- Earnings call transcript Q4 2022

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Operator

Good afternoon, and welcome to the Sanmina Fourth Quarter and Fiscal Year 2022 Earnings Conference Call. [Operator Instructions]. I would now like to turn the conference over to Paige Melching, Senior Vice President of Investor Communications. Please go ahead.

Paige Melching

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

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

Jure Sola

Good afternoon.

Paige Melching

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

Kurt Adzema

Good afternoon.

Paige Melching

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

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

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

Jure Sola

being today. afternoon, Good with to Slide Please all welcome. Paige. X. turn and here for you ladies Thanks, gentlemen, us Thank and

Sanmina recognize leadership and doing exceptional would I an team job. take to employees like opportunity to our First, this for

Sanmina you, it strong for delivering fiscal and now XXXX, and thank team, to So fourth let's the you and quarter consistent up. results year for keep

of solid expansion our by team. strong strong delivered margin fourth focus ongoing and job growth, Sanmina's a exceptional flow, reflection For growth, our of execution revenue EPS We this in uncertainty, and these the cash quarter, Sanmina results supply strategy. a continued Despite on constraints delivered results. had broad-based are again, macroeconomic consistent we

to October Slide India, overview X. which turn Now closed let new me joint quick Please in give you our of X. on a venture

state-of-art manufacturing India the customers mission-critical excited about joint in venture world. for Sanmina our of markets We has servicing high-technology This center leading of one companies We in around technology been India. established excellence. and operating on venture are very is Reliance, XX joint with focused years.

in expertise ecosystem million future to technology focusing, capitalized fund Reliance business accelerate in growth. cash The leveraging growth strategy. to of are India is goal the over and expertise. Indian We by with Sanmina's $XXX This in venture is India manufacturing in Make

We world-class to in a build India. manufacturing and engineering, are planning technology company

Kurt So about review will will I additional and for rest our I'd for Sanmina's question-and-answers. And open of goals. the over have now to results Kurt. with like of for to Kurt? Kurt, CFO, and the up to this comments you. agenda, our we follow future details results Then turn call I

Kurt Adzema

to turn Everybody could Thanks lot, a Slide X. Jure.

of per leverage. XX% to the significantly and outlook Non-GAAP $X.XX exceeded end to to prior the of mix. $X.XX. was with and $X.XX to and margin primarily $X.XX by outlook the approximately billion challenges. earnings quarter, in X.X% product As grew in quarter, excellent to and billion substantially revenue This in expense fully profit as operating from was prior quarter the our primarily X.X% X.X% outstanding revenue to in billion. cash of as approximately prior demand share well growth to the coordination due did and the quarter material to customers quarter, $X.XX gross our primarily job QX to exceeded due an team $X.X by grew compared the operating compared X.X% of prior upper fourth by margin the of Non-GAAP $X.XX Jure X.X% strong mentioned, diluted Non-GAAP high mitigate delivering due customer compared was strong to end generation. suppliers $X.XX

Finally, diluted was fully QX GAAP $X.XX. EPS

of our Now please results. This slide X. turn to quarterly Slide the shows trends financial

X.X% constraints. the over margins chain the financial quarters. improved have supply from deliver challenges to five associated to last continue ranged gross X.X% Non-GAAP with the despite performance We

gross improvement. to operating XX% over Please a QX of In the fourth the X. in fiscal to billion, greater two the the strong X.X% grew over grew addition, or fourth to to share have last increased from suppliers XX.X% due primarily X% greater the with to turn in per IMS was 'XX margins of margin quarter the for flat Non-GAAP or challenges. Non-GAAP X.X%. mitigate margin quarters X.X% of Earnings was $X.X or quarters. customers approximately been CPS for Component and four increase demand $XXX million quarter, and $X.XX revenue non-GAAP fiscal prior last to Slide to at quarter. products revenue services excellent over quarter $X.XX customer material gross IMS and coordination 'XX, prior an X.X% help compared and in XX.X%.

to was XX.X%. please 'XX and growth a in revenue Slide $X.X year, from to XXXX a by fiscal driven billion excellence. margins $X.X 'XX, improved demand strong XX. billion Fiscal turn operational compared Now strong customer to 'XX, fiscal Fiscal Operating rate share of fiscal efficiencies. Please was to primarily in XX%. grew growth 'XX, of over to due in Slide revenue in fiscal and in X.X% $X.XX 'XX operational turn to $X.XX rate a 'XX X.X% from fiscal higher Earnings per XX.

and very sheet, $X.X $XXX availability advantage. a we us no other have debt There equivalents revolver Cash cash healthy balance our Between a provides million. under billion borrowings cash of and liquidity. QX. approximately the end facilities, competitive of at were which have We was under our and revolver outstanding

chain pre-tax term support XX.X% to Non-GAAP Inventory the remains level quarter, the In addition, maturity customer refinanced an to during our ROIC supply until at QX elevated was for shortages. XXXX. loan extend and fiscal September to demand we due 'XX.

for was flow flow flow fiscal fourth $XXX fiscal quarter in in million Cash to was turn $XXX cash 'XX. and of XX. million both Free QX for in ops strong from all the generation 'XX. million $XX during million and 'XX. please Now fiscal Cash QX $XX was and Slide

$XXX shares million. for -- approximately approximately repurchased we for the year, million. of $XX XXX,XXX authorization QX share QX, Remaining was $XXX the purchase repurchased we During shares million, million repurchase for at and end X

Our capital allocation not priorities have changed.

growth. in is, drive to organic focus the Our business primary again, investing

will transactions, you explore to share repurchases. debt In Slide opportunistically XX. we strategic addition, and please turn reduction Do

Let's talk for outlook the QX. about

be demand well challenges As there strong, as and Jure the overall to said, related supply uncertainty but chain environment. is as political to macroeconomic continues

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

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

reflects other of about by income fourth This investment $XXX joint in to quarter. We which the closed approximate the Indian expenses end expect million interest total Reliance of benefit our related interest and million venture, non-GAAP of of subsequent the the $X million. $XX to

estimate addition, interest million equity In an we non-cash net the in the income Indian approximate reduction of JV our to $X.X to income partner's JV. net reflect

diluted our the outlook $X.XX. XX fully We range expect for all this is rate of approximately When share of per you guidance, non-GAAP million XX.X% of share non-GAAP diluted approximately tax earnings count in to a consider and $X.XX non-GAAP shares.

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

in $XX base. depreciation deliver and confident time. QX to turn leverage In our the strong strong across expect I'll to We over of demand continue our business around summary, back the now expect million. customer operating model remains Jure. call company to We're

Jure Sola

let Thanks, our I fiscal the you the highlights for and review end and fourth 'XX. Kurt. quarter. also year add 'XX few outlook for a gentlemen, financial comments and Ladies more our about first with me will market quarter

XX.X%. fiscal exit to and $X.XX per at we improved Diluted Kurt, to $X.XX were quarter earnings Operating We delivered exit the results fourth consistent billion. and quarter at we and As share. of heard grew fourth year did Revenue $X.XX you of EPS nicely did grew for strong per X.X%, from XX.X% nicely that income X.X%. 'XX. the of share

growth outstanding continue Slide to all of XX. into translating industry-leading has for turn capabilities. Sanmina and this Please as to job an done Sanmina. is margin expansion Our And we our team differentiate

Let end revenue me about markets. talk the to quarter you fourth now by for

billion and X.X%. was revenue and was growth For was XX.X%. Cloud our of Industrial, Automotive, Communication $XXX of grew quarter-over-quarter Networks Infrastructure million, and $X.XXX quarter-over-quarter at that Medical

Medical, to Networks XX.X% for of Communication for growth And revenue For saw $X.XXX we year billion. grew of and Defense Automotive, the XX.X% a $X.X and nice year. the Industrial, billion

our continue successfully. diversify We end market to

'XX XX.X% demand future. 'XX solid be Overall, the our year fiscal were to of strong year to XX. For XX Book-to-bill for backlog fiscal strong customers X.XX:X. Slide turn revenue. for top and Please was continued

about me you the we competitive advantages to that in talk Now serve. markets let

Some our of key company. our Sanmina around customer the in is is differentiators, a build Sanmina culture. it customer-centric needs, is

the with industry-leading But servicing regional our and chain global strong equipment through system. This provide vertical customers that and IT Sanmina and smart and is resiliency partner expertise We and deep important performance. on real ability global Supply critical this scale. complex, customers standardized Slide led predictable entire deliver We a most advantage. embedded managed technical from end-to-end. our on this focused turn We engineering And consistent is system market cycle. has single to is customers. product XX. globally, integration superior design copy management. chain by and manufacturing Sanmina processes a simplification partner globally are supply performance We mission-critical products global globally. our customers at manufacturing life all our We time. structure exact. use delivers one is is Sanmina standardized to Please by gives our

of base in customer Now let me Sanmina has a heavy you give market. well-diversified highlights Sanmina's some markets. a focus regulated

expand We all provide technology expect that greater capabilities We to end competitive a technical these markets. us advantage require leadership markets to through to these continue markets. win gives of in our that mission-critical

optical capital industrial an test equipment, energy, safety of security semiconductor management, x-ray equipment, and equipment, smart we markets, industrial inspection and For renewable focus grid area public equipment. measurement,

a market full see, of for are this components stage technology higher so is diversified is This in initiatives We're this with customer Please industrial at to us. market. government as manufacturing. we Why regional As growing And established globally. the local diverse we we're turn also a excited? build to leverage you base systems here. We'll for We still, market well continue working early and Slide long-term market XX. outsourcing. to Sanmina's the can grow

industry established for therapeutics, delivery markets, we MRI, such services medical Why industry. exports in equipment, scan on surgical that in we over market. XX areas as this are The and laboratory industry is medical we established years. this For providing well equipment, diagnostic equipment biotech, to imaging, CT excited are The we medical critical focus -- system. monitoring this patient

industry. at see scale. established this outsourcing allowed and large opportunity medical processes, us that the has We in significant to registration certification continue globally to Sanmina lead

also in base market. We learned long-term this have customer

XX. Now to please turn Slide

Technology serve in defense for brand. brands and Let through been me We've market. Sanmina market under about Sanmina's is defense over important, SCI Components products We talk business for XX segment. Aerospace this proven and Defense to in our you have industry. divisions this results the Group. years through in most And and aerospace market we this well-recognized

system systems, aerial systems, market. This service full product design offering systems from we're earned is certifications. satellite which defense base. aircraft communications, heavy to excited? long-term tactical products, around is commercial, and areas focused to Our rigorous and both a and complexity, a unmet cycle, components benefit in These customer projects clearance others. we high and Sanmina market, EMS long provide this security have and regulated us. Why We

We have place. industry-leading structure in

we As we market, early lot we growth. have we look that believe and believe the won market. we is will the an programs product a in outsourcing market of This the at new drive of this upside stage

please to XX. Slide Now turn

Let's XX established We start -- growth charging us, focus motor focusing electronics more a now systems, on electronic an is but systems, see for basically technologies about to excited? vehicle, power LIDAR in we -- EV automotive market systems, radar in we growth cars. now stations We advanced stuff safety and building in infotainment. these see and automotive around in control market. are as long-term a lot Why electrical five segment. this electrical new industry unlimited years, going into This we last is last right systems,

are nice for growth are many industry leading years. leaders, and working We the and to with expect we see we

XX. us. New programs are to the growth driving Please Slide also turn for

talk greater this industry greater us Well, and switching for base. packaging, we're mobile is infrastructure, all, excited. customer have of and expertise first Let and networks. XG storage. for a communication long-term faster we to data deep optical IP continuing, in networks bandwidths cloud Demand cloud you been market routing time need for about long area networks and me Focus why networks, and has

continue Our market this we with leverage market. leaders Sanmina's to long-term technology these key continue, as will for relationship

are networking programs in existing and a side especially New driving growth, the cloud our of business.

XX. to Now please Slide turn

the you on networks. and but project automotive,, We markets. to is quarter year regulated across market for networks to communication all for tell all, driving not the one continuing quarter. heavy me cloud first see, high consumer focus and at summary, serve can new aerospace, as does you us. let the is The talk segments for Now end demand Sanmina, I 'XX. industrial, about Sanmina are strong fiscal you markets can market defense growth first key our medical, this complexity, also In number see wins

turn things Slide chain continue first getting expect year supply But better. are and 'XX. quarter the is XX. into We constraints to calendar through news Please that good to

year future, where give and see you Let me we information beyond. to build and some We're more positioned we're Sanmina's excited fiscal today well about for 'XX on.

fiscal 'XX, year forecasts We fiscal by 'XX. driven will to new expect programs. strong and For our we customers. see nice Revenue see existing over key year improvements be growth from

to technology services. we as continue products, manufacturing see components other as our efficient well pipeline drive business, markets, defense growth business, are see working by lean in packaging Margin expansion we IMS efficiencies OpEx opportunities are the our products improving revenue our strong our optical growth a components and and diversified improves. now. And we with be Also, that to availability right in leverage we of our We structure. also driven on

to So for deliver will expect 'XX fund fiscal growth that cash 'XX, for flow beyond. strong and we year the

XX. Now please turn Slide to

Let priorities. you me to our talk about

priorities not Our have changed.

continue strategy is to leading industry. to deliver to our are continue supports that a in to invest profitable truck flexible This Our leading partnerships we continue sustainable margins us up continue revenue a long-term and environment. of lean advantage global a invest on retain We'll and regardless companies technology, talent. business competitive growth. to we customer going gives growth in most and customer focused structure have, build attractive the results. importantly, proven to in around and We're Definitely, that with needs, tune

also we special have but a we don't base, drive focus this that that in on customer customer great a industry every have day. we We

structure see the for should You and here cash beyond. key drive And 'XX continued is strong generation capital to us. from our fiscal growth optimize year to

our key and and here our 'XX, Slide capabilities. year have total of focused be more, long-term. consistent delivered We lot summary, to results. leverage model. Sanmina fiscal You unlock on for we'll of solid XX. Sanmina can The do we we that for business turn commitment In short-term value shareholder continue still a maximizing and is volume at have Please to to predictable execution,

diversify to key continue leaders. revenue with will We growth these market

EPS positioned growth. on expect navigate and comes and Again, a revenue expansion deliver We Sanmina that well build operations dynamics Sanmina flow fiscal sheet the growth in for healthy fiscal market any to 'XX has to are to and future margin fund beyond. up. continue balance strong cash year to we XXXX. should from

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

Operator

[Operator Bank will today come of question America. first with our Bhattacharya Instructions]. from And Ruplu

Ruplu Bhattacharya

Maybe if couple earnings questions question. we you ask with correctly, have then the the which the a buybacks like mean, So that right? share compares changed it with added But capital you on XX, this correct and cash it I like million share hasn't and this look said I'll it doing only for Slide at -- if Maybe, do time, priorities more Kurt, -- I'll looks on you share are out. a the looks but come laid year. spent I'm buybacks if that of the this start million, you list. $XXX math and priority to buybacks, I'll start lowest than Kurt, I flow the buybacks year, $X.XX $XXX in of And and is allocation free

sheet. other balance is cash? make trying even sense your on free to can, I'm -- if and And you you invested have flow you cash it this you maybe cash does have I think mean, good you understand of of does sustainable maybe net But share XXX% the and buybacks. if a to just in that use Or -- how of So allocation it invest of these XG organic growth. all that's opportunities, -- is do strategy

what you're flow? -- cash buybacks allocation And free if thinking about how capital to versus trying just this level understand So fiscal of 'XX? the is sustainable, in this

Kurt Adzema

Yes.

that don't mentioned, I organic the So really transactions, always last have more said market than of back reduction buy -- I the said, you in the typically debt all, it we the would funding That a each I FY 'XX opportunistically. volatility created number It's I FY have repurchases, think in other being bought we shares. the think focused I shares first if opportunity three, didn't given billion me, we I growth. on to of bought been strategic good over as allocation saw do from don't think to To we primarily share look year, three priorities do last back capital our and changed. $X.X back. 'XX,

business do more said, the of on and opportunistically year markets last our But fair our invested to continue depending the buybacks, Like we'll how and priority. is generates first did cash. that. So priority in at to that CapEx I intend our are. to this that's $XXX of so million a year, about always invest We look business, share we amount do

Ruplu Bhattacharya

it in grew Okay. of margin things Maybe another that question though been the it $XXX OpEx like essentially, million Sanmina, X%, but you helped for operating you. is The year-on-year, even one flat XX% at on than the fiscal only of 'XX, margins looks X.X%, less kept grew you good revenue And OpEx. like level. has have

-- you're if are are have are to what inflation? if growth OpEx about keep puts guiding what mean, this labor mean, And in how How you terms should the levers fiscal costs fiscal OpEx? again you I and I given 'XX of possible? growth, thinking for OpEx flat, the that's takes be given for and So year, revenue

Kurt Adzema

down. percent the But nominal mentioned go 'XX I expect Jure you would amount to flat. talking look That when leverage again, about -- I of he get stay dollar to We think that the outlook, as OpEx of expect we revenue, necessarily continue in to OpEx at OpEx. not does Yes. FY as was mean a will as

of we we overall gives have infrastructure business. larger ultimately leverage will that as to gross to have margins there Jure as much the I our think confidence And, as get expand. leverage we so a the time do well mentioned, at a fair over margin expect amount -- which line, support us

Ruplu Bhattacharya

Okay.

compared When and me we company like you of of question. outlook 'XX, they the XX% revenues the we I when fiscal I that's compares first the billion the first ask third in fourth I like to more Let at or first But because the strong Jure quarter mean guide, compares or quarter, at look right? the you tough, both the get the quarter pretty mean for that's So quarter strong this as the second can one progressively at that said quarter growth 'XX. $X.XX tougher go the year-on-year fiscal quarter, Jure, midpoint, grow year-on-year. growth. look quarter, so fiscal are year-on-year it looks second every in year. half into had XX%

that sustainable year? versus And the first fiscal quarter. about think how as rest you're So can something how should 'XX? quantify growth we there the growth? then this do we for half, of fiscal think half tell any qualitatively moderating should much or that Because you 'XX? go we way XX% rates growth Is you us the second about think the through first Is growth guiding how for

Jure Sola

definitely Yes. asked questions earlier. Ruplu, want But to will add you of -- one every to answer I let I me your Kurt the question.

a to things I smarter we buy we're said, the option value. can we volume. for to at is a to and very think balance you -- have buyer. as year at we're going us to as have a our opportunistic as we continue be maximize believe shareholder look is look the Sanmina And lot need shareholders' maximize we as sheet, maximize believe to the be you shares. great shareholder We volume. We the smarter stock key very last to And was for And and that just we how the there, know, still of strong opportunities, value. Kurt

question. your to back So

more quarter not concerned I'm about quarter about after. quarter this really next year-over-year and I'm and First growth. concerned all, of

believe Our have that we good in in visibility front position, a company good us. we a of is

market grows think comes I to industry, in as when it anybody well, believe productivity. not if resolve I of operating a And all more opportunity still Once out if do especially shortages is we're better. think shortages. for there, there just with we I lot these in us, Sanmina will

I think said But that's earlier, lot going do today. I just comparison. And we're what's not can personal happen. than we As a what don't better focus, we know to it's my doing a

you at what but If us, what we're out, the optimistic months look XX we see in very do. front can of we

Kurt Adzema

Yes. customer Ruplu, one -- I tend mentioned, mean everybody the We -- to take the like this demand demand, headlines we realize business well, quarter and is at is our read else. we strong. time, as mean Jure right? I a certainly, our

is you're just do going don't we pointed time very do a feel do in business, the this demand lot at going the some economy. and And good take the we're we here, one impact where side, we I think quarter of point. didn't that's which on but at so things about in the see we Jure the anything as broad-based strong seeing a and to do consumer out, And of customer

So...

Ruplu Bhattacharya

Yes.

buying to for follow-up have many like I low. I relatively like growth. just you're maybe I growth question Jure opportunities held, back just because things of you program. thanks buyback on -- details in and the that other shares also with organically understand all is things there. But saying. my if help. would also the the -- the thanks to mean, maybe so me have growth a thinking follow Can details I revenue the I I I'm if share inorganic mean I that But But mean for on and Let what I'd count follow-on or all understand other -- grow doing to Yuri. share terms

got from terms that a grouped to these you've quantify, it's of various together. end markets growth the end of in all are Just hard the little because markets,

segment Because Networks So IMDA, fiscal Cloud Infrastructure, you're has I faster Defense industrial. and think but the segment in Automotive of do and you at XG, in growth when strong more Industrial, we opportunities think like which like also chance Communication you have seeing in Medical, versus 'XX? growing look

So quantify end relative can see the talk help us EB's markets you today? for as even you you strength if just about them like can qualitatively,

Jure Sola

Yes, Ruplu, last networks grew as industrial, business the year, it cloud automotive medical, communication than we infrastructure. our and at higher you've and seen defense rate

the optimistic group industrial, we're very very and key networks, strong So we're for I those medical and mentioned, products. markets, well positioned in as defense automotive, communication in of new in we're four especially

of amount growth. As on time, cloud growth. of the group, lot we expect networks, amount a have break I fair in a it like my said fair cloud of prepared don't down in and see by don't way, to statements to I we that this a in And we business -- the but at networks, we expect

Operator

with Sidoti. question Anja next come from Soderstrom our will And

Anja Soderstrom

on outlook. quarter and the good Congratulations

this to just I'm growth. going a further year-over-year bit delve So little into revenue

to you're you So grow do the think be year. throughout going sequentially

year? for the gave stepping starting the guidance first you for is stone So quarter the

Jure Sola

if a about all Anja, demand, As we have all quarter, we said getting first backlog, it's at components. the statements, in we our the strong strong prepared look

at But very expect to confident, feel we'll time. have a one better and 'XX. we So on year quarter a in in take the do we top we 'XX did bottom than line line

Anja Soderstrom

of that you're Okay. backfill quantify the you little a could able sort with new backlog speak and that And orders? how and bit just to about

Jure Sola

we -- at first today, the all if key they forecast quarter. critical more we're Well, our equipment to few install get waiting customers, if can programs be spending the can for And for more look basically in even extra want already our 'XX that investing look the good from for and for we that we we components the are ship we'll new and we we that growth. that have bucks growth, for

Anja. future. But take time, of about optimistic one the we'll we're So pretty quarter

Anja Soderstrom

their I what same their from have And times of sort supply the that their relationships sort lead the visibility into chain your... customers with better customer your so hear of challenges and order they for peers sort Okay. see is visibility Do you of are deepen and planning? their more

Jure Sola

very we a good Well, have visibility.

and nice quarter, are months, been forecasts. better months, it's expect But in see XX continue customers we of and But long. to us Our and challenges a XX this to had we better. suffering us years said, we giving but quarter, are getting cases, two as has some lot it's to similar I still very for definitely, as bit little 'XX. on shortages There better, a see getting last some improvements we

Anja Soderstrom

I are markets, you you your seen any have that's cyclical you more any But of changing sentiment? Okay. favorable in And of probably then very customers? from know sort have seen sentiment solid changing sort among tailwinds. end

Jure Sola

I statement, any mentioned medical, consumers, down, good. my were we COVID we're We like a that it. things don't the like low industrial that and that's but of had -- defense, couple about markets looking As in cloud customers automotive, projects, in prepared slow building do that's

Anja Soderstrom

you And Okay. environment? have changes any competitive of in the seen sort

Jure Sola

environment competitive what only I what don't my of time by competition always There's does. do. a we spend lot

Anja Soderstrom

to higher more something rate year? it little -- specific quarter, for next bit and this Or for next you're guiding a run on? one was is have that I for quarter your the going same be Actually CapEx, the that on is

Kurt Adzema

always taxes. It's hard predict to

up always down you for look 'XX. forecasting ended $XX.X if again, the comes it fiscal we're million, $XX.X 'XX, being in mix. overall But I the FY tax to the for think year about think, I million rate and

Anja Soderstrom

Sorry, I'm [indiscernible] CapEx.

Kurt Adzema

talked not too. about my Bonus CapEx, now about you $XX million. thought learned about apology. think Well, look, we're tax CapEx is about mean, I quarter I Yes. -- year last sorry, question. million said as Jure $XXX I rate, you tax I'm rate, forecasting this Okay.

as think programs are expansion customers. both in opportunities growth, We as new of well with and existing we terms seeing is there

to CapEx year. this million be our $XX we it program about move and I'd depend was quarter, it in $XX forward, million So all on to expect similar be last demand wins. will that And as it expect ballpark but we

Operator

Suva Our with come next question Citi. from will Jim

James Suva

means view to had. or One just two of than comments way that. of or remarkable then another be even year and growth the just year really up that Congratulations than mentioned as ways And is performance. I say to to but people remember that growth, just and of the interpret a growth team XX%. a should There's stronger one that In be better Q&A, some you may a prepared fiscal the your had revenue higher year strong for can't sales on that XXXX, you 'XX. XX% you to follow-up your

So can or actually year amount even you a help stronger? us understand growth when stronger 'XX, the being just are rate you dollar you say meaning in

Jure Sola

that -- Jim, me English. I and a me in kind said of So let let interpret simple that,

spending we so 'XX. do our us important that in that one, expect for all, on. the But for very growth. a growth, better both 'XX bit but 'XX, for a there, some partnership 'XX, new bringing definitely, the First equipment of to to and a we of line little and customers reasons expect to right on financial have so 'XX. know is more us, in over improve growth. of processes will are 'XX for most also We one the Number the need and over a year, expect results and These top profitable bottom we and we the not line on just have new are to with strong we that's it's see money,

Kurt Adzema

that's in higher So and Jim, is not growth comparing we're saying And Right. we're necessarily higher not about rates, year-over-year. measured right? growth rates he talking EPS revenue, dollars, earnings,

James Suva

what Is funding Is then the about then a of be for your CapEx thinking India, CapEx fully statement about? flows on minority should we venture congratulations. there And flowing out in How will or accounted cash will for? Or joint consolidated funded? be be Yes. it it of And interest on your now that new books? line?

Kurt Adzema

Yes.

this. Let handle me

consolidating financial results. are we So

But all will -- revenue and then line, guidance, see our all net the income. the the line, I the mentioned in we as the below profits. you back income of the above share to the net partner's So have out

that So in be to of $X.X this about case, a reduction we estimated million.

more the income. of in before for happens quarter because treatment $X.X income line, currently JV, in, estimated based EPS. but income do, interest XX% But we after million, which the we that you and as So the net out calculate accounting to said back of for at we I net that that have expect guidance, the $X the million came the on of approximately cash

James Suva

your or... then And XXX% the all Right. CapEx, books on does show up on it

Kurt Adzema

Yes.

So consolidated. it's

the books. Indian as So based cash. it will $XXX on on Jure other your is million out, show pointed over with up our the But question, investment, to of now entity back capitalized

used the for the will cash vision expand that business that grows, necessary so to be And as operations there as is JV. our which certainly

Jure Sola

Yes.

very make high and something both for committed India a big. companies have hopes We to are

James Suva

are there should Because that there or that But of a maybe I communications are whether assume certain earlier that other early the be strategically, whether be ramping of XG probably to mindful that's may And side just certain markets/products medical you are something things innings or end be devices. rollout backwards think it. just I like lot facility, than then on that we at it of?

Jure Sola

diversified, a Jim, customers. of industrial, XG I We networks operation optical XX expanding Yes. this alternative well telecommunication a medical the energy. medical, and medical, really some some networks over We we'll that in got very definitely, good. having be there. diversified definitely They're But and say

Operator

our Capital Christian come with will Schwab question next Craig-Hallum And Group. from

Christian Schwab

Congrats guide. and great quarter on another

over the focusing to that that time. large two, business But become this me India, to complex number a any seems little India-based Correct revenue wrong. campus. On XXX assume $X billion-plus number stuff, this I in could joint you business That like should obviously, acre this an be did be company, I which that, it revenue venture mission on to mean, joint of time? a over -- I'm if easier me do makes venture type bit there. critical could

Jure Sola

Indian -- place know, is years three, is under five, goal, is do. easiest of if the upside We a place be -- we XX can market, there India to Indian venture First that all, to out. one has as this yes, joint lot especially look you made believe you company not really the of in

and we in yes, space we expand parts XXX have of to plenty India. this acres, expect other So in of

Christian yes, move. or bad was big So a this be better this

Christian Schwab

that it When it that logical at scale high Right. beginning is to understand the becomes is easier a for business to level? investors

Jure Sola

these we I'll all information. Yes, to out, to communicate it definitely, numbers we'll have since over and want turn the add? do Kurt, But Kurt, you'll but it, putting you are

Kurt Adzema

closed would I X. about what mean, opportunity the is, as here. say Jure said, optimistic I transaction Again, on the we're October Yes. we just very

a business have partner. take lot more, venture I'll as related progress we'll it think we I to that we're our disclosure going with say, So and to develop where joint

Jure the think can opportunity there. over to part years, there a revenue. three I that And we expect lot five a to next this of point, -- innings, said, become at So all say think is this early it's but is big the a as we very we of

Christian Schwab

did in fiscal fair. Kurt, any then 'XX, And you customers? XX% year Great. That's have

Kurt Adzema

Yes. In XX% had two customers. fiscal 'XX, we

disclose couple file that in when in will we We days. the a it XX-K of

Christian Schwab

And more color talked know on of about just the supply then year. a little potentially of bit Perfect. I December, beginning impacting the you getting guys chain it still slightly the kind better. impacting

with As the time we of, headaches be the believe over? calendar that 'XX, problems majority those chain supply for been get quite majority through say, dealing some the or that of will you middle the now do of vast you've

Jure Sola

a -- it we But comes Well, conditions it with should it, definitely -- know. as year of next if result big what in We'll be all hopefully see never at of 'XX. when what market. happens to do the most percentage experienced by middle data, better you material than expect look you the we

Christian Schwab

backward. well, to the have? few aggregate going that that arrive. I a to meaningfully really for is more that inventory we stuff have come for the vast majority probably becomes chain that is would supply Is when significant assume to dollars waiting reduce then we're a loosens And opportunity available components out sitting of

next very year. could year So cash a be potentially flow substantial

Jure Sola

Yes.

driving we systems what later. putting accomplish that to purpose we're and next Christian that's a definitely, the place So to in year, and are that's

all, I'd thank a answered all we'll your from of of hopefully, we Otherwise today. just not, talking Thanks of us to questions, be for now. please us days if most joining give you like First call. And lot. a XX

Kurt Adzema

you. Thank

Jure Sola

bye. Bye,

Operator

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

disconnect time. now may your You at lines this

Sanmina (SANM) 8 Nov 222022 Q4 Earnings call transcript