Evertiq - Fabrinet's 3Q looks good with 32% increase in revenue

Fabrinet's 3Q looks good with 32% increase in revenue

Fabrinet reported revenue of USD 250.9 million for fiscal 3Q/2016, an increase of 32 percent compared to total revenue of USD 189.5 million for the comparable period in fiscal 2015.

Tom Mitchell, Chief Executive Officer of Fabrinet, said, "We delivered a strong third quarter with revenue and earnings per share above expectations. In the third quarter we particularly benefited from positive trends in the optical industry, which resulted in higher than expected demand from new customer programs and increasing production from existing customer programs. With robust industry trends, we expect the momentum we are experiencing to continue into the fourth quarter. Construction on the first building of our new campus in Thailand is progressing faster than anticipated. While we have sufficient capacity to meet near-term demand, we now expect the building, which will significantly increase our capacity, to be completed by the end of the first quarter of fiscal-year 2017 with first customer shipments beginning in the third quarter. Our new campus will ultimately more than double our manufacturing space, enabling us to continue to scale our business for many years."

Third Quarter Fiscal-Year 2016 Financial Highlights - GAAP Results

Revenue was USD 250.9 million for the third quarter of fiscal year 2016, an increase of 32 percent compared to total revenue of USD 189.5 million for the comparable period in fiscal year 2015. GAAP net income for the third quarter of fiscal year 2016 was Usd 20.8 million, compared to GAAP net income of USD 10.8 million in the third quarter of fiscal year 2015.

GAAP net income per diluted share for the third quarter of fiscal year 2016 was USD 0.56, compared to GAAP net income per diluted share of USD 0.30 in the third quarter of fiscal year 2015.

Business Outlook

Based on information available as of May 2, 2016, Fabrinet is issuing guidance for the fourth quarter of fiscal 2016 ending June 24, 2016, as follows:

Fabrinet expects fourth quarter revenue to be in the range of USD 260 to 264 million.
GAAP net income per diluted share is expected to be in the range of USD 0.55 to 0.57, based on approximately 37.2 million fully diluted shares outstanding.
Non-GAAP net income per diluted share is expected to be in the range of USD 0.59 to 0.61, based on approximately 37.2 million fully diluted shares outstanding.