Fabrinet 1Q FY2017 Revenue Up 53% to $332M

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Fabrinet, a leading provider of advanced optical packaging and precision optical, electro-mechanical and electronic manufacturing services (EMS) to OEMs of complex products, has announced its financial results for the first fiscal quarter ended September 30, 2016.

"We are off to a strong start in fiscal 2017 with first quarter revenue that exceeded our expectations and grew more than 50% from a year ago. We are benefiting from positive trends in the optical industry, including increasing activity from new and existing customer programs," says Tom Mitchell, Chief Executive Officer of Fabrinet. "We believe we are in a strong position to serve industry demand with new capacity from the first building at our new campus in Chonburi, Thailand, and our growing new product introduction (NPI) operation in Santa Clara. Our recent acquisition of Exception EMS, U.K. extends our NPI capabilities while diversifying our customer base. With continued momentum, we are optimistic we can again deliver strong growth in the second quarter, as reflected in our business outlook."

First Quarter Fiscal-Year 2017 Financial Highlights

GAAP Results

• Revenue for the first quarter of fiscal year 2017, which was a 14-week quarter, was $332 million, an increase of 53% compared to revenue of $216.4 million for the comparable period in fiscal year 2016, which was a 13-week quarter.
• GAAP net income for the first quarter of fiscal year 2017 was $22.8 million, compared to GAAP net income of $1.6 million in the first quarter of fiscal year 2016, which was impacted by a $(10.9) million unrealized foreign exchange loss for the mark-to-market adjustment of forward contracts.
• GAAP net income per diluted share for the first quarter of fiscal year 2017 was $0.61, compared to GAAP net income per diluted share of $0.04 in the first quarter of fiscal year 2016.

Non-GAAP Results

• Non-GAAP net income in the first quarter of fiscal 2017 was $29.7 million, an increase of 83% compared to non-GAAP net income of $16.2 million in the same period a year ago.
• Non-GAAP net income per diluted share in the first quarter of fiscal 2017 was $0.80, an increase from non-GAAP net income per diluted share of $0.45 in the same period a year ago.

Business Outlook

Based on information available as of November 7, 2016, Fabrinet is issuing guidance for the second quarter of fiscal-year 2017 ending December 30, 2016, as follows:

• Fabrinet expects revenue for the second quarter, which is a 13-week quarter, to be in the range of $332 million to $336 million.
• GAAP net income per diluted share is expected to be in the range of $0.65 to $0.67, based on approximately 37.8 million fully diluted shares outstanding.
• Non-GAAP net income per diluted share is expected to be in the range of $0.78 to $0.80, based on approximately 37.8 million fully diluted shares outstanding.