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Jabil Net Income Increases 50 Percent
December 20, 2007 | PR NewswireEstimated reading time: 3 minutes
Jabil Circuit, Inc. (NYSE:JBL), today reported its preliminary, unaudited financial results for its first quarter of fiscal year 2008, ended November 30, 2007. "We are pleased to post a strong quarter with significantly improved financial performance. Cash flow from operations and EBITDA margins were particularly strong and notably higher than last year," said President and C.E.O. Timothy L. Main.
First Quarter 2008
Net revenue for the first quarter of fiscal 2008 increased 4.5 percent to $3.4 billion compared to $3.2 billion for the same period of fiscal 2007.
GAAP operating income for the first quarter of fiscal 2008 increased 62 percent to $98.9 million compared to $61.1 million for the same period of fiscal 2007. GAAP net income for the first quarter of fiscal 2008 increased 50 percent to $62.0 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 percent to $0.30 compared to $0.20 for the same period of fiscal 2007.
Jabil's first quarter of fiscal 2008 core operating income increased 44 percent to $122.1 million or 3.6 percent of net revenue compared to $85.0 million or 2.6 percent of net revenue for the first quarter of fiscal 2007. Core earnings increased 23 percent to $74.6 million compared to $60.5 million for the first quarter of fiscal 2007. Core earnings per share increased 24 percent to $0.36 per diluted share for the period compared to $0.29 for the first quarter of fiscal 2007.
Year-Over-Year Operational and Balance Sheet Highlights
GAAP operating margin increased 62 percent. Core operating margin improved 44 percent.
GAAP earnings increased $.10 per fully diluted share. Core earnings increased $.07 per fully diluted share.
Cash flow from operations for the quarter was approximately $143 million compared to cash usage of $252 million for the same period in fiscal 2007.
Sales cycle was 22 days for the first quarter of fiscal 2008.
Annualized inventory turns remained constant at eight turns for the first quarter of fiscal 2008.
Capital expenditures for the first quarter of fiscal 2008 were approximately $62 million.
Depreciation for the first quarter of fiscal 2008 was approximately $57 million.
Cash and cash equivalent balances were $664 million at the end of the first fiscal quarter.
Core Return on Invested Capital was 13 percent for the first quarter of fiscal 2008.
- A $0.07 dividend was paid on December 1, 2007.
Business Update
The company expects second fiscal quarter of 2008 net revenue in a range of $3.0 billion to $3.1 billion, with an estimated core operating margin range of 2.2 to 2.4 percent. The guidance is consistent with historical seasonal patterns, particularly prevalent in consumer electronics sectors. Guidance suggests a 25 percent increase in year-over-year core operating income and a 4 percent increase in year-over-year revenue. Jabil said its core earnings per share for its second quarter of fiscal 2008 are anticipated to be in a range of $0.16 to $0.20 per diluted share. GAAP loss per share are estimated to be $(0.03) to $0.01 per diluted share. (Expected GAAP earnings per share for the second quarter of fiscal 2008 are currently estimated to include $0.04 per share for amortization of intangibles, $0.06 per share for stock-based compensation and related charges and $0.09 per share for restructuring and impairment charges.)
Jabil said it expects fiscal year 2008 net revenue to range from $13.0 billion to $13.4 billion, with full year core operating income estimated to range from 3.1 percent to 3.6 percent or $400 million to $480 million. The company said its core earnings per share are estimated to be $1.20 to $1.50 per diluted share. GAAP earnings per share are estimated to be $0.69 to $.99 per diluted share. (Expected GAAP earnings per share for fiscal 2008 are currently estimated to include $0.12 per share for amortization of intangibles, $0.17 per share for stock-based compensation and related charges and $0.22 per share for restructuring and impairment charges.)
"In the first half of fiscal 2008, we expect core operating income and EBITDA margins well above previous year levels. In the second half of fiscal 2008, we expect to continue our focus on margin expansion, cash flow generation and higher returns on invested capital. As revenue increases in the second half, cash flow generation and margin expansion is expected to be particularly strong," said Main.
About Jabil
Jabil is an electronic product solutions company providing comprehensive electronics design, manufacturing and product management services to global electronics and technology companies. Jabil helps bring electronics products to the market faster and more cost effectively by providing complete product supply chain management around the world. With more than 75,000 employees and facilities in 20 countries, Jabil provides comprehensive, individualized-focused solutions to customers in a broad range of industries. Jabil common stock is traded on the New York Stock Exchange under the symbol, "JBL". Further information is available on the company's website: jabil.com.