Financial Data and Key Metrics Changes - Revenue for the fiscal third quarter was $1,018,000,000, meeting guidance and showing sequential growth [6][5] - Non-GAAP operating margin was 6%, increasing 30 basis points sequentially and meeting the stated goal [7][5] - Non-GAAP EPS of $1.9 exceeded guidance, benefiting from strong operating performance and lower interest expense [8][24] - Free cash flow for the quarter was $13,200,000, significantly better than expectations [8][25] - The company is forecasting fiscal fourth quarter revenue between $1,025,000,000 and $1,065,000, with a non-GAAP operating margin of 5.7% to 6.1% [13][28] Business Line Data and Key Metrics Changes - Aerospace and Defense sector revenue increased 6% sequentially, with new program ramps contributing to performance [15] - Healthcare Life Sciences sector revenue was up 2% sequentially, below expectations due to a customer design update [17] - Industrial sector revenue increased 4% sequentially, with strong demand in broadband communications and energy markets [19] Market Data and Key Metrics Changes - The funnel of qualified manufacturing opportunities increased 4% sequentially to $3,600,000,000, indicating robust growth prospects [22] - The company observed early signs of increasing activity in the European defense sector, which is expected to contribute positively moving forward [6][15] Company Strategy and Development Direction - The company is focused on enabling customer success and driving operational efficiency to sustain strong financial performance [14] - Strategic investments are aimed at creating long-term shareholder value and expanding market share [6][14] - The company anticipates healthy year-over-year revenue growth across all market sectors for fiscal 2026, without assuming end market demand improvement [13][14] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing strength in new program wins and opportunities to gain market share, despite evolving program ramp timelines and tariff-related uncertainties [6][7] - The company is optimistic about growth opportunities in the aerospace and defense sectors, particularly in Europe [15][80] - Management expects to maintain strong operating margins and free cash flow performance in the upcoming fiscal year [13][14] Other Important Information - The company has reduced its debt while accelerating share repurchase activity, with a new authorization of $100,000,000 [5][13] - The cash cycle at the end of the fiscal third quarter was 69 days, consistent with expectations [26] Q&A Session Summary Question: Can you provide more color on the semi cap pushouts? - Management indicated that the pushouts are specific to certain programs and are not indicative of perishable demand, with Q4 buoyed by new program ramps [34][35] Question: What is the outlook for the aerospace sector? - Management noted that there is still no pull from Boeing or Airbus for increased production, but strong demand is seen in defense and space subsectors [36][37] Question: What is the expected impact of the new facility in Malaysia? - The startup expenses are expected to be minimal, with a quick ramp to profitability anticipated due to existing new business [44][46] Question: How is the healthcare life sciences sector expected to perform? - Management expressed optimism for fiscal 2026 based on ongoing and new program ramps, as well as increased activity in engineering design services [76][78] Question: What are the expectations regarding tariffs? - Management reported limited impact from tariffs, with customers in a wait-and-see mode, and noted strong compliance efforts in their Mexico operations [66][67]