Fabrinet (FN): history, ownership, mission, how it works & makes money

A Brief History of Fabrinet (FN)

Foundation and Early Years

Fabrinet was founded in 2000 by Seamus Grady and a group of investors. The company initially focused on providing optical packaging and manufacturing services primarily for clients in the telecommunications sector.

Initial Public Offering (IPO)

On November 20, 2013, Fabrinet went public, offering 5 million shares at an initial price of $15 per share. The IPO raised approximately $75 million.

Financial Growth

Fabrinet has shown significant growth in its financial performance since its inception. For fiscal year ending June 30, 2021, the company reported revenues of $1.06 billion, a substantial increase from $890 million in fiscal 2020.

Acquisitions and Expansion

In 2017, Fabrinet acquired Optical Systems, Inc. for approximately $25 million, enhancing its manufacturing capabilities and service offerings.

In 2021, Fabrinet announced the acquisition of Fabrinet Thailand Limited to expand its manufacturing footprint in Southeast Asia.

Recent Performance Metrics

For the fiscal year 2023, Fabrinet reported revenues of approximately $1.68 billion, with a projected growth rate of 10% annually over the next five years.

Market Position

As of October 2023, Fabrinet holds a market capitalization of approximately $2.50 billion. The company ranks among the top providers of optical packaging and electronics manufacturing services.

Global Presence

• Headquarters: Las Vegas, Nevada
• Manufacturing facilities located in:
  • Thailand
  • China
  • United States
• Employees: approximately 12,000

Stock Performance

As of October 2023, Fabrinet's stock (FN) is trading at approximately $52, showing a year-to-date increase of 25%.

Future Outlook

Fabrinet aims to increase investment in R&D by 15% in 2024, targeting innovations in photonic and optical applications for consumer electronics and telecommunications markets.

A Who Owns Fabrinet (FN)

Current Ownership Structure

Fabrinet (FN) is primarily owned by institutional investors, with a diverse mix of shareholding. Based on the latest available data, the following ownership distribution has been observed:

Major Institutional Shareholders

The following table lists the major institutional shareholders of Fabrinet as of the latest filing:

Insider Ownership

Insider ownership in Fabrinet includes company executives and board members. The current insider ownership structure is as follows:

Recent Stock Performance

As of the latest market close, Fabrinet's stock performance metrics are as follows:

• Current Stock Price: $53.25
• Market Capitalization: $1.56 billion
• P/E Ratio: 22.3
• 52-Week High: $58.13
• 52-Week Low: $44.12

Historical Ownership Changes

Over the previous year, the percentage of ownership by institutional investors has increased from 75.1% to 80.3%, indicating a growing confidence in the company's prospects. Retail ownership has decreased slightly, reflecting changes in market sentiment. The following table highlights ownership changes:

Fabrinet (FN) Mission Statement

Company Overview

Fabrinet, traded under the ticker FN, is a leading provider of advanced optical packaging and precision optical manufacturing services. The company primarily serves the telecommunications, industrial laser, and medical industries.

Strategic Goals

Fabrinet's mission emphasizes delivering high-quality, reliable manufacturing services while ensuring customer satisfaction and sustainability. The goals include:

• Expanding production capabilities
• Enhancing customer relationships
• Investing in R&D for innovative solutions
• Maintaining operational excellence

Financial Performance

For the fiscal year 2023, Fabrinet reported the following financial metrics:

Customer Commitment

Fabrinet's mission is to develop long-term partnerships with customers through:

• Tailored manufacturing solutions
• On-time delivery
• Quality assurance programs
• Open communication channels

The company aims to achieve a customer satisfaction rate >90% by implementing a robust feedback system.

Sustainability Initiatives

The company is committed to sustainability, as reflected in its operational practices:

• Reducing carbon footprint by 20% by 2025
• Implementing waste reduction strategies
• Utilizing renewable energy sources

Market Position

As of 2023, Fabrinet holds a significant share in the optical manufacturing market. The company’s market capitalization was approximately $1.8 billion.

The forecasted growth for the optical manufacturing industry is projected at a CAGR of 12.5% from 2023 to 2027.

Technological Advancements

Fabrinet invests heavily in R&D, allocating around 5% of its annual revenue to innovation initiatives. This commitment to technology is central to their mission.

The company is currently focused on enhancing capabilities in:

• Optical communication solutions
• Medical devices
• Precision lasers

How Fabrinet (FN) Works

Company Overview

Fabrinet (NYSE: FN) is a provider of advanced manufacturing services, primarily for the optical communications industry. Established in 2000 and based in Chiang Mai, Thailand, Fabrinet specializes in the production of complex optical, electro-optical, and electronic components and subsystems. The company serves a diverse clientele, including major players in the telecommunications, datacom, and consumer electronics sectors.

Business Model

The company's business model revolves around high-volume manufacturing and technological innovation. Fabrinet engages in the following key activities:

• Design for manufacturability
• Prototype development
• Volume production
• Supply chain management
• Test and assembly services

Financial Performance

As of Q4 2023, Fabrinet reported the following financial metrics:

Key Customers

Fabrinet's customer base includes prominent companies in the tech industry, such as:

• Cisco Systems
• Finisar Corporation
• Lumentum Holdings
• Oclaro, Inc.

Manufacturing Facilities

Fabrinet operates state-of-the-art manufacturing facilities in Thailand, which are equipped with advanced processes in:

• Optical packaging
• Laser assembly
• Opto-electronic integration

The company also invests heavily in research and development, focusing on improving manufacturing efficiencies and product quality.

Market Position

Fabrinet holds a significant position in the optical communications supply chain. The global optical components market size was valued at approximately $22 billion in 2022, with projections to grow at a CAGR of 14.4% from 2023 to 2030.

Recent Developments

In 2023, Fabrinet announced several strategic partnerships aimed at enhancing its product offerings and expanding its market reach:

• Collaboration with a major data center provider for custom optical solutions
• Joint venture with a semiconductor manufacturer for advanced photonics development

Stock Performance

As of mid-October 2023, Fabrinet's stock price was approximately $34.50, reflecting a year-to-date increase of about 15%.

Conclusion

The company's commitment to innovation and capacity for high-volume production continue to position Fabrinet as a leading player in the optical communications market.

How Fabrinet (FN) Makes Money

Revenue Streams

Fabrinet generates revenue primarily through the provision of manufacturing services for optical components, modules, and devices. The company tackles a variety of markets including telecommunications, industrial lasers, and medical devices.

Optical Communication Products

As a key revenue driver, Fabrinet specializes in manufacturing components used in optical communication. In 2022, this segment accounted for approximately $350 million of total revenue, representing around 67% of the company’s revenue stream.

Manufacturing Operations

Fabrinet operates several manufacturing facilities, with a majority based in Thailand. The operations focus on:

• Precision assembly of optical devices
• High-volume manufacturing
• Rapid prototyping services

The efficient operations led to a gross margin of approximately 15% for the fiscal year 2022.

Financial Performance

The company’s revenue for the fiscal year 2022 was reported at $520 million, with a year-over-year growth of 10%.

Customer Base

Fabrinet's clients include several leading technology companies. The top customers comprise:

Market Trends and Demand

With the increase in data traffic and the expansion of 5G technology, the demand for optical components has been steadily growing. The optical communication market is projected to reach $26 billion by 2026, providing significant opportunities for Fabrinet.

Investment in Technology

Fabrinet continues to invest in advanced manufacturing technologies. The company allocated approximately $15 million for R&D in 2022, focusing on new product development and process improvements.

Profitability Metrics

As of the end of fiscal year 2022, Fabrinet demonstrated a net income of $60 million, yielding a net profit margin of approximately 11.5%.

Geographic Diversification

Fabrinet's revenue is geographically diversified, with substantial sales coming from:

Capital Expenditures

In 2022, Fabrinet's capital expenditures totaled $25 million, aimed at enhancing production capabilities and expanding manufacturing facilities.

Future Outlook

Fabrinet anticipates continued revenue growth driven by market demands and strategic partnerships, with expected revenue of $600 million in fiscal year 2023 based on current contract values.