ST. PETERSBURG, FL – Jabil Circuit Inc. reported an 80% drop in quarterly earnings due to higher costs, including restructuring charges and stock-based compensation, a news release stated.
Core earnings for the fiscal second quarter, which exclude some one-time items, fell 64% to $28.4 million. Net income for the quarter, ended Feb. 28, was $13.9 million, down from $69 million a year ago. Net revenue rose 27% to $2.9 billion, in line with Wall Street estimates.
For the third quarter, Jabil forecast a loss of 8 cents to a profit of 4 cents per share, or a core profit of 17 cents to 23 cents per share. It restated its previous revenue forecast of $2.9 billion to $3 billion.
Jabil also announced financial results for its fiscal fourth quarter of 2006 and first quarter 2007 after an internal investigation into stock option accounting practices. It said its net loss in the fourth quarter 2006 was $45.6 million compared to a net income of $58.4 million in the year-ago quarter.