Fabrinet

Good afternoon. Welcome to Fabrinet's Financial Results Conference Call for the third quarter of fiscal year 2025. 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, Vice President of Investor Relations.

Thank you, Operator, and good afternoon, everyone. Thank you for joining us on today's conference call to discuss Fibernet's financial and operating results for the third quarter of fiscal year 2025, which ended March 28, 2025. With me on the call today are 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.fibernet.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, as well as additional details of our revenue breakdown. 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 February 4, 2025. We will begin the call with remarks from Seamus and Chabot, 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, Gero. Good afternoon, and thanks to everyone joining us today. We had a very strong third quarter with revenue of $872 million, which was above our guidance range. Our execution in the quarter was also strong. and we generated non-GAAP earnings per share of $2.52, which was also above our guidance range. Looking more closely at our strong quarterly results, we saw continued growth in optical communications. Telecom revenue was particularly exceptional and more than offset an anticipated decline in datacom revenue. Our telecom growth, which was up 42% from a year ago and 17% from Q2, was driven by a combination of contributions from recent system wins, continued 400 ZR momentum for data center interconnect applications, and a strengthening telecom market. We're confident that our strong telecom trends will extend into the fourth quarter. With respect to Datacom, we continue to see near-term softness due to a product transition at a large customer. However, we remain optimistic about a return to Datacom growth as demand for 1.6T devices increases and with the steepest part of the 1.6T ramp yet to come. In non-optical communications revenue, automotive again saw strong growth with revenue up 76% from a year ago and 24% from Q2. Our industrial laser revenue also increased both year over year and sequentially. Looking ahead, While we expect continued year-over-year growth in non-optical communications in the fourth quarter, we anticipate that sequential growth may moderate, particularly in the automotive segment, where we have experienced outsized growth over the past few quarters. During the quarter, we also announced a new commercial relationship with Amazon Web Services. This is our first direct relationship with the leading hyperscaler, where we will be providing Amazon with advanced manufacturing services in a multi-year agreement. Our agreement with Amazon reinforces our longer-term optimism and further aligns our interests through a warrant purchase agreement for up to 1% of our outstanding shares. We expect our Amazon partnership to provide an additional boost to revenue starting in fiscal year 2026. Our long-term confidence is also reflected in our share repurchase activity. with over $100 million worth of Fibonacci shares repurchased so far this fiscal year. In addition, our expansion plans remain on track with Building 10 construction underway to meet our longer-term capacity needs. Looking ahead, we continue to be very excited about our future. We expect to see our consistent track record of year-over-year revenue growth extend into the fourth quarter with a corresponding increase in profitability. Most importantly, we remain confident in our proven ability to execute extremely well as we have demonstrated throughout our company history. Now I'll turn the call over to Csaba for more financial details on our third quarter results and our guidance for the fourth quarter of fiscal 2025. Csaba.