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Dec 27, 2019
Fabrinet Q2 2020 Earnings Report
Second quarter revenue and earnings exceeded guidance ranges, resulting in a record quarterly revenue performance.
Key Takeaways
Fabrinet announced its financial results for the second quarter ended December 27, 2019, with revenue reaching $426.2 million and GAAP net income at $31.2 million. The company's performance exceeded guidance ranges, driven by sequential growth across nearly all markets. Fabrinet anticipates continued year-over-year growth in the third quarter, while considering the potential impact of the coronavirus outbreak.
Second quarter revenue reached $426.2 million, compared to $403.1 million for the comparable period in fiscal year 2019.
GAAP net income was $31.2 million, slightly lower than the $31.5 million reported in the second quarter of fiscal year 2019.
Non-GAAP net income was $37.7 million, compared to $36.5 million for the second quarter of fiscal year 2019.
Csaba Sverha was named Chief Financial Officer, effective February 17, 2020.
Fabrinet
Fabrinet
Forward Guidance
Fabrinet is issuing guidance for its third fiscal quarter of 2020 ending March 27, 2020.
Positive Outlook
- Fabrinet expects third quarter revenue to be in the range of $410 million to $418 million.
- GAAP net income per diluted share is expected to be in the range of $0.75 to $0.78, based on approximately 37.9 million fully diluted shares outstanding.
- Non-GAAP net income per diluted share is expected to be in the range of $0.92 to $0.95, based on approximately 37.9 million fully diluted shares outstanding.
Challenges Ahead
- The effects of the coronavirus on our business, particularly the possibility of (1) extended shutdowns at our Casix facility, suppliers and customers and (2) increased shutdowns of other factories in our supply chain as the virus becomes more widespread
- 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 materials processing markets
- Increased competition in the optical manufacturing services markets