Q4 2024 Fabrinet Earnings Call Transcript
Key Points
- Fabrinet (FN) reported record fourth-quarter revenue of $753 million, exceeding guidance and representing a 15% year-over-year increase.
- Non-GAAP earnings per share (EPS) for Q4 were $2.41, also above guidance and marking the fourth consecutive quarter of record EPS.
- For the full fiscal year 2024, revenue reached $2.9 billion, a 9% increase from fiscal 2023, with non-GAAP EPS growing 16% to $8.88.
- Datacom revenue grew over 120% year-over-year, driven by strong demand for 800-gig products for AI and related applications.
- Fabrinet (FN) announced plans to break ground on a new 2 million square foot facility (Building 10) at their Chonburi campus, indicating confidence in future growth.
- Telecom revenue declined more than 20% for the year due to ongoing inventory digestion across the industry.
- Gross margin for Q4 was 12.5%, a 10-basis point decline from Q3, and full-year gross margins were down 40 basis points from fiscal 2023.
- Operating margin for the fiscal year decreased by 20 basis points to 10.6%, reflecting some operational challenges.
- The company anticipates a foreign exchange revaluation loss in Q1 of fiscal 2025 due to recent strength in the Thai Baht.
- Two customers, NVIDIA and Cisco, contributed 48% of total revenue, indicating a high dependency on a few key clients.
Good afternoon, and welcome to Fabrinet's financial results conference call for the fourth quarter of fiscal year 2024. (Operator Instructions) As a reminder, today's call is being recorded.
I would now like to turn the call over to your host, Garo Toomajanian, Vice President of Investor Relations. Please go ahead.
Thank you, operator, and good afternoon, everyone. Thank you for joining us on today's conference call to discuss Fabrinet's financial and operating results for the fourth quarter of fiscal year 2024, which ended June 28, 2024. With me on the call today are Seamus Grady, Chief Executive Officer; and Csaba Sverha, Chief Financial Officer. This call is being webcast, and a replay will be available on the Investors section of our website located at investor.fabrinet.com.
During this call, we will present both GAAP and non-GAAP financial measures. Please refer to the Investors section of our website for important information, including our earnings press release and investor presentation
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