Jabil reports core Q4 and FY 2006 results - core operating income up 20%

Jabil Circuit, Inc. (NYSE: JBL) reported financial results for the fourth quarter and fiscal year 2006 ended August 31, 2006.

Fiscal Year 2006 Results
As also reported in our Form 10-K filed on May 15, 2007, net revenue for our full fiscal year 2006 increased 36 percent to $10.3 billion, compared to $7.5 billion for fiscal 2005. On a GAAP basis, operating income for fiscal 2006 decreased 4 percent to $241.8 million, compared to $252.0 million for fiscal 2005. On a GAAP basis, net income for fiscal 2006 decreased 19 percent to $164.5 million, compared to $203.9 million for fiscal 2005. GAAP diluted earnings per share for fiscal 2006 decreased 21 percent to $0.77, compared to $0.98 for fiscal 2005.

Jabil's fiscal 2006 core operating income increased 20 percent to $391.6 million, or 3.8 percent of net revenue, compared to $327.1 million, or 4.3 percent of net revenue, for fiscal 2005. Core earnings increased 22 percent to $324.4 million, compared to $265.5 million for fiscal 2005. Core earnings per share increased 20 percent to $1.53 per diluted share for the period, compared to $1.28 for fiscal 2005.

Fourth Quarter Fiscal Year 2006 Results
As reported in our Annual Report on Form 10-K filed with the Securities and Exchange Commission on May 15, 2007, net revenue for the fourth quarter of fiscal 2006 increased 45 percent to $3.0 billion compared to $2.0 billion for the same period of fiscal 2005. Under generally accepted accounting principles in the United States of America ("GAAP"), operating income for the fourth quarter of fiscal 2006 decreased 111 percent to an operating loss of $7.6 million compared to $69.4 million of operating income for the same period of fiscal 2005. On a GAAP basis, net income for the fourth quarter of fiscal 2006 decreased 178 percent to a loss of $45.6 million compared to $58.4 million of net income for the same period in fiscal 2005. GAAP diluted earnings per share for the fourth quarter of fiscal 2006 decreased 179 percent to a loss per share of $0.22 compared to $0.28 of earnings per share for the same period of fiscal 2005.

Jabil's fourth quarter of fiscal 2006 core operating income decreased 3 percent to $90.2 million, or 3.1 percent of net revenue, compared to $93.4 million, or 4.6 percent of net revenue, for the fourth quarter of fiscal 2005. Core earnings decreased 3 percent to $74.4 million compared to $76.8 million for the fourth quarter of fiscal 2005. Core earnings per share decreased 3 percent to $0.36 per diluted share for the period compared to $0.37 for the fourth quarter of fiscal 2005.

Fourth Quarter Fiscal 2006 Highlights:
-- Cash flow from operations was approximately $178 million.
-- Sales cycle for the quarter was 14 days.
-- Annualized inventory turns were eight.
-- Fourth quarter capital expenditures were approximately $95 million.
-- Quarterly depreciation was approximately $45 million.
-- Cash and cash equivalent balances were $774 million at the end of the fourth quarter.
-- Return on Invested Capital was 17 percent.
-- A $0.07 quarterly dividend was paid on September 1, 2006.