FN 10-Q filed 2026-11-03 | Key takeaways
FN filed its 10-Q; the most relevant disclosure change is reduced Customer concentration: Three customers accounted for 46.7% of total revenues during the three months ended September 25, 2026, compared to 51.5% in the same period in the prior fiscal year. Four customers accounted for more than 10% of accounts receivable as of September 25, 2026 co. Customer concentration: Three customers (unnamed) represented 46.7% of revenue.
Key takeaways
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Key metrics
Customer concentration
Disclosure changes
- Customer concentration
Three customers accounted for 46.7% of total revenues during the three months ended September 25, 2026, compared to 51.5% in the same period in the prior fiscal year. Four customers accounted for more than 10% of accounts receivable as of September 25, 2026 compared to three customers as of June 26, 2026.
Customer concentration decreased by 4.8 percentage points year-over-year, reducing concentration risk while maintaining significant revenue concentration with top customers. - Subsequent events
In October 2026, the company's board of directors approved the repurchase of up to an additional $103.0 million of the company's outstanding ordinary shares, bringing the aggregate authorization under the existing share repurchase program to $637.3 million.
Board authorized an additional $103 million for share repurchases, signaling confidence in the business and providing capital return to shareholders. - Long-term borrowings
The company entered into a term loan agreement with Bank of Ayudhya Public Company Limited in August 2026 for Thai baht 2.50 billion (approximately $74.7 million) at 2.45% interest rate, repayable in quarterly installments and maturing September 30, 2031. The proceeds were used to support capital expenditures.
Company incurred $74.7 million in new debt to fund capital expenditures, introducing leverage and related interest expense. - Non-marketable equity securities
The company recognized an unrealized loss of $21.5 million on its Raytek Semiconductor investment during Q1 FY2027 following remeasurement to observable market price on the Taipei Exchange Emerging Stock Board, decreasing the carrying amount to $67.6 million as of September 25, 2026 from $89.1 million as of June 26, 2026.
Significant fair value decline in the company's equity investment in Raytek Semiconductor resulted in a $21.5 million charge to earnings. - Income taxes
Effective tax rate increased to 20.1% from 5.4% primarily due to top-up taxes under the Pillar Two Model Rules. The company recognized $19.9 million of current income tax expense related to enacted Pillar Two legislation.
Pillar Two Model Rules implementation significantly increased the company's effective tax rate, resulting in higher income tax expense despite lower pre-tax income growth. - Restructuring and other related costs
In September 2026, the company implemented a restructuring initiative at its Thailand subsidiary, incurring total charges of $1.0 million primarily related to employee severance and other termination benefits.
Company incurred $1.0 million in restructuring charges as part of operational effectiveness enhancement in Thailand.
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