This summary is based on the third quarter fiscal 2008 earnings call conducted by Jabil Circuit Inc. (JBL) on June 24, 2008.
Management:
President and CEO: Timothy L Main
CFO: Forbes I.J. Alexander
VP, Communications and IR: Beth A Walters
Key Investor Issues:
- Quarterly revenue rose 3% to $3.1 billion.
- Q3 GAAP diluted EPS increased 533% to 19 cents from 3 cents in the year ago quarter.
- Fiscal year 2008 net revenue is forecast to be in the range $12.7 billion to $12.8 billion.
Year-over-Year Financial Highlights:
- The GAAP operating margin increased 88%.
- The GAAP earnings rose 16 cents per diluted share.
- The cash flow from operations was about $147 million during the quarter.
- The sales cycle was 21 days for Q3 of fiscal 2008.
- The annualized inventory turns remained constant at eight runs for the third quarter.
- The CapEx for the quarter of fiscal 2008 were approximately $61 million.
- The cash and cash equivalents balances were $860 million at the end of Q3.
- The core return on invested capital was 9% for Q3 of 2008.
- A 7 cents dividend was paid on June 2, 2008.
Third-Quarter Financial Highlights:
During the quarter, two customers accounted for more than 10% of revenue.
- The customers were Cisco Systems and Hewlett-Packard.
- The top 10 customers accounted for about 63% of revenue versus 64% in the year ago quarter.
The Q3 GAAP operating income increased 88% to $63.1 million.
- This compares with $33.6 million for the same period last year.
- On a sequential basis, revenues increased 1% while core operating profits declined 26%.
The company’s third quarter fiscal 2008 core operating income decreased 2% to $85.3 million or 2.8% of net revenue.
- This compares with $87.1 million or 2.9% of net revenue for the same period last year.
- The core earnings firmed 12% to $52.8 million versus $47.4 million for Q3 of 2007.
- The core EPS rose 13% to 26 cents for the period versus 23 cents a year ago quarter.
The SG&A expenses increased about $7 million in the quarter.
- The R&D costs were $8 million for the quarter.
- The Q3 stock-based compensation was $10 million, lower than forecasts due to the reversal of stock-based compensation associated with performance based restricted stocks.
- The net interest expense dipped about $4 million from the previous quarter.
- This was due to higher average cash balances and lower average debt rates for the quarter than in the past quarters.
- The quarterly tax rate was 19%.
The company’s sales cycle in the quarter improved by two days to 21 days.
- The day sales outstanding improved by one day to 38 days.
- The accounts payable days outstanding improved two to 65 days.
- The quarterly inventory days increased by one day.
