Jabil Announces Filing of Fiscal Year 2006
Form 10-K with SEC
Filing includes relevant revised financial statements
15 May 2007
St. Petersburg, FL
ST. PETERSBURG, FL – May 15 , 2007 –- Jabil Circuit, Inc. (NYSE:JBL), a global electronic products solutions company, has filed its Annual Report on Form 10-K for its Fiscal Year ended August 31, 2006 with the Securities and Exchange Commission (the "SEC"). With the fiscal year filing complete, the Company is focusing on filing its Quarterly Reports on Form 10-Q for the fiscal quarters ended November 30, 2006 and February 28, 2007 as soon as possible. Once the quarterly filings are made, Jabil will hold a conference call to discuss financial results for the fourth fiscal quarter and fiscal year 2006 and fiscal year 2007 first and second quarter.
As previously disclosed, Jabil is restating certain of its historical financial statements following a review of certain of its historical stock option practices conducted by it and a Special Review Committee of its Board of Directors. The Special Review Committee concluded that there was no evidence to support a finding of intentional manipulation of stock option grant pricing or that options were backdated. In accordance with guidance from the SEC in January, Jabil has revised the relevant historical financial information and included in its Form 10-K filed today with the SEC. (The SEC guidance does not require amended filings to be made for these revised statements.)
Jabil's review of its historical stock option practice led its Audit Committee to review certain transactions proposed or effected between 1992 and 2002. As previously disclosed, this review was to determine whether Jabil properly recognized the revenue associated with those transactions. The Audit Committee's review determined there was no direct evidence anyone at Jabil intentionally made or caused false accounting entries to be made in connection with either the receipt or repayment of those funds. The review did conclude that one transaction had inadequate documentation to support Jabil's recognition of $6 million ($4 million after-tax) of revenues in the third quarter of fiscal year 2001 and an expense associated with the return of those funds in the second quarter of fiscal year 2002. The transactions have no impact on the Company's current balance sheet, and after considering both qualitative and quantitative factors, Jabil determined that the impact on the prior years' income statements were immaterial.
Jabil's Board of Directors is evaluating whether any change should be made to Company practices in light of the findings of the reviews of its historical stock option and revenue recognition practices. The Company continues to cooperate with the Securities and Exchange Commission and the Department of Justice and has provided the results of its Board committees’ findings to the SEC.
Click here to view the filing.
About Jabil
Jabil is an electronic product solutions company providing comprehensive electronics design, manufacturing and product management services to global electronics and technology companies. Jabil helps bring electronics products to the market faster and more cost effectively by providing complete product supply chain management around the world. With more than 75,000 employees and facilities in 20 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.
Investor & Media Contact:
Beth Walters
Vice President, Investor Relations
Jabil Circuit, Inc.
(727) 803-3349
investor_relations@jabil.com
This news release contains forward-looking statements, including those regarding the filing our Quarterly Reports on Form 10-Q for our first and second 2007 fiscal quarters for the fiscal quarters ending November 30, 2006 and February 18, 2007, respectively. These statements 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: the finalization of financial statements for our first and second 2007 fiscal quarters and our related Quarterly Reports on Form 10-Q, the Securities and Exchange Commission's having views different from ours on the results of the review of our past stock option grants being conducted by a Special Committee of our Board and Governmental Authorities and the review of our historical recognition of our revenue by our Audit Committee; the impact of the restatement of our financial statements and any other actions that may be taken or required as a result of any of such reviews; risks and costs inherent in litigation, including any pending or future litigation relating to our stock option grants, the restatement of our financial statements as a result of the evaluation of our historical stock option practices and revenue recognition and associated financial statements or any declines in the price of our stock; 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, 2006, 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.