Q1 2025 Fabrinet Earnings Call Transcript
Key Points
- Fabrinet (FN) reported a record first-quarter revenue of $804 million, marking a 17% increase from the previous year and a 7% increase from the prior quarter.
- The company achieved a healthy operating margin of 10.7% and delivered non-GAAP EPS at the upper end of its guidance range, despite a 19% headwind from foreign exchange revaluations.
- Optical communications revenue grew by 17% year-over-year, with Datacom revenue increasing by 36%, driven by optical interconnect products for AI applications.
- Fabrinet (FN) saw its automotive revenue exceed $100 million for the first time, with strong momentum in EV charging infrastructure products.
- The company is making significant progress on its new facility, which will increase its total footprint by more than 50%, supporting future growth.
- Fabrinet (FN) faced a higher-than-expected foreign exchange evaluation loss of $7 million due to the stronger Thai baht.
- The company anticipates increased pressure on gross margins due to a strengthening Thai baht in the upcoming quarters.
- Revenue from optical communications products that are non-speed rated decreased by $7 million from the previous quarter.
- The mix shift in Datacom revenue between 400 gig and 800 gig transceivers was not fully anticipated, affecting visibility.
- The ramp-up of 1.6 Terabit transceivers is dependent on the customer's timeline for shipping the Blackwell platform, which has faced delays.
Okay, afternoons, financial results conference call for the first quarter of fiscal year 2025. At this time, all participants in a listen-only mode. Later, we will conduct a question and answer session and instructions on how to participate will be provided at that time. As a reminder, today's call is being recorded. I would now like to turn the call over to your host for today, 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 frut financial and operating results for the first quarter of fiscal year 2025 which ended September 27th 2024 with me on the call. Today are Seamus Grady, Chief Executive Officer and Chabas Fera, Chief Financial Officer. This call is being webcast and a replay will be available on the investors section of our website located at investor dot fernet dotcom.
During this call, we will present both GAAP and non-GAAP financial measures. Please refer to the investor section of our website for
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