Fabrinet (NYSE: FN), a leading provider of advanced optical packaging and precision manufacturing services, saw its stock price plummet by 9.1% on November 5, 2024, despite reporting record revenue for the first quarter of fiscal 2025. The company's revenue surged 17% year-over-year to $804 million, driven by strong growth in its optical communications and datacom segments.

However, Fabrinet faced challenges due to foreign exchange headwinds and uncertainty around product mix shifts. The company experienced a higher-than-expected foreign exchange evaluation loss of $7 million due to the stronger Thai baht, which is expected to exert further pressure on gross margins in the upcoming quarters.

Additionally, the mix shift in datacom revenue between 400 gig and 800 gig transceivers was not fully anticipated, affecting visibility. The ramp-up of 1.6 Terabit transceivers, a key growth driver, is dependent on the customer's timeline for shipping the Blackwell platform, which has faced delays.