ST. PETERSBURG, FL, Dec. 20 -- Electronics manufacturing services provider Jabil Circuit Inc. today reported record first-quarter net revenue rose 21% to $1.83 billion year-over-year.

For the quarter ended Nov. 30, GAAP net income increased to $55.9 million, from $42.5 million last year.

In a press statement, president and chief executive Tim Main said, "While the end-markets and the economy are just beginning to show signs of improvement, Jabil clearly has the strong trend for electronics companies to outsource in its favor."

Jabil guided for second quarter net revenue of $1.65 million to $1.75 billion and core earnings per share of 26 to 28 cents per diluted share. Estimated GAAP earnings per share are 22 to 24 cents per diluted share. The February quarter is typically hurt by lower consumer spending.

First quarter core earnings -- core earnings as GAAP net income before one-time charges and amortization of intangibles -- increased 26% to $65 million.

Gross profit for the first quarter of fiscal 2005 increased 16% to $154.9 million or 8.4% of net revenue.

On a GAAP basis, operating income rose 32% to $70.3 million.

The company expects to end the February quarter with significantly less inventory, officials said on a conference call with analysts.

Cash flow from operations was lower, at $35 million. Inventory turns were nine. Capital expenditures were $55 million, up nearly 100% over the second quarter. The company said it would stabilize R&D spending at that levels.

Return on invested capital rose to 17% during the quarter. Officials said they aim for ROIC of 15 to 20% longterm.

Three customers made up more than 10% each of Jabil's Q1 sales. Main said the firm plans to reduce its dependence on its top 10 customers.

The company is not ruling out future acquisitions. "We could do deals; we've got the bandwidth and the money to do it," Main said. "There are opportunities in the pipeline."

Jabil maintained previous fiscal 2005 guidance of net revenue of $7.2 billion to $7.4 billion and core earnings per share to be in a range of $1.20 to $1.24 per diluted share. "We're looking for end-markets to grow in the 4 to 5% range," the firm said. It said it expects gains from vertically integrated industrial OEMs who are considering outsourcing manufacturing.