ST. PETERSBURG, FL -- Jabil Circuit last night reported net profits of $110 million for the period ended May 31, up 84% from a year ago.

Jabil, the world's third largest electronics manufacturing services firm, behind Foxconn and Flextronics, said net revenue for its fiscal third quarter rose 22.3% year-over-year to $4.23 billion.

GAAP operating income was $152.5 million, up from $96.5 million last year.

Revenue increased 7.6% sequentially. The results include operations Jabil reacquired in France and Italy late last quarter. On a comparable sequential basis, these sites lowered the company's gross margin by approximately 15 basis points, the company said.

By segment, Diversified Manufacturing Services grew 9.4% sequentially and 44% year-over-year to $1.5 billion,, boosted by gains in healthcare (up 31%) and industrial products. Enterprise & Infrastructure grew 11.8% sequentially and 15.5% over last year to $1.4 billion. High Velocity increased 1.7% sequentially and 10% over a year ago to $1.3 billion. Jabil's top 10 customers accounted for approximately 63% of revenue, two of which each made up 10% or more of sales.

Inventory decreased by two days, and inventory turns remained consistent at 7. Core return on invested capital for the quarter was 28.5%, and cash flow from operations was $158.8 million. At quarter's end, Jabil had cash and cash equivalents of $911.1 million.

Jabil guided for fourth quarter revenue to rise 9% year-over-year to $4.1 billion to $4.3 billion. Diversified Manufacturing Services is expected to increase by 7% sequentially on broad-based growth. Enterprise & Infrastructure is expected to increase by 3% sequentially, and High Velocity is expected to decrease 13% sequentially on late new product introductions and eroding demand from a major mobility customer (RIM).

RIM made up an estimated 15% of Jabil's fiscal 2010 sales.

On a June 21 call with analysts, president and CEO Tim Main said demand remains steady despite a "choppy" economic environment. "If I look at demand patterns, I don't see any big change. I don't see any big change in Europe, I don't see any big change in North America. I think Asia continues to be relatively robust, Latin America continues to be pretty robust. Anecdotally, I'd say that people are becoming a little bit more optimistic about late 2011 and prospects in 2012. I know that doesn't quite square with CNN, and particularly Fox, but that's kind of the way that I see it in the real world. We're in the midst of a slow, somewhat choppy economic recovery that continues to seem sustainable."

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