The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Samik Chatterjee - JPMorgan Chase & Co - Analyst
: Seamus, if I can maybe start with a question on asking you to compare the ramps of the HPC customers vis-a-vis the new telecom customer that
you were going to ramp on in this quarter. Our impression going into this quarter was that the HPC customer would ramp faster than the new
telecom customer. But just looking at the results, it seems to have been like a lot more skewed towards the new telecom customer, but anything
REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us
consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.
NOVEMBER 03, 2025 / 10:00PM, FN.N - Q1 2026 Fabrinet Earnings Call
to share on that front, how those 2 ramps are going relative to your own expectations? And how much of a contribution are you getting getting
from the new telecom customer that's ramping and how you're thinking about that ramp? And I have a follow-up.
Question: Samik Chatterjee - JPMorgan Chase & Co - Analyst
: And If I may follow-up, you're guiding roughly to $100 million sort of give or take increase in revenue quarter-over-quarter, roughly ballpark. I want
to sort of look at the -- your commentary, it seems like the vast majority comes from the HPC ramp. Is it possible to just rank order for us in terms
Question: George Notter - Wolfe Research LLC - Analyst
: I was just curious on the share repurchase. I noticed you didn't buy many shares back for this quarter. I'm curious if there was something to that?
Is it just capital going into the manufacturing expansion or some other thing that's driving your decisions there?
And then separately, I would just love to drill down into the manufacturing Building 10 expansion a little bit more deeply. From memory, I think
the expansion was several hundred thousand square feet. Can you just remind us kind of what the update there is? Is it as you envisioned 3 months
ago? Or has there been any change to that?
Question: George Notter - Wolfe Research LLC - Analyst
: And then just as a follow-on there. I'm sorry, did I hear you say you intend to change that going forward? Is that right?
Question: George Notter - Wolfe Research LLC - Analyst
: Got it. So I assume that, that incremental space that you're expecting is the same as you were looking to do 3 months ago. I guess that's my question.
Question: Ryan Koontz - Needham & Company LLC - Analyst
: I wanted to ask about DCI in particular. And obviously, that's getting boosted here, a shift from cloud to AI infrastructure, higher attach rates for
ZR. And my question for you is, from your discussions with customers, there's this concept of the distributed cluster to the power requirements?
And do you think that the distributed cluster due to power grids is already affecting your demand for ZR? Or do you think that's still?
Question: Ryan Koontz - Needham & Company LLC - Analyst
: Yeah, fair. Great. Great execution. And on the non-DCI telecom, I know you might have touched on it briefly earlier, but as you think about that
growth, it was up several $10 million sequentially. Is that mostly share? Or do you have any new wins in the mix there for the non-DCI telecom?
REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us
consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.
NOVEMBER 03, 2025 / 10:00PM, FN.N - Q1 2026 Fabrinet Earnings Call
Question: Tim Savageaux - Northland Securities Inc - Analyst
: And congrats on the results. And I think it was a couple of quarters ago, Seamus, where you made a reference to -- you talked about the 19% growth
in fiscal '25. And made a reference to the potential for accelerating growth in '26 and didn't have you quite there, but pretty close. You're guiding
to 25% growth in the first half of the year, that certainly would represent acceleration. Is that, in your mind, it looks like a reasonable baseline for
the year, but I wonder if you have any thoughts on maintaining or even accelerating that growth rate.
Question: Tim Savageaux - Northland Securities Inc - Analyst
: Great. And I want to take another crack at this kind of the composition of the sequential guide. I think you did in your prepared comments, you
mentioned DCI, datacom and HPC. I don't know if there was any rhyme or reason to that ordering, but should that be in -- could that be interpreted
as kind of the relative demand drivers maybe on an absolute dollar basis? Or is that the (inaudible).
Question: Tim Savageaux - Northland Securities Inc - Analyst
: Fair enough. And last one for me. I know you commented on it, but I guess you mentioned some of the component shortages are still there. Can
you say whether that's improving at all or looks to be? And is that part of your maybe fairly strong guidance for datacom in December?
| 
