Multi-Fineline Electronix F2Q09 (Qtr End 3/31/09) Earnings Call Transcript

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2009-05-08 15:31:12.0

Tags: Call Transcript, Yield, Earnings, Product Transition, Sales Strategy, Sales, Seeking Alpha, Multi-Fineline Electronix Inc.

Question-and-Answer Session

Operator

Thank you, sir. (Operator Instructions). Our first question comes from the line of Matt Sheerin with Thomas Weisel Partners. Please go ahead.

Matthew Sheerin - Thomas Weisel Partners

Yes thanks and good afternoon everyone. So just a question Reza regarding your guidance, it looks like you are seeing some seasonal patterns but are there any specific changes there you see in terms of the make up of your sales mix by customer, any up or down more significantly than others?

Reza Meshgin

No, we actually as we mention we see the mix in quarter three to be very similar to quarter two.

Matthew Sheerin - Thomas Weisel Partners

And are you seeing basically seasonal orders from your customers or you are seeing some particularly, your two largest customers go through some product transitions, which is why you are flat, because if you look at some of are customers they do have some product ramps that are expected. So, trying to figure out whether you are building or you're going through some product transitions now that you are at somewhat of a low and then you'll see somewhat of a snapback later in the year?

Reza Meshgin

All right. We have we're in middle of actually starting new programs which will translate into production and ramp up after this quarter; that's what our expectation is at this point of time.

Matthew Sheerin - Thomas Weisel Partners

Okay. And then as you do ramp those new programs later in the year, and I imagine that their extensions of existing platforms will have probably have some new technology, new components. So what I'm getting at is, as you ramp those, will you see margin pressure, because of lower yields or higher dollar content of components?

Reza Meshgin

Well we -- actually this is something that we've been very diligent about and work very hard to shorten our cycle of yield improvement. In other words as we go though program ramp-ups, its used to be that it would take us longer to get to our optimum yield. And we work very hard to shorten that cycle and as a matter of fact all the initiatives that we've put in place in our high volume operations have been resulting in very favorable quicker to optimum yield and shorter ramp-up. So, the answer to your question is that no, in particular we don't expect to see margin deterioration mainly because of these start ups, but that's always a possibility.

 

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