- Depreciation was approximately $58 million and EBITDA at $126 million.
- The company completed a $250 million 8.25% 10-year senior unsecured note offering. Proceeds from these notes and cash flows from operations were used to pay down $400 million drawn on five-year, $800 million revolving credit facility.

- The company terminated the 180-day $200 million revolving credit facility it had entered into in the December period of 2007.
- At the end of the second quarter, there were no bridge facilities in place and no balances outstanding on five-year, $800 million revolving credit facility, which expires in July 2012.
- Cash flow from operations remained strong at $134 million.

The company continues to manage overall rationalization plan according to previously announced detail.

- The company recorded charges of approximately $42 million. Total charges recorded to date against overall plan are approximately $241 million. The company continues to expect total restructuring charges to be approximately $250 million.
- Cash payments associated with restructuring activities were approximately $10 million. Total cash payments to date against the plan are approximately $105 million. The cash costs for such charges for this plan remain in an estimated range of $150 million to $200 million.

- The company estimates that cash payments totaling approximately $20 million will occur in the balance of this fiscal year. The majority of the balance of cash payments will occur during the first half of fiscal 2009 and the company expects to see the benefits of such actions in the fourth fiscal quarter of 2008 and the first half of fiscal 2009.

- Cash flow from operations was $134 million.
- Over the course of the last 90 days, but in particular during February, demand expectations declined. Revenue expectations for the second half of fiscal year are now approximately 7% below previous estimate. This decline is clearly a function of softening macroeconomic environment. There are no customer losses or material program or market share losses driving the decline.

Year-to-Date Financial Highlights

- The results posted for the first half of fiscal 2008 revenue of approximately $6.4 billion and core operating income of approximately $190 million, or 3% of revenue, represents growth in revenue of 4% for the first half of fiscal year 2007 and core operating income dollar growth is 35%.
- Approximately $280 million of cash had been generated from operations, while approximately $100 million of cash after capital expenditures and dividend payments over the same period.

Third Quarter 2008 Outlook

- Revenue is expected to be in the range of $3.05 billion to $3.15 billion. As a result, core earnings per share are expected to be in the range of 18 cents to 22 cents. As a percentage of revenue, the company estimates core operating margins to be in the range of 2.3% to 2.6%.
- Selling, general and administrative expenses are estimated to be approximately $113 million.
- Research and development costs are expected to be approximately $7 million.

- Intangible amortization is expected approximately $9 million.
- Stock-based compensation is estimated to be approximately $15 million, and finally interest expense is estimated to be approximately $25 million.
- Based upon the current estimate of production and income levels, tax rate on core operating income is expected to be approximately 20% in the third quarter and 19% for the full fiscal year.

- Capital expenditures are estimated to be in the range of $60 million to $80 million.
- Capital expenditures for the full fiscal year remain an estimate of $250 million to $300 million. These capital expenditures estimates reflect commitments to manufacturing footprint expansions and IT infrastructure upgrades made at the beginning of fiscal year.

- The EMS division is estimated to increase by 3% from the second quarter, or 10% on a year-over-year basis. Sector breakdown is as follows: automotive is expected to increase 10% from the second quarter, reflecting product ramps with a recently noted new customer; computing and storage sector is estimated to be consistent with that of the second quarter; industrial, instrumentation, and medical is estimated to increase by 8% from the previous quarter, largely on the strength of growth in medical business, including the ramp of a new medical customer; networking sector is expected to be consistent with that of the second quarter, as is telecom sector.

- Consumer division is estimated to decline by 4% in third fiscal quarter. The sector breakdown is as follows: the display sector is expected to decrease by 20% in third quarter, reflective of inventory corrections across customer base; the mobility sector is estimated to be consistent with that of third quarter; finally, peripherals sector is estimated to increase by 2% in the third fiscal quarter, reflecting increased demand for set-top boxes. After market services division is expected to increase by 6% in the second fiscal quarter.

Fiscal 2008 Outlook

- Based upon the current estimate of production and income levels, tax rate on core operating income is expected to be approximately 19%.
- Capital expenditures remain an estimate of $250 million to $300 million.

- Estimates are revenue in the range of $12.6 billion to $12.8 billion, with core operating income expected to be in the range of $355 million to $395 million, or 2.8% to 3.1% of revenue. As a result, core earnings per share are expected to be in the range of $1 to $1.16.
- At its midpoint, this guidance reflects a year-over-year growth in revenues, 4%; and core operating income growth of $44 million, or 13%; EBITDA of approximately $605 million, or growth of 10% on a year-over-year basis.

- On a divisional basis, the company estimates revenues for the EMS division of approximately $8.3 billion; the consumer division, approximately $3.8 billion, and the AMS division approximately $700 million.
- Core operating income expectations, an estimate of approximately 3.4% of revenue for the EMS division, 1.3% of revenue for the consumer division, and 7% for the AMS division.
- Cash flow from operations is estimated to remain in excess of $600 million, providing in excess of $260 million of free cash flow after capital expenditures and dividend payments.

Key questions from the second quarter earnings call conducted by Jabil Circuit, Inc. on March 25, 2008.

Louis Miscioscia (Cowen & Company): Given your full year EPS guidance there is a reasonable EPS bounce-back in the August quarter, where normally seasonality would not help too much, that August would more likely be flattish to May. Is there anything going on like restructuring that is helping or is it just revenue growth kicking in?