Summary by Moomoo AI
Fabrinet reported strong financial results for Q1 FY2025 ended September 27, 2024, with revenues increasing 17.3% year-over-year to $804.2 million. Net income rose 18.9% to $77.4 million, while operating income grew 20.2% to $76.9 million. Gross margin remained stable at 12.3% of revenues.Optical communications revenue, representing 77.9% of total revenue, grew 17.5% to $626.3 million, driven by increased demand in data communication products for artificial intelligence applications. Non-optical communications revenue increased 16.9% to $177.9 million, primarily due to growth in automotive revenue as inventory absorption issues subsided.The company maintained a strong financial position with cash, cash equivalents, and short-term investments of $908.9 million as of September 27, 2024. Management noted continued supply chain challenges and near-term inventory corrections from optical communications customers may impact future revenue generation, despite strong underlying demand.
