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Nov 01, 2010
Fabrinet Announces First Quarter 2011 Financial Results

BANGKOK, Thailand, Nov 01, 2010 (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 first quarter of fiscal 2011, ended September 24, 2010.


Fabrinet reported total revenue of $173.7 million for the first quarter of fiscal 2011, an increase of 79% compared to revenue of $97.0 million for the comparable period in 2010. GAAP net income in the first quarter was $15.2 million, or $0.44 per diluted share, an increase of 146% compared to GAAP net income of $6.2 million, or $0.20 per share in the first quarter of 2010.

Tom Mitchell, Chief Executive Officer of Fabrinet, said, "We are pleased to have achieved record revenues in the first quarter and continued our long history of profitability. The strong revenue and earnings performance was above expectations, despite component shortages which limited our production capacity. We saw strength in all product areas, with growth from lasers and sensors above our overall growth rate. Looking ahead, we believe that we are well positioned for further growth over the longer-term."

Business Outlook

Based on information available as of November 1, 2010, Fabrinet is issuing guidance for the second quarter of fiscal 2011 as follows:

The company expects second quarter revenue to be in the range of $170 million to $175 million. GAAP net income is expected to be in the range of $0.42 to $0.45 per share, based on approximately 34.3 million fully diluted weighted average shares outstanding.

Conference Call Information

What:   Fabrinet first quarter 2011 financial results conference call
When:   Monday, November 1, 2010
Time:   5:00 p.m. ET
Live Call:   (866) 713-8307, domestic
    (617) 597-5307, international
    Passcode 56715733
Replay:   (888) 286-8010, domestic
    (617) 801-6888, international
    Passcode 20492956
Webcast: (live and replay)


This press release and any other information related to the call will also be posted on Fabrinet's website at 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:

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 second 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 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.

Unaudited Condensed Consolidated Balance Sheets            
As of September 24, 2010 and June 25, 2010            
(in thousands of U.S. dollars, except share data)



September 24,


June 25,

Current assets            
Cash and cash equivalents   $ 101,090   $ 84,942
Receivable from initial public offering     -     26,319
Trade accounts receivable, net     110,169     101,514
Inventories, net     113,131     98,146
Deferred income taxes     774     696
Deposit for land purchase     -     2,162
Prepaid expenses and other current assets     4,660     2,547
Total current assets     329,824     316,326
Non-current assets            
Property, plant and equipment, net     64,324     57,651
Intangibles, net     1,097     1,220
Deferred income taxes     1,822     1,626
Deposits and other non-current assets     987     602
Total non-current assets     68,230     61,099
Total assets   $ 398,054   $ 377,425
Liabilities and Shareholders' Equity            
Current liabilities            
Long-term loans from banks, current portion   $ 5,508   $ 6,008
Trade accounts payable     108,445     102,977
Income tax payable     3,518     2,521
Accrued payroll, profit sharing and related expenses     6,178     3,895
Accrued expenses     3,129     3,567
Other payables     3,624     5,935
Total current liabilities     130,402     124,903
Non-current liabilities            
Long-term loans from banks, non-current portion     13,460     14,377
Severance liabilities     3,817     3,456
Other non-current liabilities     2,751     2,526
Total non-current liabilities     20,028     20,359
Total liabilities     150,430     145,262
Commitments and contingencies (Note 13)            
Shareholders' equity            
Preferred shares (5,000,000 shares authorized, $0.01 par value;            
no shares issued and outstanding as of September 24, 2010 and June 25, 2010, respectively) -     -
Ordinary shares (500,000,000 shares authorized, $0.01 par value;            
33,764,630 shares and 33,751,730 shares issued and            
outstanding as of September 24, 2010 and June 25, 2010, respectively)     338     337
Additional paid-in capital     55,041     54,786
Retained earnings     192,245     177,040
Total shareholders' equity     247,624     232,163
Total Liabilities and Shareholders' Equity   $ 398,054   $ 377,425
Unaudited Condensed Consolidated Statements of Operations        
For the three months ended September 24, 2010 and September 25, 2009        
    Three Months Ended
    September 24,   September 25,
(in thousands of U.S. dollars)   2010   2009
Revenues $ 173,740 $ 84,244
Revenues, related party   -   12,774
Total revenues   173,740   97,018
Cost of revenues   (151,964)   (86,058)
Gross profit   21,776   10,960
Selling, general and administrative expenses   (4,827)   (3,809)
Operating income   16,949   7,151
Interest income   98   111
Interest expense   (111)   (161)
Foreign exchange loss, net   (378)   (60)
Other income   4   -
Income before income taxes   16,562   7,041
Income taxes   (1,357)   (855)
Net income $ 15,205 $ 6,186
Earnings per share        
Basic $ 0.45 $ 0.20
Diluted $ 0.44 $ 0.20
Weighted average number of ordinary shares outstanding        
(thousands of shares)        
Basic   33,761   30,707
Diluted   34,351   31,269

SOURCE: Fabrinet

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