SANM - Earnings call transcript Q4 2020

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the Sanmina Corporation’s Fourth Quarter and Fiscal 2020 Year-End Earnings Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions] I would now like to hand the conference over to Paige Melching. Thank you. Please go ahead, ma'am.

Paige Melching

Erica. you, Thank and and ladies welcome Sanmina’s to Good fiscal gentlemen XXXX quarter full-year earnings fourth afternoon, and call. the website A copy discussion sanmina.com our today’s slides and section. in at of our are press available release Investor Relations for on

Jure Joining Chairman Executive and Sola, me call Chief today's on is Officer.

Jure Sola

Good afternoon.

Paige Melching

Adzema, Executive Officer. and Chief President Kurt And Financial Vice

Kurt Adzema

afternoon. Good

Paige Melching

today’s be the webcasted and being discuss quarter, available we is our for Before let me and will call the results remind on website. everyone that recorded,

the press along slides turn follow You Harbor with website. of remarks and statement. on our Please provided can to the prepared our presentation release, X slide or the Safe

such the The During regarding are Company’s or The earnings results we section and future as Exchange otherwise earnings alter our made a may the under this otherwise, performance of by obligation conference as just call, could such this the the actual from factors result the those of Company’s result a differ is or statements projections reports number Commission. Relations new update that any annual unless to required future in forth these Company financial conference of and We disclaims or events projections any of to forward-looking or set expressly release, filed obligation the statements statements whether statements no Investor future and events the quarterly presentation, call a with Securities of or website, Company. information, in of projections. other forward-looking the materially make you in caution law.

costs, general, is restructuring compensation in integration our you costs, acquisition certain on In today October with fiscal issued also financial a and and and information. the press financial year refer slides XXXX, expense and measures in or as at amortization basis, on stated gross will provided as we the reconciliation GAAP operating the taxes, ended like unless other now Accordingly, non-GAAP turn in net unusual website. non-cash otherwise statements conference non-GAAP have make profit, margin, as GAAP income provided share, quarter posted information our we results. items. statement this You our for will note release we release and call slides non-GAAP call between infrequent press of and information XX, non-GAAP stock-based the would A excludes to financial per well operations comments when I and the referring this call Any expense, be directed it earnings non-GAAP our gross income, to Jure. margin, relates over operating income to we’re to information. our on that to

Jure Sola

Thanks, all Paige. for welcome afternoon, with us and you and Thank ladies again. today. here gentlemen, being Good

our year challenging proud have a leadership this Paige? of strong we am all but our I that team -- a First think employees fiscal challenges, year, the and I our fourth all of results Despite 'XX. accomplished very in these all, delivered also, for year XXth is was just quarter. we or for they XXth The So, right, the a accomplished lot. finished this important, we year, most

Kurt. turn open of results future the For results agenda, Then, will financial with the I'll and with I goals. now, up call review Kurt I this Sanmina's and over comments have answers. details I follow Kurt about question additional will our will and And you. for to

Kurt Adzema

Jure. Thanks,

improved in again deferred of on capacity, to up from and generation. product July. other compensation evident primarily outlook of non-GAAP operating X.X% of and with million, billion, the our X.XXX a gain gross very favorable continued macroeconomic X.X%. X. approximately $X.XX QX X.XX This primarily efficiencies the environment, the million to the cash million related uncertainty to turn XX.X% on sequentially quarter. X.X relative Please QX week remained were compared approximately provided and existing our to result was focus of these report manufacturing was to to leveraging in business, COVID-XX stock $X.X focused improvement and results. were margin continuous associated a to a of management's mix. a in the higher QX. expenses financial the with were relative I'm $X.X of primarily to the of exceeded of the QX and and we Given slide efforts X.X% market pleased challenges result approximately X.X%. revenue to and levels impact optimization driving as we was the non-GAAP billion improved also QX of This extra our non-GAAP the of in result QX. in a QX appreciation gain assets, higher revenue QX, due margins X.X higher operating of as QX other assets $XX.X of to non-GAAP from expenses once

EPS to the on they equally deferred manufacturing no with have in related expenses. operating increases losses decreases or net gains reminder, offset a compensation as as or corresponding and are Just impact

non-GAAP result on report driving and higher efficiencies provided fully $X.XX management's improved to revenue levels. of of $X.XX to Finally, $X.XX from back our diluted in $X.XX, this outlook focus to QX EPS pleased prior And I'm to July. exceeded as a

slide to X. turn please Now

X.X% X.X%, were FYXX, improved details comparisons, FYXX COVID comparison in environment. billion in management's of related to the by see FYXX fiscal operating X.X% as Non-GAAP relative to Here, improved gross due margin of to FYXX. actions compared margin drive billion and X.X%. impact to efficiencies. associated Non-GAAP the from in macroeconomic primarily XXXX QX driven from the in well to as to the revenues $X FYXX, to a $X.X primarily you can

actions compared Finally, primarily in share a due to this $X.XX of management's revenue drive Again, non-GAAP by offset COVID, to is efficiencies. was levels FYXX. in per earnings $X.XX FYXX, result partially lower to

and and XX.X%. margin Also from revenues please Now, IMS non-GAAP to gross slide products services IMS XX% turn grew approximately X% could XX% to revenue components and X% for gross if X. from improved approximately you to grew margins improved X.X%. non-GAAP

to and well as the turn can you see as we in non-GAAP our improved of slide EPS financial margins quarter. you Again, X, results. operating quarterly progression the gross fourth delivered improved If margins

a were turn to slide we Please of end with turn despite you slide here QX. improved slide operating and associated at Again, macroeconomic balance strong. our the sheet delivered in the to If $XXX the environment. XX. and This non-GAAP remain challenges shows our Again, equivalents to FYXX, COVID million annual of results. financial margins continues you'll cash progression see Cash approximately XX.

-- we approximate During revolver. the the $XXX quarter, million remaining million paid our off on $XXX

back given the drew we million March, QX never uncertainty $XXX our reminder, on The matures of we was XXXX. the cash, cash strong the million internal COVID-XX. Please $XXX needed Again, to of around slide turn balance at as million. in a Just term down loan XX. revolver loan This use given subsequently November end generation. of our any our to $XXX in that

Here you our can we approximately low we us. $X.X maintain the billion of debt have of to see and available ratio a availability liquidity continue to under cash Between revolver, to cash X.X.

X.X $XX Again, flow. to capital quarter. XX.X. $XX focus generation million cash If see turns and you XX.X% cash you'll improved million to Non-GAAP turn to and days again cash our free the XX. $XX and slide to cash pre-tax on to on approximately slide approximately In were inventory Cash million; operations continues invested off. XX.X%. down of return XX, Please of from inventory during improved pay cycle generated QX, strong turn from approximately we was

fiscal $XXX free million full cash $XXX the from of For operations year, we flow. of million cash generated and approximately

reinvest continue the we Over in cash the our of XX% to capital five expenditures. years, on past spending about business, utilization

years, five debt past our used repayment share the utilization cash we've over of XX% repurchases. addition, In approximately and on

For we repurchases. FYXX XX% expenditures debt spent of on XX% and on capital share in repayments cash particular, and utilization our

continue will the for our business use closely the the to manage We shareholders. of betterment and cash for of

capital please disciplined takes turn and existing on XX. very our to leveraging to manufacturing Sanmina a capacity. focuses expenditures Now, slide approach

QX, During expenditures. million net capital $XX.X spent we on

For the Please million. spent year, $XX fiscal to full XX. we slide turn approximately

repurchased average of million we shares million at approximately $XX approximately X QX, for an price $XX.XX. During

$XXX share our the structure. average the approximately authorization repurchased we'll current remaining million for million as we of our fiscal take under of approach optimize $XX.XX. year, end approximately repurchases we at million capital had approximately program. continue X.X For At an $XXX opportunistic price QX, approximately full of to an we shares to Again,

first if the The you the macroeconomic bit evolve. Now, turn of please and COVID-XX little quarter to slide about outlook. we'll talk XX, continue will a to impact environment

existing a management we the continuous As cash team, generation. and optimization focused capacity, improvement the manufacturing our on and of of leveraging will business, remain

As we quarter. have XX again noted be versus prior think in should it that weeks QX the the weeks will XX outlook, about

in revenues. to adjusting one all Overall will in the Our markets of be end be billion relatively our to week. stable outlook is QX for $X.X demand expected for customer $X.X for of the less after billion range

expect to be of gross million in expenses the X.X% approximately X%, to operating margins million. $XX non-GAAP to We $XX be range non-GAAP to

We expect of operating to the to non-GAAP in X% margin be X.X%. range

approximately other be We expect expenses non-GAAP $X million. to

Our XX%. to non-GAAP expected tax rate be is around

to this range We the our shares. And take XX.X you in to for approximately of is diluted count quarter $X.XX. together, per diluted $X.XX share non-GAAP be million fully expect the for non-GAAP all when outlook earnings share

expect impact with through in expenditures navigated I to million. amortization around our and closely our has capital around and team customers, the depreciation COVID-XX We be be working to $XX million, in believe, $XX and well recovery. our positioning comments. back ultimate ourselves markets Jure date, the macroeconomic we additional for for customers key to to to benefit I'll environment And the our well now, with turn it from are of

Jure Sola

Managing supporting me we're safety quarter we is and also, how I and to for you talk business Sanmina's you our about to COVID-XX. the manufacturing Kurt. Again, with continents been new to are well the are work and challenging. tell has for let our countries Thanks, the quarter, of to six are fourth employees gentlemen, for health Sanmina. global environment value that a as XX about on XXXX. business learning crisis tell outlook report our our facilities shareholder fiscal can priority well. the the doing and we at maximize doing we're doing daily. requirements environment to I that more number first we Ladies operating But, in will the year right you adapting what customer. you the one around customer And can thing

XXXX. fourth quarter Some key for highlights year fiscal and the

strong And delivered fourth Sanmina we As Kurt, mentioned, exiting EPS also, results good goal you operating By of for the financial as X.X%, up it's from margin a for quarter delivered quarter. non-GAAP fourth heard we $X.XX. the future.

good For XXXX a COVID-XX. with fiscal was challenges year, year despite

Sanmina simple, We Number safety one, lot. I of key flow. place are has improvement. internally, Number for in strong We're margin to basics. customer can things the two, continue keeping a our employees. foundation on environment. Primary it to to And our generate management call learning success. in focus a cash economic four what operate is XX. three, any Please satisfaction. it four, drives operating turn a back number slide that Number free and

revenue timing. give Overall, some outs XX.X% was continued revenue base book the and quarter positive. Book networks growth the good from and bill positive. now also markets. We more defense, for and but had year mix our of fiscal Let expand represented diversify Cloud growth. highlights environment. was basically communication revenue. the couple of business. medical, me And we domain top-XX of you XX.X% also, strong this quarter, markets we fourth solutions And for of customer automotive cross quarter, in of fourth just to in strong 'XX to majority Industrial, the was and down, delivered quarter for end customer had push to end a and good customers a our bill for some our

delivering slide better with by earned customers turn partnerships Please to have we for COVID-XX, strong our them. During performance XX.

Now, about quarter by to XXXX. the talk revenue for like you to market segments outlook I'd first

a is seeing For we stable good demand. tell the quarter, you first today, can that we're

industrial networks, defense in we're communication markets. well and these medical, For positioned

continue So, for for see industrial, stable expect stable well, we we do demand. to medical, demand. to thing and Similar

networking Automotive and are seen products, communication IP well, demand. forecasting with continues we to products stable routing, very for demand. demand. optical which what also doing today recover includes Again, are networks, stable is forecasting we’ve strong defense, For

hard mobile computing industry going Based the With is a expect about expand great we market. most more is positive well-positioned to we're base. existing we year business importantly, we with this XG good for continued nice in see looks we're For year and for and year year grow Sanmina regulated 'XX. economy in storage a XXXX still its that environment. I'm cloud high-complexity improvements. we have has very This optimistic high-end stronger pipeline our will to our heavy that customer a and fiscal and Again, new stable to environment market the company expand continuing for solution year for networks, the demand. this and between us to customer few good base includes calendar And a COVID-XX, predict leaders to and presence a and at this make we a time. mission-critical, global on the that have But be visibility fiscal come And starting for calendar customer opportunities of forecast, stronger base to year overall, as is for XXXX. are our a out 'XX of Sanmina. future. feel about comments

we’re left, Please the to As growth improvements. management quality I Back having focused and fun on doing it. now. but said work to margin earlier, slide will A XX turn of basics. of also lot be

We the business of Sanmina greater visibility businesses goal provide have Sanmina and all to value reviewing each of capabilities. The been and unlock is group.

this turn slide current XX. So, you please segments. to Sanmina On see slide,

left, integrated million see the on side, in On $XXX margin the of XX.X%. manufacturing gross fourth of and and you with of quarter the margin product $X.XX right gross was Components, services the X.X%. billion Revenue revenue solutions.

we're We services. and grow show businesses planning it. do to how grow let expect products And you in put to me focus But more all to our segments. these going we're components, to

customers, focus Sanmina's Services, So, align growth To value turn Global Modules, three planning System and best to Integrated manufacturing of we're XX. each groups. to please Product will Sanmina's Build, Enterprise. to profitability group. To our value, shareholder drive for and business maximizing Viking into group solution have deliver slide key organize with vision Optical

Under in Systems, early precision the Circuit third Precision mainly includes connector and focusing Interconnect a us, then group, For component backplanes Products. circuit on plastics. SCI us, also center. Defense that's we is technology, products basically Machining which have advanced since boards optical been a Boards, data military. product advanced for SCI which for And systems. has XXs,

And on focus to we'll our for we now, planning please So, products SCIs to military technology to is build. management. system do space realign and products, turn XX. What and are slide

have group. already take one over Two the one other So solution, are defense and each will operations these three our presidents that and one sales, them of our will for of take products. Company, SCI running inside manufacturing of I'll and individuals integrated

near midst bringing For components of technology, we are that for in job. the a individual in future

three, business margin group. structure? So, in what's leverage and one, a Number able better more this operating most believe and new Number the to better to execution. two, we Number four, in more market will leadership advantage Number be and efficient, Also, lot focus effective. each be to growth compete expansion. flexibility, and this structure to groups. each of speed business maximizing these cost

So, slide a us drive this to and foundation to management structure turn gives Please flexibility sustainable XX. solid growth. long-term

here, customers end add on the about our drive and take continue customers, to market. these customers we're well we we’ve So, key a But already. high-complexity provides priorities. technology here Sanmina profitable business revenue group. markets, to talking our to growth for of the markets, have each this care going in continue mission-critical, market and are in with that leaders today the Grow growth as leading profitable and management Sustainable to customers. been in focus

remain shareholder our for services, unlock invest our have really optimize place. capabilities, we give cash Please in do slide to advantage And regardless to and a To there's The markets. positive generate the components right business flexibility leverage value margins, flexible to we talking value. we’ve do as business us our This to In you structure. key total products. key XX. that, can We just we capital been global is will lot outlook tell structure of business ability have Sanmina's summary, model. I in on Sanmina technology, environment. Also, maximize how turn to long-term of of provide in about. that and goal our course, flow, end you to our support lean to will competitive Continue end strong of attractive advantage, and

see you over but fourth As not pretty our numbers. to came going strong, this, really good quarter, in go

year, able 'XX, cash delivered still $XXX year strong this as we’re of a margin challenging to fiscal million. but and improve For we free was flow operating a

we here? finished So, I where we go XX said, from just As of our existence. years

So -- customers we'll our we've seen us. getting this be ‘XX We year, on quarter at based But, a today. year one take is new for year good what believe a time. that from a should

to as total EPS $X.XX will uncertainties we to daily. As management, still diluted will and we continued pandemic $X.XX. have very confidence around We of our is Kurt Non-GAAP outlook of conditions of I And billion. revenue mentioned, business. have outlook in fundamentals X.X change solid, lot to a hard our $X.X work focus global value. on Sanmina's maximize the shareholder

going earlier, said this change company. is as stronger come to adopting well again, of goal I'm market to a Sanmina I out say As is and to it

ladies gentlemen, say you thank and question-and-answers. us. the for Thank to So, that lines we're all you with support you I spend now Operator, time ready now and to would again like again. your for open

Operator

of from And [Operator question with Ruplu Instructions] first Bhattacharya Bank America. is your

Ruplu Bhattacharya

Hi. delve quarter, network and strong And Jure, on the I a the see wanted you Thanks to taking communications little on for congrats deeper segment. questions. could also bit guide. into strong my if the

to You But had quite be sequentially quarter. obviously, guided you had revenues up. for good a

talk in you're side and the you about as well quarter just how about saw wireless, what you December optical as segment? the can thinking that networking maybe, in So, and

Jure Sola

Yes.

mentioned, in in have segment. diversified we a prepared my I statement, Ruplu, that As base customer

and systems new all We are products. in involved

I optical also routing, part starting are to also looks I inside the good. that And networks the look also of network that improve. if IP And looks So, XG good. that mentioned side pretty at that

see what overall, We'll forecast. So what is see how demand during mix stable, pretty on based quarter. we But see we today our goes stable. is today the

Ruplu Bhattacharya

that. second Thanks ask you on for the business, defense my want business. Maybe for to the Okay. SCI question, I

over where see with You're your this something you how on monetize president company this to a this trying separate new a as to business. and view structure grow So, something business? created thoughts the unlock you've the or your respect to business? you Is a business that that and would your for going have what's value trending thought what's to organically, you're that want In is that or separate thoughts your on you portfolio want to maybe separate business? or just as on time long-term,

Jure Sola

Yes.

we cooperate, just strong be you the positioning there's especially Sanmina of military, there's of at on we we’re look for excitement of And we're mainly successful three crisis also see go and a go a think here. we defense. a today, goal away now is three us, certainly SCI managers when grow Yes, these this SCI. everything on we're to so things, and focus this we and businesses this economy model. If into building to the lot a to really things are health work builds -- lot think, lot I but getting global And focusing our for Company, I this on around that business need volume. today. working back as turn groups, lot to basically But that's

and their as space, As defense, mainly XX-plus-percent satellites. of I think, businesses much

products own have our there. We

general -- as of involved heavily get partner there. also a contracts We

we're So, well positioned.

We business any take that We government on. really profitable. that And industry. look name military at contracts pretty name in -- can if is a you have

getting that Today, profitable can the even see I I think right investor be not don't more think, future. the our we we're valuation. in everything.

definitely results, us SCI. things more a and to look it. both to that most important, strategic We that that business, see the But, at to focused grow organically, of going lot grow trying has future, in will we create So acquisitions go. upsides. visibility help we're we'll and how some better we're SCI can are

few different be campus Huntsville. excited, down especially think, bright And in and a Ruplu, in the a We I put there, and personally really have strong I'm with players, are for in where more things beautiful environment a us. will team future we today,

Ruplu Bhattacharya

for ask mean, wanted guided you there industrial Maybe, details SCI, had Okay. for on also think improvement. the the sequential I I But, I Thanks side. that mean, I Jure. you again, XX% segment on automotive medical grew, sequentially. to defense

growth. was a or I of that things So, segment? strong you there mean, any there surprised there. pretty expected? is that I in for saw But, market Was the end did that you know growth out, markets anything had driver lot one play end outsized as how you

Jure Sola

day for Well, us. day, a and customers for first both COVID-XX, different is every of all, with our

did we're do I of medical adopted medical, as and that orders we flexibility a orders able helping were that. think, both customers. really to really management meet enough the a demand product positioned from product, they job the we it last We there, in able customer quarter defense we're help and critical our really side, including -- and in our in our markets, created well just to for extra those needed. terrific When to fill to customers COVID fill a to our comes

yes, if say want can numbers and anticipated call beginning executed very than our surprise, that the -- I will the we with So close maybe our well can customers be really that say that to I did. of quarter. we we team also deliver demand worked But, what to it stronger you

Operator

is with Suva question next Citigroup? Jim Your from

Jim Suva

how Thank I'll you want in determine and details. for very order. much you two or to ask just answer I you at same have them can questions so them the time, which the

of be looks on you cloud been make Jure, The you are It it or to time I'm and little second with in look think Company. COVID deliveries, some think strong -- it with not systems Then your of Kind respectable cloud that expect orders quite made changes the going stable. some of for and change, first it's Because it in like architectural a about? or change anything of bit results you sure. has the looks or But, the was and is I year-over-year, on time, the deferments CEO past. looked deferments And outlooks quite what's down of like these like kind to on, related. it's there is, slowdown, can the hey, question comments my the this maybe and results. stellar.

yet you So, come? I'm those think are we already look yet desire changes, How and wondering, to still your for about have implemented should strong? or changes the the very results change outlook

Jure Sola

good questions. two Jim,

So, first, around let answer the for me one includes computing. which our computing, cloud enterprise us

in I As prepared think, down were about last I said from statement, million X.X%, X%, Jim, my quarter. or something, $XX approximately

We which be certain have this deliver countries. some push in about out mainly with and couple timing, to was in case of customers, the able to products certain

say, So, delayed. there last because us, delay there's I year, know ship. there, XX-XX. say, if some opportunities there whole that I got enterprise, of got product at was were probably delay. I would will they But the But if don't the some COVID. I bigger it's would some look on eventually that for delayed,

just COVID was that that of dynamics of is going business us But do a will some it our couple it market for of a believe for well. and changed we that customers. Some forward,

solution, in internally, storage communication the see some we're enterprise shake say, let's cloud and is a working center, what forgot basically ourselves forward, to report we data is Because products we're out, those optical sometimes continue goes and us we're network hard business, to things opportunities together. up. going to in which combine we'll how system, it's storage good on. big We and product. networks mention, what for a going to invest got that And our Also it very -- and to going computing is figure

way So, it and based communication inputs, networks. our on call internal cloud felt best to we it’s

future. to still me that we couple us, we But at year. be to look easier it. it'll hopefully, business, you a -- committed. changes to the of I billion And in it’s able CEO business dollar we’re that. Again, should think if back So, and grow And be think, the explain to yes, for you a for

today. doing So, yes, we're good

that outside the Jim. we’re We're putting help I player I’m -- it's making, getting on changes one up, bringing the think things these to tuning focus really not the more us. better -- businesses, that

three today been just my -- I'm I So, am involved back three kind around This of upside, we what this in freedom, able more ourselves. even away, that we a of the able to us. say, in with us them it are what can and so years. personally, in ever. you have our to this do the lot we involved. that focus they've advantage. We’ve were customers. we're customers, what's hope things let's I we two a background, have of a of last And we next which very just these no our leverage. we of in I with And our didn't see, relations more just to already customers, can customers. these we two that in COVID these tell here, want can to goes would COVID, front individuals And what's see better. today, go lot -- has in think of are I and customers Because do excited But, competitive the Company quarters, I'm travel our accomplish is we segments flexibility. in relationship front and do getting is that few I But given have our we matter especially what, can to do improving that circumstances best Company, continue for improve in

So, for we're doing Thanks asking. well.

Operator

from next is Instructions] [Operator Schwab Your with Craig-Hallum. Christian question

Christian Schwab

quarter. good on another Hey. congrats Jure,

existing a of guys that you expansion opportunities. about where us helping Can is we new about strong that earlier Is or pipeline customers, you? customers talked As you are color some give new you opportunities? -- are that with seeing new

Jure Sola

good little see say will I three, some With in existing time. medical, opened both. program, demand. up -- got a with last four longer We bit years. takes sometimes customers Medical really that some we some solid I

circuit few that COVID. very our lab and last business, really and we to few Defense more. et we boards, circuit also to products stability won in the are months. in That some We printed test been demand, we've SCI adding happened six that But And then equipment, that grow. have programs especially course COVID, with during that That weak cetera. of good in have customers give customers high strong, involved what has us services. few technology we're strong, and us got for a year. continues some continues have and board we be business expect again, to And a

Christian Schwab

that And you us and the out with Great. you're guys in predominantly that the your the or is area? in that products applications the of customers large that type strength you about of customers color is then, give XG expanding dealing there, from any historically that and called can out? number networks, Just

Jure Sola

Well, we the -- out multiple overall that to on involved newer we -- and our working business radios have will network have that. XG a XG, expect we customers, that's products customers existing that building of come are few we're just customers to continue grow. that and But some here and

Christian Schwab

environment? be question, a and Can lots my changes kind into then, that, able of to do in row that us challenging just two customer great. I’m why wouldn't quarter visibility a sure, base. Okay, again, been you a exactly remind environment, And in last quarters extremely gross of sustainable in of strong with a lack margins better more visibility your of how and you've

Jure Sola

And I are comes going and able to it's on this have COVID, floor, put making in place there's still to safe and to give be where challenging. people really the I sure is systems these so a able credit all, our virus this scenario things working. the it statements, monitored. a things of people are of in in our mentioned we far. the First most be is Because lot Again, to changing. to prepared the lot continue accomplish we’re my that around of uncertainties, with that to important as around -- Because

So, we expect then, depends that our demand. customers’ to continue. course, of all And on

in demand And stable. far certain products, has so been

hard of side. there's a was Kurt. a it to of lot at we'll can XX one And expect We I'll now. stable, to days There a from work let you in. But give goes quarter turn least know that and you time. He over more from that lot at work. And be financial --

Kurt. So,

Kurt Adzema

Yes. Yes. Thanks, Jure.

lot that. time, remarks, Again, our As lot I job a doing done said operations. in environment team we improving a challenging optimizing continuously and and think, our great we're a has manufacturing in time of the a ops spent of I spending prepared

made of business we've investment lot last over also, the of the years. think, couple I in a

And leverage so, time lot infrastructure. of a spending manufacturing trying to we're the existing

we've in doing think, but those their good CapEx I ROIC. done level, a we're being things to relatively get a going where low job,

So, good I there. think job doing a we're

and candidly, leverage finally, some higher as think a of benefit quarter, I I weeks. favorable we had this and think, then XX from some mix obviously, last the result the revenue, --

margin added I continue this think So, things one on together at helped we're have those time. focus to a improvement. And we'll all us. But, taking quarter

Christian Schwab

questions. you. No Thank other Great.

Jure Sola

Okay. Thanks, Christian. Yes.

Just to more add few things.

works what we'll As to continue of let we to before lot know our and I there’s let do a continue work growth. Kurt you think, work I as margin improvements just that said, us. and we'll I want go, said for within you But the to

on safety of As I focus of customers. to care our taking our say, people, continue

we have think, a lot of opportunities. I

That's focus. and more We continue the business. to it profitable will expand develop to

next, say results. we So about doing business, is mix all next months can how we this so our of sustainable let's to the to improve and say year or whatever do continue next that we really -- deliver months nine six six predictable

commitment some have and that to we’re have work a you hard fun. going So,

want with please us So, call. Thank you very I to more give any you much. And if you much. questions, that, thank a have very

Kurt Adzema

you. Thank

Jure Sola

Bye-bye.

Operator

you call. today's participating. concludes conference this gentlemen, and Ladies for Thank

now disconnect. may You

Sanmina (SANM) 10 Nov 202020 Q4 Earnings call transcript