FLEX - Earnings call transcript Q1 2023

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Operator

Good afternoon, and thank you for standing by. Welcome to Flex's Fiscal First Quarter 2023 Earnings Conference Call. [Operator Instructions] I'd like to remind everybody that today's call is being recorded. I will now turn the call over to Mr. David Rubin. sir. ahead, go Please

David Rubin

Financial be Good at earnings welcome today as recorded Slides conference Officer, financials by our Chief Michelle. give Both quarter remarks brief the on are is Flex's well of fiscal Executive followed Chief and for flex.com. Advaithi; XXXX call. call Revathi Paul earnings afternoon, you, Lundstrom. being the to available page will is and Q&A. first our This Officer, Thank With today's will our for as press on the and available Investor copy call corporate release summary replay Relations and website. me

could forward-looking current materially. differ actual a today's These results risks assumptions. As are that based involve statements, expectations call cause and on our contains to statements reminder, uncertainties which and

well discussion Note information of or press slides presentation, summary risks non-GAAP today's statements. Investor obligation our be most update to will found refer reconciliations with The these in on undertake we the please recent Factors website. in to and to to release statements cautionary no see section the this a filings For specified, is financials call. SEC. in full posted appendix we subject the on change, our forward-looking Unless full as can the otherwise presentation non-GAAP these as Relations metrics in and GAAP in Risk of the the uncertainties, the

to and conditions. market A on stock Exchange Securities the SEC offering statement public to draft other the disclosed, with of proposed As and/or are its registration file timing public Initial the remains offering common S-X previously Class subject and Form initial the we Commission. the on NEXTracker's U.S. relating

NEXTracker any will at we make filing questions SEC further this the on no make - Following or time. answer regulations, additional statements not will we

to it to Now our CEO. I'd like over Revathi? turn

Revathi Advaithi

and thank for Good you, joining David. Thank everyone you, afternoon, us.

teams for start most want accomplished team achieve supply delivering and chain has their technology, very QX manufacturing for our and by quarter, partner. incredible I'm and the the our to off another consistent thanking strong Our what I be trusted customers. performance to their was to fiscal of proud and vision our commitment

at looking Slide X. Now

continued ability in XX% ongoing and grew year-over-year, to constraints. demand strong deliver our component spite driven revenue by of Our

Our EPS led X.X% in at operating another adjusted margins at the year-over-year. and solid came XX% up record of overall adjusted $X.XX, performance quarter to

remains the lagging So limiting business I demand say our portfolio, trend with in continue. signals, and as currently units, I along at expect across ongoing remains strong shortage the semiconductors the most to from this constraints look point, forward-looking and We would biggest in our this factor.

not of surprisingly, in are some we slowing indications seeing markets. consumer-related Now

within we been is have anticipating expectations current this it our change, year. full the However, for and

tied we business inverters, examples to all continued power-related I demand Industrial and tracker saw our along demand, Flex's at across ramps from want the with just overall out business technology storage grid-edge, unit, EV point a strengths. Looking separate solar NEXTracker energy these few our products renewables and core products. that charging, to are new multiple and include of broad in

category. gives renewables it making in We Bookings impressive this billion our the industrial very a Now was which sizable our this over of be this automotive confidence revenue. wins given us growth business in to $X in quarter. on long-term our rate now run year, continuing, drivers category, portion a is see this

our wins wins are last as XX% in this nearly quarter the next-gen of these bookings of as year's fact, In category. mobility and were over much alone all

still seeing well end U.S. versus With below inventory XXXX, lot the June days inventory still demand. in in XX only dealer at XX market we're

long-term expansions, driven outlook. being confidence These transitions. multiple technology us is business new our of product our drivers give and much us, by in For OEM lines

by continued longer-term driven Now enterprise growth very digital migration growth and cloud in our trends, in cloud including strong, remains services. business

Our enclosures, to us power and solutions, differentiated the racks across center areas include positioned several address address well critical this make data that capabilities growing market.

Lifestyle solid business continues results. Our to deliver

have our chains expanding and vertically-integrated by led global with value capabilities our regionalize We customers. expansions. has and goods supply to leveraging gains to a in proposition scale facilitate combination durable compelling This share premium new created wins very directly geographic

highlight Our just for for portfolio business are and strategy how and supply drivers have a a they resilient more evolved. chain few these customers more business has examples, also all Again, sustainable resulted in Flex. our but a also our

to mix. concentration our change customer our Day, Investor progress showed we change dramatic you last our if slide how just XX Slide fiscal look At 'XX. back going X. more is XX would over Now This portfolio years. This in on and be geographic the we to you since this even

We the most shorter-cycle deemphasized have volatile and purposely businesses.

improving revenue capabilities our core our example As this, how large portfolio end drivers. with revenue device went of aligned in markets back long-term XX% an on to focused in mix and about we with of our XXXX consumer fiscal from XXXX. Instead, only strong targeted XX% now

improve. long-term last the we in but We I'm the more have created immune navigated have a and to we're These that portfolio support a confident built diversified have continued have have changing to it, our foundation strategy we needs. customers' and to of challenges this is more agile company. adapt of the uncertain, more we footprint built. none remains couple a our very macro balanced resilient and over can environment and The investments say global and highly foundation, years, effectively a solid

future With to Paul we on execution turn to through in I'll Flex. continue will over and it you our focused agile financials. take remain So to consistent that, the be invest to of

Paul Lundstrom

quarter and everyone. with presentation. earnings X be GAAP and Please of a will basis Revathi, of in good stated first otherwise. begin a be afternoon, The be Thanks, our found results. reconciliations review all on on provided appendix Thanks. all Slide will results metrics note, I'll growth Okay. unless can year-over-year the the non-GAAP,

million, $XXX margin was rate $X.X to up at at saw a strong with Gross We growth quarter, billion, $XXX in operating nice the XX% due the pass-through in pressure million with abnormal a inflation came profit gross on growth operating revenue little at on margin quarter first costs. profit dollar up X.X% and solid of X.X%. Our totaled XX% execution.

As to inflationary we our protections have us dollar costs, are a reminder, recover passed which through often allow that in contracts dollar. for

that So dollars. margin pressure not creates some on percentage operating but natural

Lastly, earnings an per quarter, $X.XX share came for the of in at XX%. increase

an segment strong million, And was the Turning up our demand XX% first revenue $XXX across slide. quarter Operating year-over-year. next on to billion, throughout of income $X the results, remained X%. was quarter, segment. Reliability increase the results

margin shortages, robust, ramps, at was and brought margins by XX basis was solid $X remained demand growth which continued Operating X%. income CEC expansion supply in while Agility, billion, revenue operating operating In X.X%. was with challenges output XX%, up Although constrained well Lifestyle. pressured margin constraints. million, XX%, up driven against up points by component continued overcoming was in our driven new exceptionally by The execute up to on to project team's $XXX ability by strong

was improvement XXXX. after to NEXTracker adjusted income and million. revenue about margin X.X%, Operating to a margin year-over-year, nice strong up $XXX XX% sequential see difficult increased that million, was fiscal Finally, operating and $XX was

We as an million or flow Slide for quarter, CapEx million repurchased to flow million inventory begins X. year free by million X.X% for be was XX outflow $XXX over unwind. the of continued in totaled totaling X.X% of and of the loaded to back-end cash of slowly anticipate representing We the shares shares spend outstanding. quarter Net approximately the to Free driven revenue. on $XX the Moving $XX for inventory. cash pressure quarter,

we Over closed the in high demand, last components. share of XX down Inventory months, $X.X quarter we elevated, the inventory supply with key X%. by coupled continued is billion. function This remain have taken and with a count levels constraints of

on aware Please focus as all delivering for Slide to Revathi second you our well growth screw we of think segment quarter but fiscal mentioned, for golden to now And indicators, closely our are customer backlogs. right year-over-year outlook the X our and monitor expectations. the turn our I continue demand phenomenon. is

meaningful solutions, by across healthy markets. sight potentially XX%, have good key demand line as reliability several as driven of growth this we For high quarter, to revenue

We expect to our EV and tremendous our gain continue organic products customers. in such mobility we're industrial, support and next-gen grid-edge. growth within And from significant broad-based scalable compute in as renewables strength interest to auto, particularly seeing

up strength operating income rate capabilities consistent estimated consumer we will range million. within communication Solutions. Agility expected be tax XX with should digits single expect some for and $XXX by considerable billion and softening is trend revenue be CEC. to by million range. the demand to expect in provide and Slide opportunities, with to markets adjusted Turning be regionalization billion the and in be to other million, CEC. growth down consumer in On more to around is XX% high Lifestyle than flat XX% quarterly Interest we pockets guidance, the expectations. our and will $X.X $XX mid-teens, Revenue Flex's and to continue the be cloud growth of should predominantly of to $X overall the offset of driven in devices our $XXX between to

based We adjusted and weighted $X.XX expect $X.XX average EPS approximately between on outstanding. shares XXX million

expect revenue fiscal expectations also our some continued margins We $XX.X in We be strong recoveries guidance. end slide, while a last billion adjusted inflation billion On increased $X.XX expect to operating Flex. over Q&A dynamic markets. based end on EPS have anticipating the the we just to share. we XXXX and market to year to $XX.X comments softening you've with the demand, following $X.XX very consumer macro updated and now start between resilient Despite X.X% adjusted to And before a X.X% around seen and to of couple the wrap very continue years, a backdrop few up session.

in With operating with goal balanced end to market call to over high-growth more than fiscal and Flex the is mix greater like with turn to begin to our have. Overall, geographic XXXX. and exposure is Michelle? double-digit the to we continue I'd industries. has EPS on expect from portfolio Adjusted growth have. we EPS consistency, in and emphasis we continues a the XX% Q&A. been stronger in up a ever position deliver to Our today 'XX, that, We've operator diversity, XXXX, and better enhanced improve XX%

Operator

Instructions] Your [Operator Steven ahead. Please first Fox from Fox comes go Advisors. of question

Steven Fox

and I if Congrats questions, Two afternoon. the on Good quarter outlook. could. Thanks.

having you for Thank or later for landscape discussions just crisis, plans year of sort to making you're you're of Europe? in any this for year you're around kind maybe kind with related risks is in the was could how seasonal? new this a can if least, et off, then secondly, strength First I the you how rank And And versus maybe How CEC from programs, coming you then most seeing? much more where what much force that little cetera? curious it's see color you're producing Europe about that an give is of customers on energy you. producing

Paul Lundstrom

compliments. question. Sure, Steven, the with start and thanks the for CEC I'll Maybe just

double we to to still that spike If CEC nice grower, of strength didn't as the Communications highest, tell up in see we growth, here would specifically, indicated I'll lowest CEC I double-digit expect I really the then triple but probably to digit. back And than from So XXXX. was out and sort in that digit, more strong cloud, up rank say, Analyst were growth them quarter. double growth continued but was had still for at enterprise business in slowest Day, very to you double was digit, there. we the

year, guess, on pretty the a but little enterprise expect half I side, for, ahead in growth. the back looking probably it soften robust three still we components bit will of the Just those

there you to be And continue done compute for spending just the and insatiable to get or we're talking analytics. appetite something the data in see and this things to of it's on industry, continues going CIO strong security. in whether chatter cloud, on-prem, like Just data to the our sort

that to got don't mean, that I of than more really in see it's that you If program squeeze XG cloud then to triple end asked Europe, I one and region has mean hard meeting enterprise, where we look about I up regionalization Comms we're year, pretty we've higher be support our with is we've talking will you've to want nice double. With closer it's seen the that Europe strategy balloon. Flex It's possible cloud. foot respect but as to where continues redirect production we support segment about to to make guess Again, specifically to be away. to of business going in in share gain winter, lower the another, sure facilitize that. which of customers have, customers' sort to and good this it some That's been and it's cloud. rollouts, if are to coming fleet with digit get wins. about would CEC, can't to to tight, proximity I this comment energy facilities be demand, the So working the really - from. challenges, to I be things say, from to ability feel of that. And love as the where good we be market in like demand. going probably I we we

Revathi Advaithi

I'd performance. for comments only first, thing the thanks the is, add Steven, the on

independent energy this energy some alternate the together terms can that alternate On One utility to up an providers we kind itself strategies. to those how I'd we all that. from energy that at our Europe, have of from issue, to We're on cost, we at but local much reliance in kind with two can is see partner look costs add looking working we of energy inflation is pass true - things. plans, to in on, on of continue availability we come of whether are how how put

So options. we at the are looking all

Of where current we think I line it plan have now, of resiliency a course, it we right hard than from difficult to we But if sight now predict. it's that - the is have. more good gets

Operator

from comes Sachs. Your next Please question ahead. go of Mark Delaney Goldman

Mark Delaney

Yes, for much good taking question. very you afternoon. the And thank

it away the customer and change fiscal all take revenue guided into year about the company year you slowing is If outlook. take Or and something to the I to it year guys in you If be issues, Maybe the there? macroeconomic the to could the the from in in also has the is reported macroeconomic second of could moderation you implies mix trying a first revenue issues? the half on bit that account of we down what is extent just half? are little revenue of the extent compared given that demand guide, on First what the some revenue, that it's headlines half consumer to are proactive that some full orders? to strong fiscal out be reflected seeing and given the believe the see that midpoint I first talk potentially at

Revathi Advaithi

Yes.

start XX%. Mark, half and with So that QX is, say what I'd current guide our you first me would fact first, be performance QX, the our at our let up look if for

So half. of strong kind a very, first very

that QX I say you'd be think about importantly, Looking probably little at calendar second half, at being of our a to I going be us, prudent on quarter think into a But we've around lot most calculate able taken we're most X%. assumptions. to is which fiscal companies, consideration more for first it's factors I'd for this. looking

kind trying that sense. will to consumer we think including Mark, a are of we prudent the full most assumption makes the we've We half. But us, kind strong a for is baked give that assuming and people, we're markets the is So is second like into demand that's for dilemma very, driving year. look and interesting somewhat very more be our guidance our that what's in prudent of think slower,

it baked a to slowness not. of for QX out, of actually we we've trick it's our fiscal products don't prudent today, can a see we of demand our and any we'd some figure any slowness from segments, So demand across little so be see rather of year in in kind than consumer but bit end what but

Mark Delaney

the adjust And lower. higher EBIT took revenue helpful. guide. the Again, you did full coming overall But margin EBIT guidance very company very on very, despite the and That's the is the in revenue, slightly my is well year updated guidance. revenue margin question follow-up up

the what that So if could for factors are? clarify you just

Paul Lundstrom

Sure, Mark.

good you news as the dropped we from QX. top - through from good line the saw, news So

came Some of that top recovery. line from inflation

year. I And remarks, so rather dynamic second essentially we're offsetting like the EPS inflation thought over not skis we'd half. to for taking as prudent revenue But I is Revathi that growth. dollar prepared had a get with the said, for recovery to given trying mentioned in respect our have cost macro full the start up dollar environment, and the question,

on operating now. in Look, lever are the QX, So right we're estimate there. record we holding profit

another same, half, with soften for trying dollar, line the bit good little better, we sight strong great likely a a to dollar where are. profit, but to and overall, have little We second kind operating the softened we QX, expectations for of expectations we really feel of about

Revathi Advaithi

line, guide we've right? I dollars will QX, of Mark, operating to And take income bottom story is, think line the way fantastic performance another is top QX guided the in record obviously here also be right for away now. first terms

people, too. on the for to I'd about bit most flow cost to rest drive, and talk be of year. that constraints assume we the performance strong continue added that, going chain and the that's and little how like pressure thoughtful we say supply kind So about a through we of

So margin that's dollars, doing comfortable, with how we're feel most importantly, and performance on the change operating and Mark, and our so for of income consistent kind prudent very some of to we then our lot, which more year it's us, thinking our it's whole and guidance. only around earlier margins But revenue us record is also QX guidance. little part in for a a of our

Operator

question go Please Bank ahead. of Bhattacharya next America. comes from Your of Ruplu

Ruplu Bhattacharya

How million Hi, is should about think should the questions. going thank for 'XX? we free flow It forward? $XXX still a normal And for like of for cash my taking expectation was inventory we conversion XX% how you think looks up cash sequentially. And inventory fiscal level cycle? about

Revathi Advaithi

gave percent and we our free - have to to then that in start, Investor been we're is coming be I'll or expectation been clear kind conversion. it flow times. our over we XX-plus And know times, unusual Paul. guidance very into cash hand of One Day, longer-range I would I unusual Yes. have say, I is, Ruplu, let me at when and

which with the And circumstances what's XX% we and investment supply of some in available? right demand our so chain, thing are unusual do. not meet of to seeing with to knowing inventory, growth It's record the kind

and on still terms have for about the partnered demand, in right performance deliver line from our customers. to consistent customers terms do and to in we what's that constraints have of want right? hearing exist, it forward. to and of kept the our we we all come that our the that, supply inventory is we You're what need moving forward look we inventory way have how right chain think say we've part of do customers And So - think in to we about how I talked our would with also back will this. as inventory are you

that Now will will an were bring be don't - forecast free give to and prediction want happen. left 'XX, but where back cash I our to that's bring when, make exact to we fiscal commitment flow longer-range we when our to

we forward, supply do chain As we look some constraints see easing.

We have about that. talked

very have strong forecast. demand We a

and bodes terms that right, in cash of flow. All well, of free inventory

our So execute I this. ability feel very confident to in very,

consistently this we all forward, turn looking to shown to over all to back comfortable Paul, we'll that add? And bring else have feel metrics, anything with these that I'll financial that, We very in ease unusual circumstances our and normalcy as through. it

Paul Lundstrom

inventory Ruplu. you're a right couple I of Yes, just maybe mean points. change, the about data sequential

at look revenue, advances up working and they You were capital deferred XX%.

make inventory? deposits from support But for customers are for significant like No. the willing growth. cash growth we're offset that the that to did inventory in continue our So I getting dollar to dollar who

inventory think, unwinds, you And days those that, will to see wants down. this XX days help as of Revathi I working levels XX inventory, come capital about advances, out, be less so to pointed inventory XX, as it situation when we slowly off there. some we getting Net and and are than is net

again, free flow, It probably now. You But free it million. $XXX the this asked so longer what half to a plan. Yes, has question on for a year. we taken to loaded be challenge driving $XXX that's will than had generation specific cash cash back the abate, hoped are We're million. million inventory right and holding $XXX towards we

Ruplu Bhattacharya

Okay.

higher-level ask I'll my a follow-up, maybe question. For

results of So do mean, I were what how manufacturing behave you really thing, and how if first investors. one Can up And guidance they during recession then you you more? recession deeper If you inflation see you recession? do customers how periods Or change, us, I obviously of inflation? that's outsource to are on and would in-house? different outperformed look and remind segment, tend sustains, And and in Flex your in think do next the the for mind at that if your take if of fare the it would XX%. Agility your top customers would revenues doesn't, but do recession, a quarter, greater, playbook do

Revathi Advaithi

opening everyone. 'XX, we first years Thanks, at shared ago, the And which that very say jump Yes. then I'll start, three slide I'll today, a company. can Paul a and company Flex recession, that even reminding I is from by from top was my this at very showed and different mind in Ruplu. Investor obviously last 'XX in. the that right, cycle, start different Day. I'd we're the is of to

As Our and XX% so the company it's an today portfolio different, changed. of example, of the devices consumer has was XX% right? company, significantly then

business, full our more Lifestyle you us of the of to forward portfolio, changed. XX%, COVID right? CEC and a If quarter, our we first about even of like year performance. on think much last XX%, portfolio mix EPS business if then - within and we volatile our portfolio, I pretty are performed performed remember, the went big Reliability exposure was the through few was significant performance in and you great, I'll shorter down types our the how well has Agility cycle. which as and but fantastic through product to portfolio moving we COVID business, a move we years extremely has how of our margin changes we has reductions and in The significant, that example that, we think projections revenue through kind look good out because you And be our customer of changed took in part had happened a pretty at to terms We portion have the of revenue a to went the 'XX,

importantly, say is I'd really execute, manage to in very, strong. how we and our different company, very agile ups more one very the And - I is gains very much thing new portfolio now, forecast. good so We backlog downs good well. then feel very most So of how feel and me share we're more about we that more in and demand programs which the have we're disciplined playbook our - makes know demand number right about my forward-looking

not said, macros, being immune could that change. right, is the Now to everybody and things

of will So has today That sustained your resiliency thinking this a want CEOs bruises in years would thinking 'XX. 'XX supply in I And of chain the the going go know out in has from they shifted. of changed, or is the were and chain in-house. everybody whatever three about very through to how more question resiliency to has come recession top would because be would I about think in whole stronger temporary, The customers significant. conversation they There's chain few and two, significantly customers who to last supply question say supply is to you Ruplu, that is outsourced it their 'XX mind. most it with right? way strategy, of behave much 'XX, so terms be that

strategy - through chain and going anything outsourcing cycle issue. the supply grow on manufacturers, the EMS and the of because that recessionary a dependency to confident is through very feel this and contract I - if through So

a the because businesses. in changed in terms But lot rest business of lifestyle and they're In up is accomplishing to a yes, like proud our of - agility very high is of XX% our in the won going not the and CEC. very significantly, here. what only we've both strong change new revenue our demand If is itself, up, businesses, is growth. macros of cloud currently, very Very, market the because agility

impact growth operating to But are, that our if significant of but kind in to our have good we be feel agile profit any feel our there, very it we we about like about. think - revenue us. else, confident ability an and everyone we So change, will talking we're deliver there's on

we good that very So feel about.

Ruplu Bhattacharya

execution. the congrats And on strong

Revathi Advaithi

Thanks, Ruplu.

Operator

go [Operator Matt Stifel. next comes Sheerin Your from Please ahead. Instructions] of question

MattSheerin

area Yes, another I about. question growth seeing next-gen to recovery as a what core business, the in three talked quarters automotive particularly regarding thank just the you. of the wanted area. two from you region strength to what ask to But Revathi, customers? terms you've production, hyper outlook you're perhaps seeing referred about you're by the in automotive those that and out that

Revathi Advaithi

Yes.

that. Matt, So thank you for

little give I'll So a you detail. bit of

with quarter starting First, business kind of Our this growth. had double-digit automotive strong itself, right?

for light at If quarter. look think comparison flat was the I of you for the production, kind vehicle it

next demand you kind So really quarter we've done this backlog strong customer our if and would say well industry the against right now. very, quarters, of and current two what remains look the at very itself has seen. our I

And supply are automotive of with segment in the and most some of inventories it do significant chain kind to constraints has lot are dealer down.

one geographies a quarters next deliver. we of good exists automotive say, have we're So the three lot the looking all It's as than it's in terms not of consistent, is across revenue opportunity consistent. to is feeling And geographies. I'd the say itself, revenue the that pretty would those I backlog better about forward other. really that shortages two, pretty and

that is of delivered. high, big And and and many to from constraints looking customers to growth automotive supply backlog so is backlog we heard looking, year I'd the very strong, forward, to you've that that be but overall, need next our chain the say, for clear

MattSheerin

a Are seeing point? some supply are to I more some And we component to parts. is the normal price ask issues customers and normal in expectations that the Ghana, seen paying wanted customers. just input particularly pass-through And you've know a Okay. regarding they're cases, to that semiconductor value environment? most some in of you these back at for lead question pushback of the I And of a of multiples once face your costs costs. cost, those past sort time downs get

Revathi Advaithi

I'd change and would been that that any we model condition. say, haven't an I because don't this expect is never on we all and seen issue, has Well, it, at the way. And to business say, pushback this in Matt, even changed set hasn't

we the very this I plus change on with our kinds really customers changed now. continue. to well And that partnered don't business that's industry, we inflation. model, up our in all That just big us inflation, but think and hasn't And will on labor ever of that, not for right? expect expect in have that

Operator

of Jim next Citigroup. from Suva question Please go comes Your ahead.

JimSuva

not and A Thank you math, bridge and disconnect, but the beat don't much do I it's for the guess just pretty me year, maybe around disconnect? it, or as you there's What's can that just EPS. a that? good person why get basic but details revenues I maybe I your great? raising maybe Or raise, don't you. help would not I'm question, the you're full smartest be because

Paul Lundstrom

problem No at all, Jim.

as So from portion beat - we came pass-through. that A beat you revenue know, of we inflation QX.

dollar a inflation you think know, is pass-through I markup. dollar without for usually As

And low-calorie so that's revenue growth.

those to dollars. high, a remains we're ahead we'll of some through and we As see passing bit QX, look Inflation that continue.

were cost, expense, about the full interest And we dollars of $X.XX are the We top just can there. street use go. as to as we And We higher I have Revathi's a guide. up then quarters an midpoint, on And a out on three pretty took year, There's that that EPS lot up - interest line. still at We of on. we about really million to bit $XXX so about good. million interest the trying pressure feel we to we number given to out a rates. OP the prudent think uncertainty took up at confident little we midpoint the by want deliver put to $XX words, give and

Revathi Advaithi

lot record, around but like like and - QX be it that's of at of always hearing still strong the Jim, but good and at this to right an you looking fiscal - you think record, right a upward forward just and on the the doesn't bank. guide chain supply in look yet. I we've sitting if what to I how And clearing a the well. to take at Look time that pipeline, profit We just we've guide our the feel and quarter, look track we've track do to it. ability EPS And economy very you're giving right? you noise looking think next noise seems the should constraints, from you. quarter, demand you're time to the for feel at it's a It at start delivered you're We you're all at given when have not look our kind it's our done

JimSuva

and so Revathi, Paul, does and that thank the Well, you gap. much color, for bridge the details additional

Operator

James. of Fairbanks Your question Melissa ahead. from go comes Please Raymond final

Melissa Fairbanks

driving guide. I'm much. very you and thanks the the inventory a great helpful. And the that point? the echo Are of I'll how on detail that, quantify factor quarter at as could Hi, value glad a dollar this that's in to really is thank the to on tailwind I in. And was also, for well? Congratulations squeeze much able of inflation you recovery, that revenue

Paul Lundstrom

There much chagrin. driving is inventory. inventory, some certainly my is an inflation in definitely to element It

of rate op As basis XX I XX, about I it. one QX don't know, probably think guess margin to inflation had, pass-through. of that's way I about headwind points think because margins, we

Melissa Fairbanks

of components, away the of risk strategic the redirect the long-term any some demand of inventory, key Perfect. inventory to inventory? as shift? drivers some some there from shift back we're Okay. the among that some And drivers the is there of you demand your seeing obsolescence markets, towards in as the can and then more verticals, consumer Or kind commonality is

Revathi Advaithi

of say, behalf with We I'd customers. customers. our our on agreements most not are buy us, because of right, our for Melissa,

by So obsolescence, borne that of all excess is them.

sits so we their that forecasting take with And we capabilities we that work to customers. our don't can so give closely very, behalf, them on our with intelligence to very that help around with a the and we of liability. It their can but best minimize lot customers

Melissa Fairbanks

to Thanks excellent. Great Okay, much. know. very

Revathi Advaithi

Okay.

Bye. So to course, around to for our behalf And all thanks to importantly, leadership our commitment for all. say my you our - I'd your to shareholders, just and support. contributions thank team all. the thanks my you Flex. world, your your thanks then, of to like most customers, Thank on colleagues of

Operator

this lines. thank that this and does gentlemen, call for everyone please conclude disconnect and participating would Ladies ask for you your like your conference afternoon. to We

Flex (FLEX) 28 Jul 222023 Q1 Earnings call transcript