SANM - Earnings call transcript Q3 2022

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Operator

Good day, and welcome to the Sanmina Corporation Third Quarter Fiscal 2022 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Paige Melching, Senior Vice President of Investor Communications. ahead. go Please,

Paige Melching

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

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

Jure Sola

Good afternoon.

Paige Melching

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

Kurt Adzema

afternoon. Good

Paige Melching

available recorded today's our our be we let that being remarks, with on everyone prepared call begin and webcasted and Before remind me is will website.

can along with our slide You provided or harbor remarks on our to safe the of prepared turn statement. slides follow and press release our our website. three presentation Please

gross and in unless any of today, website, company issued the such otherwise, obligation alter no those law. performance filed such projections from disclaims information forward-looking required and a the expressly projections. costs, these also financial integration the During materially statements slides or otherwise other or whether reports is A quarterly sorry, number you on make press slides financial or at differ any July net regarding to Securities infrequent on non-GAAP The unless actual or factors our costs, as information of amortization forward-looking to gross of to information. the measures Accordingly, this income, provided referring in section statements as we quarter company's The We reconciliation non-GAAP relate company's set they events our is non-cash on certain in otherwise excludes by statement statements per update release website. of Relations a non-GAAP in financial and events could expense, projected our the you the forth or non-stock when stock-based the we're GAAP directed of would statements financial or Jure profit, our caution margin, unusual XXXX, as new the non-GAAP obligation now in information to a I information. of are we and will conference call, Exchange conference company. acquisition with stated operating between may turn basis, future result provided margin, general, we this just a and that under result to Commission. with to Included earnings call operating make in or results taxes, future comments results. future the we be our the non-GAAP and have as our annual press statements, the share, like release, refer the Investor well call GAAP to income call, other release and operations Any this items. made X, presentation, call earnings of conference as for over Sola. In compensation income -- this posted and restructuring and expense the ended earnings

Jure Sola

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

team China our employees like opportunity operations. this our successfully COVID I leadership navigating for would First, recognize challenges to constraints Sanmina material take to in around managing around and and

consistent So for results thank you strong quarter. you delivering to team, and the Sanmina's for third

it Let's keep up.

will review I answers. Sanmina's and Kurt For future goals. of results for follow about have with the details our to open for and CFO, our comments results agenda I additional Kurt, question up we will you. and Then

call Kurt. over to this I'd you to like turn Now,

Kurt Adzema

generation. is range in higher This product X.X% mix. to revenues X% outlook gross margins as and primarily margin approximately quarter, and substantially grew of prior quarter to compared more to of as X.X% the excellent gross Non-GAAP margin compared by In due help by improved favorable to delivering well Thanks $X.XXX exceeded Jure. grew prior Please $X.XX in and of slide prior approximately per X.X% turn a cash $X.XX. QX to job exceeded third fully primarily the due $X.XX diluted our revenue share challenges. the profit an team, quarter, demand coordination quarter. the the the by once to compared material operating and and with did primarily $X.XX Non-GAAP outstanding upper-end X.X% customer expense to was quarter to X. due in earnings revenue again This prior the our to and was growth billion leverage. of improved high-end Non-GAAP $X.XX suppliers significantly mitigate of to XX.X% billion strong customers outlook operating the $X.XX to from billion. $X.XXX and to strong

Finally, X. fully share slide of QX results. diluted was GAAP $X.XX. Please to This turn earnings quarterly per financial the shows our slide trends

supply delivered constraints. chain over consistent for two X% exceeded margins performance COVID We nine quarters. with financial associated consecutive despite the gross have Non-GAAP the the last years, last the have and challenges

In higher addition, operating have non-GAAP been or seven eight the of X% quarters. last margins for

X. turn our and This customers over primarily to due to is team, to prior increase these $X.XXX revenue customer strong the chain help supply suppliers mitigate and operations increased in coordination an conjunction QX and the to Products primarily significantly compared improved quarter. please slide Now Non-GAAP by material was challenges. Components for the gross demand billion, IMS for with Non-GAAP X.X% XX.X%. to X.X% CPS revenue excellent million. at more revenue margin mix. a grew to product prior quarter, to margin to higher in flat and and due Services relatively X% $XXX of favorable IMS gross levels

Now please slide turn X. to

company. balance cash were generation Cash we availability and debt $XXX Between free flow cash our us end and million. $X.X a a million. the strong to Cash was revolver QX. for provides sheet borrowings healthy $XX operations $XXX under no was our and flow under be liquidity. have in billion There cash million which Cash of or of advantage continued at revolver the was have other equivalents competitive approximately very the We facilities QX. from

Our shareholders. and to and to company it generation balance flow sheet strong allows capital as repurchases continue returns opportunistic, to cash the be shares

X.X quarter, million third the the had remaining shares through QX the the repurchase million QX, approximately year end we the total approximately end of At $XXX shares. fiscal of share of During million authorization. for we to X.X bringing repurchased

Now improve cycle please Non-GAAP approximately turn continued working days. to steady Slide X. manage at able Despite levels remained the we XX.X%. higher were cash inventory, relatively ROIC XX such pre-tax to to to that of capital days

Slide Now please turn to XX.

outlook chain talk strong, remains QX. demand to but continues Overall, about Let's challenges. supply the customer be for there

billion the $X.XX for to QX revenue of in quarter. range We expect be the to billion $X.XX

in in X.X% of X.X% in to product $XX X.X%. on of range mix; X% to non-GAAP and gross $XX non-GAAP operating margins the to depending non-GAAP expect expenses of margin the million range million; operating We the range

have $XX other share XX% non-GAAP non-GAAP of approximately count QX XX.X%, XXXX the revenue per of and be over range over outlook fiscal note our would compared for $X increased consider of midpoint to fully our this EPS, diluted approximately to $X.XX to When FY XXXX non-GAAP is the $X.XX. expect both We for achieve compared XX% to non-GAAP XXXX. will all will increased fiscal million have approximately to revenue expected in non-GAAP of expenses of if fiscal XXXX outlook for of EPS and I QX we guidance, diluted share million, you rate $X tax million. earnings non-GAAP our

to -- QX to be We growth support expect $XX million new QX future of approximately programs by CapEx driven growth. and

of around strong We demand across expect summary, base. depreciation In $XX million. remains our customer

I'll deliver continue business confident over model to strong to operating the expect turn over We company and with back in cash flow that, to generation And the call are leverage and our Jure. time.

Jure Sola

Kurt. little the quarter. fourth bit Ladies and about quarter about you, talk a how is let for me few make comments the Thank outlook for more environment gentlemen, and I'll Sanmina business in future. positioned third a the

build a excellent X% in outstanding requirements also and cycle operational XX-plus we you nice results. strong year-over-year Key that tell as continue in organization short working we're industry-leading was Sanmina from critical Through we were: customers approximately advantage closely the suppliers. we all creating Kurt, third strong by and for in our chain Performance approximately by driven time. we you a saw quarter-over-quarter done is I supply Overall, competitive components delivering markets. flexibility drivers to And the improvements quarter. right quarter and delivered job, to capabilities, third able operational still of our execution challenging, had broad-based As growth flexibility growth our customers. products has by our to Sanmina differentiate operational Lead with from deliver some of execution, the but growth team, growth, times for can percent. great to was organic the heard our excellent demand consistent nice by our semi delivered our customers. end and

please Slide to turn Now XX.

for highlights some you third end our quarter revenue give by me markets. Let the of

you customers saw XX% segment, these was Medical, can XX.X% revenue. X.X% cloud quarter-over-quarter, Defense continue XX.X% was win X% up this of programs. XX%. approximately our Medical, grew by of Growth a strength this of in XX% was a growth Communication systems, segments of networks market As was year-over-year all see to we XG Industrial, is networks see approximately diversify, will optical quarter-over-quarter. strong driven revenue. Automotive. and as see This grew Industrial, and our cloud nice markets. segment nicely these in grew were We of to Growth infrastructure, our growth, This demand which Automotive efforts segment XX infrastructure. top year-over-year Defense and on revenue. and and result slide, new our by We across key driven

about Let bookings. me more tell you

solid quarter pipeline opportunities X.XX:X. tell third can backlog. and that bookings, solid. overall, demand The And is I strong Book-to-bill strong. XX. Please have the also new turn you we be continue to Slide of to was

about and fourth outlook see segments. across demand, market market segments fourth Now, end quarter. has revenue healthy a the for Sanmina beyond. let's all backlog We by for quarter the strong talk a

project wins, are the driving growth. New

we will XG driven optical our infrastructure supply cloud networking storage expect be from We're expect systems, and forecasting to material system. fourth minus, cloud revenue communication to and quarter enterprise plus We constraints. XX% networks, and networks continue, manage successfully the constraints around markets, by and

All this in expect to Automotive Industrial, fourth the direction. for Medical, move We're Defense from in the quarter right be and of move that of these direction. revenue to segments, will the Again, we in expect we segment, right markets. forecasting approximately XX%, also

see, Sanmina As can does serve consumer not you markets.

on regulated turn focus to mission-critical, Slide heavy high-complexity, markets. Please XX. is Our

strong $X.X see quarter, to fourth For backlog we forecasting approximately $X.XX are and nice billion billion revenue. for we again,

revenue We growth to around expect also for XX-plus be percent. year, the

to non-GAAP For EPS is for the growth year, And outlook approximately XX-plus of $X.XX $X.XX. non-GAAP percent. we EPS expect

was pretty I a way conclude, So good the would this Sanmina. for year

for you growth and me talk our to year about let 'XX fiscal Now beyond.

just to an Let's talk potential have you know this I and I I'm and through this but recession. how on want not everybody's inflation foundation do environment. manage mind, strong experience I remind is of about to but economist,

already. recession economic As environment. we all already well here point is are any we know under positioned the Sanmina a view, may inflation is assumption management important, of recession for On Sanmina's running the Most here, is Sanmina here. be

we the beyond. XXXX On the Sanmina's positive side, are about fiscal year for and excited future

consistent of focusing growth challenges the partnerships We on evident We customer focus have invest will which the focus products. in And things by quality that flow is despite on We been term earnings. quarterly profitable on are on in consistency value cash of right and and We of that to our the yearly we building and is on quality focus short to macroeconomic control, long margin which term. shareholder focus the expansion. we of focused backdrop. on maximizing the continue that high-complexity us gives our and our drive base, future growth results, opportunity earnings,

expect we year a is XXXX, to XXXX. position. improvement fiscal fiscal For over great Sanmina nice see in

and strong a base to Sanmina strong our expect markets customer to balance we continue regulated has flow. we can as have will high-complexity markets a and and end diversify heavily generate We we cash grow. to well-diversified continue sheet in

our forecasts We are customers. going into from backlog strong and with key fiscal strong year XXXX

to opportunities exciting. the drive pipeline and will projects continue new of growth New is

We we're expanding for profitable automotive. of future 'XX focus the that expanding and markets by engineering believe key projects into positioned wins some we will continue fiscal that continue you in defense we're Overall, new here. solutions components, these focused fair in and our energy, to Let and drive markets. we products the more successful key making amount really focused been support to growth. integrated and R&D, Industrial alternative that for of on we such on well In services. we year are great beyond. some more position a me In and us how We're the expand. we about leading-edge have to for manufacturing capabilities and tell have us; strong from are and and as providing to medical, technologies Communication opportunities position, front investment Cloud opportunities a so industry-leading technical great are Infrastructure, advanced believe

All markets in Sanmina lot of to growth that are XX. can tell model. these Also, year business leverage I has fiscal translating Please slide our opportunities in XXXX. a and these expansion key for in still margin turn Sanmina to you of

cash Third our quarter approximately XX.X% year-over-year approximately $X.XX margin was XX% for flow. by billion by points. good we X.X% XX by and sequentially sequentially exceeding exceeding $X.X quarter of EPS expanding of Revenue of generated X.X% free Non-GAAP us. and and operating basis year-over-year. XX.X% diluted a Non-GAAP outlook strong outlook

as remains demand quarter fourth the we said. For strong

chain We're by be tell constraints of $X.XX billion billion excellent and and backlog, revenue is manage strong through you, a we we'll through solid environment. Sanmina $X.XX $X.XX can We to EPS $X.XX. and dynamic pretty continue supply this are to forecasting this work in non-GAAP diluted well-positioned supported well. I managing to to shape

to to open you Operator, would now and and like lines the you for for time we're support. questions Now gentlemen, all thank Thank ladies and ready answers. I all. your

Operator

Thank you.

with We question first session. begin go the will our America. Instructions] Ruplu [Operator Bank come will Bhattacharya from now And of ahead. Please question-and-answer

Jure Sola

Hi, Ruplu.

Ruplu Bhattacharya

the of strength my us strength you optical networking one of one the was in terms the how look as into the end Hi. Hi, saw question. do versus to one I'd end market. you in the Which out then Can fourth Maybe you Jure. the playing help you like these wireless you for Which was order versus communications Thank And in the XG? for strongest? ask rank that quarter quarter weaker? markets? see taking relative in fourth first

Jure Sola

Yes.

us we're I position. a I in mentioned As for segment think good is that

I think a involved leading-edge we're technology. lot in of the

In was networking very networking components both part go you as networking know would parts of that us in for the quarter very and was the expect segments grew part say with nicely that we Optical was thing. all So optical continue that's us. those It quarter. I a there's the strong. We optical for do strong. XG also a good three and same it good to to

Ruplu Bhattacharya

the And fourth quarter so well? you continue expect to as that into strength

Jure Sola

could we part. a lot Well more we if that we still -- shipped have have

parts challenged still we're that need. So to get the we all

continue to as for get been what we've to it. looking expect we are doing We

As bit a I I think said things are getting little better.

good So hopefully we'll to get more parts. But we're continue. in position a

We have very there. strong shipments

Ruplu Bhattacharya

Okay.

Let me this. ask you

XXXX quarter fiscal of half the of we compares look look March have compares year-on-year the we half But when you're XXXX the quarter revenue much September side. second at at -- guiding those they revenue quarter tougher. easier quarters had The year-on-year and the when and the June that on first the much December become the quarter

need And revenue to how do us on we first versus that XXXX? think puts the year-on-year half takes your half XXXX What in growth give of keep about half first of first So you can you thoughts are of and XXXX? the mind?

Jure Sola

Yes.

think we I pretty today. is going to of be XXXX solid see what first for half us

earlier As more But there. make expect my in we don't that percentages be we than to year us. I prepared -- XXXX. and also What than XXXX XXXX in Ruplu, absolute I I stronger definitely in out XXXX statement, definitely said to to give did want money grow for more mean to a expect to by what in dollars, in we did we

a very expect solid So to have year. we

a in is company position. our great think I

aggressive. been what capacity. because aggressive to that very new this we we're required and We've environment that's to brake. going some we and why do, one technology some the are by we expand one we've pedal got are got foot to We very some but in that's the expanding not another -- are expanding, of bring opportunities We're won. already In new customers, that the on our on

have take good to expect year, you one -- at So time. That's but but know I can I a we and we'll tell all a year. a quarter have we'll good

Ruplu Bhattacharya

at Kurt. If like have year-on-year. look Okay. couple we XX% it for inventory up XX% and inventory looks grew I like it's sequentially a

you're quarters, about conversion So inventory How of quarters? cycle of next think trending over we the cash growth? the free how cash given just couple couple forecasting see you should next revenue flow do and over

Kurt Adzema

Yes.

as we that have haven't some in So would prior we've or hand. constraints has on in said semiconductor when I the on mean, why that gone these buying as of calls, that the hopes main up inventory And expected, is reason in we therefore, been they still inventory other come parts constrained parts. get we've

I I and as then is of quarter to level out, but depend on become grow would to variables bunch in probably to and my So a candidly would manageable think back be a of for inventory still it start predict. but decline hope more play off quarter to bit in normalized turns. two inventory next little I constraints the we're the higher or expectation would will more high say, to will a of perhaps that supply or are that bit the a ultimately that that how another inventory, terms But two, in hard expect little more inventory get

Ruplu Bhattacharya

of looks revenues. What maybe CPS last you bps And can like like segment one, XX ask I my sequentially for margins were on segment? in it. takes Got puts and the looks declined the gross some higher that

Kurt Adzema

mix. product just really That's Yes.

bunch is and of know different businesses you Services. of a that Components As Products made segment up

as there's resolved. those leverage especially margins mentioned, segment, -- that So mix in slightly of we the grew, as we over a increase some lot operating I expect time, constraints supply segment. even Jure these to believe so still think was different We revenue in that quarter. that the though just mix of expect the And

Jure Sola

can I if If is we to I look to in add positioned where go last work of we The couple years. at are lot level. next a today, Yes. of company think, you the did that, the to

I lot services critical products think opportunities. a a of of have components lot and

on and believe can delivered this better we more there what a quarter. we lot both segment satisfied our room also IMS. we do with that than there's think We So not on margins. We're

Ruplu Bhattacharya

all it. the Okay. Thanks for details. Appreciate

Operator

will Jim go Citigroup. question ahead. next Please come Our Suva with from

Jim Suva

could of Both profitability stay on it getting shipping to operating costs of Or bit levels? to evening. the meet impressive component little these little bit just maybe you dive Good how and due comment I sustainability they into a Thanks. the customers? Is a at to margins Very margins. here. higher high it is the expedited think of you're and impressive you kind are. want structurally extra operating of

Jure Sola

Well, and Jim, with the let me over that expert, my it start turn here. to I'll CFO

First we margin we to X% of operating. drive should our think -- all, minimum X% be

did As the we up. over keeping year, said then at and beginning get want we the now X% we to which it of

So but end we'll X% goal. be somewhere, to that's we okay? to be in want the of to the X% high that, the So

of daily are on not what's think that parts our basis, off. getting happening parts improvements these making not -- a the lot paying today. Because that good I we're efficiencies are

the We up. expect our as efficiency is to constraint improve

to margin really expect we up. So drive the

They the lot also are in projects margins bring to better We up. drive Jim. a

goals but the higher we we to get, a take direction. it's quarter. delivered So, But this us right a move year what in we to to want got what get we going than

Kurt Adzema

gross it's improved combination margin combination roughly Yes. Jim, points. higher a That mean I revenue. by a of XX things. was couple say, a basis obviously, of I'd of

I leverage more then, as materials we efficient $XX operating candidly successful throughout So pointed mix. Obviously, the evenly Jure get there's think million. see should And and receive we down, think gross around model takes, stable the improve also in or bit done the again, up that chain to to different as been OpEx we more -- every million past leverage the we And be but and favorable -- we've supply on keep as we've and able gets more we quarter, further we're puts got margins. product out, $XX-and-change when think we there. But expect to leverage, better and time. a in more over is quarter the keeping trying little I

So and there's Jure of due multiple margins it variability resulted the higher we and was revenue leverage think, times, on mix in revenue model. the But that be operating as always quarter-to-quarter. really said better better five-five. then higher There's leverage relatively some going continued OpEx that in to and has flat a to combination

these as, supply inefficiencies linearity things. continue And able to should revenue the say improve of we a chain, caused lack to so grows be and I'll some of inside of by quarter, as

Jim Suva

about to you And about current my the think follow-up, there should that want that, uses we then business. cash of into? in cash of fund kind as flow? you footprint. beyond of have geographic know think best Are the Or I should you're uses a global your flow? should think how we footprint? we Obviously, or any that how get cash But use of with to areas, uses How comfortable future? could about you

Jure Sola

right. All

and some of growth of talk Jim, capabilities expansion to -- it next believe me in view. of Kurt technology months margins. to and and last planning tune more expansion have in from in the That's to did I’ll of focus. the okay? unique turn we is execution we're it to then years, in on this probably focus going want high-complexity the point than we XX invest We're that think market Most advantage that XX, to area a we up. will couple drive what Let I investment both this niche going we really competitive margin

think it's that's So, this be there. X% first the so model margin. operating business change this I anymore back question. really capabilities acceptable in at to your And to -- on we're to the going business, don't We're adding

consistently X% and X%. to I the needs it hopefully high to think the end on move in of up X%

our Kurt? that's But So, step. next

Kurt Adzema

on. that Jure but result our customer is expanding our also as part organic I we new Yes. relations, of take said I to is not capabilities And a as only to continue programs think existing of our that growth and mean priority add growth. to organic

I we're think, with our happy in geographic general, very footprint.

existing footprints of won't to one broadest that in continue to geographic industry. doesn't But have expand sites additional on the We growth. the take mean we

So, I growth. priority will our number has and always be one think been organic

quarter. pay to approximately $X million down debt, our continue We a

back So, done that. then seen we've you've shares. bought And opportunistically as we've

priorities. We above are of organic like going a everything But our clearly we're invest else. opportunity feel growth business those growth. So, profitable and to there's this continue lot in this to to business drive in

Jim Suva

Thank details. you much the so for

Jure Sola

Jim. Thanks

Operator

Christian Our next with come question will Schwab from Craig-Hallum Capital Group. Please ahead. go

Christian Schwab

on execution guys quarter a another I congratulations questions quick just Hey great of of couple and have guidance. Jure.

company you're does already how quantification we're And With can and mindset You're fiscal and clarity optimistic, of like you that about Is year us growth could you in for the XXXX. talk sounds running it in over of if the very backlog? put around many a XXXX continuation bookings for topline visibility revenue that any there that extend? us? as a recession, quarters further to

Jure Sola

demand. statement, mentioned I demand as prepared I a our Yes. strong in today mean the see we

backlog. have We strong a

Our didn't up have customers the a be if mean in about of pipeline shortages, hurt shortage wins lot are coming has optimistic we the strong still are really shipped got shipping us. I the well-positioned. We've have we that And should more. new could XXXX. that a future. We're

these I have some drive. new that as gets think of programs to should -- we continue resolved we that So,

dollars, more think do doing to going more what this we What that did today. do position a that today we're than is optimistic in we for see know is that make in we're we're than we absolute think to But year we be money year. So, because a Christian definitely XXXX we're to I us. internally more can going we solid

it's you When tune internally. have a -- nature running on of that basis. is tuning I constantly daily say this up you here, we're like to So, recession we're business things a

listening point about and be it's companies that I and and there. and And are in the now. extra money execute a customers, They're right thing the to executing. for it huge all in will bit better takes. customer model So, customers, think right expanding our doing Products, able Components, direction. moving view improvement Services, the That's a And the base capabilities little make making to that's your from all your right a our of

expect The think defense we in see a solid our business is next business. in is, to I four years. backlog return three, So our defense good for

will a got this and we environment, sheet. of that at a strong have the time, So margin. the continue again, lot I at to with I us one you one like one time we're day a We've And week model. at improve help in quarter see. going our good like position. I what take a opportunities But balance time. same

strictly matter this going the a what we're So lot no debt. moving happened a focusing today of We recession, had in parts. with XXXX-XXXX, lot on Today, execution we is not to of -- had and winning business.

We have a strong balance sheet.

our believe competitors. I whatever pretty well Sanmina of any with economy, against perform the happens So, will

that's us. our have to again, sure do in front we of on job a make But optimistic basis. what's why we're So we daily

Christian Schwab

already no inventory problem building because we probably why is possibly despite conviction as program reason back have we my no in a new bookings, a don't really backlog, then inventory, for feel or interpret waiting in in risk your question, a should -- reverting there's cancellations. like bunch meaningful of last And pushouts pipeline to recession, parts, Great. growth being that the of little constrained conviction any to your investors

Jure Sola

make we me The customer requirement. sure, guarantee. is per have strictly we're clear. very Let customer We buy only inventory that

a contract build is the don't not with under anything we that So customer.

clear. sure that's very make let's So,

quarter. -- And is them shipped that of our in have what by last inventory today we me, see requirements. believe we lot these a -- we driven cases, requirements customer the So, they being And for some are wish there.

in. kind that's So, of we what operating are

a Another is know, I I are not we I I mean, of thing, you consumer think market any. as our in for don't said we fraction consumer market. if as -- percent, earlier, -- Christian

lot -- through. and of that think I I the resilience leaders of there. businesses, will I but severe I'm in markets expert. a go one are we market think, a the focus So we're I But an on we think think we of other there's those type not the don't to recession in have going

Kurt Adzema

Yes.

on clarification one that point. Just

inventory So We're not as that sitting first walks the add all, shipped soon it semiconductor you in. I think finished raw is right? component of a goods building that inventory, are that that That's grows materials. to as waiting docks to get on

are cycle times short. Our really

So, subassemblies finished not it's raw goods. or really more materials

you is I end the it but second hook on shows think thing the I are say, also the confidence. driven that for end customers' at those shows Sanmina's inventory of forecast. customers' confidence, our And by customers I'd as Sanmina's inventory. say, the because the it the it shows our well, of at would the day, confidence, day, said,

So, it's confidence. I not just would say, our

think it's customers' our confidence. I

Jure Sola

good a question. That's

Christian Schwab

Yeah. That’s wonderful. Thanks, guys. That’s it.

Jure Sola

we question have for Operator, more Christian. Thanks, one please. time

Operator

you. Thank

question Soderstrom go last will ahead. Anja Please come from with Sidoti. Our

Jure Sola

Anja. Hello,

Anja Soderstrom

Thank for and congratulations my question Hi. taking quarter. exceptional on another you

Jure Sola

Thank you.

Anja Soderstrom

just that have. components you just is like holding on to back inventory what's you're I'm specific curious, it some assembly the be dependent able you to is

So of Or... Is attaining to you that what happen? do see anything in needs terms those specific there components?

Jure Sola

No, things over lot around it's been are prepared I same year. a components getting are said for in these better. of customer I is And a think statement semi. this challenges earlier

over ordered were our getting components these of some a year shares. know you We're ago. As

with closely very work we our think I customers.

challenges else we we a we're a who who's believe strength we know, strength going customer are with the managing and have well. supplier. same our that of As world. our their a the everybody pretty through around lot But with Between base. connections it But we you have component

continue but improvement have We now. right I probably these middle expect couple quarters I sometimes shortages of If get think will some to in XXXX I next see to of the for see we continue. think of XXXX, to

Anja Soderstrom

have of I Okay. see you just of area you one, but that pretty understand, some the recession-proof you a serve, is end-markets Then Or... any there slowdown? that last end-market sort you. Thank

Jure Sola

really. Not built parts strong percentage but we a we in the that's mean, a I are few But have position. our maybe that of those COVID, parts, some overall, small a are business. very around of

Anja Soderstrom

was for That you. all Thank great. Okay, me.

Jure Sola

this gentlemen, to we your one and That's again all. you want time. I Well, quarter In Appreciate time. for it. ladies personally a environment thank take

front of in are We excited us. what's

executing for about all it's quarter. good Now another

to to talking questions, get forward And looking We're us. Bye-bye. to much. back any please very you. you you thank that, if with have So any

Operator

Thank concluded. The attending today's for now conference has presentation. you

disconnect. now may You

Sanmina (SANM) 2 Aug 222022 Q3 Earnings call transcript