Sanmina(SANM)2025-04-29 01:56Financial Data and Key Metrics Changes - The company reported revenue of 1.41, up 7.8% compared to the same period last year [15][25] - Non-GAAP operating margin was 5.6%, up 20 basis points year-over-year [15][25] - Non-GAAP gross margin was 9.1%, an increase of 20 basis points compared to the same period last year [15][25] Business Line Data and Key Metrics Changes - IMS revenue was 411,000,000, up 3.3% year-over-year, with a non-GAAP gross margin of 13.9%, an increase of 100 basis points [17][18] Market Data and Key Metrics Changes - Revenue from industrial, energy, medical, defense, aerospace, and automotive sectors was 733,000,000, up 20.3% year-over-year [27] Company Strategy and Development Direction - The company aims to invest in faster-growing and higher-margin end markets, focusing on operational execution and customer satisfaction [36][42] - Strategic investments are planned in capacity and technology across the U.S., India, and Mexico to support future growth [21][66] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth opportunities despite geopolitical uncertainties, indicating a solid pipeline of new programs [49][50] - The company expects revenue growth of 6% to 8% for fiscal 2025, with a focus on maintaining stable operating margins [23][36] Other Important Information - The company maintained a strong balance sheet with cash and cash equivalents of 126,000,000, allowing for continued investments and shareholder returns [22] Q&A Session Summary Question: Did you see any pull forward of demand in fiscal 2Q ahead of potential tariff increases? - Management indicated no major changes in customer behavior due to tariffs, but discussions with customers about options were ongoing [46][47] Question: Are you seeing any slowdown in demand in the fiscal second half of 2025? - Management stated they are being prudent in guidance but remain optimistic about future growth, with exciting programs on the horizon [49][50] Question: What drove the increase in gross inventory dollars? - The CFO explained that inventory is being built to support future growth, with a focus on year-over-year improvement [52][54] Question: How is demand trending in the communications end market? - Management reported strong demand across high-end routing, switching, and optical packaging, with expectations for continued strength [56][57] Question: Can you expand on the investments in capacity and technology in India, U.S., and Mexico? - Management highlighted significant growth opportunities in India, with expansions focused on data center demand and high technology printed circuit boards [66][66] Question: How competitive is the environment for new customer wins? - Management emphasized their competitive advantages in technology, quality, and flexibility, which have helped secure new customer contracts [78][80]