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FN - Fabrinet


Gopinath

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If your product depreciates rapidly, why would you sell on consignment???

 

From their 10-K: "During the fourth quarter of our current fiscal year 2014, the Company identified violations of our policies and procedures relating to finished goods held in our warehouse on behalf of customers (the Company refers to finished goods held in our warehouse on behalf of customers as consignment goods or inventory and when sold consignment revenues)"

 

I think there is a misunderstanding of consignment revenue. Consignment manufacturing is not the same as selling on consignment.

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