PLXS - Earnings call 4 2023

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Operator

Good morning, and welcome to the Plexus Corporate Conference Call regarding its fiscal fourth quarter 2023 earnings announcement. My name is Felicia, and I will be your operator for today's call. [Operator Instructions] Please note this conference is being recorded. I would now like to turn the call over to Shawn Harrison, Plexus Vice President of Communications and Investor Relations. Shawn?

Shawn Harrison

Felicia. you, Thank thank and joining today. us Good you morning, for

and and during statements income our Some margin, without of and today and provided business made statements selling gross cycle, revenue, forward-looking the expense, call taxes, margin, capital information will outlook. those regarding expense, cash administrative operating limitation, allocation other including future be

by turning Oliver further the on the top to Vice Plexus' today call Chief for President clicking Chief Steven before at Pat Investors participants Frisch, Operating supporting or forward-looking could Executive Officer; Forward-looking access future on results, Chief website that predicting a statements difficulties the Executive at over please President differ from Form the factors Jermain, encourage Vice Pat cause inherent Financial materially in and harbour page.Joining for that Mihm, to factors fiscal Officer; to to XX-Q Kelsey, in and are the and those webcast filings, not differ Form and safe call details. actual statement in fair are company's Strategy are of guarantees me President implied Consistent prior those of refer list supplemented particularly the results and materials provide expressed We earnings comments actual will summary statements.For Officer; release. the materially the since results X, live and in discussed, risk our with there our Executive Steve www.plexus.com, Officer. could periodic SEC and October press year from filings the Chief filing XX-K ended and to calls, Todd morning Todd disclosure our as and XXXX, this

now turn Todd? to me Kelsey. the Let Todd over call

Todd Kelsey

advance X. Plexus. Please Slide Thank XXXX exceptional an for everyone. to Fiscal year was Good morning, you, Shawn.

excellence and excellence delivering on resulted customer outstanding financial Our performance. team's service focus operational in

to vision responsible products build business help sustainable a that our practices, addition, better aligning to advanced and our world. create we In the

in our fiscal $X revenue to fiscal we more As by discuss our achieving in with will supports in operating XXXX accelerating momentum X.X% margin GAAP XXXX.Please advance confidence built X. Slide in detail, the billion

For XXXX, flow X.X% operating of $XX non-GAAP million. EPS non-GAAP free XX% margin, in growth and XX%, revenue excess growth we of fiscal delivered cash

While we as as quarter accelerating the building have the increasing growth we program delivered industry-leading time have consistently challenges ramps revenue new operating profitability, progresses. with fiscal lessen, and X% in X demand result to to delivered Please our growth review of the Slide chain greater of revenue years, unfulfilled our for many and continue revenue forecast XX results. a markets, fourth With opportunity this than momentum we ongoing double-digit margin. represents in supply to growth capture first fiscal XXXX advance

with in Our correction progress customers. activity $X.XX of health with fiscal margin, fourth quarter margin of its consecutive life The fifth revenue quarter in quarter non-GAAP billion, quarterly of excess inventory represented delays slightly operating GAAP $X clear by our revenue ability supply, exceeding billion and continued our ramp our with guidance. sciences We the exceeding our delivered consecutive X%. midpoint to operating and mitigated team some care sixth

result demand as under-shipped shortages. $XXX primarily this by of at million, quarter again we addition, least a In component

and remains our in we In meeting GAAP guidance EPS quarter. high fiscal points the the basis new For compensation of record $X.XX in stock-based GAAP customer per advance program expense.Please X.X%, $X.XX diverse programs fourth production. won witnessed we Nonetheless, including the industry-leading exceeded including fiscal fiscal high the quarter, of Slide delivered XX fourth XX million guidance. of delivering worth stock-based delay X. when some late geographically end win to in capabilities. quarter, manufacturing $XXX quarter, at After margin new interest ramped of we into closing share, fully opportunities in operating performance expense, our compensation third

manufacturing In continues at number nearly a billion. addition, wins sectors, greater exiting and large long qualified our million opportunities of to term.Please harvesting than fiscal growth and down advance turnover in our $XXX to X. funnel revenue normal Slide $X.X robust typical of maintain opportunities, to funnel of strong year-over-year Plexus include This although sequentially each XXXX the positioning to activity expanded manufacturing market momentum over due

$XXX and GAAP XX of GAAP X.X% approximately billion, operating are of stock-based fiscal million to compensation points of $X.XX to margin expense EPS inclusive of $X.XX. first guiding We quarter to revenue X.X%, basis $X.XX of

includes expense. GAAP stock-based approximately guidance EPS of compensation $X.XX Our

We and levels. of health short-term market expect and reduction certain result headwinds demand equipment inventory to facing a components capital semiconductor while care benefit from procured normal aerospace with customers improving a sciences above as life more prices sustained demand corrections of robust at to also commercial

our accelerating ongoing we sectors, market and Looking to Defence ahead, strong ramp which Aerospace customer of further opportunity in revenue as industrial backlog continue fiscal accelerating new chain leveraging and to demand growth XXXX our lessening capture momentum supply demand. and progresses, the challenges, forecast creates program

operating XXXX. As Consequently, X.X% Slide growth X. goal operating our by revenue in margin advance our in revenue margin $X of accelerates, remain Please GAAP confident achieving with fiscal we expansion. we billion also anticipate to

recognition. well an our helping XXXX. of exciting practices team our as update to build better to sustainable as Finally, our world some proud extremely advances on fiscal furthering provide our and vision responsible of in a recent I'm members in share business how supported I'd like

XX,XXX hours local our First, to we contributed an year-over-year. increase XXX% over communities, of volunteer

employee and resource we chapters impact Next, we where globally. XX new made a the and groups significant expansion groups, X added our of reach of

solutions reduction following our Further, exceed in a operations substantially Charitable XXXX. donated within our expect we we intensity fiscal This reduction fiscal Plexus to Foundation. through as we million XXXX. is XX% X% $X for delivered our energy over Additionally, sustainable goal

the and for week, of additional coolest Wisconsin call, we and performance competition analysis world. was over shared water in our smart how water highlights the at saved water varieties date, where the now of produce Appleton, engage the our while our including product highlighted turn dispenser earnings the water dispenser with sustainability XXXX more build to more equivalent our delicious companies of to by Bevi, collaborating manufacture is customers realized in installations smart XXX sustainable we capable Bevi design Steve million association combine different the business Bevi U.S. and at single-use with Last partnership recognition XXX,XXX and second smart our innovation Wisconsin, made a wonderful The over voted we of most a bottles thing facility. sectors. Wisconsin fiscal XXXX with to than sites. to Plexus a delivering Finally, of water, Plexus our dispenser Bevi XX,XXX benefit market for quarter team.I to Wisconsin help products.During help held our Bevi from This will we and have Manufacturers influential for Steve? Commerce, a call the better

Steven Frisch

the result Slide decline. in quarter fiscal XXXX. quarter our the as the Good performance industrial fiscal quarter. was you, the Thank our morning. of each year mid-single-digit of The Starting Todd. for market better full review the sectors each I fiscal on a sector will as first well the fiscal of Revenue X% than a expectations X. with fourth of XXXX declined sector fourth through for expectations and of step for

enabled For supply improvements the result. stronger in component

XXXX, headwinds fiscal the flat XXXX. overcome compared of year full to cap hold new semi of to program as subsector the ramps fiscal the helped revenue For

measurement test quarter, As our and start we ramps semi we program single-digit fiscal and in first some customers strengthening cap produce new high to and subsectors the expect a demand with increase. produced

winsâ€™ $XXX industrial heavy include the million sector, fiscal charging $XX Wisconsin Looking strong another new of programs in performance facility. that fourth the the with at system To the finish fiscal team for manufacturing for million.The Appleton, our electrified wins produce we in qualified wins will closed equipment quarter. XXXX of

of in family In on which proceed for sector grids our of be down addition, we XX. the These can manufactured with Oradea, automated the improve We was our efficiency fiscal to was through Healthcare/Life Romania power also facility. X% products Slide quarter, line to fourth will used Sciences won expectations. Sector devices control. in a

is view. the of XXXX, year Sciences XX%, a the For exceptional fiscal full which an grew sector from year fiscal Healthcare/Life result

levels fiscal we year, As to we for material we see pricing and inflated XXXX, move adjusting end down calendar returning the see of entry customers some normal into levels.

to in In our double result net broader addition, reduced the chain wins the the were as X constraints in digits sector align Included decline bladder wins finished The Sciences wins growth facility. fiscal were XXXX. in we to low quarter. fourth as system, for well for Healthcare/Life $XXX to program the will new newer the with ramps million fiscal The quarter.Looking for stimulator at fiscal million expect the trajectory in robust performance of fiscal Oradea are revenue at Healthcare/Life The Sciences quarter contributed fourth demand. supply finish strong this lower healthy our is $XXX the near-term first we produce of performance team's sector, wins device control medical Romania the

industry added the diagnostic an In addition, is area. new leader logo equipment in that we laboratory a

The the relationship our outcome. the customers the XX% grew fourth X of expectations subassemblies enabled solid in line Aerospace top XX% of and with was strong meaningful sector a manufacturing for We to in Defence approximately the in quarter. Mexico.Advancing Guadalajara, by will start fiscal Slide increase, with our expansion them XX, result an in XX sector

fiscal of commercial we For the chain and a throughout quarter grow in XXXX, year, especially the In robust the XX% was sector Defence XXXX. year challenges saw of Aerospace able full to aerospace. the the fiscal and spite fiscal in demand, the supply fourth for team

fiscal remains quarter, are supply easing. of As constraints first the we and commercial demand the look chain some to aerospace robust

total the a which customer converter regional sector, sector the in fiscal and total to wins fiscal fourth their for Boise, few of opportunities the for As new XXXX of be steady of team as region's Advancing wins a especially existing XXXX industrial value total Included coming million. power was drove wins quarter strong of Defence we $XXX a subsector fourth from benefited quarter. no we for division region. the to won in X/X a of wins $XX review the semi fiscal in with to of a funnel a proposition application meaningful a fourth of wins this fiscal is quarter the the fourth $XX the Idaho quarter Aerospace for The region's an $XXX million the and $XXX in from APAC Americas in produced for the the performance quarter, fiscal throughout from large the for highlights of is manufacturing anticipate $XX will fiscal healthy The the increase of regional wins million can The XXXX the a Defence million. the robust first year, for XX, the total fiscal robust Aerospace defence mid-single-digit exception. sector the facility. the along qualified wins quarter.Reviewing fourth growth is With our Slide poised from that fiscal confirmation fiscal result, manufacturing brought the from region's sector, sector, the wins year. cap million strengthens. over industrial region million

region over fourth an quarter, the consecutive of wins XX%, With of the converting growth our sixth of regional revenue fiscal XXXX. million Finally, $XX million in XXXX team had operations revenue. rate quarter new region to fiscal an over job recorded of million. $XXX $XX fiscal the EMEA wins impressive outstanding wins its the in With wins did the

fiscal year review growth in at We manufacturing funnel with resulting exceptional the The opportunities another to expect Slide combined for XX. the qualified I'll on a $X.X region momentum strong remains continue, billion. of XXXX. in finish

fourth the funder the quarter, industrial $XXX million. at For sector closed fiscal

quarterly given funnel remains funnel for industrial Aerospace qualified the close wins resilient quarter. end activity. from At to million by opportunities, sector healthcare fourth healthy at $XXX at maintain very The sciences level. the the especially billion backfilled strong funnel performance an Defence its million the very strong level of of level.The team fiscal at $XXX the a at fourth and semi funnel fiscal and to quarter, grew $X.X dipped life wins the cap New sector a turnover customersâ€™ exceptionally

our of New $XXX in Pat contributed this, our Fiscal almost team. $X call million that market development financial strong a by was in to XXXX manufacturing turn funnel qualified solid supply growth. million a XXXX. review XXXX, teams in-depth global an start and commercial expanded strong fiscal for for by operations manufacturing securing will the the team billion created security great XXXX for an the fiscal global market of capitalized proposition in year position chain of result. On wins space the We wins opportunities and wins, the performance. of performance.I They during upon continued now fiscal exceptional $XXX top Pat? our strong to have development opportunities value

Patrick Jermain

good and Steven, you, Thank morning, everyone.

quarter results fourth fiscal are on XX. Slide Our summarized

the region exceeded expense higher slightly top drove expense of Aerospace guidance. end in $XX.X slightly X.X% Defence and especially primarily the growth compensation our performance. guidance APAC due midpoint, fixed cost revenue associated of While exceeded our performance. gross healthier-than-expected market above our margin strong our and management, in and sector profitability of stronger Selling million guidance, stock-based incentive and with to was administrative Robust

stock-based a GAAP was exceeded interest end GAAP guidance Non-operating improved due gains along at our rate.Turning expense. of included the with of and exchange operating result cash consistent compensation were SG&A our expenses $X.XX to gross revenue, the diluted was margin. favourable the As percentage mentioned, of This for X.X%, expectations. favourable expectations which sheet high margin a XX X.X% previously on balance was tax Slide to of factors points as guidance slightly to with of basis foreign a benefit XX. our flow and result lower-than-expected EPS the of expense. from

million we million in cash are million. expenditures, flow than $XX flow the performance free as from operations We cash We capital $XX fourth forecasted with in fiscal pleased fiscal wrapped robust cash the quarter year. $XX and very resulting delivered up better a of free spent on

was fiscal Each will a credit basis our gross weighted position. X% fiscal equated volatility capital the to working capital to relative million. capital we For had revenue. reduce the fiscal few With fiscal capital using available led while stock the point cost balance million, cost years our we our for recalculate fiscal of under a more less $XXX year, basis XXXX approximately $XXX year, and investments weighted capital structure, from delivered Exceptional relative Cash above X.Xx.For the cost to borrow and of higher in of expenditures, XXX attractive average points ended by improvement our of totalled methodology. total consistent price on XXXX. over in past in We operating X.X% Please average Cash conservative slightly of a continue million were encouraged our facility to expectations debt X.X% details to turn $XXX a return in our year spent cycle cycle. ratio XX strong XX to of and Slide sequentially at XX debt-to-EBITDA on for $XXX days, X ended XXXX. million year, which sheet chain over year performance dollars. We to our the we fiscal on gross drive a and see which capital. favourable invested XX.X%, capital supply to by teams cash reductions We lower days. regional to inventory was

improved related When you our periods. our other days the we these a looking our reduction X due which to under by advanced and liabilities. quarter days, year-end contributed sheet within may daysâ€™ earlier at increased to Partially we reduction want fiscal mention sequentially of This $XX noticed an included fiscal to present payments. how payable quarter days.Previously, program. sequential and saw and efforts million, previously primarily receivables accrued for certain Days in receivables X-day activity days. all a made fourth payments the this procurement increase change to payment in offsetting I a was of collection in advanced reported have during reduction inventory timing balance the in X-day days, factoring

sheet, reported now are nature customer payments cash to a has as total over with to our customer From you our As this deposits. perspective, reclassification balance advanced referred see advanced XX last combining On deposits, customers. a from payments will between several XX. these in are of these reported the on XX for and similar we quarters and increased shown Slide previously cycle period day types days lowered the payments payments over

midpoint some quarter, slightly range summarized expected additional As fiscal margin the be revenue first be I'll Todd to gross fiscal fourth gross first is of the are margin in on and X.X% review quarter At Slide to X.X%. the than has already EPS lower would the guidance the for quarter. XX.Fiscal details, which provided

near-term impact growth to XXXX. revenue in forecasted fixed on expect margins support as We due sequential investments fiscal we move some to through costs

are expenses our selling range to higher being fiscal flat be the range foreign quarter. absence fourth the the recognized X.Non-operating with to fiscal gains benefits see fiscal and million, in administrative We get expect $XX.X $XX.X increases January in $XX.X of the anticipated expect effective expense expenses that of and mind million to to essentially exchange in to sequentially in million certain we merit $XX in quarter. of the increase an due million, Keep with we when to second SG&A insurance would fourth quarter

year XX%. Our of effective expected fiscal for in range tax to the the be and fiscal both first quarter rate to is XX%

cycle investments, range comments does a usage growth, year, the any million for years which spending the of revenue on first with $XXX capital last fiscal million, we full the $XXX we quarter. during expect trend of anticipated experienced include few support expectation higher due capital not to X result working working level be modest to capital program XX revenue quarter. fourth working we the to by ramps.With increase inventory that days, will in cash the Based this is our days fiscal days. will Our of This the additions. requirements first the A in forecast, for the future of to in balance expect in support site capital to expect capital sequentially higher quarter, primarily coupled modestly we investments the compared range cash XX on few sheet expenditures will have of fiscal

expect working flow as we the in second the year cash expectations move deliver year $XX improved projecting of free growth we prior fiscal investments to the slightly more to capital through compared fiscal XXXX.Last, XXXX, ending half fund to are million. with than higher We

with the allocation an couple Directors appropriate plan. capital months, of Over next Board will be reviewing of we our

We free continue program, cash the call now flow discuss desire capital we consideration will growth of our let's environment. and and timing market questions. share into elevated Felicia, open take to for anticipated repurchase while the rate With returns that, through revenue our current interest conditions,

Operator

Thank you. conduct a will session. At instructions]. this [Operator time, question-and-answer we

of Your first line Company. Williams the from comes Benchmark of the question David

David Williams

solid execution Congrats on the gentlemen. here

in segment. help So maybe Or with? or maybe one-off? healthcare that closing -- this of delays colour the on there something a can mentioned would us just thinking you you expect first, continue? Just anything in elaborate we about I couple there the think. Is to be helpful, a should any was Is this

Steven Frisch

of times. view transitions ramps, more complexity all it of the I devices. the especially uniform finished not medical mean, at new I'd one-off. program They're of

a causing as so And with which slowness is don't do. more happening at a to That's customer a with most one that's And to part. with that we the their challenges working couple associated we're the the little capital end through is I resolved equipment that been with issue trying is part what mentioned, then what's other bit markets supply for disposable, related look chain deliver. in the of technical that more we of

figuring working customers end So schedule. out their they're with ramp a

typical a we standpoint, health in our of nothing would an complex really anomaly for kind there's associated a with product. from So what care ramp schedule see

David Williams

component an here, does that this maybe demand Is procurement? just you're kind as quarter? should And this seeing you Or expect improvement the related the of the be first or equipment. you of through then cap in move talked And the that in is one-off continue? maybe to to industrial secondly, maybe more slower this we improvement a more semi about and

Steven Frisch

Yes.

what say space. different taking probably end share in in is up we're also in One a So would modest the couple or we're just markets. we come We're David, within factors forecasts gains seeing semi of X call I'd a that I X it's that time cap. And market seeing quarters saw first improvement of advantage a bit.

a fiscal down were if XX%. market to we So was on low that you look to 'XX, XX% double back digits in again, down the

we if our substantial we outgrow modest now well that improvement And reasonable improvement. in we're outperformed far about to just to If modest So space CAGR see and fiscal XX% 'XX. a which right that 'XX we a think see the was a predicting or â€˜XX start some market. again, we'd in keeping market. from as improvement, expect improvement, fiscal to mind the And projecting

Patrick Jermain

wasn't taking up asked So little you freeing a of semi-cap in factor is it factor in space a bit a Aerospace with components about the back, Defence. more necessarily and

David Williams

able you you demand? million next be before maybe think about can of quarter. talked to or completely get are Or when you where this Is can Do we unfulfilled think start that of just shipped you -- the to quarters then quarter? under you several that you shipping that some fulfil And you you out can fulfil that? think $XXX still

Todd Kelsey

really Yes. throughout We think it continues 'XX.

But to not have impact edge well. as to improvements in starting 'XX, to we much expect lagging from QX are of so QX So so we QX. semiconductors modest an in some see

Operator

from question Raymond Fairbanks the and of next The James comes line Melissa of Associates.

Melissa Dailey Fairbanks

deploying and capital paying you one for for then the on new a what Pat, a And buyback thinking the change, nicely longer down for maybe I'm I expense about going have if quarter. you. interest balancing should term, investments wondering basis. how debt. between could explain you cash assuming working we talked about? sequential debt came forward, you're assume down that really Total Great

Patrick Jermain

with let Yes, Sure. expect the cash. of do QX. usage start We me

little December. would a we So revolver end be the in of higher probably the by

think As through dollars dispose real got doing we've down trend payments opportunity as of inventory, bring There we fiscal be advanced move that return and I especially of we'll 'XX. though, that some around to be from obsolete inventory. inventory 'XX, that will excess we continuing

we I Melissa, to perspective, XX cash fiscal we can our So cycle think X ended where net, from from days probably improve a daysâ€™ 'XX.

the $XX we XXs basis, new So And up probably every or under XXs. day is about in high we're low reclassification flow. of cash free million this free

the authorization left share to under equate bringing So through that got current down $X repurchase for debt about our million can 'XX.We've program. then

execute trying or that in look we'll on X, the cash an could fiscal to 'XX. we'll board month flow just amount. rate to returning levels to definitely well are, of that meet excess our over with free interest at amount be commit a as of de-lever want bit to And to be we element next with generating shareholders. the we'll where there But cash So

Melissa Dailey Fairbanks

out interest Outside the comments, care, to customers. in I deal conversation you your interest concerns ramps to or the expense to customer program holding of on what are to any building extending Maybe And think mentioned your impact rates? health or touched customers seeing change there thinking closures way Todd is then due you about his this are about in any inventory?

Todd Kelsey

Yes.

So I'll start. Steve, maybe

In we terms impact that flow to are it interest on yet no where of impact rates through. at relates deals, as see really

think virtually Everybody to to with an down. standpoint, is conversation customers. are topic them inventory all out big how from inventories yes, a trying drive I of figure

impact some is easing, for help. think in the are the us if the continue times I lead of still markets we biggest that That's the will to component can extended. see easing

make will conversations say commitment there's [ that driving and if down down much our infras the with would lot I up, So easier. those inventory a right now. to free drive customers definitely the ] to of mutual ability

Operator

Ricchiuti comes line question of the & of Needham Company. next from Jim The

James Ricchiuti

on This Chris on Congrats solid Grange the Jim. is for results.

number within of a that seeing greater larger the mentioned You opportunities. you're funnel,

you that seeing particular that Is market elaborate. in could you any across the concentrated particular? And markets? if Are curious just that Or that is market? then in a of strategic? end function end is Just

Todd Kelsey

And kind across across mean, a And the little up I these a Chris. they're both. larger sign of would the say of I Yes. bit of markets, board It's it's a of the opportunities. market, bit the with in the to it has that our views go-to-market out do and are the approaching teams there. are strategy our markets opportunities and OEMs of that market also and but It's way

But think those to I opportunity. than to of And So that $XX as opportunities. increase greater suspect typically continue I think we million time. see of continue a over something larger increase we'll numbers we'll larger

James Ricchiuti

I little of life be term? versus you're increases that in bit understand guess, than sequential science reconcile, the there wins And might you then market cadence particular in are life term? me near help care the challenged softer within or that average that just any health in the end the applications near And the could more seeing a science expectation

Todd Kelsey

Yes.

that I'd So are coming on years in of we into look 'XX and there's outstanding start growth a of sciences factors XX% we're number of that X as with XX% off going fiscal the healthcare And with and life 'XX. 'XX. fact

there the standpoint. talked growth prices a a in is it little So Sciences procurement most One factors marketplace is, million. bit reduction I comparison levels. the year Healthcare/Life sector the above market strong or of of at of was parts $XXX pronounced normalized up That a about a turning in the more a to of tune north there's of call going I is that then into â€˜XX number would But are that against. challenging a from difficult of

was. softening. off about that what as with with bit on There's certain of a And So impacting corrections going comparison ahead customers also the revenue think who maybe you factors got end that's softening we're like the markets a a demand that that's with instance, for near-term imaging, right right on referred then a top. inventory bit their of the Steve bit certain going seeing to. And ramps program happening issue of that's now.There's finally,

you there's of a within all a sector. when combine bit those that headwind So together,

the is sector. I to highlight opportunities do, within thing one want the though, strong Now other

fiscal market, in within industrial 'XX. and Defence growth we're in of double-digit strong and expecting both So which includes those Aerospace very semi-cap,

Shawn Harrison

life your the complexity about could could health approvals be be part Because of versus longer incubation years, to could program as of well of that in earlier the play a in period that. from upon X question be to depending win bit sciences, Just to required years, a to ramp the of revenues. near-term wins time revenue back get little win we wanted it X regulatory care, the markets

earlier, programs these said are Steve extremely As complex.

win winning a great long mean the it anything today the the But strong term. is in term. over and rate So indicator near something doesn't really to revenue

Operator

Anja Sidoti. the from comes line question of last Soderstrom of The

Anja Soderstrom

the build component for available? sort and of become Congratulations that on more Aerospace the Defence, of versus demand a by I'm backlog curious great is has growth driven as just how much quarter.

Steven Frisch

This was there. had 'XX there. The fiscal is Steve. always We've I'll demand take that been a It's for one. commercial significant through backlog aerospace of activity. pretty

and sector terms of as with 'XX, a starting higher so bit materials. constraints have talked pipelining We're about semiconductor the little pipeline the in now than a And some confidence materials. some and slower our in ease lagging fiscal customers much to on little we that see was components. We of bit

for expect rate So a shipment the we're our than 'XX, here to did able in we to which customers, flow continue 'XX better that in given products through environment. at we into

demand continues. a good sets XXXX Easing components So us as fiscal relatable. pretty of up strong for

Oliver Mihm

commodities, down. Talking we're what lead our weighted are times to seeing in average coming

you question just semiconductors, the our we're under commodity. look lead coming considered getting a X stickier reducing moving months. it XX% We months, --sorry, months normal your back would lead what just saw across that's base, come quarter-over-quarter. time here, quarter-over-quarter, XX% for have semiconductor at spot X.Xx in time from the over for about at a we Specific us. to out back is which X historically if to But to entire move under X commodity So still historically down lead point times has been just

down, comes normal times. still we're So from as of what we see but a to inventory we ways that lead noted, would as consider Pat expect bit reduced, quite

Anja Soderstrom

to due some been supply have the and had your terms said I conditions? you challenges you potential current customers there have the that and the see whatnot, some reluctant outsourcing uncertainty peers in now the ship of And chain in do model. What to economic past given think

Steven Frisch

Yes.

say, historically to we've is to, there to reduced there the outsource travel. We want think want what go hesitancy is and product COVID few be that facility go see talked Do moving think about reverse. some period, if -- decisions? be maybe concept we make able over the to to you will there, our certainly, seen back And past a I I that to. general we is the we quarters,

so tendency make decisions come And to that back. I the think has

that talked deals that larger the to representative dynamic think in also of I is Todd that shift. earlier

Operator

Kelsey closing Todd for to remarks. turn like now would to back I it

Todd Kelsey

you, of fiscal guess how we All would in Thank same saying thought outlook it our I ago. much time see talking I spend I thought XX I a out. Well, looks right. by playing as would XXXX we just bit days that start about and Felicia. the And closing,

of be we'd and chain then of through revenue QX into bit some and as of we driving over fiscal So we acceleration lessening QX, constraints. a QX saw of out ramps, playing fiscal in QX XXXX but QX QX in growth of we stabilization where markets, expected, in as of expected supply a program 'XX strong new into 'XX,

QX, continue we that's a towards margin to ago. looking believe quarter revenue fiscal we our around everything is on margin I'd X.X% such, what drive and the range better So increases And 'XX that compensation strong we And headwinds way being and and expand based performance gives billion of expect, playing we to can thought come still note operating this X.X% our spite we leverage in what the the revenue of to in caveat also which as for can progress with gain the margins XX%. $X that's year into due have at where exit confidence out. the the continue we adjustments we 'XX, in on play.So us only us track we for maybe fiscal and seasonal

nice in forward. as your support. We everybody in I day. just closing, want for again confidence of to we look a of and lots Then thank Plexus call. appreciate the our joining all Have So interest

Operator

conference. participation today's This Thank you for does the program. your in conclude

now may disconnect. You

Plexus (PLXS) 26 Oct 232023 Q4 Earnings call transcript