FN - Earnings call transcript Q4 2024

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Operator

Good afternoon, and welcome to Fabrinet's Financial Results Conference Call for the Fourth Quarter of Fiscal year 2024. [Operator Instructions].

As a reminder, today's call is being recorded. I would now like to turn the call over to your host, Garo Toomajanian, Vice President of Investor Relations. Please go ahead.

Garo Toomajanian

good and operator, you, afternoon, everyone. Thank XX, for discuss Fabrinet's you quarter fiscal ended joining for us to call of June which XXXX, conference today's year financial fourth on the Thank XXXX. and results operating With Executive Chief and Chief Seamus Officer; the me Csaba call on Officer. are Grady, today Financial Sverha, webcast, a will our investor.fabrinet.com. be located call website on the This at and is available being of replay Investors section

GAAP our and the During for non-GAAP reconciliation measures. GAAP details this present revenue additional call, our to of we to of as Please and which breakdown. including Investors information, both section release investor website will important refer non-GAAP press include well our financial earnings as presentation our

the company. today's discussion contain addition, about will of the statements In performance forward-looking future financial

and reflect them to our this only date or required future are could materially presentation, undertake events, to by that except and differ as to the obligation of statements cause opinions statements management's revise results subject current These we in information of from law. light risks uncertainties new as of expectations. actual Forward-looking no

the Form description May XXXX. affect the recent captioned For particular, our in filings, of refer on to a that our factors results, SEC Factors Risk section XX-Q in risk filed our please may X,

from begin over call to time remarks will would We the followed to call Grady. turn the Fabrinet's Seamus by now Seamus? Csaba and with for Seamus like questions. I CEO,

Seamus Grady

our afternoon joining to call. Good Thank everyone Garo. you,

a and and Our marks at from $XXX It's for that was guidance also range million capped also exceeded to executed XX% revenue and in for EPS well EPS guidance very QX produce quarter per for Fabrinet. the Fourth year an share. X% very fourth fourth row strong above quarter revenue ago of company. record range We a $X.XX both results notable from our non-GAAP quarter the off that QX. year our outstanding grew

fiscal from of $X.X year year, billion, revenue X% For an was the XXXX. full increase

Our non-GAAP per helped revenue us to due the for a increase. continued grow than record revenue management $X.XX or protracted year focus while across the share XX% the quite again revenue XXX%, than year-over-year faster telecom industry. year for remarkable more a XX% to declined Datacom was Fabrinet. earnings a on grew inventory over digestion cost telecom to XXXX

strong results Our Entering year model. strength we we and the anticipated telecom, business what that's the throughout continued in fourth quarter, the in growth our of experienced. demonstrated revenue and resilient declines and datacom flexible

also datacom sequential anticipated. program, XXX-gig related discussed more We for In applications biggest also return we've revenue we in Within revenue optical automotive and the in growth, the long-running telecom which while by a XXX-gig anticipate continues communications, than to to revenue, saw. decline remained as modest drive contributor, completion was products AI growth of offset in down a datacom, of the previously. sequential wind the part

long-term encouraged We reputation datacom well from datacom expertise seeing very trends growth. by current We the industry-leading technologies. we position are believe our and strong to continue and next-generation for are trusted particularly that generation us both benefiting demand

wins. telecom the as well In products continues from telecom, offset this In from telecom fourth contributions digestion revenue ongoing new inventory interconnect as data by traditional dampen system to center quarter, was partially impact program products.

us fiscal In telecom overall. trends long-term wins fact, the towards we expect revenue half make varying more second recent new begin optimistic contributions XXXX. system meaningful Fabrinet's These about wins sizes our to of making of revenue

We communications. growth nonoptical the to in revenue sequential Turning double-digit saw quarter.

and particularly robust we momentum and in remain successful as growth a was primarily ahead. as due continued and increase revenue well now had all, inventory we we issues this automotive absorption year, short-term us. positioned All anticipated, are look quarter behind to As in for very

from fiscal major all year the in quarter product fact, revenue categories. our growth of of we our sequential In first XXXX, anticipate

at continue made campus have ground evaluate the building QX, decision to Beyond XX year. during comments. we break the we on our long-term regard, that Chonburi our carefully In fiscal to new

Our feet being square which X years X, quickly X all feet Building square first opened in about now Chonburi feet buildingio is filling Building about was XX XXX,XXX utilized. and X building square with X million up. will ago be is million in size.

Capital to construction for square will approximately to foot we X.X million. facility million construction years expect once We approximately the $XXX expenditures X take complete of break be ground.

our ample line capacity. construction have our keep increase time We'll Beyond posted to space Building on we ahead. you manufacturing XX, we as further move

were fourth that above quarter and our with In a revenue as record remarkable summary, ranges as delivered guidance EPS well we a year. fiscal

our about drivers success extend and have beyond. of and our optimistic into XXXX fiscal track position increasingly are to record we that numerous We future, us

Now fiscal I'll guidance over financial call to turn and Csaba details the our Csaba? quarter on of XXXX. more fourth quarter and first fiscal our the for for XXXX

Csaba Sverha

strong Thank X% you, million of of earnings $XXX share to our guidance a non-GAAP was year and also of The QX. an Seamus, quarter and represented from our fourth a We end very year. revenue per quarter increase Record from a record and above afternoon, which ago produce range good guidance. everyone. strong was $X.XX, terrific had revenue XX% above fourth helped

$X.X the fiscal from was of an For XXXX. year, increase billion fiscal record full revenue a X%

of XX% earnings new website. year. share, the in up grew non-GAAP record from years, on prior breakdown revenue revenue, faster a recent than of our $X.XX are reaching Details our investor the per included presentation in As

increase revenue was from center of year data from optical revenue, interconnect from QX. ago QX. more now on communications, fourth than expected will of of and declined continued a of I Within revenue or approximately revenue. from Telecom X% $XXX datacom was communications my communications X% Telecom focus of a $XXX million products. optical was XX% revenue from an the the quarter. comments year to Optical of communications XX% increase metrics. prior from the XX% smaller optical which X% revenue, XX% million a and was quarter, due XX% million or some In or $XXX ago notable And total an revenue growth decline

and With higher products faster the rates, data transitioning clearly optical are key XXX industry now see of from that continue growth. communication to drivers gig strong to our we the growth

the breaking faster we products products categories: below from at was from breakout, communications $XXX million. million, gig up by third and deck fiscal The investor now including from contributor speed that ROADMs, at and rated, provided on and the XX% website. fourth are X% rated year nonspeed a down products that historical from revenue X% most is will the recent XXX ago. Therefore, $XXX other devices, in dominate was XXX trend up $XXX of year quarter, gig from into ago. amplifiers, Revenue From gig. and breakout ago. below [indiscernible] Revenue in XXX gig and to a XXX a million gig our faster observe growth. are XXX and out products year Revenue rated optical were was that you XXXX X from In started to biggest above and X-year

to short-term automotive XXX XX% quarter sequentially. X% Revenue products increasing past ZR quarter, QX. revenue revenue year $XX to Automotive optical XX% and in was a inventory million was grow, result a as correction fourth of reached primarily healthy up which This communications in from up increase $XXX thanks gig have revenue we period. of Although programs, the XX% the ago moved the XXX below fourth growth saw to QX. from million continue communications from nonoptical in

and the QX profitability our point be unless basis discussed noted. non-GAAP I the quarter guidance was will XX Gross metrics P&L, on a As of basis from decline in our range. details expense XX.X%, fourth otherwise a margin and was within

income Operating Effective elevated rate mid-single We that cash rate $XX of the GAAP Non-GAAP provided was diluted combination X.X% interest expenses million. an in digit $XX million rate and share. record XXXX. $XX $X.XX Operating year interest consistent representing fourth million, the in net of third strong our $XX will income of were XX.X%, environment slightly fiscal a than record tax revenue. remain margin the per tax our was was quarter. anticipate The less or operating with quarter. balance income million, X% of in

NVIDIA billion, $X.X from XXXX. full XX% XX%. X% up two to contributed In at revenue. fiscal that XX% Cisco revenue fiscal the customers or at more we XXXX, For year, had was and

customers fiscal XXXX. of XX XX% top Our up XX% made in from revenue, up together

year, XX.X%, due absence For from XX from was last Operating year. basis for fiscal basis the XXXX. XXXX, year FX of XX.X%, XX margins fiscal to primarily points down margin we fiscal fiscal points benefited the the gross that were of decrease from a tailwinds

year fiscal reflecting our outpacing margin, share, maintained this smaller in gross You net in very model. a revenue of income inherent than sheet year balance $X.XX growth a per ago We is was with operating our will a strong note from EPS XX% an leverage we decline increase throughout record saw again growth. a Non-GAAP XXXX.

million year the of strong short-term cash $XX up free CapEx flow investments in from of and operating end million, $XXX was of driver closed increase primary the million. quarter. million, million, was third flow the with quarter The We the cash of $XX of cash $XX with this $XX

the million, XX% in outlay at record cash million, cash flow $XXX also XXXX. flow fiscal year, operating $XXX For full increase an ago. per average an share year of a at repurchased a million. total quarter, of increase $X.X In XX,XXX from price we remarkable record of generated from the cash a fourth was shares of a fiscal XXX% for we $XXX of approximately Free XXXX

additional $XXX repurchase repurchased This $XX repurchase $XXX the per has for shares returning repurchases in we of share our at so for growth share we our available the double of For authorization the approximately also size while the is Board We of share our authorized to year, market our $XXX the an a total now of committed full and buyback. shareholders programs. at with million. Since of XXbX-X million beginning million end have outlay quarter, price open XXXX. an that fiscal remain for average to investing cash XXX,XXX capital

revenue XXXX. guidance turn breaking first another quarter quarter will After of and fiscal I that the will a Now quarter quarterly of Fabrinet. optimistic to for year strong we year for represent first for records are our EPS, the

major all be In revenue we anticipate product that fact, will of sequentially areas. up in our

driven growth datacom high products. mainly by be rate advanced expect to data We

We the will products revenue believe growth and also revenue in automotive expect of data laser to grow center new interconnect increase telecom from that recent sequentially. And programming. combination we and

Overall, revenue expect $XXX be to we million. of $XXX in million quarter range to the first

the temporary from the Keep profitability performance margins. that downward annual perspective. merit see we increases, expect which We pressure seasonal impact in in quarter, of strong mind first also on will puts

offset past, expect EPS efficiencies to to expect revaluation cost the Based we be in year. Baht, in anticipating the strength With on the in progress exchange Thai As mind, in $X.XX increases we foreign as share. per quarter. to that we loss operational these first are the recent we through $X.XX

both for guidance we In and another revenue with results had that our summary, quarter EPS. record exceeded

continue quarter We expect strong as to extend to with execution. open Operator, our we are ready call track first a questions. XXXX, our solid momentum beginning in for the now we of fiscal record

Operator

from [Operator Samik Instructions]. question with our Chatterjee JPMorgan. And first comes

Joseph Cardoso

Thanks for This Joe the on question. Cardoso for Samik. is

talk just part of and you whether So and aroundX.XX as maybe question this beginning here is September datacom about forward. just first that's think that like you or mid-July to if on your business. going are quarter? how about demand -- gig XXX X And as whether the timing Curious to gig start early XXX second you the thinking could could then

that you kind look like the past, demand case strong as continues, quick expectations I apply of the I X.X have that And the new going does highlighted a don't follow-up. math cannibalize still gig to just an that And disclosures. doing of 'XX, XXXX? Is these on in same drivers to back think gig And envelope into here well? expectation of the then you it. as in Both XXX the XXX growth expect

Seamus Grady

Thanks, Joe.

But a So And long used we make XXX our will a be about hard we we customers' be for products will we gig But working and we with customer we think line don't think do. our before certainly, can't they for time It's X.X, on around time. -- talk networks customers. around XXX X.XX. in a the extensively the gig think specific our while. talk that product we're yes, the for lot for of

the aim, be complex, to Our X.XX working building transceivers ramp they're on generation quite the up current we're as they products. is don't the with and customers next-generation always, overnight. while products,

of customers. product of our to timing the like is a the announcement really that new up again, But

about. perspective. to XXX leave So we we're that X.X, from we're XXX-gig talk I to wouldn't say, demand on I is But that. But timing certainly ready sure still very our customers capacity like making strong, remains. gig, we the say, comment a really the gig, like of XXX

Joseph Cardoso

in building just the expansion. maybe terms maybe then picture. bigger great Obviously, of an my around And hear Second and question news to

this your portfolio ground and Or to think datacom there, the about the in break further are -- conviction terms to of business? curious conviction the related and supporting facility we is confidence driving around what's high-level questions. portfolio here what's how driving conviction of you're the areas the other As there thoughts and all additional the driving build-out? that's appreciate there. about thinking Just

Seamus Grady

conviction one Building if really anticipated. X not our good particular, we about building of a No filled the before they cash. like business, on overall than our it's segments. any problem. use and It's tenants had you actually X faster And building overall

foot overall than a X scale the a to conviction opportunity is economies million have business, really, available better use available cash significant. to it's a facility and facility. square the of And upside better -- rather the million in by And in building pipeline of million build the foot. We the foot have we square X get X we square just the land us

billion. the the it do per minus $X.X plus be square you about math foot, $X.X or billion, would on revenue should that building revenue in If capacity XX the suggest

business and to would the build points. upside gross we time, Even any the about a building XX period is in a of is significant So didn't very opportunity risk small. the be basis and for headwind margin were there XX downside if put

So it's very small.

upside the a of the downside a conviction also little it's it's all So We potential of those cash, risk. with use factors, believe and it's combination very of good our good business.

Operator

line the BNP with from Ackerman And Paribas. Karl it of comes

Karl Ackerman

got two I've questions.

your gig date largest has customer. by revenue driven your First, transceiver to primarily XXX been

appear some been term case. a pushout be near And the to of investors that have GPUs not the impact That would concerned your latest does outlook.

several does outlook switches. customer So deploy networking datacom imply base as are beginning to quarter broadly hyperscalers gig XXX September that gig for are of seeing you broadening your XXX your a

Seamus Grady

that really for And mean, and expand So to comment big -- current has our for their yes, extend is you production demand and I NVIDIA, that we will demand products. know our customers, see to meet product customers' they GPUs based continue say on understanding gig we don't been they the launches. We XXX on strong our them. to Obviously, NVIDIA. that's happy you outside but before. we're and on about there, happy to growth factors, we're talked really we're There's of, pursuing there's other number if support the like, Karl, continue others. AI NVIDIA, these categories working, We opportunities. There's to with related growth of GPU very a of of companies. X we're

to merchants pursuing transceiver looking then who go and There we're is opportunities other there's hyperscalers three. and are all direct maybe

we outlook So seeing is demand seen that business our and that's the is why, function in continued of datacom telecom we've to the really softness are that beginning so strength recover. indications a

datacom and suppose weakness be growth sustainable I is we the simple So in think. looks temporary, terms, the to telecom

as success systems as some had business the also while. well network new be We've with complete we'll introducing over some winning

capacity able to up that. ample sure have we we We've for -- system additional complete pick network some make business. we So to want been

Karl Ackerman

that, Building point, expand see? the at using of could opportunity be ZR previous the I'm reason outlook And discuss your that the same the second breadth spoke your driven Seamus. in in if driven to model -- may, is of 'XX. large to as float XX or within these within whether time, comments it's programs by the then that optics beginning curious and To as twice coherent the to appears adoption you by new half telecom I fiscal customer growth Thanks predominantly datacom telecom the what if for the of you and telecom you in Yes. programs prepared about DCI. plans

Seamus Grady

It's additional the ability actually pick both. believe new datacom, some our it's and what strength there, continued but we up in but also Karl, wins. telecom, recovery business some in we to as also Yes, see

We you one. award had some success been And Actually, these the more been They have had the a of of we've recently, and We've Sienna. last some awarded ours we wins with up over haven't side. been Infinera a time, with for but if a picking been a years new we some success the XX% customer. on customer been of a few an sizes Cisco considerable who's then is they've had back, from of one ago, win, more customer number varying some system go component business.

manufacturing very integrated vertically of all So chart, they the haven't they're network the components. along modem in happy been business been awarded XX% the with like. a and customer if And customer. share but we've very the we're their of associates important you us of optical excellent majority an of for that next-generation

and been our this for be in and really QX, we've those revenue will modems fiscal in 'XX making the important program more expect -- optics So models, the this fiscal the which the we in of majority means win for of all XXXX the fiscal and revenue.

to X this next of But X the with of kind relationship expansion Sienna. we'll over months, ramp with And we're happy to the very that. begin

returning been a sustainable plus to and relation also about and it's we've course, up asked growth combination demand well. In of strength in ZR. datacom additional datacom telecom as telecom to of sorry, you ZR business So some in picking

within customers And but it's also And ZR. we've -- ZR telecom customers, is some we been we've have just very we that, now, nice not has XXXZR success are had DCI, and had which overall, year-on-year. down it's our in growth X ZR, growth sizes. varying have a So of ZR Plus. XXXZR right -- that and XX% in year-on-year, some business, But lot X

happy month. with in space DCI DCI with we've has the particular, a strength the been And of last us. adoption source for over very in -- for optics the ZR been Z of real So been applications -- we've

Operator

the comes Alex Alex. from Henderson with question of next Needham. line Our

Alex Henderson

fabulous. news. a you in good it's That's systems business, Sienna going was opposed got that about now to that the customers? break that's group bit or you Wow, a little I multiple X as become you're much. a as X there, to Congratulations. talk might so Thanks category out hoping whether vendor

inventory And the lot be seems systems to of on then systems a the business, systems side. but clearing there, it than second, component within out the faster side

So overall than pick business telecom expect faster business? to systems the do the up you

Seamus Grady

hampered And and demand. I market but and adjustments will because business systems distinguish by on some really success there inventory some inventory easily the as -- is certainly, digestion. success Well, think business well, component had can't we've we've still obviously had between our again, we that

So not us. But are to customers, to though digestion again on telecom on it stabilize. clear component for it's from traditional our inventory always based as side we what products does starting seeing and feel is the

It doesn't some declines, we're with races and remaining think, could big point. doesn't were necessarily the be still there really sequential us we to mean largely but year-over-year this are the mean it off yet, digested at behind

the think systems faster probably the so business. On we the for yes, business will component system side, grow us, in

way, out that do broken we future, end at not But we fiscal Up of had some now, we've but customer We to as point space. haven't some X customers as it probably that may, or we add point say, wait portfolio, that to in the that. until may future. in yet, to X the the year the would at you in we

Alex Henderson

business? that's and made categories you of anywhere something could an year? that that Are X type the your the 'XX those really think this that announcement? upcoming In any outside you of near comment during you NVIDIA. multiple identified do think happen AI Do that has alternative beyond you growth that's of possibility Or a fiscal factors of remarks,

Seamus Grady

there's anything know, not to evidenced tend as announce Sienna the announce by Alex, news. to Well, we as you generally until something

win won talk with until to our such Our But to as customers actually it. don't hard generally is try opportunities. and it, about approach we've we work these time very

very, vectors there's those. growth So on you X -- -- said, working but with we're and as pursuing vigor the energy hard X and with very

their go be a companies other companies again, And direct with want won those own optimistic GPU opportunities; in to and X all maybe with We're being of quite other who areas. optical thirdly, -- intenet. the business merchants of there's to the that areas X transceiver lot hyperscale

hard point, at learn time X but nothing all So those, to these of we're announce optimistic, opportunities. to on take to working a but but long we're time it this takes

Alex Henderson

last One [see] floor. question, I'll then the

multiple this than think the plus the pressure that don't evident of decade customers you've clearly category selling pressure rate who's in of overall combination with a So the the exception larger suppliers. or expected now 'XX I growth some price in pricing for XX% has or talked know I the slowing normal category 'XX. this predominantly from COVID to you window. about multiple alternative X and being single customer into with got XX% those The And of qualification been in

have coming loss to you quarter pressures growth? it over customer drive that after suggest to is stream perspective? visibility capacity share think do pricing from decelerate to your is coming XX% the Or from dynamic do your and about have the on this been major to which could as what kind modest quarter-to-quarter after you've producing there? to Does this we customer you How category that X% against pretty Or the going solid you new continue year. of quarter in last growth, quarter that

Seamus Grady

Yes.

years. about the growth yes, been annual X growing last we've X or rate So over compound XX%

has line grown year. top about each XX% Our

XX% is factor yes, And it's but a from grown the not only about cost in has earnings consideration. each Our customer's same year. the period a perspective,

targets of very customer the ability First competitive. cost we're I that terms meet any cost that of in meet. all, in of to very to need our our us any We're confident cost, -- customers would say,

a have low-cost We footprint.

in have very and capacity we any redundant any We don't geographies the around have a compact world. footprint,

a we we with. capacity that So don't to deal have have overhang

new one we're their products competitive ability an comes the not and make when are and very sure technology a but is along. several to can only first quality ramp one, of technology absolutely and leader really ability being conscious, care compact. the Cost the quickly delivery and with about to critical. cost opportunity But we're then to get customers be factors. critical cost they very to really So their And our supplier market we're very it's

well available costs. course, is having as and So of capacity critical

of So it's factor. only are so those all our preoccupied with most one that believe all factors we of those we. It's customers factors. are It's not and

continue our the So don't in to ability We grow we're to long-term confident give guidance. business.

As optimism think you business It's time. I about expand is future. to our But a for we're at a know, make the you Alex, we're how see we quarter X sure to guide indication the good can capacity steps continue our of and ready the we taking feel.

Operator

Our next question comes from the line Capital of Tim Markets. Savageaux with Northland

Timothy Savageaux

Yes.

Okay.

as try of Sorry My put here. about that. little a congratulations in well. and win context in I'll that And just more the terms

and Infinera mentioned You'd Cisco, historically.

I started the they think there very you, out $XXX there. I couple think customers are But sizable relatively we it said with I know is for expectations you don't there. million. whether muted increment clearly,

you think fair I assume I they currently. 'XX. was customer not in Sienna fiscal mentioned will to XX% be a Is that say?

Seamus Grady

in our Obviously, win relationship just a not it's geared begin if guess with to an But to customer. time out. Sienna. -- I ramp we'll days too and early in now, it's And latest this They've it. Tim. we're you think getting XX approximately been early dial But say, early days. customer excellent find long up from for months to very I it's a

relationship. but early with it's the happy we're days, with very very So the happy win,

Timothy Savageaux

well, that. I pluggables And already you that's assume say include I know kind mentioned if optics coherent don't but cards go Okay. with as would And that main so associated you our modems. that? of line and this, line of do the that kind maybe pluggables or can the the

Seamus Grady

to they been a mean, Yes. customer. probably to not I Sienna. lot we I Like go XX% that prefer level say, of do of I detail. not have work a with

our specific place relationship the make we our -- very and it's customers. not components disclose broad-based pretty a a So But for it's really again, to and successful.

Operator

[Operator Instructions].

comes of Rosenblatt question Mike from Securities. line the Genovese with next Our

Michael Genovese

those the things? positive, Sienna Or point out? are ZR any a and just to of main on I'm the side other shoots X win world, are Or fourth? the commentary positive. was third is So telecom there there sounds the Seamus, very green the wondering a and

Seamus Grady

traditional The see let's stabilizing. other telecom to couple are demand see comments overall, it's starting it back. coming the We're do We stabilize. our think of to on starting say, We're business.

days, then would So is And to early but point be other on business traditional DCI. the think we stabilize. telecom starting our

for continues XXXZR comments, to growth but be last a XXXZR us over in will good the driver, beacon DCI good So legs also if while. has solid telecom of They like. X be a you growth the main especially been and

Michael Genovese

Right. just for the multi-mode put of kind make in correct? that business And other to you everything of then is the to with clarify Is correct context in and it business your Is people's industry. assume kind a transceiver. customer that

Seamus Grady

No. We single-mode, make transceivers, all multi-mode. Everything. kinds of

Michael Genovese

Okay.

Or that kind So different think for network? there, how products though, parts -- other out would versus that different you applications? of the products there that would position I of are guess, make you like products use for those there do instance, the people's you EMLs, is significant in overlap

Seamus Grady

best broad of which own sources, floors, leave our if make. and us. around of there's have for customer application that X transceiver merchant I puts is own make, question their is about. watching, customers their there's we big to want takes really suited we like, to us design, talk And make. which with well. think, the designs, that which suppliers which I customers in one kind to But have, to we who more And then as products the mean whatever we now make customers our for again, there, the right terms, they probably a for our they it's you than again,

Michael Genovese

it point the by quarter read anything I and like that we just guide, be maybe fourth the to out. low little the bit look fourth like the quarter? it read I leaves this that? sounds finally, it if a a market guess about little trying the a faster the even Then be looks was is at breaking And sequentially first in bit was Okay. there for at tea way to thanks to sequential growth question. too actually embarrassed seems closely. to feel because really the the from it maybe XXXG But all at And it in business, quarter. than in

Seamus Grady

a I think whole I -- that, certainly read Mike. significant into don't don't read a think I there's so. into that. wouldn't it We anything don't whole

Operator

our comes It for from of next with moment One Jefferies. question. George the line Notter

Unknown Analyst

break it, -- I this the was that XX I during the you June on you're several ground make way going next XX, breaking infer you Or that quarter could you any Building of decision you to to ask quarters? June during ground make quarter? were fiscal Have the in did you to phrased mean decision year. that Building the that wanted about Seamus, in one the did think

Seamus Grady

No, said remarks hoping the new prepared that which decision, year. was year, the made we grounds in. In fiscal the in would break in now we're we've our I'm fiscal

the year. so So X a will XXX to X, sorry, we've -- decision ground on or facility it this million and we'll square building foot foot break be size double facility, square X million fiscal taken that in the of

Unknown Analyst

Got it.

Okay.

it's X.X or mentioned from quarter years up X? to and today? from X.X years X.X Is you So that it Is get running. years that

Seamus Grady

and the major break we are project. we mean decision, these obviously, From once make it's I a generally out. -- when And we undertaking significant major investments,

in months. We'll about of it's have update And tender little we then from we course, we up, permits then of point a out break to takes on Then decision. so and once quarters. the we'll lined make break the future. have all sure time. And to some to the typically that XX in at will out few ground that ground, go next We the bit make

Unknown Analyst

Cool. Okay.

Okay.

now assume a Building I XX% you're then can right X. at utilization that So on rate

decision? you that I the talked which think past, in being the threshold guys a as you've about make at

Seamus Grady

We don't number anymore. that break out

up But -- if building about very very Even there's a bit really, I little risk it, the really downside there's XX little building very little building. points. our historically, next said, end out. we opportunities anything number downside next the we just the And the ourselves And We that's did you had We to guideline past. it trigger But we the don't last XX% on can we set and wasn't in that to risk productive. upside earlier. [indiscernible]. basis the You pull the break filling would on really. assume like little don't like, get when building,

not would X than up say, other is it's confirm faster faster had building thought filled up we're going anticipated. than So X, to than building we utilization we so to filling much and the it percentage

So some if these come in caught footed we sure we when -- big future, the don't and we get we to to opportunities want make they way don't ready. flat our sure of we're to want make want

Unknown Analyst

Got it. follow-up. And last then Great. one just

will win, from at to I as Like on Sienna then guess, assume I running, the building and XX% time business, obviously, ramped. it I the you. of really if Sienna optical business slowly. customer that going that multiples some look wondering just the XX to breaking fair is it's I'm I'm are size there the take being win come Sienna for Cisco Cisco. say and guess a get on timing of I if an of up is ground -- to relatively So

Seamus Grady

ramp will it, it our in call half fiscal really year. the early begin calendar, we to Yes, of second or XXXX

QX. fiscal June the into even or our March the into quarter, really So

than the are of FY the be be will an and in ramp working an story. to a already story an FY 'XX the start more elements it, than So 'XX We'll FY March and we earnest we quarter. story on -- don't June until really but 'XX -- it sorry, ramp of

Operator

you. turn call to comments. all for closing today. for the we Q&A time have that's Thank I And Grady back the will Seamus

Seamus Grady

look you market. speaking very momentum be you. will We're We're week. optimistic in our record to position today. those with our next attending first year. for again quarter the call conference seeing into leadership our joining Goodbye. and Jefferies extend and to with we who that you the the as forward We of our fiscal you continue pleased quarter business will Thank Thank

Operator

all that, for today's you participating in with thank conference. And

disconnect. You may now

Fabrinet (FN) 19 Aug 242024 Q4 Earnings call transcript