Fabrinet has recently released its 10-K report, providing a detailed insight into the company's financial performance and operations. Fabrinet offers optical packaging and precision optical, electro-mechanical, and electronic manufacturing services across North America, the Asia-Pacific, and Europe. The company's products include a wide range of advanced optical and electro-mechanical capabilities, such as switching products, transceivers, tunable lasers, and sensors used in various industries.
In the 10-K report, Fabrinet discusses its management's analysis of financial condition and results of operations. The report contains forward-looking statements related to the company's goals, strategies, revenue estimates, expenses, and capital requirements. It also highlights the potential impact of macroeconomic conditions, international political instability, and competition in existing and new markets.
The report provides a breakdown of the company's revenues by geographic regions. Fabrinet generates the majority of its revenues from its manufacturing facilities in the Asia-Pacific region. The percentage of revenues generated from North America increased from 36.5% in fiscal year 2024 to 43.4% in fiscal year 2025, while revenues from Asia-Pacific decreased from 57.1% to 48.4% during the same period.
Fabrinet's 10-K report also delves into the company's contracts with customers, cost of revenues, and selling, general, and administrative expenses. It details the key components of cost of revenues, including material costs, employee costs, and infrastructure-related costs. The report also discusses the company's SG&A expenses, which primarily consist of corporate employee costs, research and development expenses, legal and professional fees, and other general expenses.
Additionally, the report highlights Fabrinet's exposure to foreign exchange risk due to its international operations. The company is exposed to fluctuations in currency exchange rates, particularly with respect to the Thai baht. Fabrinet uses derivative instruments such as foreign currency exchange forward or put option contracts to manage foreign currency exposures associated with certain assets, liabilities, and forecasted foreign currency transactions.
Following these announcements, the company's shares moved -0.81%, and are now trading at a price of $327.12. If you want to know more, read the company's complete 10-K report here.
