Fabrinet Files Q2 FY25 10-Q

TL;DR

**Fabrinet's Q2 FY25 10-Q is in! Check financials for the latest.**

AI Summary

Fabrinet filed its 10-Q for the period ending December 27, 2024. The filing covers financial information for the second quarter of fiscal year 2025. Key financial data and operational details are presented for the company, which is involved in manufacturing for the telecom and optical industries.

Why It Matters

This filing provides investors with the latest financial performance and operational status of Fabrinet, crucial for understanding its current market position and future prospects.

Risk Assessment

Risk Level: medium — 10-Q filings are standard disclosures for public companies, but the specific financial details and market conditions reported can introduce varying levels of risk.

Key Numbers

• 2024-12-27 — Fiscal Quarter End Date (Indicates the end of the reporting period for the 10-Q.)
• 20250204 — Filing Date (The date the 10-Q was officially submitted to the SEC.)
• 001-34775 — SEC File Number (Unique identifier for Fabrinet's SEC filings.)

Key Players & Entities

• Fabrinet (company) — Filer of the 10-Q
• 2024-12-27 (date) — End of the reporting period
• 20250204 (date) — Filing date
• Santa Clara, CA (location) — Company's business and mailing address

FAQ

Key Financial Figures

• $0.01 — e on which registered Ordinary Shares, $0.01 par value FN New York Stock Exchange

Filing Documents

• fn-20241227.htm (10-Q) — 1619KB
• fn-20241227x10qex102.htm (EX-10.2) — 25KB
• fn-20241227x10qex311.htm (EX-31.1) — 10KB
• fn-20241227x10qex312.htm (EX-31.2) — 10KB
• fn-20241227x10qex321.htm (EX-32.1) — 8KB
• 0001408710-25-000008.txt ( ) — 8485KB
• fn-20241227.xsd (EX-101.SCH) — 51KB
• fn-20241227_cal.xml (EX-101.CAL) — 92KB
• fn-20241227_def.xml (EX-101.DEF) — 237KB
• fn-20241227_lab.xml (EX-101.LAB) — 670KB
• fn-20241227_pre.xml (EX-101.PRE) — 477KB
• fn-20241227_htm.xml (XML) — 1405KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION 5

Financial Statements

Item 1. Financial Statements 5 Condensed Consolidated Balance Sheets as of Dec ember 27, 2024 and June 28, 2024 (unaudited) 5 Condensed Consolidated Statements of Operations and Comprehensive Income for the three and six months ended Dec ember 27, 2024 and Dec ember 29, 2023 (unaudited) 6 Condensed Consolidated Statements of Shareholders' Equity for the three and six months ended Dec ember 27, 2024 and Dec ember 29, 2023 (unaudited) 7 Condensed Consolidated Statements of Cash Flows for the six months ended Dec ember 27, 2024 and Dec ember 29, 2023 (unaudited) 9 Notes to Condensed Consolidated Financial Statements (unaudited) 10

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 27

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 39

Controls and Procedures

Item 4. Controls and Procedures 40

OTHER INFORMATION

PART II. OTHER INFORMATION 41

Legal Proceedings

Item 1. Legal Proceedings 41

Risk Factors

Item 1A. Risk Factors 41

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 57

Other Information

Item 5. Other Information 58

Exhibits

Item 6. Exhibits 58 Signature 59 2 Table of Contents RISK FACTORS SUMMARY You should carefully consider the information set forth below under the heading "Risk Factors" in Part II, Item 1A before deciding whether to invest in our securities. Below is a summary of the principal risks associated with an investment in our securities. Our sales depend on a small number of customers. A reduction in orders from any of these customers, the loss of any of these customers, or a customer exerting significant pricing and margin pressures on us could harm our business, financial condition and operating results. Consolidation in the markets we serve could harm our business, financial condition and operating results. If the optical communications market does not expand as we expect, our business may not grow as fast as we expect, which could adversely impact our business, financial condition and operating results. Our quarterly revenues, gross profit margins and operating results have fluctuated significantly and may continue to do so in the future, which may cause the market price of our ordinary shares to decline or be volatile. If we are unable to continue diversifying our precision optical and electro-mechanical manufacturing services across other markets within the optics industry, such as the semiconductor processing, biotechnology, metrology and material processing markets, or if these markets do not grow as fast as we expect, our business may not grow as fast as we expect, which could adversely impact our business, financial condition and operating results. We face significant competition in our business. If we are unable to compete successfully against our current and future competitors, our business, financial condition and operating results could be harmed. Cancellations, delays or reductions of customer orders and the relatively short-term nature of the commitments of our customers could harm our business, financial condition and operating res

: FINANCIAL INFORMATION

PART I: FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS FABRINET CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (in thousands of U.S. dollars, except share data and par value) December 27, 2024 June 28, 2024 Assets Current assets Cash and cash equivalents $ 403,662 $ 409,973 Short-term investments 530,969 448,630 Trade accounts receivable, net of allowance for expected credit losses of $ 1,245 and $ 1,629 , respectively 680,094 592,452 Inventories 489,159 463,206 Prepaid expenses 17,734 10,620 Other current assets 77,394 87,810 Total current assets 2,199,012 2,012,691 Non-current assets Property, plant and equipment, net 323,648 307,240 Intangibles, net 2,062 2,321 Operating right-of-use assets 6,397 5,336 Deferred tax assets 10,694 10,446 Other non-current assets 592 485 Total non-current assets 343,393 325,828 Total Assets $ 2,542,405 $ 2,338,519 Liabilities and Shareholders' Equity Current liabilities Trade accounts payable 529,016 441,835 Fixed assets payable 20,594 14,380 Operating lease liabilities, current portion 1,676 1,355 Income tax payable 8,214 3,937 Accrued payroll, bonus and related expenses 20,598 22,116 Accrued expenses 29,112 19,916 Other payables 53,950 54,403 Total current liabilities 663,160 557,942 Non-current liabilities Deferred tax liability 1,039 4,895 Operating lease liability, non-current portion 4,417 3,635 Severance liabilities 27,572 24,093 Other non-current liabilities 3,246 2,209 Total non-current liabilities 36,274 34,832 Total Liabilities 699,434 592,774 Commitments and contingencies (Note 14) Shareholders' equity Preferred shares ( 5,000,000 shares authorized, $ 0.01 par value; no shares issued and outstanding as of December 27, 2024 and June 28, 2024) — — Ordinary shares ( 500,000,000 shares authorized, $ 0.01 par value; 39,585,188 shares and 39,457,462 shares issued as of December 27, 2024 and June 28, 2024, respectively; and 35,981,188 shares and 36,145,242 shares outstanding as of December 27, 2024

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View this 10-Q filing on SEC EDGAR