Tue, Aug 20, 11:06 AM (147 days ago)
Fabrinet's fiscal year 2024 saw a 9% revenue increase to $2.88 billion, primarily driven by a 14% rise in optical communications products, which constituted 79.4% of total revenues. Net income rose to $296.2 million, reflecting a stable gross profit margin of 12.4%. Operating income improved to $277.6 million, aided by a modest 1% increase in SG&A expenses. The company maintained a strong cash position, ending with $858.6 million in cash and short-term investments, with no outstanding debt. However, risks persist, including customer concentration, with Nvidia and Cisco contributing 48.5% of revenues. Supply chain challenges and reliance on a limited number of suppliers could impact future performance. The company is focusing on diversifying its markets beyond optical communications, targeting sectors like automotive and industrial lasers. Future growth strategies include expanding manufacturing capabilities and exploring acquisitions. Fabrinet’s effective tax rate was 4.9%, benefitting from preferential tax treatments in Thailand. Overall, the company remains well-positioned financially, but must navigate significant market and operational risks moving forward.