PART I. FINANCIAL INFORMATION [Financial Statements](index=8&type=section&id=Item%201.%20Financial%20Statements) Fabrinet reported Q1 FY2024 revenues of $685.5 million, a 4.6% YoY increase, with net income of $65.1 million and strong operating cash flow of $145.0 million [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to $2.02 billion, driven by cash growth, while liabilities decreased to $489.1 million, boosting shareholders' equity to $1.53 billion Condensed Consolidated Balance Sheets | Financial Metric | Sep 29, 2023 (in thousands USD) | Jun 30, 2023 (in thousands USD) | | :--- | :--- | :--- | | **Total Current Assets** | $1,691,961 | $1,652,540 | | **Total Assets** | $2,019,221 | $1,979,648 | | **Total Current Liabilities** | $455,433 | $481,885 | | **Total Liabilities** | $489,052 | $510,990 | | **Total Shareholders' Equity** | $1,530,169 | $1,468,658 | - Inventories decreased significantly from **$519.6 million** on June 30, 2023, to **$440.1 million** on September 29, 2023[16](index=16&type=chunk) [Condensed Consolidated Statements of Operations](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income) Q1 FY2024 revenues rose to $685.5 million, with net income stable at $65.1 million and diluted EPS increasing slightly to $1.78 Condensed Consolidated Statements of Operations | Metric | Q1 FY2024 (ended Sep 29, 2023, in thousands USD) | Q1 FY2023 (ended Sep 30, 2022, in thousands USD) | | :--- | :--- | :--- | | **Revenues** | $685,477 | $655,429 | | **Gross Profit** | $84,404 | $82,756 | | **Operating Income** | $63,975 | $62,191 | | **Net Income** | $65,089 | $64,615 | | **Diluted EPS** | $1.78 | $1.76 | [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow significantly increased to $145.0 million, while investing activities used $53.1 million and financing activities used $15.2 million Condensed Consolidated Statements of Cash Flows | Cash Flow Activity | Q1 FY2024 (ended Sep 29, 2023, in thousands USD) | Q1 FY2023 (ended Sep 30, 2022, in thousands USD) | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $145,049 | $60,634 | | **Net cash (used in) provided by investing activities** | ($53,080) | $23,367 | | **Net cash used in financing activities** | ($15,194) | ($27,485) | | **Net increase in cash** | $76,775 | $56,516 | - A significant driver for the increase in operating cash flow was a **$79.5 million** positive change from inventories, compared to a **$28.8 million** positive change in the prior-year period[25](index=25&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, geographic revenue shifts, decreased inventories, stable debt, increased tax rate, and customer concentration Revenue by Geographic Region (Bill-to Location) | Region | Q1 FY2024 (% of Total) | Q1 FY2023 (% of Total) | | :--- | :--- | :--- | | North America | 37.7% | 53.2% | | Asia-Pacific and others | 54.2% | 37.9% | | Europe | 8.1% | 8.9% | Revenue by End Market | End Market | Q1 FY2024 (% of Total) | Q1 FY2023 (% of Total) | | :--- | :--- | :--- | | Optical communications | 77.8% | 75.9% | | Automotive, lasers and other | 22.2% | 24.1% | - As of September 29, 2023, the company had purchase obligations of **$1.22 billion** and capital expenditure commitments of **$12.3 million**[107](index=107&type=chunk)[108](index=108&type=chunk) - The company did not repurchase any shares during the quarter and had a remaining authorization of **$100.0 million** under its share repurchase program as of September 29, 2023[103](index=103&type=chunk) [Management's Discussion and Analysis (MD&A)](index=31&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) MD&A discusses 4.6% revenue growth driven by optical communications, stable gross margin, anticipated supply chain impacts, and strong liquidity of $670.8 million [Results of Operations](index=37&type=section&id=Results%20of%20Operations) Revenues grew 4.6% to $685.5 million, driven by optical communications, while operating income increased to $64.0 million and the effective tax rate rose to 7.2% - Revenue from optical communications products increased by **7.2% YoY**, mainly due to higher demand for data communication products for AI applications, which was offset by a decline in telecommunication product revenues due to inventory absorption[159](index=159&type=chunk) - Revenue from non-optical communications products decreased by **3.6% YoY**, primarily due to a decline in industrial laser products, partially offset by an increase in automotive products[159](index=159&type=chunk) - The effective tax rate increased to **7.2%** from **1.1% YoY**. This was due to higher income subject to tax and a new **$2.1 million** valuation allowance against deferred tax assets for the company's Israeli subsidiary, which is expected to continue generating losses[168](index=168&type=chunk) [Liquidity and Capital Resources](index=39&type=section&id=Liquidity%20and%20Capital%20Resources) Strong liquidity with $670.8 million in cash and equivalents, supported by $145.0 million in operating cash flow, sufficient for future needs Liquidity and Capital Resources | Metric | Sep 29, 2023 (in thousands USD) | Sep 30, 2022 (in thousands USD) | | :--- | :--- | :--- | | Cash, cash equivalents, and short-term investments | $670,800 | $499,800 | | Outstanding debt | $9,100 | $21,300 | - The company believes its current manufacturing capacity is sufficient to meet anticipated production requirements for at least the next few quarters[177](index=177&type=chunk) [Market Risk Disclosures](index=41&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Company faces interest rate, foreign currency, and credit risks, managed through swaps, hedging contracts for Thai baht exposure, and credit monitoring - The company has significant foreign currency exposure, particularly to the Thai baht, as most revenues are in USD while a substantial portion of payroll and operating expenses are in local currencies. This is managed with hedging contracts of up to 18 months[188](index=188&type=chunk)[191](index=191&type=chunk) - A hypothetical **10%** weakening in the U.S. dollar against the Thai baht, RMB, and GBP would have resulted in a decrease in the company's net dollar position of approximately **$6.8 million** as of September 29, 2023[191](index=191&type=chunk) - Interest rate risk on variable-rate debt is managed through interest rate swap agreements, effectively converting floating rates to fixed rates. The company also transitioned its debt reference rate from LIBOR to SOFR effective September 29, 2023[184](index=184&type=chunk)[185](index=185&type=chunk) [Controls and Procedures](index=42&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of September 29, 2023, with no material changes to internal controls - The CEO and CFO concluded that the company's disclosure controls and procedures were effective to provide reasonable assurance that required information is recorded, processed, summarized, and reported in a timely manner[193](index=193&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=43&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any material legal proceedings, though ordinary course litigation may arise - There are currently no material claims or actions pending or threatened against the company[195](index=195&type=chunk) [Risk Factors](index=43&type=section&id=Item%201A.%20Risk%20Factors) Key risks include customer concentration (61.5% from four customers), optical market dependence, supply chain disruptions, geopolitical instability, and foreign currency fluctuations - The company is highly dependent on a small number of customers. In Q1 FY2024, **four customers** accounted for **61.5%** of total revenues[198](index=198&type=chunk) - The optical communications market represented **77.8%** of revenues in Q1 FY2024, making the company's growth dependent on the expansion of this market[203](index=203&type=chunk) - The company relies on single or limited-source suppliers for critical materials and has experienced supply shortages, particularly for semiconductors, which can disrupt production and harm revenues[214](index=214&type=chunk) - The majority of operations are in Thailand, exposing the company to risks from political unrest, which could disrupt manufacturing and shipments[234](index=234&type=chunk)[235](index=235&type=chunk) [Share Repurchases](index=63&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No share repurchases occurred in Q1 FY2024, with **$100.0 million** remaining under the authorization program Share Repurchase Activity (Q1 FY2024) | Period | Total Number of Shares Purchased | Average Price Paid Per Share | Approximate Dollar Value of Shares That May Yet Be Purchased | | :--- | :--- | :--- | :--- | | July 1 - Sep 29, 2023 | 0 | $0 | $100,000,000 | - In August 2023, the board of directors approved a **$47.6 million** increase to the share repurchase authorization, bringing the aggregate authorization to **$294.8 million**[287](index=287&type=chunk)

Financial Data and Key Metrics Changes - Revenue for the fourth quarter was $655.9 million, representing a 12% increase year-over-year and a 1% decrease sequentially [24][29] - Non-GAAP earnings per share for the quarter were $1.86, exceeding guidance [29] - For the full fiscal year, revenue was $2.645 billion, an increase of 17% from the prior year, with non-GAAP earnings per share reaching a record $7.67, up 25% from fiscal 2022 [25][30] Business Line Data and Key Metrics Changes - Datacom revenue reached a record $192.5 million in the fourth quarter, growing 107% year-over-year and 57% sequentially, driven by an 800-gig program for AI applications [11][26] - Optical communications revenue was $502.1 million, up 8% year-over-year but flat compared to Q3, with telecom revenue declining 17% year-over-year and 19% sequentially due to inventory adjustments [31][26] - Non-optical communications revenue was $153.8 million, up 25% year-over-year but down 5% from Q3 [13] Market Data and Key Metrics Changes - Revenue from products rated 400-gig and faster grew to $266.8 million, up 49% year-over-year and 21% sequentially [12] - Automotive revenue was $92.9 million, up 66% year-over-year but down 1% from Q3 [32] - Industrial laser revenue was $28 million, down 10% from Q3 [14] Company Strategy and Development Direction - The company is optimistic about the growth potential in AI-related programs and expects strong datacom performance to continue offsetting inventory-related headwinds [27][85] - The company plans to maintain a focus on expanding its customer base and product offerings, particularly in the AI transceiver market [57][78] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing inventory adjustments in the telecom sector but expressed confidence in the datacom segment's growth, particularly driven by AI applications [27][36] - The company anticipates total revenue in the first quarter to be moderately higher than the fourth quarter, with guidance set between $650 million and $670 million [36] Other Important Information - Operating expenses in the quarter were $14.9 million, or 2.3% of revenue, slightly higher than anticipated due to one-time items [10] - Gross margin for the quarter was 12.8%, a decline of about 30 basis points from Q3 due to foreign exchange fluctuations [17] - The company repurchased over 400,000 shares in Q4 for a total cash outlay of $38.4 million, reflecting a commitment to return capital to shareholders [35] Q&A Session Summary Question: Can you provide insight into the inventory digestion cycle in the telecom industry? - Management indicated that inventory digestion is difficult to predict but noted that it seems to align with a two-quarter cycle, with expectations for order patterns to normalize by early 2024 [54][76] Question: What is the capacity availability for the datacom segment? - Management confirmed ample capacity, particularly with the recent opening of a new facility, allowing for significant ramp-up in production [73] Question: How does the company view the future of the AI opportunity in datacom? - Management expressed excitement about the current AI program's rapid ramp-up and its significant contribution to revenue, while also indicating potential for future programs [78][85]

. SEELLI This presentation and the accompanying oral presentation contain "forward-looking" statements that are based on management's beliefs and assumptions and on information currently available to management. Forward-looking statements include all statements other than statements of historical fact contained in this presentation, including information concerning our business plans and objectives, potential growth opportunities, competitive position, industry environment and potential market opportunities ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K _______________________ (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended June 30, 2023 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-34775 _______________________ FABRINET (Exact name of registrant as specified in its charter) ...

Fabrinet (NYSE:FN) Q3 2023 Earnings Conference Call May 8, 2023 5:00 PM ET Company Participants Garo Toomajanian - Vice President, Investor Relations Seamus Grady - Chief Executive Officer Csaba Sverha - Chief Financial Officer Conference Call Participants Samik Chatterjee - JPMorgan Alex Henderson - Needham & Company Troy Jensen - Lake Street Capital Markets Operator Good afternoon. Welcome to Fabrinet's Financial Results Conference Call for the Third Quarter of Financial Year 2023. At this time, all parti ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________________ FORM 10-Q (Mark One) ☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 2023 KY1-9005 (Zip Code) +66 2-524-9600 (Registrant's telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: OR ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of ...

Fabrinet (NYSE:FN) Q2 2023 Earnings Conference Call February 6, 2023 5:00 PM ET Company Participants Garo Toomajanian - Vice President of Investor Relations Seamus Grady - Chief Executive Officer Csaba Sverha - Chief Financial Officer Conference Call Participants Samik Chatterjee - J.P. Morgan Alex Henderson - Needham & Company Fahad Najam - Loop Capital Tim Savageaux - Northland Capital Markets Operator Good afternoon. Welcome to Fabrinet’s Financial Results Conference Call for the Second Quarter of Fiscal ...

✓ 411.2 479.3 564.4 405.1 509.6 587.9 436.6 543.3 655.4 453.8 566.6 668.7 0.0 100.0 200.0 300.0 400.0 500.0 600.0 700.0 800.0 Mar'20 Mar'21 Mar'22 Jun '20 Jun '21 Jun '22 Sep'20 Sep'21 Sep'22* Dec'20 Dec'21 Dec'22 Y-o-Y change 18% 25% Balance Sheet Supports Growth (in thousands of U.S. dollars) Optical and non-optical revenue mix presented as % of total revenue. Datacom and telecom revenue mix presented as % of optical revenue. TRUSTED MANUFACTURING PARTNER OF THE WORLD'S LEADING OEMS fabrinet Company Overv ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________________ FORM 10-Q (Mark One) ☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended December 30, 2022 OR ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from__________to__________ Commission File Number: 001-34775 FABRINET (Exact name of registrant as specified in i ...

fabrinet November 7, 2022 TRUSTED MANUFACTURING PARTNER OF THE WORLD'S LEADING OEMS Company Overview Disclaimer This presentation and the accompanying oral presentation contain "forward-looking" statements that are based on management's beliefs and assumptions and on information currently available to management. Forward-looking statements include all statements other than statements of historical fact contained in this presentation, including information concerning our business plans and objectives, potent ...