ORANGE COUNTY EARNINGS

Smartflex Systems Inc.: The Tustin electronic manufacturing services company said that net income for the second quarter declined 31% to $387,000, or 6 cents a share, from $558,000, or 9 cents a share, for the second quarter of the prior year. Revenue dropped 27% to $27 million from $37 million. The company attributed the revenue decline primarily to continuing softness in demand in the storage industry. Net income for the six months was $1.2 million, or 19 cents a share, 53% higher than the $792,000 or 13 cents a share, for the same period in 1997. Revenue was down 5% to $64 million from $67.3 million.