Skip to content
AnalystLens

Jabil Annual Report, Year Ended Aug 31, 1997

Filing Date
Filed December 1, 1997
Period End
August 31, 1997
Security
JBL
In the record · 2016–202610-K1110-Q338-K104

JBL filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 104 current reports (8-K) between 2016 and 2026.

  1. Restructuring8-K · Mar ’17Mar ’17
  2. FY2018 annual report10-K · Oct ’18Oct ’18
  3. Leadership change8-K · Dec ’21Dec ’21
  4. Leadership change8-K · Oct ’25Oct ’25

01—Abstract

Summary

Summary of the 10-K filed December 1, 1997. Cited figures are marked; the original filing is the authoritative source.

Jabil Circuit, Inc. (now Jabil Inc.) reported fiscal 1997 (year ended August 31, 1997) as an independent supplier of custom manufacturing services for circuit board assemblies, subsystems and systems to OEMs in the communications, personal computer, computer peripherals, and automotive industries.

Net revenue rose to $978.1 milliona from $863.3 million in fiscal 1996, while net income increased to $52.5 million ($1.37 per share) from $24.3 million ($0.67 per share). Gross margin improved to 12.4% from 8.5%, driven by a continuing shift toward manufacturing-based revenue and higher capacity utilization. Backlog at August 31, 1997 was approximately $450 million, compared with $210 million a year earlier.

The filing highlights a heavy concentration of revenue among a few customers: 3Com (21%b), Cisco Systems (20%) and Hewlett Packard (15%) together accounted for approximately 56% of fiscal 1997 net revenue, and 18 customers accounted for substantially all net revenue. Communications rose to 51% of revenue from 30% in fiscal 1996, while personal computers fell to 21%. The company is expanding globally with facilities in Scotland, Malaysia, and Guadalajara, Mexico, and it is installing a new ERP system that it states is believed to be Year 2000 compliant.

Cash and cash equivalents fell to $45.5 millionc from $73.3 million, mainly due to property, plant and equipment acquisitions of $93.8 million, and the company reported operating cash flow of $69.4 million. The company's stock trades on the NASDAQ National Market under the symbol JBIL, and it has never paid cash dividends.

Officers, directors, principal stockholders and their affiliates own approximately 47% of common stock. After fiscal year-end, the company renegotiated its revolving credit facility to $100 milliond, expiring August 6, 2000.

02—Key points

Key Highlights

  1. Net revenue increased 13.3% to $978.1 million in fiscal 1997 from $863.3 million in fiscal 1996.
  2. Net income rose to $52.5 million, or $1.37 per share, from $24.3 million, or $0.67 per share, in fiscal 1996.
  3. Gross margin improved to 12.4% in fiscal 1997 from 8.5% in fiscal 1996, reflecting a shift toward manufacturing-based revenue and higher capacity utilization.
  4. Backlog was approximately $450 million at August 31, 1997, up from $210 million at August 31, 1996.
  5. Customer concentration remains high: 3Com, Cisco Systems and Hewlett Packard accounted for approximately 56% of fiscal 1997 net revenue.
  6. Capital spending was $93.8 million in fiscal 1997, supporting new facilities in Florida, Scotland, Malaysia and Guadalajara, Mexico.
  7. Controlling stockholders, including officers, directors and affiliates, own approximately 47% of common stock outstanding.

03—Questions

Frequently Asked Questions

  1. How much revenue and profit did Jabil generate in fiscal 1997?

    Net revenue for the year ended August 31, 1997 was $978.1 million, and net income was $52.5 million, or $1.37 per share, compared with $863.3 million of revenue and $24.3 million of net income, or $0.67 per share, in fiscal 1996.

  2. Who are Jabil's largest customers and how concentrated is revenue?

    In fiscal 1997, 3Com accounted for 21% of net revenue, Cisco Systems for 20% and Hewlett Packard for 15%, or approximately 56% combined. The filing states that 18 customers accounted for substantially all net revenue and that significant reductions in sales to large customers would have a material adverse effect on results.

  3. What drove the improvement in gross margin?

    The company attributes the increase in gross margin from 8.5% in fiscal 1996 to 12.4% in fiscal 1997 to a continuing shift toward manufacturing-based revenues and increased capacity utilization, as manufacturing-based revenue is generally higher margin than materials-based revenue.

  4. How is Jabil investing for future growth and how is it funded?

    Jabil spent $93.8 million on property, plant and equipment in fiscal 1997, including new facilities in Florida, Scotland, Malaysia and Guadalajara, Mexico. Operating cash flow was $69.4 million, and the company states that cash balances, available borrowings and operating cash flow will be sufficient for at least the next 12 months. Subsequent to year-end, the revolving credit facility was increased to $100 million.

  5. What are the main risks flagged in the filing?

    Key risks include dependence on a small number of customers, limited availability of single-source components and industry-wide shortages, dependence on the personal computer, peripherals, communications and automotive industries, intense competition, rapid technological change, the potential for customer order fluctuations, and the Year 2000 compliance of new information systems. The company also notes that it does not have employment or noncompetition agreements with key employees.

04—Continue

← View all 10-K filings