Fabrinet

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 Tsumajanian, VP of 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 fourth quarter of fiscal year 2025, which ended June 27th, 2025. With me on the call today are Seamus Grady, Chief Executive Officer, and Chavez-Ferra, Chief Financial Officer. This call is being webcast, and a replay will be available on the Investors section of our website located at .fabrinet.com. During this call, we will present both GAAP and non-GAAP financial measures. Please refer to the Investors 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 10Q filed on May 6th, 2025. We will begin the call with remarks from Seamus and Chava, followed by time for questions. I would now like to turn the call over to Fabri Neth's CEO, Seamus Grady. Seamus.

Thank you, Garel. Good afternoon, and thanks to those joining our call today. We had an excellent fourth quarter, ending an outstanding year with tremendous momentum. Fourth quarter revenue was $910 million, which was above our guidance range and up more than 20% from a year ago and 4% from Q3. With margins that were a little better than expected, we also achieved record non-GAAP earnings of $2.65 per share. For the full year fiscal 2025, revenue reached a record $3.4 billion, representing a robust 19% increase over the prior year. Non-GAAP EPS also hit an all time high at $10.17. Looking back, fiscal year 2025 was an exceptional year of execution and growth for Fabri Neth. We navigated a significant product transition at a major data com customer, while our telecom business and overall revenue reached record highs. We established a significant partnership with Amazon Web Services, which we anticipate will be a meaningful revenue driver in fiscal year 2026. Construction began on building 10, which will add 2 million square feet of capacity to our overall footprint. We also marked the 15th anniversary of our IPO by ringing the opening bell at the New York Stock Exchange. Additionally, we returned $126 million to shareholders to our buyback program, with continued repurchases expected in fiscal 2026. We begin fiscal 2026 with strong broad-based momentum. Robust customer demand across our business leaves us better positioned than ever to capitalize on the many significant opportunities ahead of us. In fact, with multiple growth drivers providing clear visibility toward reaching $1 billion in quarterly revenue, we are now evaluating options to accelerate the completion of a portion of building 10 to meet increasing customer demand. Looking more closely at our fourth quarter results, optical communications revenue delivered strong growth. Telecom revenue increased 46% from a year ago and 1% from Q3. With system programs and demand for data center interconnect products driving the bulk of our growth. In fact, DCI revenue represented one quarter of our total telecom revenue and grew 45% from a year ago. We expect our telecom momentum to continue into Q1, especially as we begin to ramp volume production of a next generation system program for a major customer. As anticipated, data-com revenue was down from a year ago, but increased double digits sequentially as we enter a meaningful growth phase for 1.6T products. With demand still increasing, we're very optimistic about data-com growth trends for fiscal 2026. In the near term, this surge in demand has created some temporary component supply challenges, which we are working closely with a major customer to overcome. Within non-optical communications, automotive performed better than expected for the quarter with only a slight sequential decline while industrial laser revenue remains stable. Looking ahead, multiple simultaneous growth drivers give us strong optimism for fiscal 2026. These include the launch of a new telecom system, continued growth in DCI, increasing demand for 1.6T transceivers and the ramp of a prominent high-performance compute program. We remain confident in our ability to maintain excellent execution while continuing to grow both revenue and earnings. In summary, we are pleased with our outstanding performance in Q4 and throughout fiscal 2025. More importantly, we enter fiscal 2026 in a very strong position, reinforcing our optimism for the future as we further solidify our leadership position in the marketplace. We look forward to carrying this momentum into a strong Q1. I'll now turn the call over to Chaba for more financial details on our fourth quarter results and our outlook for the first quarter of fiscal 2026.