Jabil Circuit, Inc.
Jun 23, 2009
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Jabil Reports Quarterly Results & Provides Outlook

Generates $387 Million of Operating Cash Flow Year-to-Date

Slide Presentation

Statement of Income and Balance Sheet Data for Third Quarter 2009

Forward - Looking Statement

St. Petersburg, FL - June 23, 2009...Jabil Circuit, Inc. (NYSE: JBL), today reported its preliminary, unaudited financial results for the third quarter of fiscal year 2009, ended May 31, 2009. The company also provided a fourth fiscal quarter outlook. "End-markets began to stabilize during the quarter while the company continued to strengthen its balance sheet through strong working capital management," said President and CEO Timothy L. Main.

(Definitions used: "GAAP" means generally accepted accounting principles in the United States of America. Jabil defines core operating income as GAAP operating income before amortization of intangibles, stock-based compensation expense and related charges, restructuring and impairment charges, goodwill impairment charges and certain distressed customer charges. Jabil defines core operating margin as core operating income divided by net revenue. Jabil defines core earnings as GAAP net income before amortization of intangibles, stock-based compensation expense and related charges, restructuring and impairment charges, goodwill impairment charges, certain distressed customer charges, net of tax and certain deferred tax valuation allowance charges. Jabil defines core earnings per share as core earnings divided by the weighted average number of outstanding shares determined under GAAP. Jabil reports core operating income, core earnings and core earnings per share to provide investors with an alternative method for assessing operating income, earnings and earnings per share from what it believes are its core manufacturing operations. See the accompanying reconciliation of Jabil's core operating income to its GAAP operating income and Jabil's core earnings and core earnings per share to its GAAP net income and GAAP earnings per share and additional information in the supplemental information.)

Third Quarter 2009
Net revenue for the third fiscal quarter of fiscal 2009 was $2.6 billion compared to $3.1 billion for the same period of fiscal 2008.

GAAP operating income for the third quarter of fiscal 2009 was a loss of $7.8 million compared to income of $63.1 million for the same period of fiscal 2008. GAAP net loss for the third quarter of fiscal 2009 was $28.8 million compared to net income of $38.4 million for the same period of fiscal 2008.

GAAP diluted loss per share for the third quarter of fiscal 2009 was $0.14 compared to earnings per share of $0.19 for the same period of fiscal 2008.

Core operating income for the third quarter of fiscal 2009 was $29.0 million or 1.1 percent of net revenue compared to $85.3 million or 2.8 percent of net revenue for the third quarter of fiscal 2008. Core earnings for the third quarter of fiscal 2009 were $8.5 million compared to $52.8 million for the same period of fiscal 2008. Core earnings per diluted share for the third quarter of fiscal 2009 were $0.04 compared to $0.26 for the same period of fiscal 2008.

Third Quarter 2009
Operational and Balance Sheet Highlights

Business Update
"Although the global economy remains in a recession, we see genuine stabilization across most of our end-markets. A stable end-market environment will provide Jabil an opportunity to improve profitability and further strengthen the balance sheet," said President and CEO Timothy L. Main. Through the nine months ended May 31, 2009, the company produced cash flow from operations of $387 million and reduced total debt and securitization balances by $278 million. With more than $750 million in cash and $800 million available under a five-year revolving credit facility, which expires in 2012, Main said Jabil has a solid foundation on which to grow.

Jabil management indicated that with continued end-market stabilization, it expects its net revenue for its fourth fiscal quarter of 2009 to be consistent with its third quarter, in a range from $2.5 billion to $2.7 billion. The company estimated that its core operating income would be in a range from $25.0 million to $50.0 million, driven by continued focus on manufacturing efficiencies and cost reductions. Jabil also indicated that it expects its core earnings per share for its fourth quarter of fiscal 2009 to range from $0.02 to $0.12 per diluted share. GAAP earnings per share are expected to be in a range from a loss of $0.09 to earnings of $0.01 per diluted share. (GAAP earnings or loss per share for the fourth quarter of fiscal 2009 is currently estimated to include $0.04 per share for amortization of intangibles; $0.06 per share for stock-based compensation and related charges; and $0.01 per share for restructuring.) Management remains cautious regarding the overall economy and its possible impact on Jabil's performance.

Supplemental Information
The financial results disclosed in this release include certain measures calculated and presented in accordance with GAAP. In addition to the GAAP financial measures, Jabil provides supplemental, non-GAAP financial measures to facilitate evaluation of Jabil's core operating performance. The non-GAAP financial measures disclosed in this release exclude certain amounts that are included in the most directly comparable GAAP measures. The non-GAAP or core financial measures disclosed in this release do not have standard meanings and may vary from the non-GAAP financial measures used by other companies. Management believes core financial measures (which exclude the effects of the amortization of intangibles, stock-based compensation expense and related charges, restructuring and impairment charges, goodwill impairment charges, certain distressed customer charges and certain deferred tax valuation allowance charges) are a useful measure that facilitates evaluating the past and future performance of Jabil's ongoing operations on a comparable basis. Jabil reports core operating income, core operating margin, core earnings and core earnings per share to provide investors with an alternative method for assessing operating income, earnings and earnings per share from what it believes are its core manufacturing operations. Included in this release are Condensed Consolidated Statements of Operations as well as a reconciliation of the disclosed core financial measures to the most directly comparable GAAP financial measures.

Company Conference Call Information
Jabil will hold a conference call to discuss the third fiscal quarter 2009 earnings today at 4:30 p.m. ET live on the Internet at http://www.jabil.com. The earnings conference call will be recorded and archived for playback on the web at http://www.jabil.com. A taped replay of the conference call will also be available June 23, 2009 at approximately 7:30 p.m. ET through midnight on June 30, 2009. To access the replay, call (800) 642-1687 from within the United States, or (706) 645-9291 outside the United States. The pass code is 15164694. An archived webcast of the conference call will be available at http://www.jabil.com/investors/.

About Jabil
Jabil is an electronic product solutions company providing comprehensive electronics design, manufacturing and product management services to global electronics and technology companies. Offering complete product supply chain management from facilities in 22 countries, Jabil provides comprehensive, individualized-focused solutions to customers in a broad range of industries. Jabil common stock is traded on the New York Stock Exchange under the symbol, "JBL". Further information is available on the company's website: jabil.com.

Investor & Media Contact:
Beth Walters
Vice President, Investor Relations & Communications
Jabil Circuit, Inc.
(727) 803-3511
beth_walters@jabil.com