Company Profile Company Milestones Executive Management Financial Highlights Corporate Governance Virtual Press Kit
Integrated Services Manufacturing & Distribution Service Milestones Supply Chain Sustaining Services Technology & Design Working With Jabil
Market Overview Automotive Computing & Storage Consumer Electronics Defense & Aerospace Instrumentation & Medical Networking Peripherals Telecommunications Other
Investor Profile Corporate Governance Financials Events & Presentations Stock Data Investor Inquiry
News in Brief News Releases
Worldwide Locations
Financial News Releases

Jabil Circuit Reports Fiscal Year 2002 First Quarter Results

20 December 2001
St. Petersburg, Florida

Statement of Income and Balance Sheet data for First Quarter 2002

Forward - Looking Statement

Jabil Circuit, Inc. (NYSE: JBL), electronics manufacturing services provider, today reported revenue for the first quarter of fiscal 2002, ended November 30, 2001. Revenue for the quarter was $885 million compared to $1.1 billion for the same period of fiscal 2001.

Jabil's first quarter of fiscal 2002 net income (excluding amortization of intangibles and non-recurring charges) was $22.1 million, compared with $48.3 million for the first fiscal quarter of 2001. Earnings per share on this basis were $0.11 per diluted share for the period, compared to $0.24 for the first quarter of fiscal 2001. During the quarter ended November 30, 2001, Jabil recorded integration charges of $2.0 million ($1.3 million after-tax) related to the acquisition of certain manufacturing facilities of Marconi Communications and charges of $14.1 million ($10.1 million after-tax) related to restructuring of the business.

On a GAAP basis, net income was $8.4 million for the first fiscal quarter of 2002, compared to $47.7 million for the first fiscal quarter of 2001. GAAP diluted earnings per share for the first fiscal quarter of 2002 were $0.04, compared to $0.24 for the same quarter of fiscal 2001.

Gross profit for fiscal 2002 first quarter was $81.6 million or 9.2 percent of revenue compared to $111.5 million or 9.9 percent of revenue for the corresponding quarter of fiscal 2001.

Operating income for the first fiscal quarter of 2002 (excluding amortization of intangibles and non-recurring charges as noted above) was $30.1 million or 3.4 percent of revenue compared to $66.0 million or 5.8 percent of revenue for the first fiscal quarter of 2001.

"While the economic environment continues to be challenging, we are pleased to post solid results for the quarter, especially in light of the continued demand deterioration from several sectors of our customer base during this period," said Jabil President and CEO Timothy L. Main. "With continued focus on our balance sheet, we maintained our leadership position in inventories, sales cycle and return metrics."

Sequential Income Statement Highlights (excluding intangible amortization and non-recurring charges)

  • First quarter revenue declined six percent compared to the prior quarter.
  • Operating income decreased 14 percent to $30 million from the fourth quarter.
  • Cash earnings after taxes were $22.1 million or 2.5 percent of revenue.
  • GAAP earnings after taxes were $8.4 million or 1.0 percent of revenue.
  • Fully diluted cash earnings per share for the quarter were $0.11 on 199,515,000 average shares.
  • Fully diluted GAAP earnings per share for the quarter were $0.04 on 199,515,000 average shares.

Sequential Balance Sheet Highlights

  • Accounts receivable decreased by $68 million to $460 million in the first quarter.
  • Calculated DSO improved by three days to 47 days.
  • Inventories decreased by $26 million in the quarter to $406 million.
  • Calculated inventory turns were eight, comparable to the prior quarter.
  • Sales cycle improved by seven days to 50.
  • Debt to capitalization ratio was 20.7 percent at the end of the quarter.
  • Cash flow from operations was approximately $150 million.

Business Outlook Guidance

The Company said the economic environment has deteriorated since its conference call in September and that it expects a slower recovery of its business due to the recessionary economy. The economy, continued telecommunications carrier spending cutbacks and aggressive inventory reductions by customers have resulted in sequentially lower production levels, which will require Jabil to reduce its cost structure by considering plant re-sizing and reductions to the workforce. The Company said it will take a one-time charge in its second fiscal quarter of $10 to $15 million for these changes.

Despite the challenging and changing environment Jabil provided updated revenue, earnings and segment guidance for its fiscal year 2002 and said it expects growth in the automotive, consumer, instrumentation and medical and telecom sectors of its business. The company expects second quarter production levels of $800 to $850 million with corresponding cash earnings per share from $0.06 to $0.08.

Jabil expects a resumption of sequential growth in the third and fourth quarters of its fiscal year. The fiscal year revenue expectation for the company is $3.5 to $4.0 billion with earnings of $0.50 to $0.60 for the full 2002 fiscal year. "We expect sequential growth to resume in our third and fourth fiscal quarters as new business wins and an improved economic environment boost our financial performance. We have a solid operating model that will deliver strong financial results as overall business levels improve in 2002," said Main.

About Jabil

Jabil Circuit, Inc. is an electronic manufacturing services provider for international electronics companies in the automotive, computing and storage, consumer, instrumentation and medical, networking, peripheral and telecommunications markets. Jabil offers circuit design, board design from schematic, prototype assembly, volume board assembly, system assembly, repair and warranty services from facilities in the Americas, Europe and Asia. Further information about Jabil can be found on the World Wide Web at http://www.jabil.com.

This news release contains forward-looking statements regarding the anticipated outlook for our business, our expected first-quarter earnings results and restructuring charges, and our long-term outlook for the company, our industry and our customers based on current expectations, forecasts and assumptions involving risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties include: the length and severity of the current economic downturn and our ability to manage customer demand through the downturn; fluctuations in operating results; changes in technology; competition; managing rapid growth; managing rapid declines in customer demand; our ability to successfully consummate our acquisition of certain assets from Marconi Communications; managing the integration of businesses we acquire; risks associated with international sales and operations; retaining key personnel; our dependence on a limited number of customers; the consolidation of our customer base; business and competitive factors generally affecting the electronic manufacturing services industry, our customers and our business; other factors that we may not have currently identified or quantified; and other risks, relevant factors and uncertainties identified in our Annual Report on Form 10-K for the fiscal year ended August 31, 2001, any subsequent Reports on Form 10-Q and Form 8-K and our other securities filings. Jabil disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.