, /PRNewswire/ -- Open Text Corporation (NASDAQ: OTEX), (TSX: OTEX), announced today that financial results for its first quarter fiscal year 2026 will be released after the close of market Wednesday, November 5, 2025. The earnings call will be hosted the following morning by OpenText Executive Chair & Chief Strategy Officer Tom Jenkins, Interim Chief Executive Officer James McGourlay and Executive Vice President & Chief Financial Officer Steve Rai, with Cosmin Balota, Senior Vice President & Chief Accounti ...

Core Viewpoint - Microsoft has disabled a set of cloud and AI services utilized by a unit within the Israel Ministry of Defense (IMOD) following an internal review that found preliminary evidence supporting media reports regarding the use of these services [1] Group 1 - The decision to disable the services was made after an internal review conducted by Microsoft [1] - The internal review indicated preliminary evidence that raised concerns about the use of Microsoft's cloud and AI services by the IMOD [1] - This action reflects Microsoft's commitment to ethical considerations in the deployment of its technology [1]

Industry Overview - The industrials sector has performed well despite overall market turbulence, with the Industrial Select Sector SPDR Fund (XLI) rising nearly 17% year-to-date, outperforming the S&P 500 [1] - Factors contributing to the sector's strength include federal government initiatives for reshoring manufacturing, increased infrastructure spending, and defense-related growth [2] Company Highlights - Primoris Services Corp. (NASDAQ: PRIM) reported a strong second-quarter earnings performance, with earnings per share (EPS) of $1.68, exceeding expectations by 58 cents, and a year-over-year revenue increase of 21% [4][5] - Primoris has a significant backlog of $11.5 billion, positioning it well to benefit from the growing demand in data center infrastructure, particularly in cloud and AI sectors [5] - AZZ Inc. (NYSE: AZZ) has successfully realigned its business through strategic divestments and acquisitions, including the purchase of Canton Galvanizing, which enhances its capacity and customer base [8][9] - Dycom Industries Inc. (NYSE: DY) reported an EPS of $3.33, surpassing expectations, with a revenue increase of nearly 15% year-over-year, indicating strong growth potential in the telecommunications and utility infrastructure sectors [11][12] Analyst Ratings and Forecasts - Primoris Services has a moderate buy rating from analysts, with a 12-month stock price forecast averaging $101.67, indicating a potential downside of 14.35% from the current price of $118.70 [4][6] - AZZ Inc. has a moderate buy rating as well, with a 12-month stock price forecast averaging $112.29, suggesting a slight downside of 0.68% from the current price of $113.06 [8][10] - Dycom Industries has a buy rating with a 12-month stock price forecast averaging $289.43, indicating a potential upside of 14.65% from the current price of $252.44 [11][13]

Q4 FY25 Performance - Revenue reached $480.7 million[9,10,11,13], a 16% increase QoQ[8] and a 67% increase YoY[8] - Non-GAAP gross margin was 37.8%[10], compared to 35.2% in Q3 FY25[10] and 27.8% in Q4 FY24[10] - Non-GAAP operating income was $72.3 million[10], resulting in a 15.0% operating margin[10] - Non-GAAP diluted EPS was $0.88[10], compared to $0.57 in Q3 FY25[10] and $(0.13) in Q4 FY24[10] Segment Performance - Cloud & Networking revenue was $424.1 million[11] - Industrial Tech revenue was $56.6 million[11] Key Growth Drivers - Strong cloud demand, particularly from hyperscale customers, drove revenue growth[8] - Cloud module shipments exceeded the 50% QoQ growth target[8] - EML business approximately doubled compared to Q4 FY24[8] Q1 FY26 Guidance (Non-GAAP) - Revenue is projected to be between $510 million and $540 million[13] - Operating margin is expected to be between 16.0% and 17.5%[13] - Diluted EPS is projected to be between $0.95 and $1.10[13]

Core Viewpoint - The nuclear energy market, while not traditionally seen as a high-growth sector, presents potential multibagger gains through investments in companies like Cameco and NuScale Power over the next decade, driven by geopolitical factors and increasing energy demands from cloud and AI markets [1][2][4]. Group 1: Cameco - Cameco is the second-largest uranium miner globally, producing approximately 17% of the world's uranium in 2024, with operations in Canada, the U.S., and Kazakhstan [5]. - In late 2023, Cameco partnered with Brookfield Asset Management to acquire a 49% stake in Westinghouse Electric, which is expected to stabilize returns and position Cameco as a preferred uranium supplier for Westinghouse's nuclear plants [6]. - Analysts project Cameco's revenue and earnings per share to grow at a CAGR of 8% and 85%, respectively, from 2024 to 2027, driven by rising uranium prices, which are expected to increase from $70 to $140 by 2027 [7][8]. Group 2: NuScale Power - NuScale specializes in small modular reactors (SMRs), which are easier and cheaper to build compared to traditional nuclear plants, and has received standard design approval from the U.S. Nuclear Regulatory Commission for its SMR designs [9][10]. - The company is currently generating revenue as a subcontractor for a 462-megawatt power plant project in Romania, but anticipates significant revenue growth as it launches its first plants in the U.S. market, with a projected CAGR of 118% from 2024 to 2027 [11]. - Although NuScale is not yet profitable and has a valuation of 11 times its estimated sales for 2027, it is positioned for rapid growth as SMRs gain traction in the nuclear power sector [12].

Summary of Sanmina Conference Call on Acquisition of ZTE Systems Company and Industry - **Company**: Sanmina (SANM) - **Acquisition Target**: ZTE Systems' data center infrastructure manufacturing business - **Industry**: Cloud and AI infrastructure manufacturing Core Points and Arguments 1. **Acquisition Details**: Sanmina announced the acquisition of ZTE Systems for a total purchase price of up to $3 billion, which includes $2.55 billion in cash and equity plus $415 million in contingent consideration [10][22] 2. **Strategic Partnership with AMD**: The acquisition establishes a strategic commercial partnership with AMD, aimed at accelerating the deployment of AMD's ROC and cluster scale AI solutions [9][19] 3. **Market Growth Potential**: The cloud and AI market is projected to grow from $300 billion to nearly $1 trillion in the next few years, presenting significant opportunities for Sanmina [16] 4. **Revenue Expectations**: The acquisition is expected to add approximately $5 billion to $6 billion to Sanmina's annual net revenue run rate and potentially double Sanmina's net revenue within three years [23][36] 5. **Non-GAAP EPS Accretion**: The transaction is expected to be accretive to non-GAAP EPS in the first year post-acquisition, with further improvements anticipated as synergies are realized [11][24] 6. **Operational Efficiencies**: The acquisition is expected to drive operational efficiencies and vertical integration opportunities, enhancing Sanmina's ability to deliver value to shareholders [24][29] 7. **Facilities and Capabilities**: ZTE Systems has multiple manufacturing facilities, including a 1.2 million square feet site in New Jersey and a 500,000 square feet facility in Texas, which are equipped with advanced liquid cooling capabilities [12][13] 8. **Management Expertise**: The acquisition brings in a strong management team and deep industry expertise, which is critical for the next generation of AI platforms [12][15] Other Important Content 1. **Financial Structure**: The acquisition includes a lockup period for equity sales, with a structured release over three years [21] 2. **Integration Plan**: Sanmina plans to implement a deliberate integration plan to ensure a seamless transition between the two organizations [22] 3. **Balance Sheet Strength**: Sanmina maintains a strong balance sheet with no net debt and a gross leverage ratio of approximately 0.5 times prior to the transaction [25] 4. **Customer Relationships**: The partnership with AMD is expected to enhance relationships with hyperscalers and OEM customers, broadening Sanmina's market reach [14][28] 5. **Future Growth Strategy**: Sanmina aims to leverage ZTE's capabilities to improve service offerings to existing customers and attract new ones, positioning itself as a key player in the EMS industry [49][50] This summary encapsulates the key points discussed during the Sanmina conference call regarding the acquisition of ZTE Systems, highlighting the strategic importance of the deal and its expected impact on the company's growth trajectory.

Transaction Overview - Sanmina will acquire ZT Systems Manufacturing from AMD to capitalize on growth in Cloud and AI infrastructure spend[13] - The purchase price is $2.55 billion in cash and equity, plus up to $450 million in contingent consideration, totaling up to $3 billion[13] - The acquisition is expected to be accretive to non-GAAP EPS in the first year after closing[13] Strategic Rationale - The acquisition accelerates Sanmina's entry into the Cloud and AI market across all technologies[18] - Sanmina will become the preferred NPI manufacturing partner for AMD's rack and cluster-scale AI solutions[26] - ZT Systems Manufacturing has a significant domestic manufacturing footprint, including a 1.2 million+ sq ft facility in Secaucus, NJ, and a ~500k sq ft facility in Georgetown, TX with optionality to expand to 1 million+[14] Financial Impact - ZT Systems Manufacturing has a current annual run-rate net revenue of approximately $5 - $6 billion[31] - The acquisition is expected to double Sanmina's revenue in 3 years[31] - The purchase price includes $2.25 billion upfront cash consideration[28] - $150 million in Sanmina equity will be issued as part of the purchase price[28]

Core Viewpoint - Sanmina Corporation has announced a definitive agreement to acquire the data center infrastructure manufacturing business of ZT Systems from AMD for a total consideration of up to $3 billion, which includes $2.55 billion in cash and equity plus $450 million in contingent consideration, enhancing its position in the Cloud and AI infrastructure market [1][7]. Transaction Details - The acquisition price consists of $2.25 billion in cash for assets, a $300 million premium split between cash and equity, and a $450 million contingent consideration based on future financial performance [7][8]. - Sanmina has secured committed financing of $2.5 billion from Bank of America to facilitate the transaction [9]. Strategic Rationale - The acquisition is expected to double Sanmina's revenue scale within three years, significantly enhancing its position in the fast-growing Cloud and AI end-market [11]. - Sanmina aims to deepen relationships with existing customers and attract new ones through ZT Systems' established connections with hyperscalers [11]. - The integration of ZT Systems' advanced manufacturing capabilities, including liquid cooling technologies, will complement Sanmina's existing operations and expand its footprint in Europe [11]. Expected Benefits - The transaction is anticipated to be accretive to Sanmina's non-GAAP EPS in the first year post-close, with further accretion expected as synergies are realized [11]. - The combination is projected to generate operational efficiencies and enhance Sanmina's capabilities as a leading end-to-end manufacturing partner for mission-critical technologies [11]. Partnership with AMD - AMD will retain ZT Systems' AI systems design businesses and collaborate with Sanmina as its preferred new product introduction (NPI) manufacturing partner, focusing on accelerating the deployment of AMD AI solutions [4][5].

Core Viewpoint - The cloud and AI markets are experiencing rapid growth, benefiting companies like Microsoft, Cloudflare, and Five9, which are well-positioned to capitalize on these trends over the coming decades [1][2]. Microsoft - Microsoft has transformed from a slow-growth tech giant to a leader in cloud and AI under CEO Satya Nadella since 2014, expanding its cloud ecosystem and investing in AI technologies [4][5]. - Microsoft's Azure is now the second-largest cloud infrastructure platform globally, following Amazon Web Services (AWS), and the company has a significant stake in OpenAI, integrating AI capabilities into its products [5][6]. - From fiscal 2014 to fiscal 2024, Microsoft's revenue grew at a compound annual growth rate (CAGR) of 11%, with earnings per share (EPS) increasing at a CAGR of 16%. Analysts project a continued revenue and EPS growth of 14% CAGR from fiscal 2024 to fiscal 2027 [6][7]. Cloudflare - Cloudflare is a major content delivery network (CDN) provider, enhancing digital content delivery and protecting websites from cyber threats [8][10]. - The company aims to be a "water filtration" system for the internet, recently launching Workers AI to enable developers to build AI applications on its edge networks [9][10]. - Cloudflare's revenue has grown at a CAGR of 40% from 2020 to 2024, with expectations of 27% CAGR growth from 2024 to 2027, and it is projected to become profitable by the end of this period [11]. Five9 - Five9 specializes in cloud-based customer support services, utilizing AI-powered chatbots and human agents to manage customer interactions across various channels [12][13]. - The company serves over 3,000 customers and processes more than 14 billion call minutes annually, with a business model designed to thrive during economic downturns [12][13]. - From 2014 to 2024, Five9's revenue grew at a CAGR of 26%, with projections of 10% CAGR growth from 2024 to 2027, and an expected EPS growth of 125% over the next two years [14].

Financial Data and Key Metrics Changes - Third quarter revenue was $425.2 million, exceeding the high end of guidance, with non-GAAP EPS of $0.57 [21] - Non-GAAP gross margin for Q3 was 35.2%, up 290 basis points sequentially and 650 basis points year-over-year [21] - Non-GAAP operating margin was 10.8%, an increase of 290 basis points sequentially and 1,100 basis points year-over-year [21] - Cash and short-term investments decreased by $30 million to $867 million [23] Business Line Data and Key Metrics Changes - Cloud and Networking segment revenue was $365.2 million, up 8% sequentially and 16% year-over-year [23] - Industrial Tech segment revenue decreased by 5% sequentially but increased by 14% year-over-year, with a profit margin of 4.3% [24] - Cloud and Networking segment profit increased to 20%, up 380 basis points sequentially and 540 basis points year-over-year [24] Market Data and Key Metrics Changes - The overall market is expected to grow at a compound annual growth rate of over 25% over the next five years, driven by the convergence of optics and electronics [9] - Demand from hyperscale cloud customers continues to be a significant driver of revenue growth [11] Company Strategy and Development Direction - The company aims to achieve quarterly revenue of $750 million, gross margins above 40%, and operating margins greater than 20% [8] - Focus on expanding capabilities in the optical components market, particularly in transceivers and co-packaged optics [10][13] - Strategic investments are being made in high-growth areas, particularly cloud and AI applications [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving medium and long-term financial targets despite macroeconomic uncertainties and tariff impacts [19] - The company is focused on pricing, disciplined spending, and execution to navigate challenges [19] - Anticipated strong sequential growth in the Cloud and Networking segment for Q4, driven by new capacity and demand from network equipment manufacturers [16] Other Important Information - The company is ramping production in CW lasers for silicon photonics transceiver applications [12] - The company has taken actions to rationalize the Industrial Tech portfolio, closing two R&D sites [17] Q&A Session Summary Question: How is the company tracking towards the $500 million revenue target? - Management confirmed they are still on track for the $500 million target by the end of the year, guiding quarter by quarter [31] Question: Update on datacom chip business performance? - The company is outperforming initial expectations in terms of volume and ASP, with a focus on EMLs [32][34] Question: Clarification on tariff headwinds? - The company quantified a 100 basis point headwind to gross margins due to increased component costs and tariffs [41][43] Question: Contributions from co-packaged optics? - Co-packaged optics are expected to take time to ramp, with a focus on laser components in the near term [48] Question: Telecom performance and supply constraints? - Telecom performance met expectations, with improvements anticipated in supply for pumps and tunables moving into Q4 [99][100] Question: Guidance caution related to macro or tariffs? - Management acknowledged macro uncertainty but expressed confidence in the guidance provided, with an overall positive trend in demand [105]