Fabrinet reported significant financial growth for the three months ended September 27, 2024, with total revenues reaching $804.2 million, a 17.3% increase from $685.5 million in the same period of 2023. This growth was primarily driven by the optical communications segment, which accounted for 77.9% of total revenues, increasing to $626.3 million from $533.3 million year-over-year. Non-optical communications also saw a rise, contributing $177.9 million, up from $152.2 million.

Gross profit for the quarter was $99.0 million, reflecting a 17.3% increase compared to $84.4 million in the prior year. Operating income rose to $76.9 million, a 20.2% increase from $64.0 million, while net income increased to $77.4 million, up from $65.1 million, resulting in basic and diluted earnings per share of $2.14 and $2.13, respectively, compared to $1.80 and $1.78 in the previous year.

Fabrinet's total assets as of September 27, 2024, were $2.44 billion, up from $2.34 billion at the end of June 2024. Total current assets increased to $2.11 billion, driven by a rise in trade accounts receivable, which grew to $662.7 million from $592.5 million. Cash and cash equivalents decreased slightly to $400.7 million from $410.0 million, while short-term investments rose to $508.2 million from $448.6 million.

The company reported a foreign exchange loss of $7.1 million for the quarter, contrasting with a gain of $0.4 million in the same period last year. The effective tax rate decreased to 4.2% from 7.2%, attributed to a full valuation allowance for deferred tax assets related to its Israeli subsidiary.

Fabrinet's strategic focus remains on expanding its manufacturing capabilities, particularly in Thailand, where it has invested in a new facility to enhance production capacity. The company continues to face challenges related to supply chain disruptions and fluctuating material costs, which could impact future profitability.

As of September 27, 2024, Fabrinet had no outstanding debt, a significant improvement from $9.1 million reported a year earlier. The company maintains a robust cash position, with total cash, cash equivalents, and short-term investments amounting to $908.9 million, up from $670.8 million a year prior. The share repurchase program remains active, with $200 million authorized for future buybacks.

About Fabrinet

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