Market Overview

Fabrinet Announces First Quarter Fiscal Year 2018 Financial Results

Share:

Fabrinet (NYSE:FN), a leading provider of advanced optical packaging
and precision optical, electro-mechanical and electronic manufacturing
services to original equipment manufacturers of complex products, today
announced its financial results for its first quarter ended September
29, 2017.

Tom Mitchell, Executive Chairman of Fabrinet, said, "Our first quarter
revenue was within our guidance range. Growth from datacom and
non-optical communications products were healthy compared to a year ago,
with new programs and advanced technologies including silicon photonics
and QSFP28 as notable contributors. However, tempered demand for telecom
products resulted in a flat performance in that category compared to a
year ago."

"We believe our strategy to drive our growth by attracting new customers
and winning new programs from existing customers, while supporting
increased production of existing programs continues to be successful,"
added Mr. Mitchell. "We are optimistic that by continuing to execute on
this strategy we can continue to drive profitable growth as we look
ahead."

First Quarter Fiscal Year 2018 Financial Highlights

GAAP Results

  • Revenue for the first quarter of fiscal year 2018, a 13-week quarter,
    was $357.3 million, an increase of 8% compared to revenue of $332.0
    for the comparable period in fiscal year 2017, a 14-week quarter.
  • GAAP net income for the first quarter of fiscal year 2018 was $21.0
    million, compared to GAAP net income of $22.8 million for the first
    quarter of fiscal year 2017. GAAP net income for the first quarter of
    fiscal year 2018 included a foreign exchange loss of $1.9 million, or
    $0.05 per diluted share.
  • GAAP net income per diluted share for the first quarter of fiscal year
    2018 was $0.55, compared to GAAP net income per diluted share of $0.61
    for the first quarter of fiscal year 2017.

Non-GAAP Results

  • Non-GAAP net income for the first quarter of fiscal year 2018 was
    $28.6 million, compared to non-GAAP net income of $29.7 million for
    the same period a year ago.
  • Non-GAAP net income per diluted share for the first quarter of fiscal
    year 2018 was $0.75, a decrease from non-GAAP net income per diluted
    share of $0.80 for the same period a year ago. Non-GAAP net income for
    the first quarter of fiscal year 2018 included a foreign exchange loss
    of $1.9 million, or $0.05 per diluted share.

Business Outlook

Based on information available as of November 6, 2017, Fabrinet is
issuing guidance for its second fiscal quarter ending December 29, 2017,
as follows:

  • Fabrinet expects second quarter revenue to be in the range of $328
    million to $332 million.
  • GAAP net income per diluted share is expected to be in the range of
    $0.43 to $0.45, based on approximately 38.2 million fully diluted
    shares outstanding.
  • Non-GAAP net income per diluted share is expected to be in the range
    of $0.69 to $0.71, based on approximately 38.2 million fully diluted
    shares outstanding.
 

Conference Call Information

   
What: Fabrinet First Quarter Fiscal Year 2018 Financial Results Conference
Call
When: Monday, November 6, 2017
Time: 5:00 p.m. ET
Live Call: (888) 357-3694, domestic
(253) 237-1137, international
Passcode: 9499299
Replay: (855) 859-2056, domestic
(404) 537-3406, international
Passcode: 9499299
Webcast:

http://investor.fabrinet.com
(live and replay)

 

This press release and any other information related to the call will
also be posted on Fabrinet's website at http://investor.fabrinet.com.
A recorded version of this webcast will be available approximately two
hours after the call and will be archived on Fabrinet's website for a
period of one year.

About Fabrinet

Fabrinet is a leading provider of advanced optical packaging and
precision optical, electro-mechanical, and electronic manufacturing
services to original equipment manufacturers of complex products, such
as optical communication components, modules and subsystems, automotive
components, medical devices, industrial lasers and sensors. Fabrinet
offers a broad range of advanced optical and electro-mechanical
capabilities across the entire manufacturing process, including process
design and engineering, supply chain management, manufacturing, advanced
packaging, integration, final assembly and test. Fabrinet focuses on
production of high complexity products in any mix and any volume.
Fabrinet maintains engineering and manufacturing resources and
facilities in Thailand, the United States of America, the People's
Republic of China and the United Kingdom. For more information visit: www.fabrinet.com.

Forward-Looking Statements

"Safe Harbor" Statement Under U.S. Private Securities Litigation
Reform Act of 1995

This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. These
statements include: (1) statements regarding our ability to continue to
drive profitable growth; and (2) all of the statements under the
"Business Outlook" section regarding our expected revenue and GAAP and
non-GAAP net income per share for the second quarter of fiscal year
2018. These forward-looking statements involve risks and uncertainties,
and actual results could vary materially from these forward-looking
statements. Important factors that could cause actual results to differ
materially from those in the forward-looking statements include, but are
not limited to: less customer demand for our products and services than
forecasted; less growth in the optical communications, industrial lasers
and sensors markets than we forecast; difficulties expanding into
additional markets, such as the semiconductor processing, biotechnology,
metrology and materials processing markets; increased competition in the
optical manufacturing services markets; difficulties in delivering
products and services that compete effectively from a price and
performance perspective; our reliance on a small number of customers and
suppliers; difficulties in managing our operating costs; difficulties in
managing and operating our business across multiple countries (including
Thailand, the People's Republic of China, the U.S. and the U.K.); and
other important factors as described in reports and documents we file
from time to time with the Securities and Exchange Commission (SEC),
including the factors described under the section captioned "Risk
Factors" in our Annual Report on Form 10-K, filed on August 23, 2017. We
disclaim any obligation to update information contained in these
forward-looking statements whether as a result of new information,
future events, or otherwise.

Use of Non-GAAP Financials

We refer to the non-GAAP financial measures cited above in making
operating decisions because they provide meaningful supplemental
information regarding our ongoing operational performance. Non-GAAP net
income excludes: share-based compensation expenses; depreciation of fair
value uplift; executive separation costs; amortization of intangibles;
business combination expenses; gain on foreign currency contracts;
amortization of debt issuance costs; and restructuring charges. We have
excluded these items in order to enhance investors' understanding of our
underlying operations. The use of these non-GAAP financial measures has
material limitations because they should not be used to evaluate our
company without reference to their corresponding GAAP financial
measures. As such, we compensate for these material limitations by using
these non-GAAP financial measures in conjunction with GAAP financial
measures.

These non-GAAP financial measures are used to: (1) measure company
performance against historical results, (2) facilitate comparisons to
our competitors' operating results, and (3) allow greater transparency
with respect to information used by management in making financial and
operational decisions. In addition, these non-GAAP financial measures
are used to measure company performance for the purposes of determining
employee incentive plan compensation.

 

FABRINET
UNAUDITED CONDENSED CONSOLIDATED BALANCE
SHEETS

     
(in thousands of U.S. dollars, except share data)

September 29,
2017

June 30,
2017

 
Assets
Current assets
Cash and cash equivalents $ 111,631 $ 133,825
Marketable securities 151,635 151,450
Trade accounts receivable, net 275,418 264,349
Inventory, net 255,104 238,665
Prepaid expenses 7,894 6,306
Other current assets   7,667   4,159
Total current assets   809,349   798,754
Non-current assets
Restricted cash in connection with business acquisition 3,414 3,312
Property, plant and equipment, net 217,985 216,881
Intangibles, net 5,657 5,840
Goodwill 3,923 3,806
Deferred tax assets 2,730 2,905
Deferred debt issuance costs on revolving loan and other non-current
assets
View Comments and Join the Discussion!
 
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com