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Date Announced: 07 Nov 2011
Contract manufacturer hit by floods says that production may be diverted to its nearby Pinehurst facilities instead.
BANGKOK, Thailand – November 7, 2011 – Fabrinet (NYSE: FN), a provider of precision optical, electro-mechanical and electronic manufacturing services to original equipment manufacturers of complex products, today announced its financial results for the first quarter of fiscal 2012, ended September 30, 2011.
Fabrinet reported total revenue of $186.3 million for the first quarter of fiscal 2012, an increase of 7.3% compared to revenue of $173.7 million for the comparable period in fiscal 2011. GAAP net income in the first quarter was $15.7 million, or $0.45 per diluted share, an increase of 3.0% compared to GAAP net income of $15.2 million, or $0.44 per diluted share in the first quarter of 2011. Non-GAAP net income in the first quarter was $16.6 million, or $0.48 per diluted share, an increase of 7.8% compared to non-GAAP net income of $15.4 million, or $0.45 per share in the first quarter of 2011.
Tom Mitchell, Chief Executive Officer of Fabrinet, said, “While we are pleased to have achieved our 47th consecutive quarter of profitability during the September quarter, our attention is focused on recovering from the flood waters that have impacted our operations in Thailand. Through the tireless efforts and resourcefulness of our employees, and in the midst of this natural disaster, we are preparing to resume production at our Pinehurst campus, one of our two manufacturing campuses in Thailand. In fact, today we began production at Pinehurst on a limited scale and anticipate ramping to full production at the Pinehurst campus during the next two weeks.”
Production at Fabrinet’s Pinehurst campus had been suspended for approximately three weeks due to flooding of the main artery and access roads to the campus. Water breached the company’s other Thailand campus, known as Chokchai, on Saturday evening, October 22 and the water level within the campus buildings rose to as high as five feet.
Production will not recommence at Chokchai, located approximately seven miles south of Pinehurst, for the rest of the current quarter, and likely for significantly longer. The company acknowledges that it may never again manufacture at the Chokchai campus but, instead, divert manufacturing to the existing buildings 3, 4 & 5 at its Pinehurst campus, and its newest building 6 at Pinehurst, upon completion.
Business Outlook
Based on information available as of November 7, 2011, and due to the damage resulting from seasonal monsoon flood waters in Thailand that has caused the suspension of production at its manufacturing campuses in Thailand, Fabrinet is issuing limited guidance for the second quarter of fiscal 2012.
If the company generates no further revenues from Thailand operations during the quarter, the company anticipates total revenues for the quarter to be approximately $28M, representing primarily revenues generated before production shutdown at its Thailand facilities, together with revenues from its Casix and Vitrocom businesses throughout the quarter.
The company anticipates generating additional revenue in excess of that minimum, but, at this time, is unable to determine to what level. The company cannot currently anticipate net operating results for the quarter, although it anticipates suffering a net loss due to the significant decline in revenue and the timing and result of insurance claims by the company.
Source: Fabrinet
E-mail: ir@fabrinet.com
Web Site: www.fabrinet.com
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