WBL Corp’s unit Multi-Fineline Electronix (MFLEX), the provider of high-quality, technologically advanced flexible printed circuit and value-added component assembly solutions to the electronics industry, says it expects to report net sales in the first quarter of $241 million in the first quarter of fiscal 2011 ended Dec 31, 2010, an increase of 5% from net sales of $229.5 million in the same quarter last year.

Gross margin during the first quarter of fiscal 2011 is expected to be 14.2%, compared to 15.9% for the same period in the prior year.

Reza Meshgin, Chief Executive Officer of MFLEX, says, “The record net sales we generated during the first quarter of fiscal 2011 were driven by new program wins and the seasonal demand we traditionally experience heading into the holiday season. Mix of net sales by major customers remained relatively similar compared to the fourth quarter of fiscal 2010 and I am pleased that one newer customer reached 10 percent of our overall net sales in the first quarter. In addition, we expect first quarter gross margins to be in line with previous guidance and we continue to be proactive in identifying areas within our operations where we can achieve cost savings. As a result, we have been able to partially offset the gross margin impact from the recent higher labor costs in China, pricing pressure, and unfavorable currency fluctuations.”