USI Reports 2009 Third-Quarter Consolidated Financial Results

USI Reports 2009 Third-Quarter Consolidated Financial Results
Issued on : 2009/10/22
Nantou, Taiwan – Universal Scientific Industrial Co., Ltd. (TSE: 2350) (“USI”, the “Company” or “We”), a leading global design and manufacturing service company, announced its consolidated financial results* for Q3’2009.
Consolidated net revenue amounted to NT$13,886 million for the quarter, representing a sequential 16% increase, and dropping 17% year-over-year. Net income increased 73% to NT$605 million, comparing with NT$349 million in Q2’2009. Earnings per share was NT$ 0.57 for the quarter.  
Consolidated Financial Results

Unit in NT$M, except EPS

Q3 2009

Q2 2009

Q3 2009**

QoQ

YoY

Revenues

1,3886

100%

11,978

100%

16,741

100%

16%

-17%

Gross Margin

1,688

12.2%

1,358

11.3%

1632

9.7%

24%

3%

Operating Margin

665

4.8%

406

3.4%

407

2.4%

64%

63%

Non-Op Income(Loss)

54

0.4%

22

0.2%

(70)

-0.4%

147%

n/a

Pre-Tax Income

720

5.2%

428

3.6%

337

2.0%

68%

113%

Net Income

605

4.4%

349

2.9%

230

1.4%

73%

163%

EPS(NT$)

0.57

 

0.33

 

0.21

 

 

 

*Preliminary unaudited numbers are subject to change without notice
**General Accounting Standard No.10 applied

Highlights of Operations  

  • Total net revenue for the quarter was NT$13,886 million, quarter-over-quarter 16%, year-over-year -17%. Revenue contributions were NT$3,353 million from Computer & Peripherals segment, sequentially increasing 20%,  or annually decreasing 29%, NT$3,393 million from Communications Products, sequentially increasing 27%,  dropping 19% annually, NT$944million from Network Storage & Servers, sequentially lifting 2%, annually dropping 45%, NT$3,917 million from Electronics Packaging & EMS, climbing 3% comparing with Q2’09, annually slid 5% and NT$2,280 million from Industrial & Automotive Segment, sequentially escalating 27%, or 13% increase year-over-year.
  • Gross margin for the quarter was NT$1,688 million, climbing 24%, comparing with Q2’09, or 3% year-over-year. Gross margin rate increased from 11.3% in the prior quarter to 12.2%, mainly due to better product mix, cost reduction and efficiency improvement.
  • Operating income in Q3’09 was NT$665 million and the operating margin of 4.8% improved from 3.4% last quarter or from 2.4% in Q3’08. Comparing with the same period of last year, operating expenses lowered 17%, mainly due to expense control and optimization.
  • Non-operating income contributed NT$54 million for the quarter. Major non-operating item was from non-recurring income.
  • Net income of NT$605 million, or NT$0.57 per share, improved by 73% comparing with Q2’09’s or 163% year-over-year. The causes were as mentioned above.
  • For the outlook of 4th quarter of 2009, the Company expects to see flat revenue growth for the period. Even though that worldwide economy has been more stable than it was in the prior quarters, the Company continues to take a conservative stand and make decisive actions in product offering and cost optimization. The Company is committed to expand competitive advantages over the industry in terms of revenue growth, efficiency optimization and technical capabilities to enhance profitability in the future.

About USI
Universal Scientific Industries Co., Ltd, established in 1976, is a global leading DMS (ODM/EMS) company.

USI not only provides manufacturing service, but also aggressively cultivates R&D talents, and persistently invests on the development of Handheld Devices, Wireless Networking Products, Car Electronics, Storage, Industrial PC, Server, Work Station and their Motherboard.

Combining its advanced SiP techniques, USI has built its unique competitive edge to provide customers time-to-market, high quality, and high value-added and most cost competitive total services.

USI Announced Sep 2009 Revenues

USI Announced Sep 2009 Revenues
 
Nantou, Taiwan, Oct. 5th, 2009 – Universal Scientific Industrial Co., Ltd. (TSE: 2350) (“USI”, the “Company” or “We”), a leading global design and manufacturing service (DMS) company, announced its consolidated net revenue for Sep., 2009.  Consolidated monthly net revenue in September amounted to NT$5,134 million, up 15% sequentially and down 19% year-over-year. On a non-consolidated basis, monthly net revenue was NT$2,259 million, up 8% sequentially and up 2% year-over-year.

Revenue performances by major product line (See Note for business line re-classification) :

  1. Computers & Peripherals (Revenue Weight: 24%): Net revenue in September amounted to NT$1,248 million, up 15% sequentially and down 34% year-over-year.
  2. Electronics Packaging & EMS (Revenue Weight: 27%): Net revenue in September was NT$1,393 million, up 6% sequentially and down 13% from the same period last year.
  3. Communications (Revenue Weight: 24%): Net revenue in September amounted to NT$1,215 million, up 13% sequentially and down 19% from the same period last year.
  4. Network Storage & Servers (Revenue Weight: 7%): Net revenue in September amounted to NT$364 million, up 24% sequentially and down 46% year-over-year.
  5. Industrial & Automotive Products (Revenue Weight: 18%): Net revenue in September for the product line was NT$914 million, up 32% sequentially and up 34% year-over-year.
Consolidated and Stand-alone Monthly Net Revenues (Unaudited)*
(NT$ Million) 
Sep.
2009
Aug.
2009
Sep.
2008
MoM
Change
YoY
Change
Jan-Sep
2009
Jan-Sep
2008
YoY
Change
Worldwide
5,134
4,452
6,346
15%
-19%
36,547
51,641
-29%
USI Taiwan
2,259
2,098
2,208
8%
2%
15,920
20,108
-21%

Consolidated net revenues include, in addition to net revenues of USI Taiwan, net revenues of wholly-owned subsidiaries, including USI Electronics (Shenzhen), USI (Shanghai) Limited Corp, USI Japan, USI de Mexico, USI Manufacturing Services, USI @Work, USI UK Office, and Uabit. 

Revenue Breakdown by Major Product Line (Unit: NT$ Million)
Revenues
Computers & Peripherals
Electronics Packaging & EMS
COM
Network Storage & Servers
Industrial & Automotive Products
Total
Sep., 2009
1,248
1,393
1,215
364
914
5,134
Revenue  Weight %
24%
27%
24%
7%
18%
100%
Sep., 2008
1,884
1,604
1,507
670
682
6,346
Revenue  Weight %
30%
25%
24%
11%
11%
100%
Jan-Sep 2009
25%
28%
23%
8%
15%
100%
Full-Year 2008
30%
25%
23%
11%
12%
100%
Full-Year 2007
34%
26%
17%
12%
12%
100%

Note: Starting in June 2007, USI re-classified product lines in consideration of better product orientation and rational resource allocation. Major products for each product line are outlined as follows:
Computers & Peripherals : Motherboards for notebook & desktop PC, port replicator, Mobile PC, abit, Technical Services.
Electronics Packaging & EMS : Control boards for flat panel devices, EMS, Electronics Packaging Service.
Communications : Wi-Fi, Bluetooth, WiMAX,ADSL, SiP and etc…
Storage & Servers : Network storage, server products and NAS system.
Industrial & Automotive Products : Smart handheld devices, point-of-sale systems, automotive electronics, in-car infotainment systems.

About USI
Universal Scientific Industries Co., Ltd, established in 1976, is a global leading DMS (ODM/EMS) company.

USI not only provides manufacturing service, but also aggressively cultivates R&D talents, and persistently invests on the development of Handheld Devices, Wireless Networking Products, Car Electronics, Storage, Industrial PC, Server, Work Station and their Motherboard.

Combining its advanced SiP techniques, USI has built its unique competitive edge to provide customers time-to-market, high quality, and high value-added and most cost competitive total services.

Flextronics announced that it will expand its presence in China through the development of a new facility in Wuzhong

Flextronics to Build Wuzhong, Suzhou, China Facility to Support Manufacturing and R&D Capabilities for Computing Products

SINGAPORE, Oct. 15 /PRNewswire-FirstCall/ — In a signing ceremony held today with Suzhou Wuzhong Economic Development Zone and Jiangsu Wuzhong Export Processing Zone, Flextronics (Nasdaq: FLEX) announced that it will expand its presence in China through the development of a new facility in Wuzhong. The new facility will support the growing demand for computing products in China and will include a design center and extended manufacturing capabilities in the Wuzhong Export Processing Zone (WEPZ). The design center will be completed by the end of 2009 and the manufacturing facility is expected to be completed by the end of 2010.

In addition to the present manufacturing facility in Wujiang, Suzhou,
Flextronics currently also has computing design centers in Shanghai and
Wujiang (Suzhou). Wuzhong will be positioned as the company’s main development center in China for computing products.

“Today’s signing ceremony is an important event that allows Flextronics and
Wuzhong government officials the opportunity to share the vision of this
design center and discuss its significance in supporting China’s market growth for notebooks and desktop products,” said Sean Burke, president, Flextronics Computing. “We are pleased to announce this expansion and believe that Wuzhong is an excellent location based on its world-class infrastructure, supply chain ecosystem and close proximity to Suzhou’s Higher Education Center, which has areputation for excellent education programs and highly-skilled talent.”

About Flextronics
Headquartered in Singapore (Singapore Reg. No. 199002645H), Flextronics is a leading Electronics Manufacturing Services (EMS) provider focused on
delivering complete design, engineering and manufacturing services to
automotive, computing, consumer, industrial, infrastructure, medical and
mobile OEMs. Flextronics helps customers design, build, ship, and service
electronics products through a network of facilities in 30 countries on four continents. This global presence provides design and engineering solutions
that are combined with core electronics manufacturing and logistics services, and vertically integrated with components technologies, to optimize customer operations by lowering costs and reducing time to market. For more information, please visit www.flextronics.com.

SOURCE Flextronics

First-tier notebook maker Compal Electronics has posted consolidated revenues

Compal sees both revenues and shipments increase in September
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(Yen-Shyang Hwang, Taipei; Joseph Tsai, DIGITIMES [Monday 12 October 2009] )

First-tier notebook maker Compal Electronics has posted consolidated revenues of NT$67.35 billion (US$2.09 billion) and notebook shipments of 4.15 million units for September of 2009 with both figures being new historical highs for the company.

Compal’s September consolidated revenues were up 21.6% on month and 45.6% on year thanks to increased notebook orders for the upcoming year-end holiday season. Record September revenues also helped the company accumulate consolidated revenues of NT$412.07 billion for the first three quarters of 2009, an increase of 29.4% on year.

With Compal totaling 10.55 million notebook shipments in the third quarter, and 24.75 for the first three quarters of the year, the company has internally increased its shipment forecast for the year from the 32-35 million units previously forecast to 35-36 million units, according to market watchers.

Although Compal expects its notebook shipments will continue to grow on month in October, shipments will start dropping in November due to seasonality. However, the company still forecasts its fourth-quarter shipments will increase 10% to 11.6 million units, according to sources at Compal.

Compal rival Quanta Computer is also expected to ship about 11.6 million units in the fourth quarter, an increase of 20% sequentially, and the two companies will vie for the top spot for the fourth quarter among Taiwan notebook makers.

Compal also noted that the recent tight supply of notebook components including optical drives, GPUs and DRAM will only have a minor impact on its shipments in October.

Source: Digitimes

Compal Electronics shipped about 3.9 million notebooks in September

Compal beats Quanta to take top spot among notebook makers in September
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(Max Wang, Taipei; Joseph Tsai, DIGITIMES [Wednesday 7 October 2009] )

Compal Electronics shipped about 3.9 million notebooks in September, outperforming Quanta Computer and its 3.6-3.8 million units, due to stable orders from vendors such as Dell and Acer, according to market sources.

Behind the two leaders was Wistron, which benefited from Lenovo and Acer orders, shipping 2.4-2.5 million notebooks in September. Inventec shipped 2-2.1 million units thanks to orders from Hewlett-Packard (HP) and Toshiba.

For the third quarter of 2009, Quanta shipped 9.7-9.9 million notebooks, Compal shipped 10.4 million units, Wistron shipped 6.9-7 million units and Inventec shipped 6.3-6.4 million units.

The makers are optimistic about their performance for the fourth quarter as the notebook market is entering the peak season and Microsoft will launch its Windows 7 operating system. The makers expect shipments in the fourth quarter to increase around 10% or even more sequentially.

Source: Digitimes

Compal surges on reports of sales of flat-panel affiliate

Compal surges on reports of sales of flat-panel affiliate

Shares of Compal Electronics Inc outperformed its local peers on Oct 2, after a Taipe Times reported that the world’s second-largest contract notebook maker was selling shares in an affiliated flat-panel company to strengthen its balance sheet.

Compal’s share price rose 3.11 percent to NT$38.15 in Taipei trading, outpacing the electronics sub-index and the main bourse, which fell 1.79 percent and 1.77 percent respectively.

The Chinese-language Commercial Times Taipe Times reported on Oct 2 in a front-page story that TPO Displays Corp Compal’s affiliate under the Kinpo Group, which is headed by Rock Hsu — was in talks with Innolux Display Co for a share swap deal.

The report, without citing sources, said Innolux — a flat-panel making unit of Hon Hai Group, which is led by Terry Goup — was likely to acquire TPO by exchanging between 6.5 and 8.5 shares of TPO with one of its own shares, the paper said. The two sides are expected to finalize the terms of the deal sometime next week, it said.

Hsu, the chairman of Kinpo, could not be reached for comment as he was visiting China.

TPO and Innolux manufacture about 10 million small and medium-sized flat panels a month, with Nokia accounting for more than 50 percent of orders in each company, the paper said.

Shares of TPO Displays closed down 11.5 percent at NT$6 on the smaller Emerging Stock Market, while Innolux shares picked up 0.25 percent to NT$40.65 on the Taiwan Stock Exchange.

Eric Lai, an analyst at Marbo Securities Consultant Co, said the report helped boost Compal shares as the notebook computer maker was expected to benefit from the deal with Innolux.

“If realized, the deal will help Compal exit the flat-panel competition gracefully while strengthening Hon Hai’s ambition to expand in China,” Lai said by telephone.

Lai said Compal stocks were also boosted by investors’ upbeat view about the company’s revenue growth in the third quarter, which will be disclosed later this month.

Because of larger orders from Hewlett-Packard Co, Acer Inc and Lenovo Group Ltd, a Citigroup analyst yesterday revised up her estimates of Compal’s notebook shipments last month to 3.85 million units last month, from her prior estimate of 3.5 million units.

“A strong September [performance] could raise Compal’s 3Q NB shipments by 29 percent quarter-on-quarter … exceeding its guidance of 20 percent-plus growth,” Citigroup analyst Eve Jung  wrote in a client note yesterday.

For this year, Compal could ship 35.5 million notebook computers, Jung said. This compares with an estimate of 32 million to 35 million made by company president Ray Chen earlier last month.

Total shipments of 35.5 million units would translate into growth of 39 percent year-on-year, better than its peers’ average forecast growth of 31 percent, Jung said.

Citigroup rated Compal its top pick among local contract notebook makers, raising its target price to NT$48 from NT$45. The bank cited Compal’s strong sales momentum, stable margins and narrowing losses from long-term investments in TPO and Vibo Telecom Inc, the nation’s smallest mobile telecom operator.

Source: Taipe Times

Celestica announced that Onex Corporation has completed their previously announced secondary offering

Celestica Announces Completion of Secondary Offering by Onex

Celestica Inc. (“Celestica”) (NYSE, TSX: CLS), a global leader in the delivery of end-to-end product lifecycle solutions, today announced that Onex Corporation (“Onex”) and certain of its affiliates have completed their previously announced secondary offering of 11,000,000 Subordinate Voting Shares (“SVS”) of Celestica, which were sold to a syndicate of underwriters led by CIBC and qualified for distribution under a short form prospectus of Celestica. Celestica did not receive any proceeds from the secondary offering.

Onex and its affiliates now own 100% of the Multiple Voting Shares (“MVS”) of Celestica and approximately 0.8% of the Subordinate Voting Shares of Celestica representing an approximately 8% economic interest in, and approximately 69% voting control of, Celestica. The number of outstanding shares of Celestica remains unchanged at approximately 229.9 million shares; consisting of approximately 211 million SVS and approximately 18.9 MVS.

Texas electronics manufacturer says the local facility will be eliminated

Texas electronics manufacturer says the local facility will be eliminated
Pamplin Media Group, Sep 17, 2009

Benchmark Electronics of Angleton, Texas, said Tuesday that it would close its Beaverton circuit board manufacturing plant at the end of the year, cutting 183 jobs.

The company told state work force officials Sept. 15 that some employees could be offered positions at the company’s dozen other U.S. plants, but details about the possible transfers have yet to be completed.

Benchmark Electronics opened its Beaverton plant at 3725 S.W. Hocken Ave., in 1991. The 80,000-square-foot facility produced circuit boards, electronic system assembly and testing equipment for the medical, telecommunications and computer industries.

Benchmark has 24 plants operating in 10 countries, including Ireland, Asia and Mexico.

NI Technology Updates Outlooks for Flextronics Benchmark Electronics Celestica Jabil Circuit and Sanmina-SCI

NI Technology Updates Outlooks for Flextronics, Benchmark Electronics, Celestica, Jabil Circuit and Sanmina-SCI

PRINCETON, N.J., Sept. 21 /PRNewswire/ — Next Inning Technology Research http://www.nextinning.com), an online investment newsletter focused on semiconductor and technology stocks, announced it has updated outlooks for Flextronics (Nasdaq: FLEX), Benchmark Electronics (NYSE: BHE), Celestica (NYSE: CLS), Jabil Circuit (NYSE: JBL) and Sanmina-SCI (Nasdaq: SANM).

During the July earnings season, editor Paul McWilliams was spot on. Not only was he the only one to predict Intel would report revenue of $8B, he laid out the details so accurately that one reader commented, “It was almost as though McWilliams wrote the script for the Intel conference call.”

With the October earnings season just around the corner, McWilliams has begun publishing his special “State of Tech” reports. In this series of reports, readers will find detailed data covering the sector leaders, commentary about sector trends and specific calls as to which stocks McWilliams thinks readers should buy and which he thinks they should sell.

To read the State of Tech reports, learn what McWilliams thinks Intel will report in Q3 and have full access to the Next Inning web site as well as a direct feed to McWilliams’ frequent investment ideas that have yielded a year-to-date return of 69% for the NI Portfolio, please visit the following link:

https://www.nextinning.com/subscribe/index.php?refer=prn878

McWilliams covers these topics and more in his State of Tech report:

— Flextronics is up over 230% since McWilliams called it a strategic buy in December. What fueled these impressive returns and should investors continue to hold the stock?

— Jabil Circuit is up 88% from where McWilliams called it a good speculative buy in December. Has the outlook changed for the company? Why should investors closely track Jabil’s relationship with Research in Motion?

— Benchmark is up 60% since McWilliams called it a good speculative buy in March. What is the “wildcard” that could have a big impact on an investment in Benchmark in the coming months?

— Celestica is up nearly 165% since McWilliams called it a good speculative buy in March. What factors have led McWilliams to view Celestica more positively in 2009? Has Celestica finally overcome the uneven execution that hampered it in the past?

— Should investors be tempted by Sanmina’s recent strong move higher? Is Sanmina likely to be an acquisition target, and which firms would be the most likely buyers?

Jabil Results Exceed Guidance

Jabil Circuit, Inc. (NYSE: JBL), reported its preliminary, unaudited financial results for the fourth quarter and fiscal year 2009, ended August 31, 2009. “Marked improvement in our sequential performance was aided by cost cutting, increased productivity, market share gains and a more benign end-market environment. Income gains were matched with cash flow generation and balance sheet improvements during the quarter,” said President and CEO Timothy L. Main.

(Definitions used: “GAAP” means generally accepted accounting principles in the United States of America. Jabil defines core operating income as GAAP operating income before amortization of intangibles, stock-based compensation expense and related charges, restructuring and impairment charges, goodwill impairment charges and certain distressed customer charges. Jabil defines core operating margin as core operating income divided by net revenue. Jabil defines core earnings as GAAP net income before amortization of intangibles, stock-based compensation expense and related charges, restructuring and impairment charges, goodwill impairment charges, certain distressed customer charges, certain other expenses, net of tax and certain deferred tax valuation allowance charges. 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 investors with an alternative method for assessing operating income, earnings and earnings per share from what it believes are 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.)

Fourth Quarter 2009
Net revenue for the fourth fiscal quarter of fiscal 2009 was $2.8 billion compared to $3.3 billion for the same period of fiscal 2008. GAAP operating income for the fourth quarter of fiscal 2009 was $43.1 million compared to income of $87.8 million for the same period of fiscal 2008. GAAP net income for the fourth quarter of fiscal 2009 was $5.5 million compared to net income of $57.5 million for the same period of fiscal 2008. GAAP diluted earnings per share for the fourth quarter of fiscal 2009 were $0.03 compared to $0.28 for the same period of fiscal 2008.

Core operating income for the fourth quarter of fiscal 2009 was $65.4 million or 2.3 percent of net revenue compared to $104.7 million or 3.2 percent of net revenue for the fourth quarter of fiscal 2008. Core earnings for the fourth quarter of fiscal 2009 were $33.4 million compared to $61.7 million for the same period of fiscal 2008. Core earnings per diluted share for the fourth quarter of fiscal 2009 were $0.16 compared to $0.30 for the same period of fiscal 2008.

Fiscal Year 2009
Net revenue for the fiscal year was $11.7 billion compared to $12.8 billion for fiscal 2008.
GAAP operating income for fiscal 2009 was a loss of $910.2 million compared to income of $251.4 million for fiscal 2008. GAAP net loss for fiscal 2009 was $1.2 billion compared to net income of $133.9 million for fiscal 2008. GAAP diluted loss per share for fiscal 2009 was $5.63 compared to earnings per share of $0.65 for fiscal 2008.

Jabil’s fiscal 2009 core operating income was $246.8 million or 2.1 percent of net revenue compared to $379.9 million or 3.0 percent of net revenue for fiscal 2008. Core earnings for fiscal 2009 were $132.0 million compared to $231.0 million for fiscal 2008. Core earnings per diluted share for fiscal 2009 were $0.63 compared to $1.12 for fiscal 2008.

Fourth Quarter 2009
Operational and Balance Sheet Highlights

•Cash flow from operations for the quarter was approximately $169 million.

•Sales cycle was 16 days for the fourth quarter of fiscal 2009.

•Annualized inventory turns increased to nine turns for the quarter.

•Capital expenditures for the quarter were approximately $57 million.

•Depreciation for the quarter was approximately $66 million.

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

•Core Return on Invested Capital was 11.5 percent for the quarter.

•Jabil paid a $0.07 dividend on September 1, 2009.

Business Update
“Based upon our current expectations, it appears as though the worst of the recession is behind us. However, we remain vigilant and will continue to focus on productivity, quality and balance sheet health even as revenues begin to recover. We are grateful for the dedicated efforts of our global workforce and look forward to a more robust fiscal 2010,” said President and CEO Timothy L. Main. Through the twelve months ended August 31, 2009, the company produced cash flow from operations of $556 million and currently has more than $800 million in cash. During the quarter the company repurchased $295 million of its 5.875% senior notes that were due in 2010 (98% of the total outstanding) and closed on its $312 million offering of 7.75% senior notes due 2016. The company also has an $800 million revolving credit facility. “In short, we are ready to take advantage of opportunities for growth in our fiscal 2010,” said Main.

Jabil management said it expects to divest of its automotive electronics manufacturing entity located in Western Europe during its first fiscal quarter of fiscal 2010. The company indicated it expects a loss of $20 to $25 million on the sale of the entity, of which $4 million is expected to be cash. Subject to country-specific regulatory approvals and other closing conditions, the transaction is anticipated to close during the company’s first fiscal quarter.

Fiscal First Quarter 2010 Guidance
Jabil management indicated that it expects its net revenue for its first fiscal quarter of 2010 to be in a range from $3.0 billion to $3.2 billion. The company estimated that its core operating income would be in a range from $85 million to $105 million, driven by the continued demand from its customers, further manufacturing efficiencies and the benefit of cost reductions. Jabil indicated that it expects its core earnings per share for its first quarter of fiscal 2010 to range from $0.24 to $0.32 per diluted share. GAAP earnings per share are expected to be in a range from $0.02 to earnings of $0.12 per diluted share. (GAAP earnings or loss per share for the first quarter of fiscal 2010 is currently estimated to include $0.10 to $0.12 per share loss on the aforementioned automotive divestiture; $0.03 per share for amortization of intangibles; $0.05 per share for stock-based compensation and related charges; and $0.02 per share for restructuring.)

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 and related charges, restructuring and impairment charges, goodwill impairment charges, certain distressed customer charges, certain other expenses and certain deferred tax valuation allowance charges) 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 operating margin, core earnings and core earnings per share to provide investors with an alternative method for assessing operating income, earnings and earnings per share from what it believes are its core manufacturing operations. Included in this release are Condensed Consolidated Statements of Operations as well as a reconciliation of the disclosed core financial measures to the most directly comparable GAAP financial measures.

Company Conference Call Information
Jabil will hold a conference call to discuss the fourth fiscal quarter 2009 earnings today at 4:30 p.m. ET live on the Internet at http://www.jabil.com. The earnings conference call will be recorded and archived for playback on the web at http://www.jabil.com. A taped replay of the conference call will also be available September 29, 2009 at approximately 7:30 p.m. ET through midnight on October 5, 2009. To access the replay, call (800) 642-1687 from within the United States, or (706) 645-9291 outside the United States. The pass code is 30414383. An archived webcast of the conference call will be available at http://www.jabil.com/investors/.

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