Fabrinet

Good afternoon. Welcome to Fabrinet's Financial Results Conference Call for the second quarter of fiscal year 2022. At this time, all participants are in a 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, Gero Tumajanian, Investor Relations.

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 second quarter of fiscal year 2022, which ended December 24, 2021. Thank you for calling. We'll be on the call today with Seamus Grady, Chief Executive Officer, and Chabas Farah, Chief Financial Officer. This call is being webcast, and a 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 the investor section of our website for important information, including our earnings press release and investor presentation, which include our GAAP to non-GAAP reconciliation. In addition, 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 10-Q filed on November 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 Faberna's CEO, Seamus Grady. Seamus.

Thank you, Garo. Good afternoon, everyone, and thank you for joining us on today's conference call. We are very pleased with our results for the second quarter of fiscal 2022. Revenue was $566.6 million and non-GAAP net income was $1.50 per share, both above the top end of our guidance ranges. I am particularly pleased with our team's ability to continue to manage through ongoing industry-wide supply constraints, and we are confident that we can continue to deliver strong performance levels as we look ahead. Looking at the quarter in more detail, revenue headwinds from supply chain constraints were within our expected range of $25 to $30 million. I'm impressed with our team's ability to navigate these constraints to drive continued growth. By end market, we had another strong quarter for optical communications. Both telecom and datacom revenue increased sequentially and year over year. Non-optical communications revenue was essentially flat from the first quarter, with newer programs offsetting small declines in industrial laser and automotive, where supply chain constraints primarily impacted traditional automotive products. Looking forward, we don't see signs of any meaningful relief from component shortages in the near term, but we continue to mitigate these impacts to the best of our ability. To support our growth well into the future, the expansion underway at our Chanbury facility remains on track for completion at the end of our fiscal year. Given the strong demand trends we are seeing, the opening of our new one million square foot building will be well timed to meet customer needs for additional space. In summary, we're very pleased with our execution, which helped produce another record quarter for the company. With continued strong demand trends and effective supply management, we're optimistic we'll be able to deliver another strong performance in Q3. Now I'd like to turn the call over to Csaba for additional financial details on our second quarter and our guidance for the third quarter of fiscal 2022. Csaba.