sales outstanding and inventory turns
as well as the collection of Chinese value added tax refunds.
Further, we continued to reduce our costs through selective
actions, many of which were made near the end of the third quarter
and are anticipated to have a greater benefit in the fourth fiscal
quarter, which ends in May."
On a sequential basis, third quarter 2009 revenue decreased 21%
when compared to the second quarter of fiscal 2009. This decline
was due in part to a 34% decrease in sales to the automotive end
market caused by a sharp global decrease in automobile sales.
Mr. Burger continued, "Despite the economic slowdown we believe
we are maintaining market share and beginning to win new projects
in a number of larger customer programs. Further, I am pleased with
how our employees and managers are responding to the market
challenges by continuing to build upon the process improvements
made over the last 18 months. In fact, Merix' factories continue to
execute exceptionally well and we continue to improve
on-time-delivery, factory yields and product quality. Although
difficult to predict, based on recent booking trends, our backlog
at end of the third quarter and other market data, we anticipate
fourth quarter revenues to stabilize and remain relatively flat
when compared to the third quarter of fiscal 2009."
Merix' overall gross margins averaged 1.4% of revenue for the
third quarter of fiscal 2009 compared to 8.4% and 7.8% in the third
quarter of fiscal 2008 and second quarter of fiscal 2009,
respectively. The margin declines were primarily caused by lower
fixed cost absorption resulting from decreased production volumes
and lower revenue. Gross margins tend to be heavily influenced by
fluctuations in revenues due to the fixed cost nature of the
production processes.
Operating expenses, exclusive of impairment and restructuring
charges, totaled $9.4 million in the third quarter of fiscal 2009
compared to $10.8 million and $9.2 million in the third quarter of
fiscal 2008 and second quarter of fiscal 2009, respectively. Third
quarter 2009 operating expenses included a $0.3 million increase in
the allowance for doubtful accounts to recognize increased risk
associated with the current economic environment.
As noted earlier, the Company evaluated its goodwill and other
long lived assets for impairment. As a result of management's third
quarter impairment analysis the Company recognized a non-cash
charge of $20.5 million to write-down goodwill in our Asia business
segment to zero.
Conference Call and Webcast Information
Merix will conduct a conference call and live webcast Wednesday,
April 8, 2009 at 2:00 p.m. PT. Management will discuss third
quarter fiscal 2009 financial results, provide a qualitative
discussion regarding our business outlook and comment further on
the strategic direction of the Company. To access the webcast, log
on to www.merix.com.
An online replay of the webcast will be available at 5:00 pm PT
on April 8, 2009 and a telephone replay will be available from 4:00
pm PT on April 8, 2009 until 11:59 pm PT on Wednesday, April 15,
2009 by calling (320) 365-3844, access code 993471.
About Merix
Merix is a leading manufacturer of technologically advanced,
multilayer, rigid printed circuit boards for use in sophisticated
electronic equipment. Merix provides high-performance materials,
quick-turn prototype, pre-production and volume production services
to its customers. Principal markets served by Merix include
communications and networking, computing and peripherals, test,
industrial and medical, defense and aerospace, and automotive end
markets in the electronics industry. Additional corporate
information is available on the internet at www.merix.com
Forward-Looking Statements
This release contains "forward-looking statements" within the
meaning of the Securities Litigation Reform Act of 1995 relating to
the Company's business operations and prospects, including
statements related to estimates of financial results for future
reporting periods that are made pursuant to the safe harbor
provisions of the federal securities laws. These forward-looking
statements, which may be identified by the inclusion of words such
as "expects," "anticipates," "intends," "plans," "believes,"
"seeks," "estimates," "goals" and other similar expressions, are
based on current expectations, estimates, assumptions and
projections that are subject to change. Actual results may differ
materially from the forward-looking statements. Many factors,
including the following, could cause actual results to differ
materially from the forward-looking statements: our ability to
control or pass through increases in the cost of raw materials and
supplies; changes in customer order levels, product mix and
inventory build-up; lower than expected or delayed sales; ability
to successfully restructure Merix Asia and complete the related
capital and technology expansion; the ability to successfully and
timely integrate the operations of Merix Asia; continued
availability of our line of credit facility or sources of
additional capital; the ability to successfully restructure Merix
Oregon; fluctuations in demand for products and services of the
Company, including quick-turn and premium services; foreign
currency risk; the introduction of new products or technologies by
competitors; the ability to avoid unanticipated costs, including
costs relating to product quality issues and customer warranty
claims; pricing and other competitive pressures in the industry
from domestic and global competitors; all other risks inherent in
foreign operations such as increased regulatory complexity and
compliance cost and greater political and economic instability; our
ability to fully utilize our assets and control costs; our ability
to retain or attract employees with sufficient know-how to conduct
our manufacturing processes and maintain or increase our production
output and quality; and other risks listed from time to time in the
Company's filings with the Securities and Exchange Commission or
otherwise disclosed by the Company, including those set forth in
the Company's Annual Report on Form 10-K for the year ended May 31,
2008 and Form 10-Q for the second quarter ended November 29, 2008.
Merix Corporation does not undertake to update any such factors or
to publicly announce developments or events relating to the matters
described herein.
MERIX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except earnings per share data)
(Unaudited)
Fiscal quarter ended Nine months ended
------------------------------- --------------------
February November March 1, February March 1,
28, 2009 29, 2008 2008 28, 2009 2008
--------- --------- --------- --------- ---------
Net sales: $ 60,721 $ 76,900 $ 94,275 $ 228,248 $ 291,083
Cost of sales 59,845 70,865 86,351 211,063 262,593
--------- --------- --------- --------- ---------
Gross profit 876 6,035 7,924 17,185 28,490
Gross margin 1.4% 7.8% 8.4% 7.5% 9.8%
Operating expenses:
Engineering 500 697 337 1,760 1,287
Selling, general
and administrative 8,395 7,989 9,930 26,086 32,161
Amortization of
intangible assets 472 520 527 1,512 1,785
Impairment and
severance charges 22,342 1,089 14,640 22,904 15,861
--------- --------- --------- --------- ---------
Total operating
expenses 31,709 10,295 25,434 52,262 51,094
--------- --------- --------- --------- ---------
Operating income
(loss) (30,833) (4,260) (17,510) (35,077) (22,604)
Other expense, net (1,050) (1,029) 3,914 (3,268) 1,744
--------- --------- --------- --------- ---------
Loss before income
taxes and minority
interests (31,883) (5,289) (13,596) (38,345) (20,860)
Provision for income
taxes 628 693 (511) 2,049 445
--------- --------- --------- --------- ---------
Loss before minority
interests (32,511) (5,982) (13,085) (40,394) (21,305)
Minority interests 155 106 269 507 707
--------- --------- --------- --------- ---------
Net loss $ (32,666) $ (6,088) $ (13,354) $ (40,901) $ (22,012)
========= ========= ========= ========= =========
Diluted net loss per
share $ (1.54) $ (0.29) $ (0.63) $ (1.95) $ (1.05)
========= ========= ========= ========= =========
Diluted shares used
in per share
calculations 21,170 20,945 21,079 20,957 21,002
========= ========= ========= ========= =========
MERIX CORPORATION
SUPPLEMENTAL INFORMATION
NET SALES, GROSS PROFIT & GROSS MARGIN BY SEGMENT
(in thousands)
(Unaudited)
Fiscal quarter ended Nine months ended
------------------------------- --------------------
February November March 1, February March 1,
28, 2009 29, 2008 2008 28, 2009 2008
--------- --------- --------- --------- ---------
Net sales:
Oregon $ 22,964 $ 29,431 $ 41,151 $ 89,638 $ 133,057
San Jose 5,843 6,720 7,485 20,237 24,650
--------- --------- --------- --------- ---------
North America 28,807 36,151 48,636 109,875 157,707
Asia 31,914 40,749 45,639 118,373 133,376
--------- --------- --------- --------- ---------
Total net sales $ 60,721 $ 76,900 $ 94,275 $ 228,248 $ 291,083
========= ========= ========= ========= =========
Gross profit:
Oregon $ (2,356) $ 768 $ 2,200 $ 2,261 $ 12,534
San Jose (30) 716 1,206 2,001 4,056
--------- --------- --------- --------- ---------
North America (2,386) 1,484 3,406 4,262 16,590
Asia 3,262 4,551 4,518 12,923 11,900
--------- --------- --------- --------- ---------
Total gross
profit $ 876 $ 6,035 $ 7,924 $ 17,185 $ 28,490
========= ========= ========= ========= =========
Gross margin:
Oregon -10.3% 2.6% 5.3% 2.5% 9.4%
San Jose -0.5% 10.7% 16.1% 9.9% 16.5%
--------- --------- --------- --------- ---------
North America -8.3% 4.1% 7.0% 3.9% 10.5%
Asia 10.2% 11.2% 9.9% 10.9% 8.9%
--------- --------- --------- --------- ---------
Total gross
margin 1.4% 7.8% 8.4% 7.5% 9.8%
========= ========= ========= ========= =========
MERIX CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(Unaudited)
February 28,
2009 May 31, 2008
------------ ------------
Assets:
Cash and short-term investments $ 19,084 $ 5,728
Accounts receivable, net 45,699 73,153
Inventories, net 16,213 23,631
Assets held for sale 4 1,477
Deferred income taxes 75 75
Prepaid and other current assets 4,684 12,961
------------ ------------
Total current assets 85,759 117,025
Property, plant and equipment, net 101,015 103,012
Goodwill 11,392 31,794
Intangible assets, net 7,352 8,866
Deferred income taxes 773 885
Assets held for sale 1,146 -
Other assets 4,732 5,859
------------ ------------
Total assets $ 212,169 $ 267,441
============ ============
Liabilities and Shareholders' Equity:
Accounts payable $ 37,262 $ 59,789
Accrued liabilities 14,712 15,783
------------ ------------
Total current liabilities 51,974 75,572
Long-term debt 78,000 70,000
Other long-term liabilities 3,751 3,522
------------ ------------
Total liabilities 133,725 149,094
------------ ------------
Minority interests 3,849 4,573
Shareholders' equity 74,595 113,774
------------ ------------
Total liabilities and shareholders' equity $ 212,169 $ 267,441
============ ============
MERIX CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(in thousands)
(Unaudited)
Fiscal quarter ended Nine months ended
-------------------- --------------------
Feb. 28, Mar. 1, Feb. 28, Mar. 1,
2009 2008 2009 2008
--------- --------- --------- ---------
Cash flows from operating
activities:
Net loss $ (32,666) $ (13,354) $ (40,901) $ (22,012)
Net adjustments to
reconcile loss to net cash
provided by operating
activitities:
Depreciation and
amortization 5,697 5,235 16,822 16,231
Other non-cash items 20,969 7,383 22,381 10,052
Changes in working capital 16,258 4,778 25,044 4,004
--------- --------- --------- ---------
Net cash provided by
operating activities 10,258 4,042 23,346 8,275
Cash flows from investing
activities:
Purchases of property, plant
and equipment (3,288) (7,679) (18,132) (19,749)
Proceeds from disposal of
property, plant and
equipment 362 - 961 23
Net changes in investments - - - 9,025
--------- --------- --------- ---------
Net cash used in
investing activities (2,926) (7,679) (17,171) (10,701)
Cash flows from financing
activities:
Principal payments on
long-term borrowings - (2,500) - (2,500)
Principal payments on capital
lease obligations - - - (438)
Net borrowings on revolving
line of credit 1,017 - 8,000 -
Other financing activities, net (748) (104) (819) (1,386)
--------- --------- --------- ---------
Net cash used in financing
activities 269 (2,604) 7,181 (4,324)
--------- --------- --------- ---------
Net change in cash and cash
equivalents 7,601 (6,241) 13,356 (6,750)
Cash and cash equivalents
Beginning of period 11,483 16,666 5,728 17,175
--------- --------- --------- ---------
End of period $ 19,084 $ 10,425 $ 19,084 $ 10,425
========= ========= ========= =========
SUPPLEMENTAL INFORMATION
NET SALES STATISTICS AND SHARE BASED COMPENSATION
(in thousands)
(Unaudited)
Three months ended
----------------------------------------
February 28, November 29, March 1,
2009 2008 2008
------------ ------------ ------------
Net Sales by End Markets:
Communications & Networking $24,917 41% $29,664 39% $40,402 43%
Automotive 11,511 19% 17,449 23% 17,520 19%
Computing & Peripherals 4,725 8% 5,984 8% 9,681 10%
Test, Industrial and Medical 7,153 12% 9,366 12% 9,753 10%
Defense & Aerospace 5,998 10% 7,299 9% 6,534 7%
Other 6,417 10% 7,138 9% 10,385 11%
------- --- ------- --- ------- ---
$60,721 100% $76,900 100% $94,275 100%
======= === ======= === ======= ===
Net Sales by Type:
Quick-Turn & Premium $ 9,959 16% $13,158 17% $20,378 22%
Full Lead Time 50,762 84% 63,742 83% 73,897 78%
------- --- ------- --- ------- ---
$60,721 100% $76,900 100% $94,275 100%
======= === ======= === ======= ===
Top 5 Customers (as % of net
sales) 37% 36% 35%
======= ======= =======
Current Period Change in Average
Pricing Compared to: Three months ended
--------------------------
November 29, March 1,
2008 2008
------------ ------------
Oregon 4% 13%
San Jose -2% -1%
Asia 3% 10%
------------ ------------
Consolidated 4% 3%
============ ============
Current Period Change in Unit Volumes
Compared to: Three months ended
--------------------------
November 29, March 1,
2008 2008
------------ ------------
Oregon -25% -51%
San Jose -12% -21%
Asia -24% -37%
------------ ------------
Consolidated -24% -38%
============ ============
Nine months ended
----------------------------
February 28,
2009 March 1, 2008
------------- -------------
Net Sales by End Markets:
Communications & Networking $ 93,357 41% $122,909 42%
Automotive 48,373 21% 58,583 20%
Computing & Peripherals 17,294 8% 26,065 9%
Test, Industrial and Medical 26,938 12% 32,022 11%
Defense & Aerospace 20,520 9% 18,827 7%
Other 21,766 9% 32,677 11%
-------- --- -------- ---
$228,248 100% $291,083 100%
======== === ======== ===
Net Sales by Type:
Quick-Turn & Premium $ 41,096 18% $ 67,767 23%
Full Lead Time 187,152 82% 223,316 77%
-------- --- -------- ---
$228,248 100% $291,083 100%
======== === ======== ===
Top 5 Customers (as % of net
sales) 38% 34%
======== ========
Current Period Change in Average
Pricing Compared to: Nine months
ended
-------------
March 1, 2008
-------------
Oregon 5%
San Jose 11%
Asia 10%
-------------
Consolidated -3%
=============
Current Period Change in Unit Volumes
Compared to: Nine months
ended
-------------
March 1, 2008
-------------
Oregon -37%
San Jose -24%
Asia -19%
-------------
Consolidated -20%
=============
Merix Investor Relations Contact: Allen Muhich Vice President -
Finance & Corporate Controller 503.716.3700
Merix (MM) (NASDAQ:MERX)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
Merix (MM) (NASDAQ:MERX)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024
