Fabrinet Announces First Quarter Fiscal Year 2025 Financial Results

BANGKOK, Nov. 04, 2024 (GLOBE NEWSWIRE) -- 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 fiscal first quarter ended September 27, 2024.

Seamus Grady, Chief Executive Officer of Fabrinet, said, "We started fiscal year 2025 with significant momentum across our business. Record revenue of $804 million increased 17% from a year ago and was above our guidance range. We saw revenue growth from every product area, including our first telecom revenue growth in several quarters. Strong margins coupled with our revenue performance helped produce earnings per share at the upper end of our guidance range. We are optimistic that our strong business momentum and execution will extend into the fiscal second quarter as we continue to expand on our leadership in the market."

First Quarter Fiscal Year 2025 Financial Highlights

GAAP Results

Revenue for the first quarter of fiscal year 2025 was $804.2 million, compared to $685.5 million for the first quarter of fiscal year 2024.

GAAP net income for the first quarter of fiscal year 2025 was $77.4 million, compared to $65.1 million for the first quarter of fiscal year 2024.

GAAP net income per diluted share for the first quarter of fiscal year 2025 was $2.13, compared to $1.78 for the first quarter of fiscal year 2024.

Non-GAAP Results

Non-GAAP net income for the first quarter of fiscal year 2025 was $86.9 million, compared to $72.8 million for the first quarter of fiscal year 2024.

Non-GAAP net income per diluted share for the first quarter of fiscal year 2025 was $2.39, compared to $2.00 for the first quarter of fiscal year 2024.

Business Outlook

Based on information available as of November 4, 2024, Fabrinet is issuing guidance for its second fiscal quarter ending December 27, 2024, as follows:

Fabrinet expects second quarter revenue to be in the range of $800 million to $820 million.

GAAP net income per diluted share is expected to be in the range of $2.20 to $2.28, based on approximately 36.4 million fully diluted shares outstanding.

Non-GAAP net income per diluted share is expected to be in the range of $2.44 to $2.52, based on approximately 36.4 million fully diluted shares outstanding.        

Guidance for non-GAAP net income per diluted share excludes share-based compensation expenses and certain non-recurring items. A reconciliation of non-GAAP net income per diluted share to the corresponding GAAP measure is available at the end of this press release.

Conference Call Information

What:

 

Fabrinet First Quarter Fiscal Year 2025 Financial Results Call

When:

 

November 4, 2024

Time:

 

5:00 p.m. ET

Live Call and Replay:

 

https://investor.fabrinet.com/events-and-presentations/events

 

 

 

A recorded version of this webcast will be available approximately two hours after the call and accessible at http://investor.fabrinet.com. The webcast 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 testing. Fabrinet maintains engineering and manufacturing resources and facilities in Thailand, the United States of America, the People's Republic of China, and Israel. For more information visit: www.fabrinet.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include: (1) our optimism that numerous drivers position us to extend our track record of success into the fiscal second quarter; and (2) all of the statements under the "Business Outlook" section regarding our expected revenue, GAAP and non-GAAP net income per share, and fully diluted shares outstanding for the second quarter of fiscal year 2025. 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: changes in general economic conditions, either globally or in our markets, and the risk of recession or an economic downturn; continued disruption to our supply chain, which could increase our costs and affect our ability to procure parts and materials; less customer demand for our products and services than forecasted; less growth in the optical communications, automotive, 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, Israel and the U.S.); 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 with the SEC on August 20, 2024. We disclaim any obligation to update information contained in these forward-looking statements whether as a result of new information, future events, or otherwise.

Non-GAAP Financial Measures

In addition to reporting financial results in accordance with GAAP, we provide investors with certain non-GAAP financial measures. These non-GAAP financial measures are in addition to, and not a substitute for or superior to, measures of financial performance prepared in accordance with GAAP. We believe these non-GAAP financial measures provide investors with useful supplemental information 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, we use some of these non-GAAP financial measures to measure company performance for the purposes of determining employee incentive plan compensation.

Non-GAAP gross profit, non-GAAP operating profit, non-GAAP net income and non-GAAP net income per diluted share exclude: share-based compensation expenses; severance payment and others; restructuring and other related costs; and amortization of deferred debt issuance costs. We have excluded these items in order to enhance investors' understanding of our underlying operations.

Non-GAAP free cash flow is net cash provided by (used in) operating activities, minus capital expenditures (purchase of property, plant and equipment). We use free cash flow to measure our ability to generate additional cash from our business operations.

There are a number of limitations related to the use of these non-GAAP financial measures versus their nearest GAAP equivalents. For example, other companies may calculate non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison. We urge you to review the reconciliations of our non-GAAP financial measures to the most directly comparable GAAP financial measures, and not to rely on any single financial measure to evaluate our business.

Investor Contact:Garo

FABRINETCONSOLIDATED BALANCE SHEETS

 

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

September 27,2024

 

June 28,2024

 

(unaudited)

 

 

Assets

 

 

 

Current assets

 

 

 

Cash and cash equivalents

$

400,684

 

 

$

409,973

 

Short-term investments

 

508,193

 

 

 

448,630

 

Trade accounts receivable, net of allowance for expected credit losses of $1,954 and $1,629, respectively

 

662,692

 

 

 

592,452

 

Inventories

 

440,405

 

 

 

463,206

 

Prepaid expenses

 

9,426

 

 

 

10,620

 

Other current assets

 

87,538

 

 

 

87,810

 

Total current assets

 

2,108,938

 

 

 

2,012,691

 

Non-current assets

 

 

 

Property, plant and equipment, net

 

311,241

 

 

 

307,240

 

Intangibles, net

 

2,201

 

 

 

2,321

 

Operating right-of-use assets

 

5,133

 

 

 

5,336

 

Deferred tax assets

 

10,902

 

 

 

10,446

 

Other non-current assets

 

598

 

 

 

485

 

Total non-current assets

 

330,075

 

 

 

325,828

 

Total Assets

$

2,439,013

 

 

$

2,338,519

 

Liabilities and Shareholders' Equity

 

 

 

Current liabilities

 

 

 

Trade accounts payable

 

427,892

 

 

 

441,835

 

Fixed assets payable

 

10,166

 

 

 

14,380

 

Operating lease liabilities, current portion

 

1,416

 

 

 

1,355

 

Income tax payable

 

4,377

 

 

 

3,937

 

Accrued payroll, bonus and related expenses

 

26,658

 

 

 

22,116

 

Accrued expenses

 

30,519

 

 

 

19,916

 

Other payables

 

74,950

 

 

 

54,403

 

Total current liabilities

 

575,978

 

 

 

557,942

 

Non-current liabilities

 

 

 

Deferred tax liability

 

2,023

 

 

 

4,895

 

Operating lease liability, non-current portion

 

3,434

 

 

 

3,635

 

Severance liabilities

 

28,053

 

 

 

24,093

 

Other non-current liabilities

 

2,925

 

 

 

2,209

 

Total non-current liabilities

 

36,435

 

 

 

34,832

 

Total Liabilities

 

612,413

 

 

 

592,774

 

Shareholders' equity

 

 

 

Preferred shares ($5,000,000 shares authorized, $0.01 par value; no shares issued and outstanding as of September 27, 2024 and June 28, 2024)

 



 

 

 



 

Ordinary shares ($500,000,000 shares authorized, $0.01 par value; 39,579,859 shares and 39,457,462 shares issued as of September 27, 2024 and June 28, 2024, respectively; and 36,267,639 shares and 36,145,242 shares outstanding as of September 27, 2024 and June 28, 2024, respectively)

 

396

 

 

 

395

 

Additional paid-in capital

 

210,505

 

 

 

222,044

 

Less: Treasury shares (3,312,220 shares as of September 27, 2024 and June 28, 2024)

 

(234,323

)

 

 

(234,323

)

Accumulated other comprehensive income (loss)

 

11,858

 

 

 

(3,141

)

Retained earnings

 

1,838,164

 

 

 

1,760,770

 

Total Shareholders' Equity

 

1,826,600