SOURCE: Merix Corporation

June 11, 2007 16:15 ET

Merix Corporation Announces the Adoption of Economic Value Added (EVA®) Framework

PORTLAND, OR--(Marketwire - June 11, 2007) - Merix Corporation (NASDAQ: MERX) announced today that it has adopted the Economic Value Added (EVA®) management and incentive system. Merix is partnering with Stern Stewart & Co., the New York based management consulting firm and pioneer in developing the principles of EVA, to assist it in the implementation.

EVA measures the economic profit of a business and is used alongside a compensation program designed to align employee actions with true shareholder value creation. In addition, the EVA framework encourages employees to act like owners by training them to consider how their decisions influence company returns and capital employed. As part of the implementation, Merix anticipates that its senior management team's annual incentive payout will be principally based upon improving EVA.

"EVA will be the primary yardstick we utilize in measuring the Company's success as we continue to transition and grow our business," said Michael Burger, President and Chief Executive Officer. "I believe that having a sound financial measure like EVA is critical to helping our employees make sound business decisions."

Mr. Burger continued, "We've also noted research showing that Stern Stewart clients who have implemented the EVA measure and used EVA as the primary driver in their variable compensation plans, have enjoyed substantially higher total returns to their shareholders than their industry peers. As a result, we have chosen to partner with Stern Stewart to assure the successful implementation of this program."

About Merix

Merix is a leading manufacturer of technologically advanced, multilayer, rigid printed circuit boards for use in sophisticated electronic equipment. Merix provides high-performance materials, quick-turn prototype, pre-production and volume board production to its customers. Principal markets served by Merix include communications and networking, computing and peripherals, industrial and medical, defense and aerospace, and automotive end markets in the electronics industry. Additional corporate information is available on the internet at www.merix.com.

EVA® is a registered trademark of Stern Stewart & Co.

Forward-Looking Statements

This release contains "forward-looking statements" within the meaning of the Securities Litigation Reform Act of 1995 relating to the Company's business operations and prospects that are made pursuant to the safe harbor provisions of the federal securities laws. These forward-looking statements, which may be identified by the inclusion of words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "goal" and other similar expressions, are based on current expectations, estimates, assumptions and projections that are subject to change, and actual results may differ materially from the forward-looking statements. Many factors could cause actual results to differ materially from the forward-looking statements, including risks listed from time to time in the Company's filings with the Securities and Exchange Commission or otherwise disclosed by the Company. Merix Corporation does not undertake to update any such factors or to publicly announce developments or events relating to the matters described herein.

Contact Information

  • Merix Investor Relations Contact:
    Allen Muhich
    Vice President, Finance & Investor Relations
    503.992.4077