SAN FRANCISCO -- Fabrinet today reported September quarter net income rose $500,000 over last year to $15.7 million, surprising industry watchers who thought the rampant flooding of two of its Thailand plants would have sunk profits.

It was the electronics manufacturing services company's 47^th consecutive quarter of profitability.

Revenue rose 7.3% to $186.3 million for its first quarter of fiscal 2012. Sales fell 2% sequentially on declines in Optical Communication (down 6%), offset in part by higher demand in Lasers & Sensors (up 9%). The EMS firm also announced one of its plants has come back online.

Chief executive Tom Mitchell said the firm's attention remains on recovering from the flood in Thailand. "Through the tireless efforts and resourcefulness of our employees, and in the midst of this natural disaster, we are preparing to resume production at our Pinehurst campus, one of our two manufacturing campuses in Thailand. In fact, today we began production at Pinehurst on a limited scale and anticipate ramping to full production at the Pinehurst campus during the next two weeks."

Production at Fabrinet's Pinehurst campus had been suspended for approximately three weeks due to flooding of the main artery and access roads to the campus. Water breached the company's other Thailand campus, known as Chokchai, Oct. 22 and the water level within the campus buildings rose to as high as five feet. Production will not recommence at Chokchai, located approximately seven miles south of Pinehurst, for the rest of the current quarter, and likely for significantly longer. The company acknowledges that it may never again manufacture at the Chokchai campus but, instead, divert manufacturing to the existing buildings 3, 4 & 5 at its Pinehurst campus, and its newest building 6 at Pinehurst, upon completion.

More than 90% of Fabrinet’s sales are generated from facilities in Thailand, of which 60% are from Pinehurst and 40% from Chokchai. Pinehurst has 20,000 sq. ft. of available floor space, with an additional 30,000 sq. ft. coming online in mid January.

The printed circuit board assembler's outlook was muted, however. Fabrinet said if it generates no further revenues from Thailand operations during the quarter, the company anticipates total revenues for the quarter to be approximately $28 million, representing primarily revenues generated before production shutdown at its Thailand facilities, together with revenues from its Casix and Vitrocom businesses throughout the quarter. It anticipates a net loss due to the significant decline in revenue and the timing and result of insurance claims by the company.

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