WBL Corporation or Wearnes today warned of a net loss for the third quarter ended June 30 after a key subsidiary flagged that its revenue would come in lower than projected.
In a press release on July 25, Nasdaq-listed Multi-Fineline Electronix said it expects net sales in the third quarter of fiscal 2013 to be about US$136 million, below the company's guidance range of US$155 million to US$185 million.
As a result of the lower revenues, gross margin is likely to be 3.1 per cent in the red. It had earlier projected breakeven margin.
Multi-Fineline expects to report cash and cash equivalents of US$114.1 million, or US$4.76 per diluted share, and US$73.6 million in inventory.
It is also stated that "the company expects to record the following non-cash charges during the third quarter: a US$7.5 million goodwill impairment charge and a US$3.1 million charge to reflect a valuation allowance to reduce the value of certain deferred tax assets".
Multi-Fineline also expects to record about US$9.6 million in additional stock-based compensation expense resulting from the change in control that was deemed to occur under the terms of iss stock incentive plan following the acquisition of its majority shareholder, Wearnes.
Multi-Fineline's performance is expected to have a material adverse impact on Wearnes' financial results for the third quarter.
Wearnes now expects to incur a net loss for the same period.
Further details of its financial performance will be disclosed when it releases its results on Aug 13.