Fabrinet (NYSE: FN) stock lost over 16.2% on 20th August 2019 (as of 1:19 pm GMT-4; Source: Google finance). For the first quarter of fiscal 2020, though, Fabrinet, therefore, guided for a sequential decline, with adjusted earnings expected to be in the range of 80 cents to 84 cents a share on sales expected to be in the range of $386 million to $394 million. Analysts on average were expecting adjusted earnings of 95 cents a share on sales of $407 million, according to FactSet.
FN has reported the Non-GAAP net income for the fourth quarter of the fiscal year 2019 of $37.6 million, compared to non-GAAP net income of $30.7 million for the fourth quarter of the fiscal year 2018. These results also drove strong cash flows in the fourth quarter, with operating cash flow of nearly $42 million and free cash flow of over $36 million.
FN in the fourth quarter of FY 19 has reported the adjusted earnings per share of $1, while the adjusted revenue growth of 35.9 percent to $405.1 million in the fourth quarter of FY 19
Moreover, by technology, silicon photonics-based optical communications revenue grew 10% from the third quarter to nearly $90 million, the highest level in three years and represented 30% of optical communications revenue, the highest level in more than a year. Revenue from QSFP28 and QSFP56 transceivers was $46 million, up to $2 million from the third quarter, primarily from increased revenue from QSFP56 programs. By data rate, 100 gig programs continue to represent nearly half of optical communications revenue at $144 million. Products rated at speeds of 400 gig and above were roughly flat with the third quarter at $23 million, or 8% of optical communications revenue. In non-optical communications, revenue was a record $105 million, up 4% from Q3, with gains coming primarily from the industrial laser market. Revenue from industrial lasers was a record $53 million, or up 9% sequentially. Automotive and sensor revenue were both stable at $23 million and $4.5 million, respectively. Other non-optical communications revenue was also stable at $24 million. Revenue from new business increased 8% from the third quarter to $165 million and represented a record 41% of total revenue in the quarter.
The company anticipates first-quarter revenue and EPS to moderate from the record fourth-quarter performance.