Multi-Fineline Electronix “Negatively Impacted" by Low Sales to Motorola

Motorola’s (MOT) continued troubles are trickling down to its suppliers. Late Wednesday, Multi-Fineline Electronix (MFLX), a maker of flexible printed circuit boards, said it now does not expect revenue to grow sequentially for the second fiscal quarter ended March 31 from the first quarter.

The company notes that it had previously forecast that it would have sequential growth in the quarter. Just to confuse things, the company also says that in previous years, the company has typically seen a sequential sales decline in the second quarter.

The company said that it has been “negatively impacted by less than anticipated sales” to its largest customer. In the latest quarter, 74% of the company’s sales were to Motorola.

Reik Read, an analyst with Robert W. Baird, yesterday trimmed his EPS estimate for the September 2007 fiscal year to 68 cents a share from 75 cents. Read nonetheless maintains an Outperform rating on the stock, asserting that margins are near a bottom, and that the company is ramping production for two customers, Sony Ericsson and another that has not been identified. He has a $22 price target on the stock.

Yesterday, M-Flex shares were down 81 cents at $16.69.

MFLX 1-yr chart