Fabrinet Announces Second Quarter Fiscal Year 2019 Financial Results

BANGKOK–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 second quarter ended December 28, 2018.

Seamus Grady, Chief Executive Officer of Fabrinet, said, “We are pleased to have delivered record results in the fiscal second quarter, exceeding our prior guidance with particular strength from products to the telecom market. We are optimistic that Q3 will represent a record third quarter for us in terms of both revenue and profitability, and that our strong market position will enable us to extend our track record of success over the longer-term.”

Second Quarter Fiscal Year 2019 Financial Highlights

As of the first quarter of fiscal 2019, Fabrinet is reporting results under the new revenue recognition standard Accounting Standards Codification Topic 606 (“ASC 606”), using the modified retrospective method. Financial results for reporting periods prior to fiscal year 2019 are presented as previously disclosed in conformity with the old revenue recognition standard Accounting Standards Codification Topic 605 (“ASC 605”). A reconciliation to ASC 605 is included at the end of this press release.

GAAP Results

• Revenue for the second quarter of fiscal year 2019 was $403.1 million, compared to revenue of $337.1 million for the comparable period in fiscal year 2018.
• GAAP net income for the second quarter of fiscal year 2019 was $31.5 million, compared to GAAP net income of $19.3 million for the second quarter of fiscal year 2018. GAAP net income for the second quarter of fiscal year 2019 included a foreign exchange loss of $0.4 million, or $(0.01) per diluted share, compared to a foreign exchange loss of $1.3 million, or $(0.04) per diluted share, for the second quarter of fiscal year 2018.
• GAAP net income per diluted share for the second quarter of fiscal year 2019 was $0.84, compared to GAAP net income per diluted share of $0.51 for the second quarter of fiscal year 2018.

Non-GAAP Results

• Non-GAAP net income for the second quarter of fiscal year 2019 was $36.5 million, compared to non-GAAP net income of $27.3 million for the second quarter of fiscal year 2018. Non-GAAP net income for the second quarter of fiscal year 2019 included a foreign exchange loss of $0.4 million, or $(0.01) per diluted share, compared to a foreign exchange loss of $1.3 million, or $(0.04) per diluted share, for the second quarter of fiscal year 2018.
• Non-GAAP net income per diluted share for the second quarter of fiscal year 2019 was $0.97, compared to non-GAAP net income per diluted share of $0.72 for the same period in fiscal year 2018.

Share Repurchase Program Update

There was no share repurchase activity during the three months ended December 28, 2018. As of December 28, 2018, Fabrinet had a remaining authorization to purchase up to an additional $17.6 million worth of its ordinary shares.