Q4 2023 Sanmina Corp Earnings Call
Good day and welcome to the Sanmina is fourth quarter and fiscal year 2023 earnings Conference call. All participants will be in listen only mode should you need assistance. Please signal conference specialist by pressing the star key followed by zero.
Speaker 1: Good day and welcome to the San Dimas fourth quarter and fiscal year 2023 earnings conference call. All participants will be in listen only mode. Should you need assistance, please signal conference specialists by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions.
After today's presentation there'll be an opportunity to ask questions to ask a question you May Press Star then one on your Touchtone phone.
Speaker 1: To ask a question, you may press star, then 1 on your touchtone phone. To withdraw your question, please press star, then 2. Please note this event is being recorded. I would now like to turn the conference over to Paige Melching, Senior Vice President of Investor Communication. Please go ahead. Thank you.
To withdraw your question. Please press Star then two.
Please note. This event is being recorded I would now like to turn the conference over to page Mill Chang Senior Vice President of Investor Communications. Please go ahead.
Thank you Sarah good afternoon, ladies and gentlemen, and welcome to Sanmina as fourth quarter and fiscal year 2023 earnings call a copy of our press release and slides for today's discussion are available on our website at Sanmina Dot com in the Investor Relations section.
Speaker 2: Thank you, Sarah. Good afternoon, ladies and gentlemen, and welcome to San Mena's fourth quarter in fiscal year 2023 earnings call. A copy of our press release and slides for today's discussion are available on our website at sanmena.com in the Investor Relations section.
Speaker 2: Joining me on today's call is Yuri Silla, Chairman and Chief Executive Officer. What up, Chanyun? And Kurt Edzema, Executive Vice President and Chief Financial Officer. Good afternoon. Before I turn the call over to Yuri, let me remind everyone that today's call is being webcasted and recorded and will be available on our website.
<unk> me on today's call are Jerry Sola, Chairman, and Chief Executive Officer, and Kurt <unk>, Our executive Vice President and Chief Financial Officer. Good afternoon, before I turn the call over to Yuriy, Let me remind everyone that today's call is being webcast and recorded and will be available on our website.
Speaker 2: You can follow along with our prepared remarks and the slides provided on our website. Please turn to slide three of the presentation and take note of our safe harbor statement.
You can follow along with our prepared remarks, and the slides provided on our website. Please turn to slide three of the presentation and take note of our Safe Harbor statement. During this conference call, we may make projections or other forward looking statements regarding the future events or future financial performance of the company. We caution you that such statements are just projections.
Speaker 2: During this conference call, we may make projections or other forward-looking statements regarding the future events or future financial performance of the company. We caution you that set statements are just projections.
Speaker 2: The company's actual results could differ materially from those projected in new statements as a result of factor set forth in the safe harbor statement.
Actual results could differ materially from those projected in these statements as a result of factors set forth in the safe Harbor statement.
Speaker 2: The company is under no obligation to and expressly describes any such obligation to a state or alter any of the forward-looking statements made in the earnings release, the earnings presentation, the conference call, or on the Invest Relations section of our website, whether as a result of new information, future events or otherwise, unless otherwise required by law.
The company is under no obligation to and expressly disclaims any such obligation to update or alter any of the forward looking statements made in the earnings release the earnings presentation. The conference call or on the Investor Relations section of our website, whether as a result of new information future events or otherwise unless otherwise required by law.
Speaker 2: Included in our press release and slides issue today, we have provided you with statements of operations for the quarter and fiscal year ended September 30th, 2023 on a gap basis, as well as certain non- GAAP financial information.
Included in our press release and slides issued today, we have provided you with statements of operations for the quarter and fiscal year ended September 30th 2023 on a GAAP basis as well as certain non-GAAP financial information.
Speaker 2: A reconciliation between the GAP and non- GAAP financial information is also provided in the press release and slides posted on our website. In general, our non-GAP information excludes restructuring costs, acquisition and integration costs, non-CASH-doc-based compensation expense, amortization expense, and other unusual or infrequent items.
A reconciliation between the GAAP and non-GAAP financial information is also provided in the press release and slides posted on our website.
In general our non-GAAP information excludes restructuring costs acquisition and integration costs noncash stock based compensation expense amortization expense and other unusual or infrequent items.
Speaker 2: Any comments we make on this call as it relates to the income statement measures will be directed at our non-GAAP financial results.
Any comments, we make on this call as it relates to the income statement measures will be directed at our non-GAAP financial result.
Speaker 3: Accordingly, unless otherwise stated in this conference call, when we refer to gross profit, gross margin, operating income, operating margin, taxes, net income, and earnings per share, we are referring to our non-gap information. I now like to turn the call over to Yuri. Thanks, Paige. Good afternoon, ladies and gentlemen, and welcome.
Accordingly, unless otherwise stated in this conference call when we refer to gross profit gross margin operating income operating margin taxes net income and earnings per share. We are referring to our non-GAAP information I'd now like to turn the call over to Arie. Thanks page, yes, good afternoon, ladies and gentlemen, and welcome and thank you all for being here.
Speaker 3: Thank you all for being here with us today. First, I would like to take this opportunity to recognize Samina's leadership team and our employees. So to you, Samina's team, thank you for managing through challenging environment these last few years, managing through COVID, supply chain constraints, and ongoing work.
With us today first I would like to take this opportunity to recognize <unk> leadership team and our employees. So to you sent me now Steve. Thank you for managing through a challenging environment. These last few years managing through Covid supply chain constraints.
And and ongoing geopolitical environment.
Speaker 3: Despite all these challenges, you deliver strong results for fiscal year 23. Please turn.
Despite all these challenges you would deliver strong results.
Full year 'twenty three.
Please turn to slide four.
Speaker 3: Ladies and gentlemen, let me give you some highlights for fiscal year 23. As you can see, revenue is 8.94, grew 13% year over year.
Ladies and gentlemen, let me give you some highlights for fiscal year 'twenty three.
You can see revenue is $8 94 grew 13% year over year.
Speaker 3: NANGAAP upper edimogen also improved 50 on 80 basis point to 5.8%.
non-GAAP operating margin also improved 50 80 basis point to 5.8%.
And non-GAAP diluted EPS came in at $6.46, that's up 3%, 34% year over year.
Speaker 3: And non-GAAP diluted EPS came in at $6.26. That's up 34% year over year.
Speaker 3: These results are a reflection of our continued focus on our customers, the market leaders in the key markets.
These results are reflection of our continued focus on our customers the market leaders in the key markets.
For the rest of the agenda, we have Kurt <unk>, our CFO to review details of results for you all will follow with additional comments about sanmina results and future goals, then Kurt and I will open for question and answers. So now I'll turn this call over to Kurt Kurt.
Speaker 3: For the rest of the agenda, we have Kurt RCFO to review details of results for you. I will follow with additional comments about some minor results and future goals. Then Kurt and Aguil open for question and answers. And now I turn this call over to Kurt. Thanks, Jerry. Please.
Thanks, Jerry please turn to slide six.
Speaker 4: For the fiscal fourth quarter, our team did a solid job delivering consistent, gross and operating margins despite lower revenue, mainly due to ongoing customer inventory adjustments.
For the fiscal fourth quarter, our team did a solid job delivering consistent gross and operating margins. Despite lower revenues, mainly due to ongoing customer inventory adjustments primarily in the communications end market is the supply chain has significantly improved.
Speaker 4: primarily in the communication and market as the supply chain has significantly improved.
Q4 revenue was 2.05 billion.
Speaker 4: Q4 revenue was $2.05 billion, slightly below our outlook of $2.1 to $2.2 billion.
Slightly below our outlook of 2.1% to $2 2 billion Q.
Q4, non-GAAP gross margin was eight 7% at the higher end of the outlook of eight three to 8.8, primarily due to favorable product mix.
Speaker 4: Q4 non-gap gross margin was 8.7%. At the higher end of the outlook of 8.3 to 8.8, primarily due to the favorable product mix.
Speaker 4: Q4 non-GAAP operating margin was 5.7% in line with the outlook of 5.5 to 6%.
Q4, non-GAAP operating margin was five 7% in line with the outlook of five 5% to 6%.
Finally, non-GAAP fully diluted EPS was $1 42, slightly lower than our outlook of $1 47 to $1 57, due to lower than expected revenues.
Speaker 4: Finally, non-GAAP fully diluted EPS with $1.42, slightly lower than our outlook of $1.47 to $1.57 due to lower than expected revenues. With that, I'll close the session.
With that please turn to slide seven.
Again, Q4, FY2023 revenue of 2.05 billion was lower than Q4, FY 'twenty to revenue of 2.22 billion.
Speaker 4: Again, Q4 FY23 revenue of 2.05 billion was lower than Q4 FY22 revenue of 2.22 billion.
Speaker 4: Again, this decline was mainly due to ongoing customer inventory adjustments.
Again this decline was mainly due to ongoing customer inventory adjustments primarily in the communications end market is the supply chain has significantly improved.
Speaker 4: primarily in the communications and market as the supply chain has significantly improved.
Q4, FY2023 gross margin was eight 7% compared to 7.9 in Q4 of FY 'twenty, two primarily due to a favorable product mix.
Speaker 4: Q4 FY23 gross margin with 8.7% compared to 7.9 in Q4 of FY22 primarily due to a favorable product.
Q4, FY2023 non-GAAP operating margin improved to five 7% compared to five 3% in Q4 FY 'twenty two.
Speaker 4: Q4 FY23 non-gap operating margin improved to 5.7% compared to 5.3% in Q4 FY20.
Okay.
Finally, Q4, FY2023 EPS was $1 42 compared to $1 37 in Q4, FY 'twenty two despite lower revenues.
Speaker 4: Finally, Q4 FY23 EPS with $1.42 compared to $1.37 in Q4 FY22 despite lower revenue.
Finally, Q4, GAAP fully diluted EPS was $1 four.
Speaker 4: Finalite Q4 Gap fully diluted EPS with $1.4.
Now please turn to slide eight.
Speaker 4: Q4 FY23 IMS revenue was 1.64 billion compared to 1.82 billion in Q3 FY23.
Q4, FY2023 IMS revenue was 164 billion compared to 1.82 billion in Q3 FY2023.
Speaker 4: Again, this decline was mainly due to ongoing inventory adjustments at customers, primarily in the communication and market as the supply chain has significantly improved.
Again this decline was mainly due.
Two ongoing inventory.
Adjustments at customers, primarily in the communications end market is the supply chain has significantly improved.
Speaker 4: Q4 IMS gross margin was 8% in Q4 compared to 8.3% in the prior quarter.
Q4, IMS gross margin was 8% in Q4 compared to eight 3% in the prior quarter.
Q4 Cps revenue.
Speaker 4: Q4CPS revenue was 440 million compared to 419 million in Q3 FY20.
Was 440 million compared to $419 million in Q3, FY2023.
Q4, FY2023 non-GAAP gross margin for Cps improved to 10, 8% from eight 8% in Q3.
Speaker 4: Q4 FY 23 non-GAAP gross margin for CPS improved to 10.8% from 8.8% in Q3. Now,
Now please turn to slide nine.
As you already said fiscal 2023 with a really strong year for the company with excellent execution by the Sanmina team.
Speaker 4: As Yuri said, fiscal 2023 was a really strong year for the company with excellent execution by the Sam Minotaur team.
FY2023 revenue grew 13% to $8 9 billion compared to the prior year as the supply chain constraints improved significantly relative to FY 'twenty two.
Speaker 4: FY23 revenue grew 13% to 8.9 billion compared to the prior year as the supply came constraints improved significantly relative to FY22.
Speaker 4: Nogap gross margin improved to 8.5% compared to 8.1% in FY22, primarily due to a favorable product limit.
non-GAAP gross margin improved to eight 5% compared to eight 1% in FY 'twenty, two primarily due to a favorable product mix.
Speaker 4: Nogap operating margins improved to 5.8% compared to 5% in FY22 as we did a good job managing our operating expense.
non-GAAP operating margins.
Proved to five 8% compared to 5% in FY 'twenty two as we did a good job managing our operating expenses.
Finally, FY2023 non-GAAP EPS grew 34% to 6.6 dollars 26 compared to $4 68 in FY 'twenty two.
Speaker 4: Finally, FY23 non-gap EPS, grew 34% to $6.6 in 26 cents, compared to $4.68 in FY22.
Yeah.
Speaker 4: Again, Gap fully diluted EPS for FY23 was $5.18.
Again, GAAP fully diluted EPS for FY 'twenty, three was $5 and 18 sets.
Speaker 4: Again, overall FY23 was a really strong year for the company, with continued positive annual trends in revenue growth, margin expansion, and earnings growth.
Again overall FY2023 was a really strong year for the company with continued positive annual trends in revenue growth.
Margin expansion.
And earnings growth.
With that please turn to slide 10.
Speaker 4: We have a strong balance sheet that provides our company a competitive advantage to manage through dynamic market environments.
We have a strong balance sheet that provides our company a competitive advantage to manage through dynamic market environment.
Cash and cash equivalents at the end of the quarter were $668 million.
Speaker 4: Cash and cash equivalents at the end of the quarter were $668 million.
There were no borrowings under our $800 million revolver at the end of Q4.
Speaker 4: There were no borrowings under our $800 million revolver at the end of Q4.
Cash cycle days were 65.9 and pre tax ROIC was 26, 4%.
Speaker 4: CAS cycle days were 65.9 and pre-tax ROIC was 26.4%.
Please now turn to slide 11.
Speaker 4: Cash flow from operations was $77 million in Q4 and $235 million for the full fiscal 23.
Cash flow from operations was 77 million in Q4 and $235 million for the full fiscal 'twenty three.
Capital expenditures were $38 million in Q4, and $190 million for all of FY2023.
Speaker 4: Capital expenditures were 38 million in Q4 and 190 million for all of FYI.
And free cash flow was $39 million in Q4, FY 'twenty, three and $45 million.
Speaker 4: And free cash flow was 39 million in Q4 FY 23 and 45 million
Speaker 4: for all of F-Wide. I'm sorry, 39 million in Q4 FY 23 and 45 million for all of FY. Thank you.
For all of FY, I'm, sorry, $39 million in Q4, FY 'twenty, three and $45 million for all of FY2023.
During the quarter, we repurchased approximately 600000 shares for a total of 33 million and for the full fiscal year, we've repurchased 158 million shares for about 84 million.
Speaker 4: During the quarter, we repurchased approximately 600,000 shares for a total of 33 million. And for the full fiscal year, we've repurchased 1.58 million shares for about 84 million.
Speaker 4: At the end of the fiscal year, we had 279 million of remaining authorization for additional Sherry perch.
At the end of the fiscal year, we had $279 million of remaining authorization for additional share repurchases.
Next let's talk about Sam Mendes capital allocation priorities.
Speaker 4: Next, let's talk about San Mendes Capital allocation part.
Speaker 4: San Mena's top priority is to fund organic growth, and we are excited about the opportunities we are currently pursuing.
I mean his top priority is to fund organic growth and we are excited about the opportunities. We are currently pursuing.
During FY2023 we have spent more than in recent years and I in capital expenditures to position Sanmina for expected growth in the second half of FY 'twenty four and beyond.
Speaker 4: During FY23, we've spent more than in recent years in capital expenditures to position Samena for expected growth in the second half of FY24 and beyond.
In addition, we will continue to evaluate potential strategic transaction opportunities as well as to reduce our current debt levels.
Speaker 4: In addition, we'll continue to evaluate potential strategic transaction opportunities, as well as to reduce our current debt level.
Finally, we will continue to return cash to shareholders through opportunistic share repurchases.
Speaker 4: Finally, we will continue to return cash to shareholders through opportunistic share reperto-
We believe that the strong balance sheet and cash flow generation position sanmina well for future growth.
Speaker 4: We believe that the strong balance sheet and cash flow generation position Samina well for future growth.
Now please turn to slide 12.
Let's talk about the outlook for Q1 FY 'twenty four.
Speaker 4: Let's talk about the outlook for Q1 FY25.
Speaker 4: We expect Q1 revenues to be in the range of 1.85 to 1.95 billion, as we expect customers to continue to adjust inventory levels, primarily in the communications and market, as the supply chain has improved the significance.
We expect Q1 revenues to be in the range of $1 85 to $1 95 billion as we expect customers to continue to adjust inventory levels, primarily in the communications end market is.
As the supply chain has improved significantly.
We expect non-GAAP gross margins in the range of eight 3% to eight 8% dependent on product mix.
Speaker 4: We expect non-gap gross margins in the range of 8.3% to 8.8%, dependent on product limits.
non-GAAP operating expenses in the range of 58 to 60 and non-GAAP operating margin in the range of 5.3 to five 7%.
Speaker 4: Nogap operating expenses in the range of 58 to 60 and Nogap operating margin in the range of 5.3 to 5.7.
We expect non-GAAP interest and other expenses of approximately $12 million.
Speaker 4: We expect non-GAP interest in other expenses of approximately 12 million.
In addition, we estimate an approximate $3 million non cash reduction to our net income to reflect our JV partner's equity interest in the net income of our Indian JV.
Speaker 4: In addition, we estimate an approximate $3 million non-cash reduction to our net income, to reflect our JV partners' equity interest in the net income of our Indian JV.
Speaker 4: We expect non-GAAP tax rate of approximately 17 to 17 and a half percent.
We expect non-GAAP tax rate of approximately 17% to 17, 5%.
Speaker 4: and Nogap Folludaluted Chair Count of approximately 58.5 million.
And non-GAAP fully diluted share count of approximately $58 5 million.
Speaker 4: When you consider all of this guidance or outlook for non-gap diluted earnings per share is in the range of $1.20 to $1.30.
When you consider all this guidance our outlook for non-GAAP diluted earnings per share.
It is in the range of $1 20 to $1 30.
Speaker 4: We expect Q1 capital expenditures to be around 40 million driven by the growth of new programs and the support expected growth in the second half of fiscal 2024 and the off.
We expect Q1 capital expenditures to be around $40 million.
By the growth of new programs and to support expected growth in the second half of fiscal 2024 and beyond.
We expect Q1 depreciation of around $30 million.
Speaker 4: We expect you one depreciation of around 30 million.
Speaker 4: And with that, I'll turn the call back to Yuri for more details on the outlook by market, as well as the upcoming full fiscal year 2024. Please turn-
And with that I'll turn the call back to you for more details on the outlook by market as well as the upcoming full fiscal year 2024.
Please turn to slide 13.
Speaker 3: Thanks, Kurt. Ladies and gentlemen, let me add a few more comments about our results. For a fiscal year 23, four quarter, and outlook for the first quarter of fiscal year 24 and the future goals. Please turn to slide 14.
Thanks, Kurt Ladies and gentlemen, let me add few more comments about our results for the fiscal year to 23 four quarter.
And outlook for the first quarter of fiscal year, 'twenty, four and the future golf balls. Please turn to slide 14.
I can tell you that I am pleased with our fiscal year 'twenty three results actually I am pleased what we accomplished in the last three years.
Speaker 3: I can tell you that I am pleased with our fiscal year 23 results. Actually, I'm pleased what we accomplished in last three years. Every one of these years, we met or exceeded our goals, especially last two years. If you look at revenue growth last year, we grew 17.5%. This year, we grew 12.8%.
Every one of these years, we met or exceeded all goals, especially the last two years. If you look at the revenue growth.
Last year, we grew 17% this year will grow we grow well grew 12.8%.
Speaker 3: On a non-GAP operating income, again, nice growth over three years. Last year, we grew non-GAP operating income by 30%.
On a non-GAAP operating income again nice growth over three years last year, we grew non-GAAP operating income by 30%.
Speaker 3: And if you look at the non-GAAP diluted earnings per share, we grew that every three years, every year. Last year, almost 29.4%. And this year, 33.7%, $6.26. Again, these are the, for all our internal plans, we either met them or exceeded them. So with that, please turn to
And if you look at the non-GAAP diluted earnings per share. We grew that every three years every year last year.
It was 29, 4% and this year 33, 7% $6 and 46 again. These are the four all of our internal plans, we either met or exceeded them.
So with that please turn to slide 15.
Now, let's look at our revenue by end markets for the fourth quarter of fiscal year 'twenty three.
Speaker 3: Now let's look at the revenue by end-markets for a Ford Porter, a fiscal year 23.
Speaker 3: Revenue for quarter went down as you heard from Kurt 7% sequentially. Mainly due on going inventory adjustments and it was primary in the communication and market.
Revenue for quarter AR went down as you heard from current 7% sequentially, mainly due ongoing inventory adjustments and it was primarily in the communications end market.
Speaker 3: For a poor, poor, top 10 customers were 45.9% of our revenues. We continue to diversify our market segment.
For the fourth quarter top 10 customers were 40, 549% of our revenue as we continue to diversify.
Market segments.
Speaker 3: For industrial medical defense and aerospace automotive, for four-quarter revenue came in at 65.4%. That came to flat quarter over quarter. For the year, revenue was 60.3%, and growth for the year was 13.6%. So overall, this segment.
For industrial medical defense and aerospace automotive for fourth quarter revenue came in at 65, 4% that came to flat quarter over quarter for the year revenue was 63%.
And growth for the year was 13, 6%.
So overall this segment did pretty well.
Communication networks and cloud infrastructure for our fourth quarter revenue was 34, 6% down 18% without more inventory adjustment than we thought at beginning of the quarter.
Speaker 3: Communication efforts in cloud infrastructure for a four quarter revenue of a story for 0.6% down 18%. With a more inventory adjustment than we thought beginning of the quarter.
But for the year the revenue was 39, 7% and growth for a year over year was up 11, 7%.
Speaker 3: But for the year, the revenue was 39.7% and growth for a year over year was up 11.7%.
Speaker 3: Can tell you that we had a solid operational execution as we deliver a competitive advantage for our customers.
I can tell you, though we had a solid operational execution as we deliver a competitive advantage for our customers.
Speaker 3: Let me add a few more, please turn to slide, no, please stay on the side. Please add a few more comments here about outlook for a first quarter. For a first quarter, fiscal year 24, as you heard from Kurt, we are forecasting revenue to be down mainly driven by inventory adjustment from some of our end markets. So,
Well, let me add few more.
Please turn to slide <unk>.
No. They stay on the site. Please add few more comments here about the outlook for our first quarter for the first quarter of fiscal year 'twenty four as you heard from Kurt we're forecasting revenue to be down mainly driven by inventory adjustments from some of our end markets.
So we expect to.
Let's see some headwinds for the next couple of quarters, driven by inventory adjustments and some softness in economy. The.
Speaker 3: see some headwinds for the next couple quarters driven by inventory adjustments and some softness in economy.
The majority of the inventory adjustments and something that is coming from our communication markets.
Speaker 3: The majority of the inventory adjustment and sapnet is coming from our communication mark.
On a positive side for a second half of the year, we expect to see nice improvements in our market demands.
Speaker 3: On a positive side for a second half of the year, we expect to see nice improvements in the market demand.
Speaker 3: We remain confident in what we are hearing from our customers about the long-term opportunities.
We remain confident in what we are hearing from our customers about the long term opportunities.
Speaker 3: Personally, I'm excited what's in front of us and about our future.
Personally I am excited what's in front of us and about our future.
Speaker 3: Now let me talk to you about market diversification and where we go from here. Please turn to slide 16.
Now, let me talk to you about market diversification and where we go from here. Please turn to slide 16.
<unk> is a recognized leading brands in a high complexity heavier regulated markets.
Speaker 3: Samina is recognized as a leading brand in a high-complexity, heavy-regulated market.
We are well diversified company today and will be even more diversified in the future. So let me give you more details about sanmina focus markets and what we are working on please turn to slide 17.
Speaker 3: We are a well diversified company today and will be even more diversified in the future. So let me give you more details about Sermina focus markets and what we are working on. Please turn to slide 17.
And this slide here you can see that we will diversify industrial is approximately 22% of revenue for 23 medical was around 20%.
Speaker 3: And this slide here, you can see that we well diversify. Industrial is approximately 22% of our revenue for 23. Medical was around 20%.
Speaker 3: Defense and Aerospace and Automotive was about 18%
Defense and aerospace and automotive was about 18%.
Speaker 3: Communication mainly around optical networks, so that was 24%.
Communication, mainly around optical networks, so that was 24%.
And cloud infrastructure it was about 16% of our revenue.
Speaker 3: A cloud infrastructure was about 16% of our revenue.
Speaker 3: As you can see with this illustration here, we do not build consumer products.
As you can see with this illustration here, we do not build consumer products.
Speaker 3: Now let's turn to slide the 18. So I can tell you more about industrial.
Now, let's turn to slide 18.
I can tell you more about industrial.
Okay.
For industrial where we focus areas, our renewable energy generation and storage.
Speaker 3: For industrial where we focus areas are renewable energy, generation and storage.
Factory warehouse automation power controls and management and semi semiconductor processing equipment.
Speaker 3: Factory, warehouse automation, power controls and management, and semi-conducts of processing equipment.
Our view about market is that demand is semiconductor conductor like target of fee equipment factory automation test measurement and inspection remains healthy.
Speaker 3: Our view about market is that the main semiconductor, like photography equipment, factory automation, test measurements and inspection remains healthy.
Speaker 3: Other opportunities driven by ongoing inflation reduction act and other regional governments who for transition to renewable energy is also driving the growth.
Other opportunities driven by ongoing inflationary reduction act and other regional government support for transition to renewable energy is also driving the growth.
Speaker 3: And in addition to this, we're also wrapping some new programs in renewable energy to drive long-term growth. Now let's turn to slide 19 so I can tell you more about the medical side of our business.
And addition to this we're also wrapping some new programs in renewable energy to drive long term growth.
Now, let's turn to slide 19, so I can tell you more about the medical side of our business.
So <unk> is very strong in our medical markets. The key focus area for Sanmina are disposable variables consumable products.
Speaker 3: Sarmina is very strong in a medical market. The key focus area for Sarmina are disposable, available, consumable products, laboratory diagnostic and research equipment.
Laboratory diagnostic and research equipment.
Hospital and medical office equipment.
Speaker 3: Our market view is simply the short term. We see some demand adjustments. As our customer, a healthcare provider suggested the last year backlog for fulfillment, a new norms oppose COVID extreme.
Our market view is simply the short term, we see some demand adjustments as our customer a healthcare providers adjusted their last year backlog fulfillment.
New norms post Covid extremes.
Speaker 3: were well diversified across disposable consumables, drug delivery, surgical, diagnostic imaging, and lab diagnostic equipment. And I can tell you that we
We're well diversified cross disposable consumables drug delivery surgical diagnostic imaging and lab diagnostic equipment.
And I can tell you that we continue to win new programs.
Speaker 3: Overall, Saminé is well positioned for growth in the medical market driven by digital health.
Overall <unk> is well positioned.
For growth in the medical market driven by digital health.
Now, let's turn to slide 20 to talk about defense and aerospace.
Speaker 3: Now let's turn to slide 20 to talk about defense and airspace.
These brands in our space and aerospace business for Sanmina has been a long term business. We've been in this business for over 60 years.
Speaker 3: Defense in our space in aerospace business for some mean it's been a long term business. We've been in this business for over 60 years.
Speaker 3: Some of our key focus areas for Samina is defense equipment.
Some of our key focus areas for <unk> defense equipment.
Speaker 3: safety and security equipment and commercial air space. As you can see, we're well diversified in this segment.
The safety and security equipment and commercial aerospace as you can see we're well diversified in this segment.
Our market view is that demand remains very healthy and this segment.
Speaker 3: Our market view is that demand remains very healthy in this segment. New programs, wins will drive the long-term growth for us. And also we have a strong pipeline of new opportunities for the future.
New programs with <unk>.
Vince will drive the long term growth for us and also we have a strong pipeline of new <unk>.
Fortuna Ts for the future.
Speaker 3: Let's turn to slide 21 to talk about automotive.
Let's turn to slide 21 to talk about automotive.
Speaker 3: Automotive and transportation is also a very strong market for us. We have well positioned in automotive, especially around electrical vehicle.
Automotive and transportation is also very strong market for us we are well positioned in automotive, especially around the electrical vehicle.
Speaker 3: And as you can see in these segments we're well diversified and also in transportation side of the business.
And as you can see in these segments, we are well diversified and also in transportation side of the business.
Speaker 3: Our market view is that growth trends are strong in electrical vehicle and electrical charges. I will say anything around the electrical right now.
Our market viewers that growth trends are strong and electrical vehicle and electrical charges I will say anything around electrical right now.
We do have a long term growth.
Speaker 3: We do have a long-term growth in this segment and some of the global initiatives, I believe, will drive the high growth for Samina for many years in the future. Can also tell you that we are ramping fair amount of new programs in this segment.
You know in this segment and as some of the global initiatives I believe.
We will drive to.
High growth for Sanmina for many years in the future.
And also tell you that we are ramping a fair amount of new programs in this segments.
Speaker 3: So let's turn to slide one and two to talk about communication and cloud infrastructure market.
So, let's turn to slide 22, let's talk about communication and cloud infrastructure markets.
Speaker 3: In this market, Samina is well positioned. We, the most of the products that we build here is in a high performance network. As you can see here from optical systems, 400 gigs, 800 gigs, we are developing 1.6 terabytes for the future. We're expanding our business in cloud, build around the IP routers. We're working on next generation, Edge, and base GPU platforms.
In this market segment is well positioned.
The most of the products that we build here is in our high performance networks. As you can see here from optical systems 400 gig 800 gig we're developing it.
One six terabytes for the future we are expanding our business in cloud.
Built around the IP routers.
You know we're working on next generation edge based GPU platforms.
Speaker 3: So our view of this market's short term is we see softer demand for some customers due to inventory adjustments. Actually we have few customers that are growing in this market, but some of the big ones for us are, you know, adjusting to the inventory. Future demand for cloud will be driven by AI and ML technology requirements.
So our view of this market short term as we see softer demand for some customers due to inventory adjustments actually we have few customers that are growing in this market, but some of the big ones for us are.
Adjusting to the to the inventory future demand for our cloud will be driven by AI and ml technology requirements.
Speaker 3: I can tell you that also with what position we've been expanding in this market.
I can tell you. They also were well positioned and we've been expanding in this market.
Yeah.
Speaker 3: Also, B programs is basically getting the broadband to each household in the United States. It's about $43 billion opportunity financed by federal government when I say $43 billion.
Also bead programs is is getting is basically is getting the broadband to each household in the United States, It's about $43 billion opportunity.
Financed by federal government, when I say 43 billion.
Speaker 3: the whole market there, but it's basically something that federal government wants to make sure that there's a broadband in each household in the United States. The good thing about this opportunity is this has to be made in USA and we're already starting to participate in this area.
Whole market there, but it's it's basically something that federal government wants to make sure that.
Theres a broadband in each household to United States. The good thing about this opportunity is this has to be made in USA and we are already starting to participate in this area.
Also we are well positioned in India, India has a lot of opportunities in communication and cloud infrastructure, our JV is doing well.
Speaker 3: Also, we have a position in India. In India has a lot of opportunities in communication and cloud infrastructure. Our JV is doing well. We're growing at the higher rate than we expected a year ago.
We are growing at a higher rate than we expected a year ago.
So overall I can tell you. This I mean I is in a strong position as we provide the some of the latest technology for these key for these key market leaders.
Speaker 3: So overall, I can tell you that Samina is in a strong position as we provide some of the latest technology for these key market leaders.
So, let's turn to slide 23.
Yeah.
As you can see we're well diversified cross.
Speaker 3: As you can see, we are well diversified across key market segments.
Key market segments.
Speaker 3: We are positioned pretty well in these key markets to drive focus growth of our strategy. The key markets again for us will be Cloud AI and ML, defense and aerospace, digital health.
We are positioned pretty well in these key markets to drive focused growth of our strategy.
The key markets again.
This will be cloud AI, and ml defense and aerospace digital health <unk>.
Electrical vehicle industrial and optical packaging.
Speaker 3: electrical vehicle, industrial and optical packaging.
And the reason this is key that Sanmina delivers that total time to time to market and integrated manufacturing solutions for these high technology markets. So we're very excited about the future.
Speaker 3: And the reason this is key is that Semina delivers the total time to market and integrate the manufacturing solutions for these high technology markets.
Speaker 3: So we're very excited about the future. Let's turn to slide 24. Let me talk to you.
Let's turn to slide 24.
Let me talk to you more about our priorities.
Speaker 3: Our priority is basically simple, is provide a leading technology to customers in a heavy regulated markets to drive the profitable growth. So let me give you some highlights. Everything we do, we build around our customers. If you look at our customer relationship, on an average it's 10, 15 plus years.
Our priority is basically simply provide a leading technology to customers in a heavier regulated markets to drive the profitable growth. So let me give you some highlights everything we do we build around our customers. If you look at our customer relationship on an average is 10 15 plus years.
We have a strong.
Speaker 3: We have a strong customer base. I call that strong partners in these key markets and we
Customer base I call. It strong partners in these key markets.
And we are well diversified.
Speaker 3: We provide the leading edge technology in this heavy regulated market by providing competitive advantage to technology. We get involved early stage of product development.
We provide the leading edge technology and this heavier regulated markets by providing competitive advantage through technology, we get involved early stage of product development.
Speaker 3: focus on time to market bringing the product to our customers to the market faster, delivering an quality of product, industry leading, our reputation is very, very high here. And at the day, we provide end-to-end technology solution for our key partners.
Focus on time to market, bringing the product to our customers to market faster delivery and our quality of products industry, leading our reputation is very very high here.
End of the day, we provide end to end technology solution for our key partners.
The key for US is growth, where we believe we have a way to drive the long term growth and margin expansion short term for 2000, and Florida as you heard from US already in this dynamic market environment short term, especially.
Speaker 3: The key for us is growth. We believe we have a way to drive the long-term growth and margin expansion. Short term for 24, as you heard from us already, in this dynamic market environment, short term especially, you know, we've seen some challenges as inventory gets adjusted.
We've seen some challenges as the inventory gets adjusted.
Speaker 3: But for second half, based on what we see and what our customers are telling us, we expect to see a growth. Most importantly, the Samina invested a lot in a key market such as medical, defense, automotive, industrial, alternative energy, cloud infrastructure, optical packaging, over 400 million dollars in the last two years, and we continue to invest today.
But for a second half based on what we see and what our customers are telling us we expect to see a growth.
Most importantly, the Sanmina invested lot.
In our key markets, such as medical defense automotive industrial alternative energy cloud infrastructure optical packaging over $400 million in the last two years and we continue to invest today.
Speaker 3: We are continuing to optimize, as you heard from Kurt, our capital structure to drive the growth in the next three years. Our internal goal is to grow the revenue between $10 and $12 billion or so.
We are continuing to optimize that you heard from Kurt our capital structure to drive the growth in X Ray. The next three years and our internal goal is to grow the revenue between 10 and $12 billion or so.
We're going to continue to generate cash that name of the game for US we delivered a respectable operating margin.
Speaker 3: We're going to continue to generate cash. That's the name of the game for us. We believe it in a respectable operating margin.
Speaker 3: We believe we can improve the margin going forward. Short-term, our operating margin will be in the range 5 to 6%. Long-term, we believe our operating margin should be 6% plus.
We believe that.
We can improve the margin going forward short term, our operating margin will be in a range, 5% to 6%.
Long term, we believe our operating margins should be 6% plus.
And we will continue to generate enough cash to allows us to drive the growth.
Speaker 3: and will continue to generate enough cash to allow us to drive the growth.
When it comes to maximizing shareholder value definitely there's a little work to do there today Sanmina is undervalued, we believe in our long term value of <unk> stock as you heard from where it would be buying it will continue to buy.
Speaker 3: When it comes to maximizing shareholder value, the definition of the work to do there, today's Sennina is undervalued. We believe in a long-term value of Sennina stock. As you heard from her, we've been buying it, we'll continue to buy.
And we are focused on leveraging our competitive advantage.
Speaker 3: and we are focused on leveraging our competitive advantage of our business model.
Our business model.
Speaker 3: to maximize the shareholders' value, not just a short term but also long term. Please turn to slow-
To maximize shareholders' value.
Just a short term, but also long term.
Turn to slide 25.
Speaker 3: In summary, we delivered a strong result for a fiscal year 23.
In summary, we delivered a strong result for our fiscal year 'twenty three.
Speaker 3: We see softness in the man for the first half of the year.
We see softness in demand for the first half of the year.
Speaker 3: We expect the men to improve in the second half of the year.
We expect demand to improve in the second half of the year.
Speaker 3: Number one, we're going to continue to focus on growth in the key end markets, and number two, we're going to continue to invest in these key markets for a better future for our customers and our shareholders. The good thing about Semina, we have strong balance sheet, a strong foundation to build a better future on.
Number one we're going to continue to focus on growth in the key end markets.
Number two we're going to continue to invest in these key markets for a better future for our customers and our shareholders. The good thing about <unk>, we have a strong balance sheet, a strong foundation to build a better future.
So ladies and gentlemen, now I would like to thank you all for you for your time and support operator, we're now ready to open the lines for question and answers.
Speaker 3: So ladies and gentlemen, now I would like to thank you all for your time and support. Operator, we're now ready to open the line for question and answers. Thank you all again.
Thank you all again operator.
Speaker 1: Thank you. We will now begin the question and an answer session. To ask a question you may press star, then one, on your touch tone phone.
Thank you.
We will now begin the question and answer session.
If you ask a question you May Press Star then one on your Touchtone phone.
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Speaker 1: to withdraw your question, please press star then two. At this time, we will pause momentarily to assemble a roster.
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Our first question comes from and Yes, <unk> got a strong with.
Speaker 1: Our first question comes from Amia Sauterstrom with Cedotti. Please go ahead.
Sidoti. Please go ahead Hello.
Speaker 5: Hi, Jura, and thank you for taking my questions.
And thank you for putting my question, Yes I'm.
Speaker 3: You're just curious for the network equipment market. You said the inventory adjustment stairs primarily within that segment, but where else are you seeing inventory adjustments? Well, most of our inventory adjustments is really crossed communications out of the business, 5G, some networkiness product, but that's mainly adding in with a few customers.
In this case for the network equipment market, you said that used to be inventory adjustments. There is primarily within that segment, but where else are you seeing inventory adjustment.
While most of our inventory adjustments is really across the communications side of the business five G.
Some networking.
Product, but that's mainly and then with a few customers the rest of the markets as you can see in industrial medical defense and automotive that's basically came in flat, we see some minor adjustment there, but not the major like what we've seen in communication side.
Speaker 3: The rest of the markets, as you can see, in industrial medical defense and automotive that basically came in flat.
Speaker 3: We see some minor adjustments there, but not the major like what we see in communication side.
Okay. Thank you and.
Speaker 5: Okay, thank you and in touch with Otto, has the slide set all affected you or?
In personal auto.
That's the strikes at all affected your <unk>.
Speaker 3: Not really, I mean we have a few projects there, but most of our stuff was with the industry leaders in a lexical vehicle.
Not really I mean, we have a few projects there, but most of our staff was with the industry leaders in our in electrical vehicle.
Okay.
Speaker 5: Okay. And in terms of the joint venture, you said you're seeing strong growth there, better than you had expected. When will we see some significance against revenue streams from there?
Hum.
In terms of that joint venture.
You said, you're seeing strong growth they are better than you had expected.
Well really see some.
Again revenue scales.
From there well.
Speaker 3: I would expect to have a great year down there of operations performed excellent. We do expect to see some pretty good growth in 24 and I will say we have position and the 24-25 to grow a lot.
I would expect it to have a well first of all we had a great.
Mid year down there of operations performed excellent we do expect to see some pretty good growth in 'twenty four and I will say, we are position end of 'twenty four 'twenty five to grow a lot.
Okay.
Speaker 5: Okay, and in terms of the growth margin and the product mix with the shortfall line in the in the communications equipment, how should we think about the growth margin in the coming quarters and then in the coming years?
Gross margin in the product mix.
With this shortfall in mind that in the communications equipment.
Shall we think about the gross margin in the coming quarters and then when they come.
Yes.
Speaker 6: Well, first of all, let me make a comment about back to the margins. As you see, we deliver the respectable margin this year. We believe we can do better. I think the short term, I would say, operating margin will be in the range of five to six percent, even with the revenue.
Well first of all.
Let me, let me make a comment about the back to the margins.
As you see we had delivered a respectable margin this year.
We believe we can do better I think the short term I would say operating margin will be in the range of 5% to 6%.
Even with the revenue being down.
Speaker 6: But we're going to continue to tune up and position the company as we know market is going to come back as we position the company for a lot of growth.
But we're going to continue to tune up and position the company as we know market is going to come back as we are.
We position the company for a lot of growth as as we start shipping more and we know that in last year, we could have done better let's let me put it that way there is some room for improvement as we look at the 24 and 24 25, we have a lot of upside and we think our margin should be.
Speaker 6: As we start shipping more and some we know that last year we could have done better. Let's let me put it that way. There's some room for improvements as we look at the 24 and the 24 25. We have a lot of upside and we think our margins should be over 6%. We, you know, we have a proven record on that and we'll do it back to communication type of communication market and margins. We do it.
Over 6%.
We have a proven record of that and we will do it back to communications type of communication market our margins when we do it we delivered a respectable margins there anya.
Speaker 6: We deliver the respectable margins there, Anya. We are focused there on a really high performance, both in the networking side, you know, in a storage side and also the routers. So we will position there. Unfortunately, I think our customers drove more inventory. We finally realized there's a more inventory in a pipeline than we realized. So there will be some correction going on. But the long term, I think, will be there. Okay.
We are focused there.
Really high performance boat in the networking side.
Well you know in the storage side and also the routers. So we're well positioned there. Unfortunately I think our customers there are more inventory with finally realize theres a more inventory in our pipeline and we realized so there will be some correction going on but the long term I think we'll be there okay.
Speaker 5: Okay, thank you and as you spoke about the fiscal 2000
Okay. Thank you and I spoke about that fiscal 2000.
Speaker 6: 24 it's gonna be a Slaughter in the first half and then you see growth again in the second half What gives you confidence in in the growth there and and for the full year? How should we think about the overall revenue performance? Okay, well we think and as you know in last three years as you covered us we take one quarter at a time I think the short term definitely you know, we see in and three being resolved in next six months
24, it's going to be a soft during the first half and then you see growth again in the second half what gives you confidence in the growth there and for the full year, how should we think about the overall revenue performance, Okay, well I mean as you know in last three years as you cover that as we take one quarter at a time.
I think the short term definitely we see inventory being resolved in the next six months.
Speaker 6: Hopefully sooner, but definitely I think inventory will get resolved based on what we see today. So definitely we're going to see some pickup in second half because of that. Unless the economy falls off the cliff, based on my customer forecast, I think there should be some upside across all our markets, especially in the second half.
Hopefully sooner, but definitely I think inventory will get resolved based on what we see today.
So definitely we're going to see some pickup in second half because of that unless the economy falls off the cliff based on my customer forecasts I think there should be some upside in our across all our markets, especially in the second half so and based on some of these new programs that we work in so there's three things that we're looking at.
Speaker 6: And based on some of these new programs that we're working sort of three things that we're looking at, we expect to grow. We definitely expect to grow long-term, but we'll take one quarter of a time on you.
We expect to.
To grow we definitely expect to grow long term, but we will take one quarter at time on you.
Okay. Thank you and one last one.
Speaker 7: Okay thank you N19 from you, you said you...
You said yeah.
And some new program wins.
Speaker 6: have some new program wins. Are you just talking about those like those with the existing customers, or expanding your logo a bit, or how is this fine? But definitely we're expanding a logo, but most of the big wins are with existing customers, but we have a fair amount of new logos on that.
Can you just talk about monetize those with that existing customers are expanding your logo on this.
Ha Ha ha.
When they finally with expanding our logo, but most of the big wins with existing our existing customers, but we have a fair.
A fair amount of new logos on your debt.
Speaker 6: that have a lot of potential but probably that's more end of the 24 or 25 because it takes some time to give this program up. So yeah, we have an upside potential defense and aerospace side of the business.
That have a lot of potential, but probably that's more end of the 'twenty four 'twenty five because it takes it takes some time to give these program up so yeah, we have a an upside potential deep defense and aerospace side of the business.
Speaker 6: I think alternative energy has a lot, and cloud infrastructure and optical packaging, that area, I think there's a lot about that. Also, I just want to remind them my prepared statement. I said, hey, we have goals internally to grow this company a lot bigger than what we are today, and our, as I mentioned, you know, we, you know, in the next three years, we expect to be in the range $10 to $12 billion. So, we are focused on growth, but we want to make sure it's the most profitable growth.
I think alternative energy has a lot in cloud infrastructure and optical packaging that area I think there's a lot of after I also just want to remind that my prepared statement I said, hey, we have our goals internally to grow these companies a lot bigger than what we are today and as I mentioned.
We are you know next three years, we expect to be in the range $10 billion to $12 billion. So we are focused on growth, but we're going to make sure. It's the most profitable growth.
Yeah. Okay. Thank you that was all for me.
Speaker 5: Yeah. Okay. Thank you. That was all from me. Bye.
Our next question comes from Christian Schwab with Craig Hallum Capital Group. Please go ahead.
Speaker 1: Our next question comes from Christian Swap Schwab with Greg Helen Capital Group. Please go ahead.
Speaker 8: Hey Christian. Hey, Gary. Most of my questions have been answered. Maybe just a little bit further clarity on the inventory correction communication. Since the inventory correction was obviously better, you know, bigger than you thought in September , gonna continue your interview to December and continue into March. When you talk about some customers, is that like two or three or is that more than five?
Christian.
Hey, Gary.
My questions have been answered maybe just a little bit.
Further clarity on the inventory correction communications.
Sorry correction was obviously bigger than you thought in September.
Two in December and continuing into March.
What do you when you talk about some customers as it is that like two or three years more than five.
Speaker 6: We do business in that segment with all the market leaders Christian As you know we let our customers speak for themselves
We do business in that segment with all the market leaders are Christian.
As you know, we let our customers speak for themselves.
Speaker 6: But yeah, I would say it's majority of the customer in that segment have a little bit extra inventory and I think what happened there is Christian
But yeah I would say its majority of the customer in that segment that has a little bit of extra inventory and I think what happened there Christian.
Is that when there was the shortages I think there was more inventory driven both by end customer and our customers. So you add to this pipeline that got filled up at the higher rate than I I don't I don't know if anybody in the industry really realize that how much inventory was in our pipeline the good thing.
Speaker 6: is that when there was the shortage, I think there was more inventory driven by ant customer and our customer. So you had a despite plan that got filled up at the higher rate than I...
Speaker 6: I don't I don't know if anybody in industry really realized that how much inventory was in a pipeline. The good thing.
Speaker 6: Is that I'm seeing, or at least what customers are telling us that this thing is going to empty? And hopefully in next six months and we'll go from there. But good thing Christian, we didn't lose any customers or any program.
Is that I'm seeing oh, what at least what customers are telling us that this thing is going to empty and hopefully in next six months and we'll go from there, but good thing Christian Hey, we didn't lose any customers or any programs actually we want some programs in their side of the business.
Speaker 6: Actually, we want some programs in their side of the business. You know, the business being transferred from us and a couple other, I mean, and another competitor to Mexico for us, but that transfer is going to be delayed for, you know, a few quarters. So, but overall, we're still in a good position with those key customers for long term. It's a, it's a basically short term.
Business being transferred from from Us and a couple others.
And another competitor to Mexico for us, but that transfer is going to be delayed.
Few quarter, so, but overall, we're still in a good position with those key customers for long term.
So basically short term scenario.
Speaker 6: Great. And then just elaborate just a, it's made for you know, obviously you have an historically one large customer, but when you talk about yourself, all the market share leaders and communications, you know, remind us, are you selling the 10 significant people? 15, if you look at the market, if you look at the market leaders in their Christian, you know, them better than I do. There's approximately, you know, 10 companies and not of those, there's a five big ones and four, it's five smaller ones.
Great.
Just to elaborate just a smidge further you know obviously you haven't historically was large customer, but when you're talking about yourself all the market share leaders in communications.
You know remind us are you selling to 10 significant people.
You look at the market. If you look at the market leaders in their Christian you know them better than I do there is approximately.
Tank companies and not have those are the five big ones in Florida, five smaller ones.
Yes, Okay, that's what I thought okay.
Speaker 8: Yeah, okay, that's what I thought. Okay, and then just to follow up on the fiscal year guidance, I know you don't give that, but kind of back in the envelope, but it does appear in a recovery scenario, the second half in communications, we should be growing revenue year over year, right?
And then just a follow up on the fiscal year guidance, you know I know you don't give that but.
Kind of back of the envelope. It you know it does appear in a recovery scenario in the second half in communications you know, we should be growing revenue year over year right.
Well you know.
Speaker 3: Well, it's all depends on how market turns. If demand is there...
It all depends how the market turns.
If demand.
Is there first of all we have.
Speaker 6: capabilities and capacity to grow. So that's not an issue and we are...
Capabilities and capacity to grow so that's not an issue and we are where we are positioning the company. We've been positioning the company for last year and a half to grow that's why I. Just said earlier, we had a major expansion for US as you know, we don't throw money around unless we're going to grow and we spend four over.
Speaker 6: We are we are positioning the company. We've been positioning company for the last year and a half to grow. That's why I just said earlier, we had the major expansion for us. As you know, we don't throw money around unless we're going to grow and we.
Speaker 6: We're actually spending right now. We just finished in expansion in Thailand. We spent at Mexico for the growth of the projects that we want and the customers that we will have a growth. So...
Spending right now we just finished an expansion in Thailand, we expanded Mexico.
As for the <unk>.
Out of the projects that we that we want and the customers that we will have a good old. So we're optimistic and we you know that the second half will be better it's hard for me to with all the stuff going on around the World Christian I think it was a smart thing for US is what I say, our internal people, we only control what we can control.
Speaker 6: We're optimistic and we, you know, that the second half.
Speaker 6: will be better. It's hard for me to, with all the stuff going on around the world Christian, I think what we, what's smart thing for us is what I say our internal people. We only control what we can control. As we can control what we do every day. So we're going to continuously stay on top of things, take care of our customers, but be aggressive as, as the demand comes back.
As we can control what we do every day, so we're going to continuously stay on top of things take care of our customers, but be aggressive as as the demand comes back.
Okay.
Speaker 8: Okay. Great. Thank you. You're no other question.
Great.
No other questions.
Yes.
Speaker 1: Again, if you'd like to ask a question, please press star then one at this time.
So again, if you'd like to ask a question. Please press Star then one at this time.
Showing no further questions at this time.
Speaker 6: Well, ladies and gentlemen, again, thanks for your time, and I appreciate your patience with us. Again, we're excited about our future, and if we didn't answer any of your questions, please get back to us. With that, thank you, and we'll talk to you three months from now, I guess. Bye-bye. Thank you.
Well, ladies and gentlemen, again, thanks for your time and I appreciate your patience with us.
We're excited about our future and if we didn't answer any of your questions. Please.
Get back to us with that thank you and we'll talk to you three months from now I guess bye bye. Thank you.
Speaker 1: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.