Based on information available as of November 7, 2011, and due to the damage resulting from seasonal monsoon flood waters in Thailand that has caused the suspension of production at its manufacturing campuses in Thailand, Fabrinet is issuing limited guidance for the second quarter of fiscal 2012. If the company generates no further revenues from Thailand operations during the quarter, the company anticipates total revenues for the quarter to be approximately $28M, representing primarily revenues generated before production shutdown at its Thailand facilities, together with revenues from its Casix and Vitrocom businesses throughout the quarter. The company anticipates generating additional revenue in excess of that minimum, but, at this time, is unable to determine to what level. The company cannot currently anticipate net operating results for the quarter, although it anticipates suffering a net loss due to the significant decline in revenue and the timing and result of insurance claims by the company.
Conference Call Information
|What:||Fabrinet first quarter 2012 financial results conference call|
|When:||Monday, November 7, 2011|
|Time:||5:00 p.m. ET|
|Live Call:||(800) 573-4842, domestic|
|(617) 224-4327, international|
|Replay:||(888) 286-8010, domestic|
|(617) 801-6888, international|
http://investor.fabrinet.com/ (live and replay)
This press release and any other information related to the call will also be posted on Fabrinet’s website at http://investor.fabrinet.com. A recorded version of this webcast will be available approximately two hours after the call and will be archived on Fabrinet’s website for a period of one year.The Company also announced today that, beginning on Tuesday, November 8, 2011, it will from time to time provide updates about the status of the flooding at and around its facilities in Thailand, its recovery and clean-up efforts there, its manufacturing operations in Thailand generally and other important information related to the flooding on its website. To access this information, please go to the Company’s website at www.fabrinet.com and click on the portion of the home page titled “Thai Flooding Updates”. About Fabrinet Fabrinet provides precision optical, electro-mechanical and electronic manufacturing services to original equipment manufacturers of complex products, such as optical communication components, modules and sub-systems, industrial lasers and sensors. Fabrinet offers a broad range of advanced optical and electro-mechanical capabilities across the entire manufacturing process, including process design and engineering, supply chain management, manufacturing, final assembly and test. Fabrinet focuses on production of high complexity products in any mix and any volume. Fabrinet maintains engineering and manufacturing resources and facilities in Thailand, the People’s Republic of China and the United States. For more information visit: http://www.fabrinet.com. Safe Harbor “Safe Harbor” Statement Under U.S. Private Securities Litigation Reform Act of 1995 This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include our expectations regarding the timing and scale of our future production at our Pinehurst facilities, our plans regarding our Chokchai facilities and the potential diversion of that production capacity to our operations at Pinehurst, all of the statements under the “Business Outlook” section relating to our forecasted operating results for the second quarter of fiscal year 2012 and the expectation that the company will be able to recover for insurance claims that it may make resulting from the floods in Thailand. These forward-looking statements involve risks and uncertainties, and actual results could vary materially from these forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: the flooding situation in Thailand could continue for an extended period of time and could even worsen; despite resuming limited production at our Pinehurst facilities, we may again have to suspend all operations at our Pinehurst facilities, which could be for an extended period of time; customers could scale back or cancel their orders in light of perceived or real production constraints; even if the flooding in Thailand subsides, the extent of damage to Thai roads, infrastructure and general public safety and health concerns could continue to have a material impact on our logistics, supply chain and employees; if the flooding continues for an extended period of time, the Thai government could order a state of emergency or take other emergency measures, which could constrain our operations in Thailand, and other important factors as described in Fabrinet reports and documents filed from time to time with the Securities and Exchange Commission (SEC), including the factors described under the sections captioned “Risk Factors” in our annual report on Form 10-K, filed on August 31, 2011. We disclaim any obligation to update information contained in these forward-looking statements whether as a result of new information, future events, or otherwise.