SANM - Earnings call transcript Q4 2024

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Operator

Good afternoon, ladies and gentlemen, and welcome to the Sanmina's Fourth Quarter and Fiscal Year 2024 Earnings Conference Call. [Operator Instructions] This call is being recorded on Monday, November 4, 2024. I would now like to turn the conference over to Paige Melching, Senior Vice President of Investor Communications. Please go ahead.

Paige Bombino

Thank you, Ludy. Good afternoon, ladies and gentlemen, and welcome to Sanmina's fourth quarter and fiscal year 2024 earnings call. press our slides the website section. our are today's Investor of on available at copy release for and discussion Relations A sanmina.com in

me and Chief Chairman Officer. Jure and Joining Faust, Financial call Executive Jon President Chief Officer; Sola, Vice Executive today's on and is

that and turn I will on website. everyone be over is being let me to available Before call Jure, webcasted call remind the today's and recorded our

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

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

Jure Sola

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

recognize opportunity First, job. and like I to team to would employees a great this our Sanmina's leadership take for doing

So team, thank service dedication to you, customers. and delivering Sanmina's to our your you, for excellent

with You a solid year momentum. finished the

and let's $X.XX quarter, of you, revenue share. Again, keep the employees, Sanmina's it EPS For to up. billion per $X.XX of and delivered fourth you solid thank non-GAAP

let's Now today's agenda go call. our for to

over like to will results Sanmina and to review results and Jon will and Jon, I'd future additional Then details have Jon? turn CFO, our follow to comments for this up We Jon. you. our I with about for now answers. And question goals. I of open call

Jonathan Faust

you afternoon, and and ladies joining Jure, thank here for gentlemen, you, and today. good Thank us

hard Sanmina for a through the to dedication we solid work for year. to the executing and Before and thank their want close team I go the results, financial entire fiscal

continue market, gross revenue make We which cloud our previously up in had billion shares in the the expense be revenue to income as networks our our $X.X cash will per based to $X.XX. our and outlook with as growth was our million, Jure outlook our profit on exceeded speak of and to end highlights. non-GAAP business to operating or basis that focused or guidance, as in the referenced. margin by strong end will and remarks. Non-GAAP outstanding, of operating note by the sequentially. above $X.XX P&L driven which to $XXX in $X.XX billion and across to to in our operating profit was earnings line and segment, favorable the favorable short-term XX our investments XX his markets on growth in was shortly, saw at important of growth. of million, $X.X quarter discipline. Non-GAAP to outlook at fourth sequentially. drive of revenue, X.X% million We're higher please results. with future year-over-year $XXX operating delivered sequentially, we communication communicated. Non-GAAP to range of end X.X% of million driven more more very which and non-GAAP as flat X CPS to expenses outlook our in higher that high well X% our strong approximately with driven X.X% This a infrastructure operating came the sequential Slide comment was $XX.X by targeted share line of flow that detail just It's Now I were continues $X.X of turn results we our discuss billion, was execution majority diluted part end other exceeding pleased and we up our to points expenses Non-GAAP mix $X.XX prepared I X% Non-GAAP outlook as million the

Slide to the quarterly review trends. to X turn please Now

while to FY markets we with end be we which expected partnered across customers 'XX ultimately multiple have discussed a our previously, adjust levels, we a transition decline. to inventory revenue As to year-over-year year led

third sequentially on fourth a out be which trajectory and new also we the than the revenue that the quarter first, puts to head said almost expected we that year as us in year. the of half XX% great second on we the as we quarter, into delivered However, fiscal commitment and grew the better flattened in

sequentially quarter, XX a steady favorable basis by driven of revenue a points In and year addition, it fluctuating base, despite for the non-GAAP X.X% strong we improvement and throughout mix delivered operating gross held the relatively discipline. margin

Our margin our was quarter, which stable and and flat the sequentially within was throughout to X% for X.X% non-GAAP X% well relatively outlook operating the range. year was short-term

improvement year. strong at to we non-GAAP also in per a fourth delivered turn and a our prior versus started the sequentially, quarter X% coming corner We diluted which share with earnings $X.XX, XX% the was with actuals improvement

to a growth we'll of across results. driven margin $X.XX X.X%, was to markets. our IMS XX.X% performance basis by a the year sequentially, Slide segment non-GAAP up down Now X.X% of quarter. year. CPS was points revenue came X demand IMS margin end in programs markets at at points to and end expect and same the $XXX period by CPS multiple improvements the mix. the continue majority sequentially, basis up forward. on compared please discuss XX.X%, the XX in basis the We're new points X as as focus IMS turn driven this in to to non-GAAP revenue that billion, improvements million, gross well We sequentially in XXX in the prior same gross XX came the quarter, fiscal is ago. room up delayed higher driving there in unfavorable year with pleased the compared primarily due points see basis were expansion ago and and for up CPS going believe to period business margin to sequentially XXX

year results. our turn fiscal to discuss X to Slide please Now

driven how On you grew of we to quarterly lower on and the non-GAAP by FY trend a provide operating I and business made revenue on but margin delivered our commitments gross year-over-year as and business. was To slide, XX see on of a years base points with 'XX significantly This lot the X higher year, can the examples, commented this successful few diversification that. strong also prior progress than basis our how a discipline. slide, transition was the the despite was

the higher year, made investments primarily operating basis versus targeted in growth While margin XX% earnings fiscal prior declined and results significantly year, versus years XX% than the XXXX the our we X up Similarly, future prior that the versus the to they our XX non-GAAP still fiscal the share was that. due declined drive XX% that to were was up non-GAAP points prior while business and to the versus XXXX per results.

highlights. Now turn sheet please to Slide to the discuss balance X

was referenced As down the quarter, us with billion, results, sheet the $X.X with X% maintained we And the borrowings Cash with billion. sequentially. end inventory P&L leaving and which long. $X.XX well $XXX the the year a $XXX year all our million outstanding no liquidity strong million. fiscal and cash approximately of substantial were very of I've ended equivalents on that at of fourth we quarter had We approximately balance closed revolver,

is customer inventory fluctuate important, will While focus based why most that's managing on inventory it absolute in on to demand, believe turns. we important it's and dollars

improved the there improve focus will This but going in to improvement great is be turns prior turns to quarter. a continue forward. inventory quarter, X.Xx area for room this to represents Our the which us a a from X.Xx and result, significant is still inventory

well the non-GAAP capital of for quarter. ROIC XX.X% weighted a from pretax Our above solid last the our quarter, improvement was XX% cost and average

X.XXx, sheets and no in a gross to position have with strongest ratio expansion. continue of drive margin in execute and We low debt to which puts our growth strategy us the balance on leverage one great a to of the net industry

million to fourth our where from year between million. for of the ranges revenue. quarter line spending, in to and levels flow Now This the please $XX allocation million turn strong $XX came expenditures highlights. quarter revenue. and which or historical Thanks was $XXX team, million very capital is working for fiscal typically of cash in to the Slide at talk with X.X% the cash by and management were year about X% Capital flow of our $XXX I'll operations CapEx XX, capital for disciplined X%

to position Free the the investments support technologies we million up cash our required move we year. to quarter forward and make the for into million flow was in $XX in market the our prior continue the to $XXX and financial fiscal capabilities As million and year, new strategic versus year, for objectives. long-term the will $XXX strengthen

Now turning returns our shareholders. capital to to

of million X to total approximately shares $XX the quarter, for the million for which we $XXX During XXX,XXX for year. equates repurchased approximately shares a million,

Now more almost to cash means just XXX% of that provide shareholders. perspective, we returned flow free some to

believe we to still undervalued. as intend shares stock is opportunistically continue repurchase forward, Going we to our

allocation year, we flow to cash for results, it challenging entire to commend market shareholders and performance while through balanced our through doing Sanmina as At on the team partnered disciplined flexibility year investors continue inventory returning capital start strong absorption. XXXX a in conclude Our like this that explained transition job gives business very a capital we I'd to the a also to invest the work an in the approach. To of to us our be environment. to the would with customers fiscal excellent

was a gross which say helped I margin; team key expanding foundation the While what Gerry the three, very and we we to drive deliver This resilience, well solid ultimately market it the to of and conditions number the we establish in testament two, future. growth; proud investments our are us certainly executed generating very priorities cash strong in year: of. operate and the to which flow, and our business management delivered for on targeted future one, number of is X number challenging, for making to dynamic rest all will, ability and a on

the turn are XX, we what first Slide cover our quarter for seeing which in fiscal from our outlook customers. where and based forecast is the the I'll to XXXX, Now market on please of

to Our of Operating is revenue $X.XXX $XX $X.XXX gross we outlook of X.X% follows: $XX to dependent as non-GAAP expenses on million billion million. margin to X.X% between expect billion; mix.

and margin as reminder, as expenses material to grows, believe of operating will X.X% As provide expect increases. Non-GAAP our efficiencies revenue X.X%. we in our we the operating have driven don't leverage a organization make to

expense to and $X approximately income other expect million. be We

depreciation final to million the income earnings credits to equity reduction rate, quarter. For of EPS an XX% the fully the outstanding. we $X.XX finally, outlook, rate XX includes first to venture note jurisdictional in approximate 'XX the million our expected approximately range approximately federal first reflect to the impact year. and XX%, quarter expect new $XX tax and and growth we million of for global net outlook the the Please U.S. on other a interest. Non-GAAP be to approximately of $XX and expenditures customers range X around of India the signals from Capital We noncash on $X.XX of million. In to that net impact demand change our tax, non-GAAP of utilization based a FY be partners' mix losses, joint the $X tax incentives. estimate an to our million; summary, EPS shares diluted $X.XX of our operating minimum tax based expect which has our $X.X Pillar on

have customers to that, capabilities excited let We call successful, and Jure. right the opportunities set I'm the about ahead. With the over be to of me turn and

Jure Sola

more you, to and And Thank goals. Please add a Slide results about fourth Jon. fiscal fiscal outlook and our and I'll year XX. me Ladies for 'XX about let for comments few tell gentlemen, the turn XXXX. you more our year quarter future

delivering starting team gross we demonstrate service tell our line segment industrial, in Most our As team aerospace Networks our sequential that customers. automotive you things their heard resilience and Non-GAAP non-GAAP segments. To talk Revenue today year-over-year more results. outlook. getting to sequential continues Communication better. are see turn to better please and margin burn financial to from are about Slide came Cloud from customers with visibility Jon, as solid exceeded and in and growth I of execution to through you growth defense, excellent medical, and delivered XX. Infrastructure inventories. margin our can customers. operating EPS continue Sanmina's by our it, outlook to solid and We in our delivered

the for market look at quarter. revenue Let's end the fourth by

up markets. Jon, majority growth We X.X% the you saw in end As heard our was of from revenue sequentially.

aerospace our revenue, million. fourth Top XX% no defense at bookings. I industrial, our our $XXX that Networks the of you and fourth X:X up Slide represented can our XX up the quarter, revenue. and customers quarter-over-quarter and Infrastructure and to customers And For see was came revenue, came X%. That of $X,XXX That XX% we and solid million. over that XX.X% it automotive, in we was Book-to-bill of had turn up quarter. Please in was that at for Cloud was XX% at of quarter-over-quarter. to medical, came XX. tell revenue. XX% for Communication continue

more talk me let to markets. fiscal 'XX about Now you year

medical, XX%. defense XX%. XX%. for and was XX%. high-performance automotive, and was of a Medical, Industrial that XX% revenue our network automotive XX% infrastructure, communication industrial, Defense approximately and cloud approximately was year. aerospace High-performance For was approximately and

see, As company. you is well-diversified Sanmina can a

Now please turn to Slide XX.

about seeing what fiscal today, you are seeing today. I see to our What talk me you, and can let we we're trends Now end tell markets we positive for year 'XX.

a see our -- exciting solid and of have For in industrial, we we customer base, projects we're pipeline. new lot

can opportunities We you doing is safety factory management power and Overall, and have automation I storage, some equipment controls systems, great and and around energy, tell segment well. equipment. semiconductor this generation

devices. For digital mainly medical medical, it's by health driven and

for have a We strong of a customers long here. base time

We a I demand well us. it's are market of within opportunities in front Overall, with diversified a stable itself. good the would say future

critical products itself. projects, solid aerospace, defense we to including For demand from see and defense continue Sanmina

will New us. growth for win drive the programs

are opportunity circuit systems. advanced there's market. starting We defense We boards And for believe precision growing we our business there. expand to machining also are our lot a also of printed

in customer automotive well this I tell that our segment, For base is this challenging can in and doing you transportation, market.

the growth here to of have year around in business mainly tell electrical pipeline you new electrical chargers, strong 'XX. Our drive but is I we a on that opportunities vehicles, can fiscal based

and opportunities Cloud see at high-density, driving optical For high-performance and technology for communication pace, positive is driving driving continue our for it's infrastructure, optical infrastructure. also, AI architecture We're on expanding a evolve advancement. expanding trends. cloud requirements advanced cloud networks us. infrastructure new and AI opportunities Sanmina. networks new we we and rapid to We are packaging. is business, focus

mean business positioned So what well that a segment. in driving us? does this It's new and for opportunity we are

has heavily to Now growth talking turn I'd center. cloud please solution. what to do few end-to-end Sanmina like this been to into Slide today, Sanmina for segment. we minutes investing provides a expanding XX. data Well, and spend you

do? all, to together we of this customers our with do service we with not what First customers. We do our segment. So work compete

we see We cables. enclosure, including into the We is rack go on slide, provide boards We backplanes. can provide this modules. compute, provide custom. optical custom which fabricate printed this high-technology standard basically As provide open memory. We assemble boards. circuit and advanced both We that system, you

manifolds group, heavily been party call for a around cooling a We provide this have we in a partnering our or what with system storage build liquid, racks third segment for also We are joint basically that the Enterprise also ourselves. Viking development and does Solutions design and ODM and server customers. investing we've enclosures, we systems. full We complete through

bus [ internally precision of to racks, system these plastics we day, call and provide and also what we're these that for order providing integration segments. we We configure full into to go the build a ] And bars end build order.

well we to continue is to we Sanmina involved So and us. Please turn we see XX. Slide great future in this for a invest segment because believe

let talk outlook. Now about fiscal 'XX you to year me

Jon on 'XX we our tell growth revenue year The will said, year that 'XX. grow today. customers' forecasting programs. you come new our are is existing to can digits high-single As in fiscal and outlook based from I forecast fiscal

target the margin on We our new expansion. We developing, diversify to portfolio. and continue to focused markets with customers adding

growth, we're faster our which going we're opportunities, manufacturing expansion with revenue. non-GAAP get we our leverage. OpEx grows. should the also, from And fiscal year improve going be new as business by should efficiencies than grow and continue Our margin EPS expect Margin driven to revenue higher benefits programs to XXXX, to in

future the for us. expect a generate to we year Again, growth. in right be to to investing growth are technology for that equipment We and 'XX cash fund expect fiscal capital year strong investments now flow we

turn to Slide XX. please Now

and customers. focused. our is are about mainly strategy around our built talk aligned priorities. Sanmina Let's Sanmina priorities

call customer-centric we what have strategy. internally We

We by our customer regulated We build growth, will diversified continue base, markets. remain advantage continue and margin strong customers our these in cash deliver providing competitive our leading to great flow. heavy we'll around long-term in for technology expansion to and focused

but is deliver goal at business We term, growth expanding technology to that the to expansion. to X% do we'll the and are longer focused operating servicing And shareholders' our focus of margin our not goal that And on to anything continue maximize margin to customers. We X-plus-percent. we allow believe X% going operating We're on margin our value. and short are deliver that we'll is our will crazy, us to type and term, into. and profitability do

maximized to believe transition ] we a term continue was Fiscal in turn fiscal solid our term. Please short a to to base you. year strong the a with 'XX. In execute us quarter strategy finished summary, we'll [ provide So that 'XX talking the shareholder on and with We customer value and we've been that we fourth the Slide long give growth a year. year momentum for XX.

we've going customer invest well well-established We markets aligned have in continue in diversifying needs. is with into that. Sanmina to to footprint growth and our manufacturing that, investing focus new the and on ongoing has and expanding been we're customers. And

be choice We will and deliver consistent future on to the And industry the important, disciplined customers, performance. fund focused we'll with top approach. continue cash our fundamentals a market generation partner business most leaders. of remain with to the financial We

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

Operator

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

Ruplu Bhattacharya

question Jure, something, Cloud have segment. I a the and clarify just to I wanted on

And said XX% that year, was had revenue. think today's you think of you revenues. call, said last about I XX% I of on this

it think what you think what growth rate down specifically And growth mean about Where we So should billion. even how are think business? we it for I the grows like from the business billion should areas? now is from to And the just in do cloud? year-on-year, revenue to cloud, XXXX? from $X.X see went this Do XXXX within growth business? looks you the cloud $X.X math, because

Jure Sola

question. Ruplu, excellent

you're yes, right. all, of First

the in and well for If look was point for year you a the our lot pipeline look of are us networks optimistic and to Slide word today, provide working product are programs that we customers. investing at you 'XX centers we use that too networks, where of much challenging -- view data high-performance if cloud. We've of XX% just systems. that's in that segment our say, we our a being shipped very you which into focusing -- inventory, we transition. XX, are on a showed is the and at the we're positioned, our a And to the positive will cloud been growth the of is XX%, customers, inventory with their you very why key from we And this But by I new partners these affected critical would most I of grow. as we are goes a in believe lot, in that we call technologies growth on lot it, if believe infrastructure. we're what communication was we

Ruplu Bhattacharya

the the communications I see Can communications, of growth optical where in about see? that maybe then an And good, And You specifically strong networking on within even you do very communications, seeing in just many optical? Sanmina How you're the and know more maybe correction quarters a has you fiscal talk that trends side. I is footprint. in coming Okay. you mean, do end. inventory to 'XX? said

Jure Sola

first all, inventory prepared Well, my Ruplu, I in as coming statement, of mentioned is down. definitely

are already through it's it. going still clear the I and overall, would customers a well to Some I pretty quarter. But end. a believe few say customers coming

As inventory going our up. saw, turns you are

those. We our to is customers. across will where coming, to continue it business reduce the But all expect come think key I it

that in of networking positioned the we business. side think I are well

our capabilities customers. do that We networking networks strong. mean, key high-end very are As our focus for think our on I I we -- you mentioned, optical IP

what are All we're of and our positioned growth, today key that's customers hearing from for these them.

this So we're optimistic pretty about growth.

Ruplu Bhattacharya

I If a of quick ask can it. questions. got Jon, Okay, couple

to wanted Just Jon, on margins. on I -- focus,

was at end. strong end. revenue the low XQ the fiscal margin high came at Operating So

How we 'XX? margin year? should this your the You think you investments. can fiscal of about in progression operating of areas And in just talk mentioned about investment some

Jonathan Faust

Yes, sure. Thanks for the questions, Ruplu.

you see touch first on bit So think lower margin just QX of the look to due gross the I'm we as higher both I on we my margin, remarks, end as in little CPS gross was about expansion, still on saying ahead, did point, operating those segments, targeted end we the results, in margin investments, talking margin of right? to As a and prepared in and come the there. IMS

what see that revenue in opportunity we We So on last growth, OpEx. QX, you operating from our percentage do look investment of about looking Jure that too. when that's in OpEx, ROI-based I we approach. are a front. Also, the quarter, we OpEx as That's of to leverage always talked decent at And we return an at part that, variable natural opportunities. have this get through think we'll But specifically, in and nature. we

workforce. need Jure X in and space. to us and to flexibility number back you to at some when of cloud in when specifically, our mainly able was in more opportunities So for center the two, R&D, then data invest was and we give lock we this for across that the And need to programs strategic those that be pull areas future. gives related to. And to try One talking I'll the SG&A some three, drive growth about looking opportunities, spending the strategic Number around quarter investment.

we we've makes in, looking one all invest that feel opportunities good had And a the opportunities. to sense got whenever those those we're we'll time, do we quarter. this And at that. so like And

Ruplu Bhattacharya

you inorganic just in. fiscal maybe maybe further out just of Jure, do more for M&A? how final for meaning buybacks Can priorities debt. now, us think would remind right balance look growth, me. also or 'XX? you opportunity about market When And you the you And Okay. taking sheet, cash can your a Or in chime rebalancing the at one see you for capital

on So any of priorities thoughts cash?

Jonathan Faust

net that remind just I Yes. Ruplu, say is for growth. to that, just year remarks, to that some those talked making first. I foundation what we want priorities this the And my a sure, number repurchases. not we one to we to And long-term certainly the a of place two, right our in in and and expand as drive to comment, mentioned approach say is are around he'll prepared between of is no right? the that made at make same looking right? are are, share look feel help changed. customers. is organic we're there in and allocation strategic capital I'm We don't expenditures, looking more we around to of priorities when just put And successful. we're make haven't that low be have you We did prepared successful capabilities undervalued, know, crazy, as also do really, acquisitions. to some priorities gross industry. of for decisions would one. Number to debt. still my a anything sure our I take ratio competitive having And opportunities lot and the capital you we'll then words pursue we be at across but we as advantage ROI-based always Three of provide to have and as investments, That's for portfolio around look debt, And on disciplined our debt, last, those lot remarks, you but leverage that is pretty mentioned a in about our Jure I which number

Jure Sola

that. just Ruplu, on a to things few Yes. add

just are for now I to future, there's believe We acquisition's we more don't is as area cash. need acquisition for at playing, look company you especially our and on. for can we that technology perfect organically. involving so because we That's We've grow a plenty said, because our go of around to If anything the of AI do got sake. do demand crazy

and and deliver money. right growth. make that. customers And positioned growth, we growth are I our organic growth solution focus and So the is our is focus do that believe our for on to And

a 'XX, the years, time So Corporation. next the more great in us. that for hopefully, and you'll few is that's 'XX focus Sanmina see for 'XX,

Operator

line next your question Company. & Soderstrom of Sidoti the And with Anja from comes

Unknown Analyst

the This for we ] could on is on Maybe [ just Anja. Alex cash flow. start to improvements

Could about So a cash I and talked margin. improvement of line be? about think some around drivers talk of room top flow you what we've the in and some the would for confidence little further bit

Jonathan Faust

for question. absolutely, Alex. Thanks the Yes,

look So but back mentioned we our a still our flow, about should great I Jure improvement cash But But ahead. cash for talking We back X. got history, we conversion were mid-XXs was had and this further cash XX as there's be more think And at you year while. past too, mid-XXs. above quarter, even improvement number you cycle be I one, a in had earlier, we the if this mentioned, so opportunity was turns had about in cycle, conversion improvement for still go term, into if because our there about quarter. inventory the days. to definitely great longer there's to still

our cycle get up I room we growth. continue So there. Even would think will tee and we think -- on to with to on it But work that front, mostly think that the DPO, the accounts our overall. I better cash opportunity conversion more through payable, inventory some to absorption, there's

be focused on. we're to So that's going what

Unknown Analyst

business and And I and how AI AI a the fair little internally how maybe and amount how margin? changing business heard and a about was you new bit perhaps business if utilizing opportunities. the affecting share aiding that's integrating about we think you're Curious creating could

Jure Sola

Alex, this is Jure.

make first do we of me outside. comment a what all Let

partners around are and the in optimistic. of XX in we started our around what that AI, plus 'XX. the we that opportunities amount years about is of What First see months, customer months communication last, by for expanding lot over in portfolio last why especially see XX is this to it's their and a movement the we our new that of seeing are the partners, had more they optimistic all, we they very Especially cloud say, let's business I base direction. -- mean in And about and it we fair today that's customers a see are growth. are started XX really

liquid what optical circuit we comes high-technology about lot -- key boards, mechanical add cooling the printed of to partners. And a capabilities, components system, are talked We critical just modules. when I custom it

in Sanmina known are are we AI. we complex why about the opportunity for, very that's that's and excited systems, and So around participates a what

use be next XX is not And other we a for but next lot also of AI investing. that believe months, markets the here there's opportunities in around, years the to mentioned we which are for I So hopefully, us, just and X going X, in working on. But earlier, internally a through are we definitely, such some to the defense we of as can to some lot different customers AI, efficiencies ways our of manufacturing. our and back with believe improve partners AI that so we

artificial But We can believe have very use potentially we up a smart definitely. in a in across where lot manufacturing set all world. setup the right around we intelligence around move these the to our direction manufacturing of supply cases the chain,

XX% countries. cost we you materials the in of XX buy is XX%, know, that As our around world

can feel we we So better. of those a do lot things,

company. better a be to have We

also bring inside a bottom profits back bit investing and little I... the are to to that we anything line. Jon, competitive basically more else become So more

Jonathan Faust

only that IT we're that and then the I happening the to end Jure. add manufacturing what team perspective, We otherwise, a would but The working portfolio, about and employees, it think with well, I our talked one markets own in so... is doing employee what's from too, like you said productivity. our

Unknown Analyst

us. one from last And

venture on couple years joint talking happened I Maybe a you nice about I priorities allocation the think a Reliance facet. of pipeline. and other know ago. M&A did one just to Industries job capital touch

around So and opportunities. thoughts venture update get maybe just joint your trending on how we an additional could that's

Jure Sola

question, Good Alex.

yes, products also about the have have parts a next exporter few years, We're with opportunities Indian that can done you we the in America, time -- also very market in other India, Europe for a believe in of major flies. will happy tell North world. years, India deal for we're become we over and partnership high-technology I and the year ago. bit the a was we with all, X little and of First Reliance

what So what's I ahead a we're better the we than like game. to lot do. going on. thought We're we're going of Actually, doing

invest to to making group growth. for major this our position continue India we're We investments and a in year

with are left Jon, But of do, there. anything partnership Reliance. a we a I lot optimistic, missed? lot our happy very but there's to of there's with very opportunities else So very, also work and

Jonathan Faust

on I key add, Reliance in But the there, think the you but of have thing we right? I that unique business, Jure, the all manage would the points, only touched we a that setup majority other the whereas owns stake.

So India work indigenous any they customers can that with are Sanmina and with looking that. an work to achieve company,

aspect JV. unique to So the a pretty

Jure Sola

percentage almost But XX-XX. is Yes.

Jonathan Faust

Correct. Yes.

Jure Sola

there Operator, any more is questions?

Operator

time. this at questions further no have We

Jure Sola

ladies And us of time spending you in today. that answer, gentlemen, get Thanks appreciate there's Well, back a please I the and to looking we All to with first all, your and now. us any talking questions didn't XX best. from lot. if days approximately forward to and you

Jonathan Faust

you. Thank

Operator

concludes ladies for call. today's this Thank all conference And you you. participating. and Thank gentlemen,

You may now disconnect.

Sanmina (SANM) 4 Nov 242024 Q4 Earnings call transcript