ST. PETERSBURG, FL -- Jabil Circuit reported fiscal first-quarter sales of $3.1 billion, down 8.8% from last year. After taking large restructuring charges a year ago, the EMS company swung to a profit in the latest quarter.

GAAP net income was $28.3 million, versus a net loss of $275.9 million last year, for the period ended Nov. 30. GAAP operating income was $66.3 million compared to a loss of $240 million.

Core operating income was $106.5 million or 3.4% of net revenue, compared to $101.2 million (3% of net revenue) in fiscal 2009.

Cash flow from operations for the quarter was approximately $74 million. Inventory turns in an annualized basis were eight for the quarter. Capital expenditures were approximately $38 million. Cash and cash equivalent balances were $852 million at quarter's end.“We believe that we have a good pipeline of new business, a stable to improving end-market environment and a keen focus on cost, quality and delivery for our valuable customers,” said president and CEO Timothy L. Main. “We also think that we have established positive momentum toward a much improved fiscal 2010 and we expect to provide further evidence of this in our second fiscal quarter.”

Jabil management indicated that it expects its net revenue for its second quarter of fiscal 2010 to be in a range from $2.9 billion to $3.1 billion, reflecting typical seasonality and anticipated continued improvement in end markets. 

EMS division sales were $1.67 billion, of 54% of total revenue, the company said. EMS showed sequential growth of 2%, and core operating income for the division was 3.4% of revenue. EMS operating margins improved 240 basis points sequentially, far outpacing the overall jump of 40 basis points.

The company forecast its EMS division to grow 5% in the February quarter. "We’re definitely seeing a broad based recovery here," Main told analysts on a Dec. 21 conference call. 

Main estimated that the company lost perhaps $50 million to $75 million in revenue during the quarter from product that did not ship because of material shortages.

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