Revenues down 30% but made 6 cents
Smartflex reports second quarter results
TUSTIN, Calif.--(BUSINESS WIRE)--July 13, 1998--Smartflex
Systems, Inc. (Nasdaq: SFLX) Monday announced net revenues of $27.0
million for the second quarter ended June 30, 1998, a decrease of 27
percent over last year's comparable quarter of $37.0 million. Net
income for the second quarter of fiscal 1998 was $387,000 or 6 cents
per share, compared to net income of $558,000, or 9 cents per share
for the comparable period in the prior year. Net revenues for the
first half of 1998 were $64.0 million compared to $67.3 million in the
first half of 1997. Net income for the six months ended June 30, 1998
was $1.2 million or 19 cents per share compared to $792,000 or 13
cents per share for the same period in 1997.
The decrease in net revenues, in the second quarter of 1998 as
compared to the second quarter of the prior year, was primarily due to
the continuing demand softness in the storage industry. This demand
softness is not expected to improve in the foreseeable future.
Although net revenues in the first half of 1998 decreased 5 percent as
compared to the same period in the prior year, the corresponding gross
margins increased to 11.1% from 8.2%. The increase in gross margin is
primarily attributable to the reduced cost structure resulting from
the realignment of operations in the prior year and due to cost
control measures put in place during the current year. In addition,
the Company also benefited from favorable foreign currency exchange
rates during the second quarter of the current year, as compared to
the same period in the prior year. |
