This summary is based on the first quarter fiscal 2008 earnings call conducted by Jabil Circuit Inc. (JBL) on December 20, 2007.
President and CEO: Tim Main
Chief Financial Officer: Forbes Alexander
VP of Communications and IR: Beth Walters
Key Investors Issues
- Earnings per share increased from 20 cents in prior year to 30 cents.
- Quarterly revenue of $3.4 billion represents an increase of 4.5% from last year.
- Stock-based compensation expense in the quarter was $5 million.
- The firm estimates revenue in second quarter in be in the range of $3 billion to $3.1 billion.
First Quarter Fiscal 2008 Financial Highlights
GAAP operating income increased 62% to $98.9 million compared to $61.1 million for the same period of fiscal 2007.
GAAP net income increased 50% to $62 million compared to $41.4 million for the same period in fiscal 2007. GAAP diluted earnings per share for the first quarter of fiscal 2008 increased 50% to 30 cents compared to 20 cents for the same period of fiscal 2007.
The core operating income increased 44% to $122.1 million or 3.6% of net revenue compared to $85 million or 2.6% of net revenue for the first quarter of fiscal 2007. Core earnings increased 23% to $74.6 million compared to $60.5 million for the first quarter of fiscal 2007. Core earnings per share increased 24% to 36 cents per diluted share for the period compared to 29 cents for the first quarter of fiscal 2007.
The core operating income for the EMS division was approximately 3%. The consumer division, as a result of the seasonal nature of this division, was approximately 4%, and the aftermarket services division was approximately 7%.
Net revenue increased 4.5% to $3.4 billion compared to $3.2 billion for the same period of fiscal 2007.
The revenue of
EMS division represented approximately 59% of total revenue or $2 billion. Sequential sector movements are as follows: production levels in the automotive sector were consistent with the prior quarter; computing and storage sector increased 8% from the fourth quarter; industrial, instrumentation and medical sector declined 8% from the prior quarter, reflecting the decline in product revenues associated with the housing and new construction. The networking sector levels of production decreased 3% from the previous quarter, as a result of lower production levels for the European customers in this sector. Telecommunications sector increased 15% sequentially, as a result of one month''s revenue from the recently announced Nokia Siemens Networks relationship.
The revenue from
consumer division represented approximately 36% or $1.2 billion, in the first fiscal quarter. The sequential sector movements are as follows: mobility and display products sector increased 36% from the prior quarter, reflecting strong seasonal growth in each sector across both displays and mobile products. The peripherals sector increased by 12% over the fourth fiscal quarter, reflecting seasonal growth in this sector from printers and home entertainment products.
The
aftermarket services division represented approximately 5% of overall company revenue in the first fiscal quarter, and saw revenues increase of 4% sequentially.
The divisional and sector information for the quarter in percentage terms is as follow:
In EMS division, automotive 4%; computing and storage 11%; industrial, instrumentation and medical 17% of revenue; networking 20%; telecom 5% and other 2%, for a total of 59%.
In the consumer division, 25% for mobility and display; 11% for the peripherals division in fiscal Q1, for 36% overall; and finally, in the aftermarket Services, 5%.
In first quarter, three customers - Cisco, Hewlett-Packard, and Philips - accounted for more than 10% of revenue. The top 10 customers in the quarter accounted for approximately 64% of the revenue.
Selling, general and administrative expenses declined $5million in the quarter.
This reflects the benefits of previously announced restructuring plans and approximately $1.6 million less in legal, and accounting fees associated with the recent review.
Research and development costs were $6.5 million in the quarter, or approximately $3 million less than the fourth fiscal quarter, reflecting an increased level of consumer-funded design projects than in previous quarter, along with some of the repositioning of design repurchase to lower cost regions.
