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Jabil Reports First Quarter Results
Thursday December 20, 4:01 pm ET
Net Income Increases 50 Percent

ST. PETERSBURG, Fla.--(BUSINESS WIRE)--Jabil Circuit, Inc. (NYSE:JBL - News), today reported its preliminary, unaudited financial results for its first quarter of fiscal year 2008, ended November 30, 2007. “We are pleased to post a strong quarter with significantly improved financial performance. Cash flow from operations and EBITDA margins were particularly strong and notably higher than last year,” said President and C.E.O. Timothy L. Main.

Net revenue for the first quarter of fiscal 2008 increased 4.5 percent to $3.4 billion compared to $3.2 billion for the same period of fiscal 2007.

GAAP operating income for the first quarter of fiscal 2008 increased 62 percent to $98.9 million compared to $61.1 million for the same period of fiscal 2007. GAAP net income for the first quarter of fiscal 2008 increased 50 percent to $62.0 million compared to $41.4 million for the same period in fiscal 2007. GAAP diluted earnings per share for the first quarter of fiscal 2008 increased 50 percent to $0.30 compared to $0.20 for the same period of fiscal 2007.

Jabil's first quarter of fiscal 2008 core operating income increased 44 percent to $122.1 million or 3.6 percent of net revenue compared to $85.0 million or 2.6 percent of net revenue for the first quarter of fiscal 2007. Core earnings increased 23 percent to $74.6 million compared to $60.5 million for the first quarter of fiscal 2007. Core earnings per share increased 24 percent to $0.36 per diluted share for the period compared to $0.29 for the first quarter of fiscal 2007.

Business Update

The company expects second fiscal quarter of 2008 net revenue in a range of $3.0 billion to $3.1 billion, with an estimated core operating margin range of 2.2 to 2.4 percent. The guidance is consistent with historical seasonal patterns, particularly prevalent in consumer electronics sectors. Guidance suggests a 25 percent increase in year-over-year core operating income and a 4 percent increase in year-over-year revenue. Jabil said its core earnings per share for its second quarter of fiscal 2008 are anticipated to be in a range of $0.16 to $0.20 per diluted share. GAAP loss per share are estimated to be $(0.03) to $0.01 per diluted share. (Expected GAAP earnings per share for the second quarter of fiscal 2008 are currently estimated to include $0.04 per share for amortization of intangibles, $0.06 per share for stock-based compensation and related charges and $0.09 per share for restructuring and impairment charges.)

Jabil said it expects fiscal year 2008 net revenue to range from $13.0 billion to $13.4 billion, with full year core operating income estimated to range from 3.1 percent to 3.6 percent or $400 million to $480 million. The company said its core earnings per share are estimated to be $1.20 to $1.50 per diluted share. GAAP earnings per share are estimated to be $0.69 to $.99 per diluted share. (Expected GAAP earnings per share for fiscal 2008 are currently estimated to include $0.12 per share for amortization of intangibles, $0.17 per share for stock-based compensation and related charges and $0.22 per share for restructuring and impairment charges.)

“In the first half of fiscal 2008, we expect core operating income and EBITDA margins well above previous year levels. In the second half of fiscal 2008, we expect to continue our focus on margin expansion, cash flow generation and higher returns on invested capital. As revenue increases in the second half, cash flow generation and margin expansion is expected to be particularly strong,” said Main.


http://jbl.client.shareholder.com/

It looks like the outlook was severely disappointing for some as the shares dropped by over 20% on Friday to $14.33 (down $3.99).

JT :-(
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