BANGKOK--(BUSINESS WIRE)--Fabrinet (NYSE: FN), a provider of precision optical, electro-mechanical and electronic manufacturing services to original equipment manufacturers of complex products, today announced its financial results for the second quarter of fiscal 2011, ended December 24, 2010.
Fabrinet reported total revenue of $184.6 million for the second quarter of fiscal 2011, an increase of 61% compared to revenue of $114.4 million for the comparable period in fiscal 2010. GAAP net income in the second quarter was $15.8 million, or $0.46 per diluted share, an increase of 42% compared to GAAP net income of $11.1 million, or $0.35 per share in the second quarter of 2010.
Tom Mitchell, Chief Executive Officer of Fabrinet, said, “We are pleased to have achieved record revenues in the second quarter and continued our long history of profitability. Our strong revenue and earnings performance was above expectations. We saw strength in all product areas, with growth from optical communications above our overall growth rate. Looking ahead, we continue to be optimistic on the growth of our core markets.”
Business Outlook
Based on information available as of January 31, 2011, Fabrinet is issuing guidance for the third quarter of fiscal 2011 as follows:
The company expects third quarter revenue to be in the range of $182 million to $187 million. GAAP net income is expected to be in the range of $0.47 to $0.49 per share, based on approximately 34.6 million fully diluted weighted average shares outstanding.
Conference Call Information
| What: | Fabrinet second quarter 2011 financial results conference call | |||
| When: | Monday, January 31, 2011 | |||
| Time: | 5:00 p.m. ET | |||
| Live Call: | (866) 831-6243, domestic | |||
| (617) 213-8855, international | ||||
| Passcode 43014867 | ||||
| Replay: | (888) 286-8010, domestic | |||
| (617) 801-6888, international | ||||
| Passcode 76231574 | ||||
| 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. The webcast will be archived on Fabrinet’s website for a period of one year.
About Fabrinet
Fabrinet provides precision optical, electro-mechanical and electronic manufacturing services to original equipment manufacturers of complex products, such as optical communication components, modules and sub-systems, 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, 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 People’s Republic of China and the United States. For more information visit: http://www.fabrinet.com.
Safe Harbor
“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 all of the statements under the “Business Outlook” section relating to our forecasted operating results for the third quarter of fiscal year 2011. 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 material processing markets; increasing 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 limited number of customers and suppliers; difficulties in accurately forecasting demand for our services; difficulties in managing our operating costs; difficulties in managing and operating our business in multiple countries (including in the U.S., Thailand and the People’s Republic of China) and other important factors as described in Fabrinet reports and documents filed from time to time with the Securities and Exchange Commission (SEC), including the factors described under the sections captioned “Risk Factors” in our quarterly report on Form 10-Q, filed on November 3, 2010 and our annual report on Form 10-K, filed on September 8, 2010. We disclaim any obligation to update information contained in these forward-looking statements whether as a result of new information, future events, or otherwise.
| Fabrinet | ||||||||||
| Unaudited Condensed Consolidated Balance Sheets | ||||||||||
| As of December 24, 2010 and June 25, 2010 | ||||||||||
| (in thousands of U.S. dollars, except share data) |
December 24, |
June 25, |
||||||||
| Assets | ||||||||||
| Current assets | ||||||||||
| Cash and cash equivalents | $ | 102,063 | $ | 84,942 | ||||||
| Receivable from initial public offering | - | 26,319 | ||||||||
| Trade accounts receivable, net | 123,479 | 101,514 | ||||||||
| Inventories, net | 106,674 | 98,146 | ||||||||
| Investment in leases | 7 | 12 | ||||||||
| Deferred income taxes | 795 | 696 | ||||||||
| Deposit for land purchase | - | 2,162 | ||||||||
| Prepaid expenses and other current assets | 2,052 | 2,535 | ||||||||
| Total current assets | 335,070 | 316,326 | ||||||||
| Non-current assets | ||||||||||
| Property, plant and equipment, net | 68,943 | 57,651 | ||||||||
| Intangibles, net | 976 | 1,220 | ||||||||
| Investment in leases | 1,861 | 20 | ||||||||
| Deferred income taxes | 1,847 | 1,626 | ||||||||
| Deposits and other non-current assets | 630 | 582 | ||||||||
| Total non-current assets | 74,257 | 61,099 | ||||||||
| Total assets | $ | 409,327 | $ | 377,425 | ||||||
| Liabilities and Shareholders’ Equity | ||||||||||
| Current liabilities | ||||||||||
|
Long-term loans from banks, current portion |
$ | 5,468 | $ | 6,008 | ||||||
| Trade accounts payable | 100,812 | 102,977 | ||||||||
| Income tax payable | 3,652 | 2,521 | ||||||||
| Accrued payroll, profit sharing and related expenses | 6,423 | 3,895 | ||||||||
| Accrued expenses | 4,361 | 3,567 | ||||||||
| Other payables | 6,091 | 5,935 | ||||||||
| Total current liabilities | 126,807 | 124,903 | ||||||||
| Non-current liabilities | ||||||||||
| Long-term loans from banks, non-current portion | 11,913 | 14,377 | ||||||||
| Severance liabilities | 4,067 | 3,456 | ||||||||
| Other non-current liabilities | 1,887 | 2,526 | ||||||||
| Total non-current liabilities | 17,867 | 20,359 | ||||||||
| Total liabilities | 144,674 | 145,262 | ||||||||
| Commitments and contingencies | ||||||||||
| Shareholders’ equity | ||||||||||
|
Preferred shares (5,000,000 shares authorized, $0.01 par value; no shares issued and outstanding as of December 24, 2010 and June 25, 2010, respectively) |
- | - | ||||||||
|
Ordinary shares (500,000,000 shares authorized, $0.01 par value; 33,790,325 shares and 33,751,730 shares issued and outstanding as of December 24, 2010 and June 25, 2010, respectively) |
338 | 337 | ||||||||
| Additional paid-in capital | 56,264 | 54,786 | ||||||||
| Retained earnings | 208,051 | 177,040 | ||||||||
| Total shareholders’ equity | 264,653 | 232,163 | ||||||||
| Total Liabilities and Shareholders’ Equity | $ | 409,327 | $ | 377,425 | ||||||
| Fabrinet | ||||||||||||||||||||
| Unaudited Condensed Consolidated Statements of Operations | ||||||||||||||||||||
| For the three and six months ended December 24, 2010 and December 25, 2009 | ||||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||||
| December 24, | December 25, | December 24, | December 25, | |||||||||||||||||
| (in thousands of U.S. dollars) | 2010 | 2009 | 2010 | 2009 | ||||||||||||||||
| Revenues | ||||||||||||||||||||
| Revenues | $ | 184,631 | $ | 97,893 | $ | 358,371 | $ | 182,137 | ||||||||||||
| Revenues, related party | - | 16,500 | - | 29,274 | ||||||||||||||||
| Total revenues | 184,631 | 114,393 | 358,371 | 211,411 | ||||||||||||||||
| Cost of revenues | (160,968 | ) | (99,520 | ) | (312,932 | ) | (185,578 | ) | ||||||||||||
| Gross profit | 23,663 | 14,873 | 45,439 | 25,833 | ||||||||||||||||
| Selling, general and administrative expenses | (5,951 | ) | (3,800 | ) | (10,778 | ) | (7,609 | ) | ||||||||||||
| Operating income | 17,712 | 11,073 | 34,661 | 18,224 | ||||||||||||||||
| Interest income | 114 | 81 | 212 | 192 | ||||||||||||||||
| Interest expense | (90 | ) | (128 | ) | (201 | ) | (289 | ) | ||||||||||||
| Foreign exchange loss, net | (670 | ) | 26 | (1,048 | ) | (34 | ) | |||||||||||||
| Other income | 11 | - | 15 | - | ||||||||||||||||
| Income before income taxes | 17,077 | 11,052 | 33,639 | 18,093 | ||||||||||||||||
| Income taxes | (1,271 | ) | - | (2,628 | ) | (855 | ) | |||||||||||||
| Net income | $ | 15,806 | $ | 11,052 | $ | 31,011 | $ | 17,238 | ||||||||||||
| Earnings per share | ||||||||||||||||||||
| Basic | $ | 0.47 | $ | 0.36 | $ | 0.92 | $ | 0.56 | ||||||||||||
| Diluted | $ | 0.46 | $ | 0.35 | $ | 0.90 | $ | 0.55 | ||||||||||||
| Weighted average number of ordinary shares outstanding | ||||||||||||||||||||
| (thousands of shares) | ||||||||||||||||||||
| Basic | 33,768 | 30,856 | 33,765 | 30,782 | ||||||||||||||||
| Diluted | 34,450 | 31,387 | 34,401 | 31,328 | ||||||||||||||||