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Jabil "Gaining Confidence": Reports Positive Earnings
March 24, 2010 |Estimated reading time: 2 minutes
Jabil Circuit, Inc., reported its preliminary, unaudited financial results for the second quarter of fiscal year 2010, ended February 28, 2010. "Results for the quarter indicate significant year-over-year margin expansion on modest revenue growth. We are gaining confidence that these positive trends may be sustained for the balance of the year," said Timothy L. Main, President and CEO.
Second Quarter 2010
Net revenue for the second quarter of fiscal 2010 was $3 billion compared to $2.9 billion for the same period of fiscal 2009.
GAAP Results
GAAP operating income for the second quarter of fiscal 2010 was $61.8 million compared to a loss of $705.6 million for the same period of fiscal 2009.
GAAP net income for the second quarter of fiscal 2010 was $29.8 million compared to a net loss of $866.1 million for the same period of fiscal 2009.
GAAP diluted earnings per share for the second quarter of fiscal 2010 was $0.14 compared to a loss per share of $4.19 for the same period of fiscal 2009.
Core Results
Core operating income for the second quarter of fiscal 2010 was $95.6 million or 3.2% of net revenue compared to $51.2 million or 1.8% of net revenue for the same period of fiscal 2009.
Core earnings for the second quarter of fiscal 2010 were $63.3 million compared to $27.3 million for the same period of fiscal 2009.
Core diluted earnings per share for the second quarter of fiscal 2010 was $0.29 compared to $0.13 for the same period of fiscal 2009.
Sequential Second Quarter Fiscal 2010
Operational Highlights (Note: Jabil's second fiscal quarter is normally a sequentially down quarter due to the seasonally driven slowdown in consumer spending.)
- Lowest second quarter sequential decline in revenue and core operating margin since fiscal 2004.
- GAAP operating income decreased 6.8%.
- GAAP earnings increased $0.01 per fully diluted share.
- Core operating income decreased 10.3%.
- Core earnings decreased $0.03 per fully diluted share.
Balance Sheet Highlights:
- Cash flow from operations for the quarter was approximately $31 million.
- Sales cycle was 17 days for the second quarter of fiscal 2010.
- Annualized inventory turns were seven turns for the quarter.
- Capital expenditures for the second quarter of fiscal 2010 were approximately $78 million.
- Depreciation for the second quarter of fiscal 2010 was approximately $63 million.
- Cash and cash equivalent balances were $794 million at the end of the quarter.
- Core Return on Invested Capital was 18.2% for the quarter.
- A $0.07 dividend was paid on March 1, 2010.
Business Update
"The positive momentum in the business has solidified and we believe fiscal 2010 should be an excellent year for Jabil. We intend to continue our focus on customer service, cost efficient operations, and expansion of our capabilities and market," said Main.
Jabil management indicated that it expects its net revenue for its third quarter of fiscal 2010 to increase 3 to 10%, ranging from $3.1 billion to $3.3 billion. Jabil estimated that its core operating income for the quarter will grow 4 to 25%, ranging from $100 million to $120 million. Jabil indicated that it expects its core earnings per share for its third quarter of fiscal 2010 to improve 3 to 24%, ranging from $0.30 to $0.36 per diluted share. GAAP earnings per share are expected to be in a range from $0.14 to $0.25 per diluted share. (GAAP earnings or loss per share for the third quarter of fiscal 2010 is currently estimated to include $0.03 per share for amortization of intangibles; $0.07 to $0.12 per share for stock-based compensation and related charges; and $0.01 per share for restructuring.)
About Jabil
Jabil is an electronic product solutions company providing comprehensive electronics design, manufacturing and product management services to global electronics and technology companies. Offering complete product supply chain management from facilities in 22 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 atwww.jabil.com.