Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
|---|
| Personally, I'm excited what's in front of us and about our future |
| We do have a long-term growth in this segment and some of the global initiatives, I believe, will drive high growth for Sanmina for many years in the future |
| We believe we can improve the margin going forward |
| Despite all these challenges, you delivered strong results for fiscal year '23 |
| I call it strong partners in these key markets, and we're well diversified |
| Non-GAAP operating margin also improved 80 basis points to 5.8% |
| We have a strong customer base |
| So yes, we have an upside potential in defense and aerospace side of the business |
| 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 communication end market as the supply chain has significantly improved |
| Q4 non-GAAP gross margin was 8.7% at the higher end of the outlook of $8.3 to $8.8 primarily due to favorable product mix |
| Q4 FY '23 gross margin was 8.7% compared to 7.9% in Q4 of FY '22, primarily due to a favorable product mix |
| Q4 FY '23 non-GAAP operating margin improved to 5.7% compared to 5.3% in Q4 FY '22 |
| Q4 FY '23 non-GAAP gross margin for CPS improved to 10.8% from 8.8% in Q3 |
| As Jure said, fiscal 2023 was a really strong year for the company with excellent execution by the Sanmina team |
| FY '23 revenue grew 13% to $8.9 billion compared to the prior year as the supply constraints improved significantly relative to FY '22 |
| Non-GAAP gross margin improved to 8.5% compared to 8.1% in FY '22, primarily due to a favorable product mix |
| Non-GAAP operating margins improved to 5.8% compared to 5% in FY '22 as we did a good job managing our operating expenses |
| So we're very excited about the future |
| Again, overall, FY '23 was a really strong year for the company with continued positive annual trends in revenue growth, margin expansion and earnings growth |
| We have a strong balance sheet that provides our company a competitive advantage to manage through dynamic market environment |
| Sanmina's top priority is to fund organic growth, and we are excited about the opportunities we are currently pursuing |
| We are positioned pretty well in these key markets to drive focused growth of our strategy |
| We believe that the strong balance sheet and cash flow generation positions Sanmina well for future growth |
| So we're well positioned there |
| I can tell you that I am pleased with our fiscal year '23 results |
| Actually, I'm pleased what we accomplished in the last 3 years |
| So overall, I can tell you that Sanmina is in a strong position as we provide some of the latest technology for these key market leaders |
| As we look at the '24 and the '24, '25, we have a lot of upside, and we think our margin should be over 6% |
| On a non-GAAP operating income, again, nice growth over 3 years |
| In summary, we delivered strong results for fiscal year '23 |
| Statement |
|---|
| Q4 revenue was $2.05 billion, slightly below our outlook of $2.1 billion to $2.2 billion |
| 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 |
| Again, Q4 FY '23 revenue of $2.05 billion was lower than Q4 FY '22 revenue of $2.22 billion |
| We see softness in demand for the first half of the year |
| For the first quarter of fiscal year '24, as you heard from Kurt, we are forecasting revenue to be down mainly driven by inventory adjustments from some of our end markets |
| So we expect to see some headwinds for the next couple of quarters, driven by inventory adjustments and some softness in economy |
| So our view of this market short term as we see softer demand for some customers due to inventory adjustments |
| Revenue per quarter went down as you heard from Kurt 7% sequentially |
| Again, this decline was mainly due to ongoing customer inventory adjustments, primarily in the communications end market as the supply chain has significantly improved |
| And as you spoke about fiscal 2024 it's going to be softer in the first half and then you see growth again in the second half |
| Again, this decline was mainly due to ongoing inventory adjustments at customers, primarily in the communications end market as the supply chain has significantly improved |
| Communication networks and cloud infrastructure for a fourth quarter revenue was 34.6%, down 18% with 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% |
| The majority of the inventory adjustments and softness is coming from our communication markets |
| In addition, we estimate an approximate $3 million noncash reduction to our net income to reflect our JV partner's equity interest in the net income of our Indian JV |
| And I think what happened there, Christian, is that when there was the shortages, I think there was more inventory driven by end customer and our customers |
| Finally, Q4 FY '23 EPS was $1.42 compared to $1.37 in Q4 FY '22 despite lower revenues |
| Actually, we won some programs in that side of the business, business being transferred from us and a couple of other -- I mean, another competitor to Mexico for us, but that transfer is going to be delayed for a few quarters |
| Unfortunately, I think our customers grow draw more inventory |
| We believe we have weighed 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, we've seen some challenges as inventory gets adjusted |
| But good thing, Christian, we didn't lose any customers or any programs |
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