Jabil Reports Quarterly Results & Provides Outlook

Healthy Free Cash Flow Tops $250 Million
ST. PETERSBURG, Fla.--(Business Wire)--
Jabil Circuit, Inc. (NYSE:JBL), today reported its preliminary, unaudited
financial results for the company`s second quarter of fiscal year 2009, ended
February 28, 2009 and provided an outlook for the company`s next quarter. "In a
challenging environment we produced cash flow from operations of $343 million
for the quarter, resulting in free cash flow that exceeded our expectation,"
said President and CEO Timothy L. Main.

(Definitions used: "GAAP" means generally accepted accounting principles in the
United States of America. Jabil defines core operating income as GAAP operating
income before amortization of intangibles, stock-based compensation expense and
related charges, restructuring and impairment charges, goodwill impairment
charges and distressed customer charges.Jabil defines core operating margin as
core operating income divided by net revenue. Jabil defines core earnings as
GAAP net income before amortization of intangibles, stock-based compensation
expense and related charges, restructuring and impairment charges, goodwill
impairment charges, distressed customer charges, net of tax and certain deferred
tax valuation allowance charges.Jabil defines core earnings per share as core
earnings divided by the weighted average number of outstanding shares determined
under GAAP.Jabil reports core operating income, core earnings and core earnings
per share to provide investors with an alternative method for assessing
operating income, earnings and earnings per share from what it believes are its
core manufacturing operations.See the accompanying reconciliation of Jabil`s
core operating income to its GAAP operating income and Jabil`s core earnings and
core earnings per share to its GAAP net income and GAAP earnings per share and
additional information in the supplemental information.)

Second Quarter 2009

Net revenue for the second fiscal quarter of fiscal 2009 decreased 5.6 percent
to $2.9 billion compared to the same period of fiscal 2008.

Preliminary GAAP operating income (loss) for the second quarter of fiscal 2009
was a loss of $0.5 million compared to income of $1.6 million for the same
period of fiscal 2008. Preliminary GAAP net loss for the second quarter of
fiscal 2009 increased 75 percent to a loss of $42.1 million compared to a loss
of $24.0 million for the same period in fiscal 2008. Preliminary GAAP diluted
loss per share for the second quarter of fiscal 2009 increased 67 percent to a
loss per share of $0.20 compared to a loss per share of $0.12 for the same
period of fiscal 2008. The preceding preliminary GAAP results are subject to
further potential change pending the Company`s completion of its review of
goodwill for potential impairment and resulting deferred tax valuation allowance
charges this fiscal quarter.See below for additional discussions.

Core operating income for the second quarter of fiscal 2009 decreased 25 percent
to $51.2 million or 1.8 percent of net revenue compared to $67.8 million or 2.2
percent of net revenue for the second quarter of fiscal 2008. Core earnings
decreased 35 percent to $27.3 million compared to $42.0 million for the second
quarter of fiscal 2008. Core earnings per share decreased 35 percent to $0.13
per diluted share for the period compared to $0.20 for the second quarter of
fiscal 2008.

Sequential Second Quarter 2009

Operational and Balance Sheet Highlights

* Cash flow from operations for the quarter was approximately $343 million.
* Sales cycle was 20 days for the second quarter of fiscal 2009.
* Annualized inventory turns were constant at eight turns for the quarter.
* Capital expenditures for the quarter were approximately $70 million.
* Depreciation for the quarter was approximately $67 million.
* Cash and cash equivalent balances were approximately $775 million at the end
of the quarter.
* Core Return on Invested Capital was 6.4 percent for the quarter.
* A $0.07 dividend was paid on March 2, 2009.

Potential Goodwill Impairment

Due to further deterioration of the macro-economic environment and the continued
decline in the price of the Company's common stock resulting in a sustained
market capitalization below the Company`s net book value, the Company has
determined that an indicator of potential goodwill impairment is present for its
second fiscal quarter. Accordingly, the Company has commenced performing a
goodwill impairment analysis using the two-step approach as required under
Statement on Financial Accounting Standards, No. 142 "Goodwill and Other
Intangible Assets". The Company currently anticipates having such analysis
completed in early April. In the event that the Company determines that its
goodwill is impaired in whole or part, a non-cash charge, which is likely to be
significant and would further increase reported GAAP net loss and loss per share
for the fiscal second quarter of 2009. The potential impairment charge may also
result in significant deferred tax valuation allowance charges. The goodwill
balance that would be subject to such assessment of impairment as of February
28, 2009 is approximately $721.3 million and the net deferred tax asset balance
that would be subject to impairment as of February 28, 2009 is approximately
$184.2 million. The non-cash charge, if any, would not impact the non-GAAP
financial information presented in this press release.

Business Update

"Liquidity and balance sheet strength are key advantages in this market
environment," said President and CEO Timothy L. Main. "We will continue to focus
on controlling our capital, reducing costs and refining our value proposition.
When end-markets stabilize and recovery begins, we will be ready with an
outstanding, well-funded solution for a growing marketplace," he said. As of the
end of its second fiscal quarter of 2009, Jabil has approximately $775 million
in cash and $800 million available under a five-year revolving credit facility
expiring in 2012. Main noted that the Company is aggressively cutting costs and
is restructuring its operations to meet the changing demands of its customers.

Jabil management said end-markets remain difficult with limited visibility, and
as a result, the Company thought it was prudent to take a conservative position
regarding third quarter guidance. Jabil said it expects its net revenue for its
third fiscal quarter of 2009 to be in a range from $2.5 billion to $2.7 billion,
with estimated core operating income in a range from zero to $40.0 million.
Jabil said its core earnings per share for its third quarter of fiscal 2009 are
anticipated to range from a loss of $0.08 to earnings of $0.08 per diluted
share. GAAP earnings per share are expected to be in a range from a loss of
$0.23 to a loss of $0.07 per diluted share. (GAAP loss per share for the third
quarter of fiscal 2009 is currently estimated to include $0.03 per share for
amortization of intangibles; $0.06 per share for stock-based compensation and
related charges; and $0.06 per share for restructuring.)

Supplemental Information

The financial results disclosed in this release include certain measures
calculated and presented in accordance with GAAP. In addition to the GAAP
financial measures, Jabil provides supplemental, non-GAAP financial measures to
facilitate evaluation of Jabil`s core operating performance. The non-GAAP
financial measures disclosed in this release exclude certain amounts that are
included in the most directly comparable GAAP measures. The non-GAAP or core
financial measures disclosed in this release do not have standard meanings and
may vary from the non-GAAP financial measures used by other companies.
Management believes core financial measures (which exclude the effects of the
amortization of intangibles, stock-based compensation expense and related
charges, restructuring and impairment charges, goodwill impairment charges,
distressed customer charges and certain deferred tax valuation allowance
charges) are a useful measure that facilitates evaluating the past and future
performance of Jabil`s ongoing operations on a comparable basis. Jabil reports
core operating income, core operating margin, core earnings and core earnings
per share to provide investors with an alternative method for assessing
operating income, earnings and earnings per share from what it believes are its
core manufacturing operations. Included in this release are Condensed
Consolidated Statements of Operations as well as a reconciliation of the
disclosed core financial measures to the most directly comparable GAAP financial
measures.

Company Conference Call Information

Jabil will hold a conference call to discuss the second fiscal quarter 2009
earnings today at 4:30 p.m. ET live on the Internet at http://jabil.com. The
earnings conference call will be recorded and archived for playback on the web
at http://jabil.com. A taped replay of the conference call will also be
available March 24, 2009 at approximately 7:30 p.m. ET through midnight on March
31, 2009. To access the replay, call (800) 642-1687 from within the United
States, or (706) 645-9291 outside the United States. The pass code is 90764395.
An archived webcast of the conference call will be available at
http://jabil.com/investors/.

About Jabil

Jabil is an electronic product solutions company providing comprehensive
electronics design, manufacturing and product management services to global
electronics and technology companies. Offering complete product supply chain
management from facilities in 22 countries, Jabil provides comprehensive,
individualized-focused solutions to customers in a broad range of industries.
Jabil common stock is traded on the New York Stock Exchange under the symbol,
"JBL". Further information is available on the company`s website: jabil.com.

JABIL CIRCUIT, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)

February 28, August 31,
2009 2008
ASSETS
Current assets:
Cash and cash equivalents $ 774,936 $ 772,923
Accounts receivable, net 1,138,598 1,475,530
Inventories 1,403,588 1,528,862
Prepaid expenses and other current assets 301,247 293,070
Income tax receivable 26,719 24,535
Deferred income taxes 38,512 44,217

Total current assets 3,683,600 4,139,137

Property, plant and equipment, net 1,371,370 1,392,479
Goodwill and intangible assets, net 867,730 1,291,945
Deferred income taxes 152,344 155,508
Other assets 44,338 53,068

Total assets $ 6,119,382 $ 7,032,137

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current installments of notes payable, long-term debt and long-term lease obligations $ 172,948 $ 269,937
Accounts payable 1,885,142 2,218,969
Accrued expenses 577,056 529,839
Income taxes payable 28,842 25,897
Deferred income taxes 782 2,998

Total current liabilities 2,664,770 3,047,640

Notes payable, long-term debt and long-term lease obligations, less current installments 1,069,716 1,099,473
Noncurrent income tax liability 85,424 81,044
Deferred income taxes 5,924 9,409
Other liabilities 66,980 71,442

Total liabilities 3,892,814 4,309,008
Minority interest 7,309 7,404

Stockholders' equity:
Common stock 215 215
Additional paid-in capital 1,432,988 1,406,378
Retained earnings 862,584 1,210,417
Accumulated other comprehensive income 126,389 301,401
Treasury stock (202,917 ) (202,686 )

Total stockholders' equity 2,219,259 2,715,725

Total liabilities and stockholders` equity $ 6,119,382 $ 7,032,137

JABIL CIRCUIT, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except for per share data)

(Unaudited)

Three months ended Six months ended
February 28, February 29, February 28, February 29,
2009 2008 2009 2008

Net revenue $ 2,887,400 $ 3,058,613 $ 6,269,909 $ 6,426,560
Cost of revenue 2,731,854 2,870,708 5,890,650 5,998,941

Gross profit 155,546 187,905 379,259 427,619

Operating expenses:
Selling, general and administrative 111,053 124,910 242,715 241,060
Research and development 5,754 9,863 11,409 16,375
Amortization of intangibles 7,673 9,722 15,708 18,577
Restructuring and impairment charges 31,524 41,789 32,145 51,076
Goodwill impairment charges - - 317,700 -
Operating income (loss) (458 ) 1,621 (240,418 ) 100,531

Interest, net and other 19,014 23,879 42,805 50,897

Income (loss) before income taxes (19,472 ) (22,258 ) (283,223 ) 49,634

Income tax expense 23,125 3,102 35,488 12,733
Minority interest, net of tax (511 ) (1,315 ) (768 ) (1,055 )

Net income (loss) $ (42,086 ) $ ( 24,045 ) $ (317,943 ) $ 37,956

Earnings (loss) per share:
Basic $ (0.20 ) $ (0.12 ) $ (1.54 ) $ 0.19
Diluted $ (0.20 ) $ (0.12 ) $ (1.54 ) $ 0.18

Common shares used in the calculation of
Earnings(loss) per share:
Basic 206,711 205,082 206,557 204,866
Diluted 206,711 205,082 206,557 206,452

JABIL CIRCUIT, INC. AND SUBSIDIARIES

SUPPLEMENTAL DATA

RECONCILIATION OF GAAP FINANCIAL RESULTS TO NON-GAAP MEASURES

(In thousands, except for per share data)

(Unaudited)

Three months ended Six months ended
February 28, February 29, February 28, February 29,
2009 2008 2009 2008

Operating income (loss) (GAAP) $ (458 ) $ 1,621 $ (240,418 ) $ 100,531
Amortization of intangibles 7,673 9,722 15,708 18,577
Stock-based compensation and related charges 5,187 14,714 20,005 19,745
Restructuring and impairment charges 31,524 41,789 32,145 51,076
Goodwill impairment charges - - 317,700 -
Distressed customer charges 7,256 - 7,256 -
Core operating income (Non-GAAP) $ 51,182 $ 67,846 $ 152,396 $ 189,929

Net income (loss) (GAAP) $ (42,086 ) $ (24,045 ) $ (317,943 ) $ 37,956
Amortization of intangibles, net of tax 8,804 9,415 14,357 15,299
Stock-based compensation and related charges, 3,503 14,157 14,113 15,788
net of tax
Restructuring and impairment charges, net of tax 40,751 42,457 41,214 47,517
Goodwill impairment charges, net of tax (1,359 ) - 320,718 -
Distressed customer charges, net of tax 6,408 - 6,408 -
Deferred tax valuation allowance charges 11,244 - 11,244 -
Core earnings (Non-GAAP) $ 27,265 $ 41,984 $ 90,111 $ 116,560

Earnings (loss) per share: (GAAP)
Basic $ (0.20 ) $ (0.12 ) $ (1.54 ) $ 0.19
Diluted $ (0.20 ) $ (0.12 ) $ (1.54 ) $ 0.18

Core earnings per share: (Non-GAAP)
Basic $ 0.13 $ 0.20 $ 0.44 $ 0.57
Diluted $ 0.13 $ 0.20 $ 0.43 $ 0.56

Common shares used in the calculations of earnings (loss) per share (GAAP):
Basic 206,711 205,082 206,557 204,866
Diluted 206,711 205,082 206,557 206,452

Common shares used in the calculations of earnings per share (Non-GAAP):
Basic 206,711 205,082 206,557 204,866
Diluted 207,015 206,043 207,815 206,452

This news release contains forward-looking statements, including those regarding
our anticipated financial results for our fiscal quarter, the timely completion
of our assessment of our goodwill for impairment and the results of such
assessment, the strength of our liquidity and balance sheet, the advantages of
such strengths in the current market environment, our focus on controlling our
capital, reducing costs and refining our value proposition, our financial
performance at such time as end markets stabilize and the economic recovery
cycle begins, our ability to cut costs and restructure our operations, the
effect of this cost cutting and restructuring on our ability to meet the demands
of our customers, the anticipated outlook for our business and our currently
expected third quarter fiscal year 2009 net revenue, core operating margin and
earnings results and components thereof.The statements in this news release are
based on current expectations, forecasts and assumptions involving risks and
uncertainties that could cause actual outcomes and results to differ materially.
These risks and uncertainties include, but are not limited to: our determination
as we finalize our financial results for our second fiscal quarter that our
financial results and conditions differ from our current preliminary unaudited
numbers set forth herein, including the timing and results of our assessment of
our goodwill for impairment; our financial performance during and after the
current economic conditions; our ability to maintain and improve liquidity;
risks and costs inherent in litigation, including any pending or future
litigation relating to our past stock option grants, the restatement of our
financial statements as a result of the evaluation of our historical stock
option practices or any declines on the price of our stock; whether our
realignment of our capacity will adversely affect our cost structure, ability to
service customers and labor relations; our ability to successfully address the
challenges associated with integrating our acquisition of Green Point; our
ability to take advantage of perceived benefits of offering customers vertically
integrated services; changes in technology; competition; anticipated growth for
us and our industry that may not occur; managing rapid growth; managing rapid
declines in customer demand that may occur; our ability to successfully
consummate acquisitions; managing the integration of businesses we acquire;
risks associated with international sales and operations; retaining key
personnel; our dependence on a limited number of large customers; business and
competitive factors generally affecting the electronic manufacturing services
industry, our customers and our business; other factors that we may not have
currently identified or quantified; and other risks, relevant factors and
uncertainties identified in our Annual Report on Form 10-K for the fiscal year
ended August 31, 2008, subsequent Reports on Form 10-Q and Form 8-K and our
other securities filings. Jabil disclaims any intention or obligation to update
or revise any forward-looking statements, whether as a result of new
information, future events or otherwise.

Jabil Circuit, Inc., St. Petersburg
Investor & Media Contact:
Beth Walters, Vice President, Investor Relations & Communications
727-803-3511
beth_walters@jabil.com

Copyright Business Wire 2009