Jabil Reports Second Quarter Results Tuesday March 25, 4:01 pm ET
ST. PETERSBURG, Fla.--(BUSINESS WIRE)--Jabil Circuit, Inc. (NYSE:JBL - News) today reported its preliminary, unaudited financial results for its second quarter of fiscal year 2008, ended February 29, 2008. “We are pleased with the results from our second quarter, where our employees pulled together in a challenging operating environment. Thanks to their efforts, we were able to meet our expectations for the quarter and generate $134 million in cash from operations,” said President and CEO Timothy L. Main.
(Definitions used: GAAP means generally accepted accounting principles in the United States of America. Jabil defines core operating income as GAAP operating income before amortization of intangibles, stock-based compensation expense and related charges, acquisition-related charges and restructuring and impairment charges. Jabil defines core operating margin as core operating income divided by net revenue. Jabil defines core earnings as GAAP net income before amortization of intangibles, stock-based compensation expense and related charges, acquisition-related charges, restructuring and impairment charges and certain other income/loss, net of tax. Jabil defines core earnings per share as core earnings divided by the weighted average number of outstanding shares determined under GAAP. Jabil reports core operating income, core earnings and core earnings per share to provide investors with an alternative method for assessing operating income, earnings and earnings per share from what it believes are its core manufacturing operations. See the accompanying reconciliation of Jabil s core operating income to its GAAP operating income and Jabil s core earnings and core earnings per share to its GAAP net income and GAAP earnings per share and additional information in the supplemental information.)
Second Quarter 2008
Net revenue for the second quarter of fiscal 2008 increased four percent to $3.1 billion compared to $ 2.9 billion for the same period of fiscal 2007.
GAAP operating income for the second quarter of fiscal 2008 decreased 96 percent to $1.6 million compared to $36.7 million for the same period of fiscal 2007. GAAP net income for the second quarter of fiscal 2008 decreased 273 percent to a loss of $24.0 million compared to $13.9 million of net income for the same period in fiscal 2007. GAAP diluted earnings per share for the second quarter of fiscal 2008 decreased 271 percent to a loss per share of $0.12 compared to $0.07 of earnings per share for the same period of fiscal 2007. The GAAP income decline was principally due to restructuring charges which were approximately $41 million higher than the comparative period.
Jabil's second quarter of fiscal 2008 core operating income increased 22 percent to $67.8 million or 2.2 percent of net revenue compared to $55.6 million or 1.9 percent of net revenue for the second quarter of fiscal 2007. Core earnings increased 48 percent to $42.0 million compared to $28.4 million for the second quarter of fiscal 2007. Core earnings per share increased 43 percent to $0.20 per diluted share for the period compared to $0.14 for the second quarter of fiscal 2007.
Year-Over-Year Operational and Balance Sheet Highlights
GAAP operating margin decreased 96 percent. Core operating margin improved 22 percent. GAAP earnings decreased $0.19 per fully diluted share. Core earnings increased $0.06 per fully diluted share. Cash flow from operations for the quarter was approximately $134 million compared to zero for the same period of fiscal 2007. Sales cycle was 23 days for the second quarter of fiscal 2008. Annualized inventory turns remained constant at