Fabrinet's Q2 FY 2017 Revenue and Earnings Exceed High-End of Guidance Ranges

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Fabrinet, provider of advanced optical packaging and precision optical, electromechanical and electronic manufacturing services to OEMs of complex products, has announced its financial results for the second fiscal quarter ended December 30, 2016.

Tom Mitchell, Chief Executive Officer of Fabrinet, said, "We exceeded our guidance for the second quarter, with revenue that grew 51% from a year ago. We are enthusiastic about our continued business momentum, driven by on-going strength in the optical market and new customer programs. We’re also excited to see the beginning of the transfer of programs from our new product introduction facility in Santa Clara to Thailand, and believe our growing NPI pipeline will support our growth in the years ahead."

Mitchell added, "On a personal note, at my request, our board of directors has initiated a CEO succession plan. We have retained an executive search firm to assist in identifying and evaluating candidates. We have no set timeline for this process. I intend to continue to play a leadership role in the Company after we appoint a new CEO."

Second Quarter Fiscal-Year 2017 Financial Highlights

GAAP Results 

• Revenue for the second quarter of fiscal year 2017 was $351.2 million, an increase of 51% compared to revenue of $233.0 million for the comparable period in fiscal year 2016.
• GAAP net income for the second quarter of fiscal year 2017 was $25.3 million, compared to GAAP net income of $19.8 million in the second quarter of fiscal year 2016.
• GAAP net income per diluted share for the second quarter of fiscal year 2017 was $0.67, compared to GAAP net income per diluted share of $0.54 in the second quarter of fiscal year 2016. 

Non-GAAP Results

• Non-GAAP net income in the second quarter of fiscal 2017 was $34.5 million, an increase of 89% compared to non-GAAP net income of $18.2 million in the same period a year ago.
• Non-GAAP net income per diluted share in the second quarter of fiscal 2017 was $0.91, an increase from non-GAAP net income per diluted share of $0.50 in the same period a year ago.

Business Outlook

Based on information available as of February 6, 2017, Fabrinet is issuing guidance for the third quarter of fiscal-year 2017 ending March 31, 2017, as follows:

• Fabrinet expects revenue for the third quarter to be in the range of $360 million to $364 million.
• GAAP net income per diluted share is expected to be in the range of $0.66 to $0.68, based on approximately 38.0 million fully diluted shares outstanding.
• Non-GAAP net income per diluted share is expected to be in the range of $0.87 to $0.89, based on approximately 38.0 million fully diluted shares outstanding.

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, 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 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 United States of America, the People’s Republic of China and the United Kingdom.