Fabrinet

Good afternoon. Welcome to FabriNet's Financial Results Conference Call for the third quarter of fiscal year 2021. At this time, all participants are in the listen-only mode. Later, we will conduct a question-and-answer session, and instructions on how to participate will be provided at that time. As a reminder, today's call is being recorded. I would now like to turn the call over to your host, Garo Tamajian, Investor Relations. Thank you. Please go ahead.

Thank you, Operator, and good afternoon, everyone. Thank you for joining us on today's conference call to discuss FabriNet's financial and operating results for the third quarter of fiscal year 2021, which ended March 26, 2021. With me on the call today are Seamus Grady, Chief Executive Officer, and Chavez Terra, Chief Financial Officer. This call is being webcast and the replay will be available on the investor section of our website located at investor.fabrinet.com. During this call, we will present both GAAP and non-GAAP financial measures. Please refer to our website for important information, including our earnings press release and investor presentation, which include our GAAP to non-GAAP reconciliation. I would like to remind you that today's discussion will contain forward-looking statements about the future financial performance of the company. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from management's current expectations. These statements reflect our opinions only as of the date of this presentation, and we undertake no obligation to revise them in light of new information or future events, except as required by law. For a description of the risk factors that may affect our results, please refer to our recent SEC filings, in particular the section captioned Risk Factors in our Form 10Q filed on February 2, 2021. We will begin the call with remarks from Seamus and Chaba, followed by time for questions. I would now like to turn the call over to Fabrinth's CEO, Seamus Grady. Seamus?

SEAMUS GRADY Thank you, Garo, and good afternoon, everyone. We had a very strong quarter, representing our third quarter in a row of record revenue and earnings per share, both of which also exceeded our guidance. With sequential growth in all of the end markets that we track, total revenue was $479.3 million. Non-GAAP operating margins of 9.5% were at the highest level in two years and helped produce record non-GAAP earnings of $1.21 per share. We generated these results while positioning ourselves for continued growth, and we are optimistic that we can deliver another record quarter in Q4. Looking at some of the highlights of the quarter, optical communications revenue reached a new record, driven primarily by record telecom revenue. Our Cisco optical transport system transfer program, which we have been discussing on recent calls, contributed to this strong performance. This program transfer was completed in the third quarter, reaching its full run rate about one quarter earlier than originally anticipated. Based on the success of this transfer, We believe that our unique value proposition in manufacturing complete network systems puts us in a strong position to win additional new business from our existing customers, as well as other systems manufacturers who are looking to leverage their supply chain by outsourcing more efficiently. Notably, these newer systems programs are having a positive impact on operating margins, as we are able to generate this revenue with close to zero incremental operating expenses. We also achieved record non-optical communications revenue in Q3. Revenue grew sequentially from all non-optical markets with automotive reaching a new record revenue level and representing the largest non-optical category for the third quarter in a row. Newer automotive technologies were the biggest factors driving our strong automotive growth in the quarter. In summary, we are pleased to have delivered record third quarter results that exceeded our guidance. We are optimistic about all the end markets that we serve and believe that with continued efficient execution, we'll be able to deliver an even stronger fourth quarter, resulting in our best year ever. Now I'd like to turn the call over to Chaba for additional financial details and our guidance for the fourth quarter of fiscal 2021. Chaba.