Jabil (JBL) 8-K Results of Operations and Financial Condition

EXHIBIT 99.1

This news release contains forward-looking statements, including those regarding the anticipated outlook for our business, our currently estimated second quarter and full fiscal year 2006 net revenue and earnings results and our long-term outlook for our company, our industry and our business sectors. These statements are 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, but are not limited to: fluctuations in operating results; changes in technology; competition; anticipated growth for us and our industry that may not occur; managing rapid growth; managing any rapid declines in customer demand that may occur; our ability to successfully consummate acquisitions; 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; 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, 2005, 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.

JABIL REPORTS FIRST QUARTER FISCAL YEAR 2006 RESULTS
Growth Momentum Continues

St. Petersburg, FL — December 20, 2005...Jabil Circuit, Inc. (NYSE: JBL), a global electronic product solutions company, today reported results for the first quarter of fiscal year 2006, ended November 30, 2005.

Net revenue for the first quarter of fiscal 2006 increased 31 percent to $2.4 billion compared to $1.8 billion for the same period of fiscal 2005.

Under accounting principles generally accepted in the United States of America (“GAAP”), operating income for the first quarter of fiscal 2006 increased 26 percent to $88.8 million compared to $70.3 million for the same period of fiscal 2005. On a GAAP basis, net income for the first quarter of fiscal 2006 increased 38 percent to $76.9 million compared to $55.9 million for the same period in fiscal 2005. GAAP diluted earnings per share for the first quarter of fiscal 2006 increased 37 percent to $0.37 compared to $0.27 for the same period of fiscal 2005.

Jabil’s first quarter of fiscal 2006 core operating income increased 38 percent to $111.8 million or 4.7 percent of net revenue compared to $80.9 million or 4.4 percent of net revenue for the first quarter of fiscal 2005. Core earnings increased 43 percent to $92.8 million compared to $65.0 million for the first quarter of fiscal 2005. Core earnings per share increased 38 percent to $0.44 per diluted share for the period compared to $0.32 for the first quarter of fiscal 2005.(Jabil defines core operating income as GAAP operating income before amortization of intangibles, stock-based compensation expense, acquisition-related charges and restructuring and impairment charges. Jabil defines core earnings as GAAP net income before amortization of intangibles, stock-based compensation expense, acquisition-related charges, restructuring and impairment charges and other income/loss, net of tax. Jabil defines core earnings per share as core earnings divided by the weighted average number of outstanding shares determined under GAAP. Jabil reports core operating income, core earnings and core earnings per share to provide its investors with an alternative method for assessing operating income, earnings and earnings per share from what it believes to be its core manufacturing operations. See the accompanying reconciliation of Jabil’s core operating income to its GAAP operating income and Jabil’s core earnings and core earnings per share to its GAAP net income and GAAP earnings per share and additional information in the supplemental information below.)

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Q1 2006 Earnings Release—Add One
December 20, 2005

Quarterly Highlights

• Cash flow from operations was approximately $144 million for the first quarter of fiscal 2006.

• Sales cycle for the first quarter of fiscal 2006 was 15 days.

• Annualized inventory turns for the first quarter of fiscal 2006 were nine.

• Capital expenditures for the first quarter of fiscal 2006 were approximately $67 million.

• Depreciation for the first quarter of fiscal 2006 was approximately $42 million.

• Cash and cash equivalent balances were $876 million at the end of the first quarter of fiscal 2006.

• Return on Invested Capital (ROIC) was 23 percent for the first quarter of fiscal 2006.

Business Outlook
“Fiscal Q1 was an excellent start to what we expect will be another year of robust growth,” said Jabil President and CEO Timothy L. Main. “Demand for Jabil’s outsourcing services is very strong and broad based across many industry sectors. Our focus on execution in this high demand environment is resulting in solid financial performance particularly in return on invested capital.”

The company provided guidance for its second fiscal quarter of 2006. Jabil said it currently expects its second fiscal quarter revenue to be in a range of $2.1 to $2.3 billion and core earnings of $0.34 to $0.38 per diluted share, depending upon actual levels of production. GAAP earnings per share for the second fiscal quarter of 2006 are currently estimated to be in a range of $0.30 to $0.34 per diluted share. (Expected GAAP earnings per share for the second quarter of fiscal year 2006 are currently estimated to include $0.02 per share for amortization of intangibles and $0.02 per share for stock-based compensation required to be expensed in fiscal 2006 under new accounting guidelines, Statement of Financial Accounting Standard No.123R — Share Based Payment (“SFAS 123R”)).

The company also updated full fiscal year 2006 guidance. Jabil said it currently expects fiscal year 2006 guidance to be at the high end of previous guidance with estimated revenue of $9.3 billion and full fiscal year core earnings per share of $1.65 per diluted share, depending upon actual levels of production. GAAP earnings per share for the full fiscal year are currently expected to be $1.45 per diluted share. (Expected GAAP earnings per share for the full fiscal year are currently estimated to include $0.08 per share for amortization of intangibles and $0.12 per share for stock-based compensation required to be expensed in fiscal 2006 under new accounting guidelines, SFAS 123R).

Supplemental Information
The financial results disclosed in this release include certain measures calculated and presented in accordance with GAAP. In addition to the GAAP financial measures, Jabil provides supplemental, non-GAAP financial measures to facilitate evaluation of Jabil’s core operating performance. The non-GAAP financial measures disclosed in this release exclude certain amounts that are included in the most directly comparable GAAP measures. The non-GAAP or core financial measures disclosed in this release do not have standard meanings and may vary from the non-GAAP financial measures used by other companies.

Management believes core financial measures (which exclude the effects of the amortization of intangibles, stock-based compensation expense, acquisition-related charges, restructuring and impairment charges and other income) are a useful measure that facilitates evaluating the past and future performance of Jabil’s ongoing operations on a comparable basis. Jabil reports core operating income, core earnings and core earnings per share to provide its investors with an alternative method for assessing operating income, earnings and earnings per share from what it believes to be its core manufacturing operations. Included in this release is a Consolidated Statement of Earnings as well as a reconciliation of the disclosed core financial measures to the most directly comparable GAAP financial measures.

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Q1 2006 Earnings Release—Add Two
December 20, 2005

Company Conference Call Information
Jabil Circuit will conduct a conference call to announce its first quarter fiscal year 2006 earnings today at 4:30 p.m. EDT live on the Internet athttp://jabil.com. This earnings conference call will be recorded and archived for playback on the web athttp://jabil.com.

The news release and information about Jabil’s earnings will also be available in the investor relations’ section of the web site (jabil.com) by approximately 4:00 p.m. EDT. A taped replay of the conference call will also be available December 20, 2005 at approximately 7:30 p.m. EDT through midnight on December 22, 2005. To access the replay, call (800) 642-1687 from within the United States, or (706) 645-9291 outside the United States. The passcode is 3354207. An archived webcast of the conference call will be available athttp://jabil.com/investors/.

Jabil is an electronic product solutions company providing comprehensive electronics design, manufacturing and product management services to global electronics and technology companies. Jabil helps bring electronics products to the market faster and more cost effectively by providing complete product supply chain management around the world. With more than 50,000 employees and facilities in 20 countries, Jabil provides comprehensive, individualized-focused solutions to customers in a broad range of industries. Jabil common stock is traded on the New York Stock Exchange under the symbol, “JBL”. Further information is available on the company’s website: jabil.com.

Investor & Media Contact:
Melanie Shale
Manager, Investor Relations
Jabil Circuit, Inc.
(727) 803-3349
investor_relations@jabil.com

JABIL CIRCUIT, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)

	November 30,		August 31,
	2005		2005
ASSETS
Current assets
Cash and cash equivalents	$	875,620	$	796,071
Accounts receivable, net		1,085,574		955,353
Inventories		941,433		818,435
Prepaid expenses and other current assets		98,651		75,335
Deferred income taxes		41,861		40,741
Total current assets		3,043,139		2,685,935
Property, plant and equipment, net		899,670		880,736
Goodwill and intangible assets, net		441,517		453,301
Deferred income taxes		24,418		24,727
Other assets		32,973		32,563
Total assets	$	4,441,717	$	4,077,262
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Current installments of notes payable, long-term debt and long-term lease obligations	$	1,955	$	674
Accounts payable		1,573,386		1,339,866
Accrued expenses		264,525		224,766
Income taxes payable		7,386		2,823
Total current liabilities		1,847,252		1,568,129
Notes payable, long-term debt and long-term lease obligations, less current installments		324,218		326,580
Other liabilities		45,313		47,336
Total liabilities		2,216,783		1,942,045
Stockholders’ equity
Common stock		205		204
Additional paid-in capital		1,061,326		1,041,884
Retained earnings		1,098,690		1,021,800
Unearned compensation		—		(8,774	)
Accumulated other comprehensive income		64,713		80,103
Total stockholders’ equity		2,224,934		2,135,217
Total liabilities and stockholders’ equity	$	4,441,717	$	4,077,262

JABIL CIRCUIT, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands, except for per share data)
(Unaudited)

	Three months ended
	November 30,			November 30,
	2005			2004
Net revenue	$	2,404,407		$	1,833,375
Cost of revenue		2,208,585			1,678,517
Gross profit		195,822			154,858
Operating expenses:
Selling, general and administrative		94,542			68,089
Research and development		6,601			5,919
Amortization of intangibles		5,856			10,545
Operating income		88,823			70,305
Interest income		(4,985	)		(1,865	)
Interest expense		6,292			5,386
Income before income taxes		87,516			66,784
Income tax expense		10,626			10,869
Net income	$	76,890		$	55,915
Earnings per share:
Basic	$	0.38		$	0.28
Diluted	$	0.37		$	0.27
Common shares used in the calculation of earnings per share:
Basic		204,699			201,467
Diluted		209,760			205,843

JABIL CIRCUIT, INC. AND SUBSIDIARIES
SUPPLEMENTAL DATA
RECONCILIATION OF GAAP FINANCIAL RESULTS TO NON-GAAP MEASURES
(In thousands, except for per share data)
(Unaudited)

	Three months ended
	November 30,		November 30,
	2005		2004
Operating income (GAAP)	$	88,823	$	70,305
Amortization of intangibles		5,856		10,545
Stock-based compensation		17,137		—
Core operating income (Non-GAAP)	$	111,816	$	80,850
Net income (GAAP)	$	76,890	$	55,915
Amortization of intangibles, net of tax		4,723		9,040
Stock-based compensation, net of tax		11,214		—
Core earnings (Non-GAAP)	$	92,827	$	64,955
Earnings per share: (GAAP)
Basic	$	0.38	$	0.28
Diluted	$	0.37	$	0.27
Core earnings per share: (Non-GAAP)
Basic	$	0.45	$	0.32
Diluted	$	0.44	$	0.32
Common shares used in the calculations of earnings per share:
Basic		204,699		201,467
Diluted		209,760		205,843