Flex Ltd (FLEX) 2023 Q1 法說會逐字稿

Good afternoon, and thank you for standing by. Welcome to Flex's Fiscal First Quarter 2023 Earnings Conference Call. (Operator Instructions) I'd like to remind everybody that today's call is being recorded.

下午好，感謝您的支持。歡迎參加 Flex 的 2023 財年第一季度收益電話會議。 （操作員說明）我想提醒大家，今天的通話正在錄音中。

I will now turn the call over to Mr. David Rubin. Please go ahead, sir.

我現在將把電話轉給大衛魯賓先生。請繼續，先生。

Thank you, Michelle. Good afternoon, and welcome to Flex's First Quarter Fiscal 2023 Earnings Conference Call. With me today is our Chief Executive Officer, Revathi Advaithi; and our Chief Financial Officer, Paul Lundstrom. Both will give brief remarks followed by Q&A.

謝謝你，米歇爾。下午好，歡迎參加 Flex 的 2023 財年第一季度收益電話會議。今天和我在一起的是我們的首席執行官 Revathi Advaithi；和我們的首席財務官 Paul Lundstrom。兩人都將發表簡短的評論，然後進行問答。

Slides for today's call as well as the copy of the earnings press release and summary financials are available on the Investor Relations page at flex.com. This call is being recorded and will be available for replay on our corporate website. As a reminder, today's call contains forward-looking statements, which are based on our current expectations and assumptions. These statements involve risks and uncertainties that could cause actual results to differ materially. For a full discussion of these risks and uncertainties, please see the cautionary statements in our presentation, press release or in the Risk Factors section in our most recent filings with the SEC. Note this information is subject to change, and we undertake no obligation to update these forward-looking statements. Unless otherwise specified, we will refer to non-GAAP metrics on the call. The full non-GAAP to GAAP reconciliations can be found in the appendix slides of today's presentation as well as in the summary financials posted on the Investor Relations website.

今天電話會議的幻燈片以及收益新聞稿和財務摘要的副本可在 flex.com 的投資者關係頁面上找到。此通話正在錄音中，可在我們的公司網站上重播。提醒一下，今天的電話會議包含基於我們當前預期和假設的前瞻性陳述。這些陳述涉及可能導致實際結果出現重大差異的風險和不確定性。有關這些風險和不確定性的完整討論，請參閱我們的演示文稿、新聞稿或我們最近提交給 SEC 的風險因素部分中的警示性聲明。請注意，此信息可能會發生變化，我們不承擔更新這些前瞻性陳述的義務。除非另有說明，否則我們將在電話會議上參考非 GAAP 指標。完整的非 GAAP 與 GAAP 對賬可以在今天的演示文稿的附錄幻燈片以及投資者關係網站上發布的財務摘要中找到。

As we previously disclosed, the draft registration statement on the Form S-1 relating to the proposed initial public offering of Nextracker's Class A common stock remains on file with the U.S. Securities and Exchange Commission. Initial public offering and its timing are subject to the SEC market and/or other conditions. Following SEC regulations, we will make no -- we will not make any further statements or answer additional questions on the Nextracker filing at this time. Now I'd like to turn it over to our CEO. Revathi?

正如我們之前披露的那樣，關於 Nextracker 的 A 類普通股的擬議首次公開募股的 S-1 表格註冊聲明草案仍在美國證券交易委員會存檔。首次公開募股及其時間取決於 SEC 市場和/或其他條件。按照美國證券交易委員會的規定，我們不會做出任何進一步的聲明或回答關於 Nextracker 文件的其他問題。現在我想把它交給我們的首席執行官。瑞瓦蒂？

Thank you, David. Good afternoon, and thank you, everyone for joining us. Our fiscal Q1 was another strong quarter, and I want to start off by thanking our teams for their incredible performance and delivering for our customers. I'm very proud of what the team has accomplished and their consistent commitment to achieve our vision to be the most trusted technology, supply chain and manufacturing partner.

謝謝你，大衛。下午好，謝謝大家加入我們。我們的第一財季又是一個強勁的季度，我首先要感謝我們的團隊令人難以置信的表現並為我們的客戶提供服務。我為團隊所取得的成就以及他們對實現我們成為最值得信賴的技術、供應鍊和製造合作夥伴的願景的一貫承諾感到非常自豪。

Now looking at Slide 3. Our revenue grew 16% year-over-year, driven by continued strong demand and our ability to deliver in spite of ongoing component constraints. Our adjusted operating margins came in at 4.5% and the overall solid performance led to another quarter of record adjusted EPS at $0.54, up 17% year-over-year. So as I look across our portfolio, along with the forward-looking signals, our demand remains strong in most business units, and I would say at this point, constraints from the ongoing shortage and lagging in semiconductors remains the biggest limiting factor. We currently expect this trend to continue. Now not surprisingly, we are seeing indications of slowing in some consumer-related markets. However, we have been anticipating this change, and it is within our current expectations for the full year. Looking at just a few examples of the continued overall demand, we saw broad demand across our Industrial business unit, along with multiple new ramps in renewables and power-related products. I want to point out that these products are separate from our Nextracker solar tracker business and include inverters, EV charging, energy storage and grid-edge, all tied to Flex's core technology strengths. Now given our wins in this category, our renewables business is now on a run rate to be over $1 billion this year, making it a sizable portion of our industrial revenue.

現在看看幻燈片 3。我們的收入同比增長 16%，這得益於持續強勁的需求和我們在持續存在組件限制的情況下的交付能力。我們調整後的營業利潤率為 4.5%，整體穩健的業績使調整後的每股收益再創紀錄，達到 0.54 美元，同比增長 17%。因此，當我審視我們的投資組合以及前瞻性信號時，我們的大多數業務部門的需求仍然強勁，我想說的是，半導體持續短缺和滯後的限制仍然是最大的限制因素。我們目前預計這一趨勢將繼續下去。現在毫不奇怪，我們看到一些與消費者相關的市場有放緩的跡象。但是，我們一直在預料到這一變化，這在我們目前對全年的預期之內。僅看幾個持續總體需求的例子，我們就看到了整個工業業務部門的廣泛需求，以及可再生能源和電力相關產品的多個新增長。我想指出，這些產品與我們的 Nextracker 太陽能跟踪器業務是分開的，包括逆變器、電動汽車充電、儲能和電網邊緣，所有這些都與 Flex 的核心技術優勢相關。現在，鑑於我們在這一類別中的勝利，我們的可再生能源業務今年的運行速度將超過 10 億美元，使其成為我們工業收入的相當大一部分。

We see the long-term growth drivers continuing, which gives us confidence in this category. Bookings in automotive was very impressive this quarter. In fact, the wins this quarter alone were nearly as much as all of last year's bookings and over 60% of these wins are in our next-gen mobility category. With the U.S. dealer lot inventory in June still only at 28 days versus 67 in 2019, we're still seeing end market inventory well below demand. For us, much of our business is being driven by OEM expansions, new product lines and technology transitions. These multiple drivers give us confidence in our long-term outlook.

我們看到長期增長動力仍在繼續，這使我們對這一類別充滿信心。本季度汽車行業的預訂量令人印象深刻。事實上，僅本季度的勝利就幾乎與去年的所有預訂一樣多，其中超過 60% 的勝利屬於我們的下一代出行類別。由於 6 月份美國經銷商的庫存量仍僅為 28 天，而 2019 年為 67 天，我們仍然看到終端市場庫存遠低於需求。對我們而言，我們的大部分業務都受到 OEM 擴張、新產品線和技術轉型的推動。這些多重驅動因素使我們對我們的長期前景充滿信心。

Now growth in our cloud business remains very strong, driven by longer-term trends, including continued enterprise cloud migration and growth in digital services. Our differentiated capabilities that address several critical areas across the data center include power solutions, racks and enclosures, make us well positioned to address this growing market.

現在，在長期趨勢的推動下，我們的雲業務增長仍然非常強勁，包括持續的企業雲遷移和數字服務的增長。我們解決數據中心多個關鍵領域的差異化能力包括電源解決方案、機架和機櫃，使我們能夠很好地應對這個不斷增長的市場。

Our Lifestyle business continues to deliver solid results. We have created a very compelling value proposition by expanding our vertically-integrated capabilities and leveraging our global scale to regionalize supply chains and facilitate geographic expansions. This combination has directly led to share gains in new wins with premium durable goods customers. Our strategy has also resulted in a more sustainable supply chain for our customers and a more resilient business for Flex. Again, these are all just a few examples, but they also highlight how our portfolio and business drivers have evolved.

我們的生活方式業務繼續取得可觀的成果。我們通過擴展我們的垂直整合能力和利用我們的全球規模來區域化供應鍊和促進地理擴張，創造了一個非常引人注目的價值主張。這種組合直接導致與優質耐用品客戶分享新的勝利。我們的戰略還為我們的客戶帶來了更可持續的供應鏈，並為 Flex 帶來了更具彈性的業務。同樣，這些只是幾個例子，但它們也突出了我們的投資組合和業務驅動因素是如何演變的。

Now going to Slide 4. At our Investor Day, we showed you this slide on how we change our geographic and customer concentration in our portfolio mix. This progress is just since fiscal '28. This change would be even more dramatic if you look back over the last 10 to 15 years. We have purposely deemphasized the most volatile and shorter-cycle businesses. As an example of this, how our consumer device revenue went from about 17% of revenue back in 2018 to now only 10% in fiscal 2022. Instead, we focused on improving our portfolio mix aligned with our core capabilities and targeted large end markets with strong long-term drivers.

現在轉到幻燈片 4。在我們的投資者日，我們向您展示了這張幻燈片，介紹了我們如何改變我們投資組合組合中的地理和客戶集中度。這一進展只是自 28 財年以來。如果回顧過去 10 到 15 年，這種變化會更加劇烈。我們有意淡化了波動最大、週期較短的業務。例如，我們的消費設備收入如何從 2018 年佔收入的約 17% 下降到 2022 財年現在的僅 10%。相反，我們專注於改進與我們的核心能力相一致的產品組合，並針對大型終端市場強大的長期驅動力。

We have built a balanced global footprint that can support our customers' changing needs. These investments have created a more resilient foundation, a more diversified portfolio and a more agile company. The macro environment remains highly uncertain, and none of this is to say we're immune to it, but we have effectively navigated the challenges over the last couple of years, and we have continued to adapt and improve. I'm very confident in our long-term strategy and the solid foundation we have built. So we will remain focused on consistent execution to be agile and continue to invest in the future of Flex.

我們建立了平衡的全球足跡，可以支持客戶不斷變化的需求。這些投資創造了更具彈性的基礎、更多元化的投資組合和更敏捷的公司。宏觀環境仍然高度不確定，這並不是說我們對它免疫，但我們在過去幾年有效地應對了挑戰，並且我們不斷適應和改進。我對我們的長期戰略和我們建立的堅實基礎非常有信心。因此，我們將繼續專注於一致的執行以保持敏捷，並繼續投資於 Flex 的未來。

With that, I'll turn it over to Paul to take you through our financials.

有了這個，我會把它交給保羅來帶你了解我們的財務狀況。

Okay. Thanks. Thanks, Revathi, and good afternoon, everyone. I'll begin on Slide 6 with a review of our first quarter results. Please note, all results provided will be non-GAAP, and all growth metrics will be on a year-over-year basis unless stated otherwise. The GAAP reconciliations can be found in the appendix of the earnings presentation.

好的。謝謝。謝謝，Revathi，大家下午好。我將從幻燈片 6 開始，回顧我們的第一季度業績。請注意，除非另有說明，否則提供的所有結果都將是非公認會計原則，並且所有增長指標都將按年計算。 GAAP 對賬可在收益報告的附錄中找到。

Our first quarter revenue came in at $7.3 billion, up 16% with solid growth on strong execution. Gross profit totaled $542 million and gross margin was 7.4%. We saw a nice operating profit dollar growth in the quarter, up 14% at $330 million, with a little pressure on operating margin rate at 4.5% due to the pass-through of abnormal inflation costs.

我們第一季度的收入為 73 億美元，增長 16%，強勁的執行力實現了穩健的增長。毛利潤總額為 5.42 億美元，毛利率為 7.4%。我們在本季度看到了不錯的營業利潤美元增長，增長 14% 至 3.3 億美元，由於異常通貨膨脹成本的傳遞，營業利潤率為 4.5% 的壓力很小。

As a reminder, we have protections in our contracts that allow us to recover inflationary costs, which are often passed through dollar for dollar. So that creates some natural pressure on operating margin percentage but not dollars. Lastly, earnings per share came in at $0.54 for the quarter, an increase of 17%.

提醒一下，我們的合同中有保護措施，使我們能夠收回通貨膨脹成本，這些成本通常以美元兌美元的形式傳遞。因此，這會對營業利潤率百分比產生一些自然壓力，但不會對美元造成壓力。最後，本季度每股收益為 0.54 美元，增長 17%。

Turning to our first quarter results, segment results on the next slide. Reliability revenue was $3 billion, an increase of 15% year-over-year. And throughout the quarter, demand remained strong across the segment. Operating income was $147 million, up 2%. Although demand remained robust, output was constrained by continued component shortages, which pressured operating margins at 5%.

轉向我們的第一季度業績，在下一張幻燈片上細分結果。可靠性收入為 30 億美元，同比增長 15%。整個季度，整個細分市場的需求依然強勁。營業收入為 1.47 億美元，增長 2%。儘管需求依然強勁，但產量仍受到零部件持續短缺的限制，導致營業利潤率下降 5%。

In Agility, revenue was up $4 billion, up 16%, driven by strong continued growth in CEC and in Lifestyle. Operating income was $171 million, up 25%, with operating margin up 30 basis points to 4.3%. The solid margin expansion was driven by our team's ability to execute exceptionally well against new project ramps, while overcoming challenges brought on by supply constraints.

由於 CEC 和 Lifestyle 的強勁持續增長，Agility 的收入增長了 40 億美元，增長了 16%。營業收入為 1.71 億美元，增長 25%，營業利潤率增長 30 個基點至 4.3%。穩健的利潤增長是由於我們的團隊能夠出色地執行新項目的坡道，同時克服供應限制帶來的挑戰。

Finally, Nextracker revenue was about $400 million, up 16% year-over-year, and adjusted operating income was $30 million. Operating margin increased to 7.6%, and that strong sequential margin improvement was nice to see after a difficult fiscal 2022.

最後，Nextracker 收入約為 4 億美元，同比增長 16%，調整後的營業收入為 3000 萬美元。營業利潤率增至 7.6%，在艱難的 2022 財年之後，很高興看到強勁的連續利潤率改善。

Moving to Slide 8. Net CapEx for the quarter totaled $91 million or 1.2% of revenue. Free cash flow was an outflow of $53 million for the quarter, driven by continued pressure on inventory. We anticipate free cash flow for the year to be back-end loaded as inventory begins to slowly unwind. We repurchased over 11 million shares in the quarter, totaling $181 million of spend and representing approximately 2.5% of the shares outstanding. Over the last 12 months, we have taken share count down by 8%. Inventory levels remain elevated, and we closed the quarter with inventory of $7.2 billion. This is a function of high demand, coupled with continued supply constraints in key components. I think you all are well aware of the golden screw phenomenon. And as Revathi mentioned, we continue to closely monitor demand indicators, but our focus right now is on delivering our customer backlogs.

轉到幻燈片 8。本季度的淨資本支出總額為 9100 萬美元，佔收入的 1.2%。受庫存持續壓力的推動，本季度自由現金流流出 5300 萬美元。隨著庫存開始緩慢減少，我們預計今年的自由現金流將被後端加載。我們在本季度回購了超過 1100 萬股股票，總支出為 1.81 億美元，約佔已發行股票的 2.5%。在過去的 12 個月裡，我們的股票數量減少了 8%。庫存水平仍然較高，本季度末庫存為 72 億美元。這是高需求的結果，加上關鍵部件的持續供應限制。我想你們都清楚金螺絲現象。正如 Revathi 所提到的，我們將繼續密切監控需求指標，但我們現在的重點是交付我們的客戶積壓訂單。

Please turn to Slide 9 for our segment outlook for the fiscal second quarter and our year-over-year growth expectations. For reliability solutions, we have good line of sight to meaningful revenue growth this quarter, potentially as high as 20%, driven by healthy demand across several key markets.

請轉到幻燈片 9，了解我們對第二財季的細分市場展望以及我們的同比增長預期。對於可靠性解決方案，在幾個主要市場的健康需求的推動下，我們對本季度有意義的收入增長有很好的看法，可能高達 20%。

We expect broad-based strength to support significant organic growth in industrial, particularly within renewables and grid-edge. And in auto, we're seeing our next-gen mobility products such as EV and scalable compute continue to gain tremendous interest from our customers. Turning to Agility Solutions. Revenue is expected to be up high single digits to mid-teens, predominantly driven by overall cloud and communication strength within CEC. Lifestyle should trend flat and consumer devices will be down consistent with our expectations.

我們預計基礎廣泛的實力將支持工業領域的顯著有機增長，特別是在可再生能源和電網邊緣領域。在汽車領域，我們看到我們的下一代移動產品（例如 EV 和可擴展計算）繼續引起客戶的極大興趣。轉向敏捷性解決方案。收入預計將增長個位數至十幾歲，主要受 CEC 內部整體雲和通信實力的推動。生活方式應該趨於平緩，消費設備將與我們的預期一致。

Flex's regionalization capabilities continue to provide growth opportunities, and we expect the softening pockets of demand in some of the consumer markets will be more than offset by considerable growth in CEC.

Flex 的區域化能力繼續提供增長機會，我們預計一些消費市場的需求疲軟將被 CEC 的可觀增長所抵消。

On to Slide 10 for our quarterly guidance, we expect revenue in the range of $7 billion to $7.4 billion with adjusted operating income between $315 million and $345 million. Interest and other is estimated to be around $52 million, and the tax rate should be in the 13% to 15% range. We expect adjusted EPS between $0.48 and $0.54 based on approximately 468 million weighted average shares outstanding.

對於我們的季度指導幻燈片 10，我們預計收入在 70 億美元至 74 億美元之間，調整後的營業收入在 3.15 億美元至 3.45 億美元之間。利息和其他估計約為 5200 萬美元，稅率應在 13% 至 15% 的範圍內。基於約 4.68 億股加權平均流通股，我們預計調整後每股收益在 0.48 美元至 0.54 美元之間。

On the following slide, we have updated our fiscal year 2023 guidance. We increased revenue expectations to $28.4 billion to $29.4 billion based on inflation recoveries and continued strong end market demand, while also anticipating some softening in consumer end markets. We now expect adjusted operating margins to be around 4.6% to 4.8% and continue to expect adjusted EPS between $2.09 and $2.24 a share.

在下一張幻燈片中，我們更新了 2023 財年指南。基於通脹復甦和持續強勁的終端市場需求，我們將收入預期提高至 284 億美元至 294 億美元，同時還預計消費終端市場會出現一些疲軟。我們現在預計調整後的營業利潤率約為 4.6% 至 4.8%，並繼續預計調整後的每股收益在 2.09 美元至 2.24 美元之間。

And just to wrap up with a couple of comments before we start the Q&A session. Despite the very dynamic macro backdrop over the last few years, you've seen a very resilient Flex. Our goal has been to deliver consistency, and we have. Adjusted EPS is up 28% in fiscal '21, 25% in 2022, and we continue to expect double-digit EPS growth in 2023. We've enhanced our portfolio and the mix continues to improve with better geographic diversity, more balanced end market exposure and with a greater emphasis on high-growth industries. Overall, Flex is operating from a stronger position today than we ever have.

最後，在我們開始問答環節之前發表一些評論。儘管過去幾年的宏觀背景非常活躍，但您已經看到了非常有彈性的 Flex。我們的目標是提供一致性，我們做到了。調整後的每股收益在 21 財年增長 28%，到 2022 年增長 25%，我們繼續預計 2023 年每股收益將實現兩位數增長。我們增強了我們的投資組合，並且隨著地域多樣性和終端市場更加平衡，組合繼續改善並更加重視高增長行業。總體而言，Flex 今天的運營狀況比以往任何時候都更加強大。

With that, I'd like to turn the call over to the operator to begin Q&A. Michelle?

有了這個，我想把電話轉給接線員開始問答。米歇爾？

(Operator Instructions) Your first question comes from Steven Fox of Fox Advisors.

（操作員說明）您的第一個問題來自 Fox Advisors 的 Steven Fox。

Congrats on the quarter and outlook. Two questions, if I could. First off, can you give a little more color on the CEC strength that you're seeing? How much is seasonal? And then maybe if you could force rank where it's coming from most versus least, how much is new programs, et cetera?

祝賀本季度和展望。兩個問題，如果可以的話。首先，您能否為您所看到的 CEC 強度提供更多顏色？多少是季節性的？然後，如果您可以強制對來自最多與最少的地方進行排名，那麼新程序的數量是多少，等等？

And then secondly, I was curious what kind of discussions maybe you're having with customers that you're producing for in Europe about risks related to this year around an energy crisis, any kind of plans you're making or how you just sort of see the landscape for later this year for producing in Europe?

其次，我很好奇你正在與你在歐洲生產的客戶進行什麼樣的討論，討論與今年能源危機相關的風險，你正在製定的任何計劃或你如何分類看到今年晚些時候在歐洲生產的前景嗎？

Sure, Steven, and thanks for the compliments. Maybe I'll just start with the CEC question. So we didn't spike out CEC specifically, but I'll tell you very strong growth, double-digit growth for CEC in the quarter. If I were to sort of rank them from lowest growth to highest, I would say, enterprise was probably the slowest grower, but still at double digit. Communications was up double digit, really nice to see continued strength there. And then cloud, as we had indicated back in the Analyst Day, that was up triple digit, and we still expect that business to more than double here in 2023. Just looking ahead for, I guess, those 3 components on the enterprise side, it will probably soften a little bit in the back half of the year, but we still expect pretty robust growth.

當然，史蒂文，謝謝你的讚美。也許我會從 CEC 問題開始。因此，我們並沒有特別指出 CEC，但我會告訴你，CEC 在本季度的增長非常強勁，兩位數的增長。如果我將它們從最低增長到最高排序，我會說，企業可能是增長最慢的，但仍然是兩位數。通信增長了兩位數，很高興看到那裡持續的實力。然後是雲，正如我們在分析師日所指出的那樣，增長了三位數，我們仍然預計到 2023 年該業務將增加一倍以上。我猜，展望一下企業方面的這三個組成部分，它可能會在今年下半年有所放緩，但我們仍然預計增長相當強勁。

Just talking to our CIO and you sort of get the chatter in the industry, we're going to continue to see strong spending on things like security. And whether it's on-prem, compute or something done in the cloud, there continues to be just this insatiable appetite for data and data analytics. So I really don't see that going away. It's sort of like squeeze the balloon. If it's lower in enterprise, it's probably going to be higher in cloud.

只需與我們的首席信息官交談，您就會在行業中得到一些閒聊，我們將繼續看到在安全等方面的強勁支出。無論是在本地、計算還是在雲中完成的事情，對數據和數據分析的需求仍然是永不滿足的。所以我真的不認為這種情況會消失。這有點像擠壓氣球。如果在企業中較低，則在雲中可能會更高。

Comms continues to look pretty good with 5G rollouts, and we love where we are with cloud. Again, it will be up triple digit this year, more than double. And then you asked about program wins. That's where it's coming from. I mean, CEC, where we've got some nice share gain in that cloud segment of the business and I feel really good about that. With respect to Europe, hard to say, I mean we've been talking about the regionalization strategy that we have, which is customers want proximity of facilities to be closer to end market demand, you've seen we've (inaudible) in Europe to support that. I guess I can't comment specifically to the -- to energy challenges, but if things get tight, this winter, Flex has the ability to redirect production from one region to another, and we would be working to be as fleet of foot as possible to support that to make sure we're meeting our customers' demand.

隨著 5G 的推出，Comms 繼續看起來相當不錯，我們喜歡使用雲的地方。同樣，今年它將增長三位數，超過兩倍。然後你問了關於程序勝利的問題。這就是它的來源。我的意思是，CEC，我們在該業務的雲領域獲得了一些不錯的份額，我對此感覺非常好。關於歐洲，很難說，我的意思是我們一直在談論我們擁有的區域化戰略，即客戶希望設施接近最終市場需求，你已經看到我們已經（聽不清）歐洲對此表示支持。我想我無法具體評論能源挑戰，但如果情況變得緊張，今年冬天，偉創力有能力將生產從一個地區轉移到另一個地區，我們將努力做到可能會支持這一點，以確保我們滿足客戶的需求。

Steven, the only thing I'd add is, first, thanks for the comments on the performance. On the energy issue, I'd add is that two things. One is from an energy inflation cost, we continue to kind of put that together to look at how we pass those costs on, but in terms of energy availability itself in Europe, we are looking at all our kind of alternate plans, whether we have to -- how much of this can come from true reliance on some independent alternate energy strategies. We're working with local utility providers to see how we can partner up on that. So we are looking at all the options. Of course, if it gets more difficult than where it is now, it's hard to predict. But we -- I think we have a good resiliency plan right now from the current line of sight that we have.

史蒂文，我唯一要補充的是，首先，感謝您對錶演的評論。關於能源問題，我要補充的是兩件事。一個是能源通脹成本，我們繼續將其放在一起，看看我們如何轉嫁這些成本，但就歐洲的能源可用性本身而言，我們正在研究我們所有的替代計劃，無論我們是否有to - 其中有多少可以來自對一些獨立替代能源戰略的真正依賴。我們正在與當地的公用事業提供商合作，看看我們如何在這方面合作。因此，我們正在考慮所有選項。當然，如果它變得比現在更困難，那就很難預測了。但是我們 - 我認為從我們目前的視線來看，我們現在有一個很好的彈性計劃。

Your next question comes from Mark Delaney of Goldman Sachs.

您的下一個問題來自高盛的 Mark Delaney。

First on the revenue outlook. If I take the strong first half of the fiscal year on revenue, the company has reported and guided to and also take into account the full year revenue guide, I believe it implies at the midpoint that the second half of the fiscal year revenue could be down a little bit compared to the first half? Maybe you could talk about to what extent that moderation is the change in the mix away from consumer and to what extent it's potentially some slowing in demand given the macroeconomic issues? If it is macroeconomic issues, is that something that you guys are seeing reflected in customer orders? Or are you just trying to be proactive given some of the headlines that we all see out there?

首先是收入前景。如果我以強勁的上半財年收入來看，公司已經報告並指導並考慮了全年收入指導，我相信這意味著在中點，下半財年的收入可能是與上半年相比有所下降？也許你可以談談這種溫和在多大程度上是遠離消費者的變化，以及在多大程度上考慮到宏觀經濟問題，需求可能會放緩？如果是宏觀經濟問題，你們看到的客戶訂單是否反映了這一點？或者你只是想積極主動地考慮我們都看到的一些頭條新聞？

Yes. So Mark, what I'd say is, first, let me start with the fact that if you look at our current Q1 performance and our guide for Q2, our first half would be up 16%. So a very, very strong kind of first half.

是的。所以馬克，我想說的是，首先，讓我從一個事實開始，如果你看看我們目前的第一季度業績和第二季度的指導，我們上半年將上漲 16%。所以上半場非常非常強大。

Looking at second half, I think you'd probably be able to calculate that it's going to be around 7%. But I think we've taken a lot of factors into consideration on this. I'd say most importantly, looking at fiscal Q4 for us, which is first quarter calendar for most companies, we're being a little more prudent about our assumptions. So we're assuming that the consumer markets will be somewhat slower, we've kind of baked that into our assumption and that's kind of what's driving a more prudent look in second half.

看下半年，我想你可能能夠計算出它會在 7% 左右。但我認為我們已經考慮了很多因素。我想說最重要的是，看看我們的第四財季，這是大多數公司的第一季度日曆，我們對我們的假設更加謹慎。因此，我們假設消費市場會有所放緩，我們已經將其納入我們的假設中，這就是推動下半年更加謹慎的原因。

We think the interesting dilemma like for most people, Mark, including us, is our demand is very, very strong for the full year. But we are trying to give a guidance that we think is prudent and makes sense. So we've baked in some kind of slowness in demand and consumer products for Q4 of our fiscal year from what we can see today, but actually we don't see any demand slowness across any of our end segments, so it's a little bit of a trick to figure it out, but we'd rather be prudent than not.

我們認為，對於大多數人來說，包括我們在內的大多數人面臨的一個有趣的困境是，我們全年的需求非常非常強勁。但我們正在努力提供我們認為審慎且有意義的指導。因此，從我們今天所看到的情況來看，我們在本財年第四季度的需求和消費品方面出現了某種放緩，但實際上我們沒有看到任何終端領域的需求放緩，所以有點一個技巧來解決它，但我們寧願謹慎而不是不。

That's very helpful. And my follow-up question is on the updated EBIT margin guidance. Again, revenue overall is coming in very, very well and the company took up the full year revenue guide. But despite the higher revenue, you did slightly adjust the EBIT margin guidance lower. So if you could just clarify what the factors for that are?

這很有幫助。我的後續問題是關於更新的息稅前利潤率指導。同樣，整體收入非常非常好，該公司採用了全年收入指南。但是，儘管收入較高，但您確實將 EBIT 利潤率指引略微下調。所以，如果你能澄清一下是什麼因素？

Sure, Mark. So as you saw, we dropped through the good news -- from the top line good news from Q1. Some of that top line came from inflation recovery. And so as I had mentioned in the prepared remarks, that inflation recovery is essentially dollar for dollar offsetting cost growth. But like Revathi said, with respect to the revenue question, we're trying to have a prudent second half.

當然，馬克。正如你所看到的，我們忽略了好消息——第一季度的好消息。其中一些收入來自通脹復甦。正如我在準備好的評論中提到的那樣，通脹復甦本質上是美元兌美元抵消成本增長。但就像 Revathi 所說，關於收入問題，我們正努力在下半年審慎行事。

I thought given the dynamic macro environment, we'd rather not get over our skis and start taking up EPS for the full year. So we're holding the estimate on right now. Look, record operating profit in Q1, lever we are there. We have great line of sight to another strong Q2, likely with operating profit, kind of dollar for dollar, the same, and we softened expectations a little better, trying to soften expectations a little bit for the second half, but overall, we feel really good about where we are.

我認為鑑於動態的宏觀環境，我們寧願不克服我們的滑雪板並開始全年使用 EPS。所以我們現在保持估計。看，第一季度創紀錄的營業利潤，我們在那裡。我們對另一個強勁的第二季度有很好的看法，可能是營業利潤，美元兌美元，同樣的，我們更好地軟化了預期，試圖稍微軟化下半年的預期，但總的來說，我們覺得真的很好我們在哪裡。

Mark, I think the story to take away here is, first is obviously fantastic performance top line, bottom line for Q1, right? And Q2 guide also will be another record in terms of operating income dollars the way we've guided right now. So strong performance on that, too. I'd say like most people, we talk a little bit about supply chain constraints and the added cost and pressure that drive, and we continue to kind of be thoughtful about how we assume that's going to flow through for the rest of the year. So that's kind of our thinking around how we're doing margin guidance.

馬克，我認為這裡要帶走的故事是，首先顯然是出色的性能頂線，Q1 的底線，對嗎？就我們目前指導的方式而言，第二季度指南也將是營業收入美元的另一項記錄。在這方面的表現也很強勁。我想說像大多數人一樣，我們會談論供應鏈限制以及驅動的額外成本和壓力，並且我們會繼續考慮我們如何假設在今年餘下的時間裡會發生這種情況。這就是我們對如何進行保證金指導的思考。

But with our very consistent and record performance on revenue and margins and our operating income dollars, we feel comfortable, and then most importantly, Mark, it's only Q1 for us, so it's a little earlier in the year for us to change a whole lot, which is also part of some more of our prudent guidance.

但是，由於我們在收入和利潤率以及營業收入方面的表現非常一致和創紀錄，我們感到很自在，最重要的是，馬克，這對我們來說只是第一季度，所以我們在今年早些時候改變了很多，這也是我們謹慎指導的一部分。

Your next question comes from Ruplu Bhattacharya of Bank of America.

您的下一個問題來自美國銀行的 Ruplu Bhattacharya。

It looks like inventory was up 10% sequentially. How should we think about a normal level of inventory going forward? And how should we think about cash conversion cycle? And is the expectation for free cash flow still $550 million for fiscal '23?

看起來庫存環比增長了 10%。我們應該如何看待未來的正常庫存水平？我們應該如何看待現金轉換週期？對 23 財年的自由現金流的預期是否仍為 5.5 億美元？

Yes. Ruplu, let me start, and then I'll hand it over to Paul. One is, I would say, I have been very clear at Investor Day, when I gave our kind of longer-range guidance that our expectation is to be 80-plus percent free cash flow conversion. And we know we're coming into unusual times, and -- or we have been in unusual times. And so we are seeing some investment in inventory, which to meet our record demand with 16% growth and with unusual circumstances of the supply chain, kind of not knowing what's available? It's the right thing to do. You're hearing that from all our customers in terms of supply chain constraints still exist, and we are part of that, right? So we need to have the right inventory to deliver the demand, and we want to do what's right for our customers. And we've kept that consistent in terms of what -- how we have talked about it and also how we have partnered with our customers on this.

是的。魯普魯，讓我開始吧，然後我會把它交給保羅。一個是，我想說，我在投資者日非常清楚，當時我給出了我們的長期指導，我們的預期是 80% 以上的自由現金流轉換。而且我們知道我們正在進入不尋常的時期，並且 - 或者我們已經處於不尋常的時期。因此，我們看到了一些庫存投資，以滿足我們創紀錄的 16% 增長需求和供應鏈異常情況，有點不知道有什麼可用的？這是正確的做法。你聽說我們所有的客戶在供應鏈方面仍然存在限制，我們是其中的一部分，對嗎？因此，我們需要有合適的庫存來滿足需求，並且我們希望為客戶做正確的事情。我們一直保持一致 - 我們如何談論它以及我們如何與我們的客戶合作。

I would say the way to think about inventory moving forward is we do think our inventory performance will come back in line as you look forward. Now I don't want to give an exact prediction when, but our longer-range forecast will bring -- will be to bring free cash flow back to where we were when we left fiscal '21, and that's our commitment to make that happen.

我想說的是，考慮庫存向前發展的方式是，我們確實認為我們的庫存表現會隨著您的期待而恢復。現在我不想給出確切的預測，但我們的長期預測將帶來 - 將自由現金流帶回我們離開 21 財年時的水平，這是我們實現這一目標的承諾.

As we look forward, we do see some supply chain constraints easing. We have talked about that. We have a very strong demand forecast. All of that bodes well, right, in terms of inventory and free cash flow. So I feel very, very confident in our ability to execute this. We have shown that consistently in all our financial metrics, and we feel very comfortable that looking forward, we'll bring all this back to normalcy as these unusual circumstances ease through. And with that, I'll turn it over to Paul, anything else to add?

展望未來，我們確實看到一些供應鏈限制有所緩解。我們已經談過了。我們有一個非常強勁的需求預測。就庫存和自由現金流而言，所有這些都是好兆頭。所以我對我們的執行能力非常非常有信心。我們已經在所有財務指標中始終如一地證明了這一點，並且我們對展望未來感到非常放心，隨著這些異常情況的緩解，我們將使這一切恢復正常。有了這個，我會把它交給保羅，還有什麼要補充的嗎？

Yes, just maybe a couple of data points. I mean you're right about the sequential inventory change, Ruplu. You look at working capital advances and deferred revenue, they were up 20%. So did that dollar for dollar offset the growth in inventory? No. But I continue to like that we're getting support from our customers who are willing to make significant cash deposits for the inventory growth.

是的，可能只是幾個數據點。我的意思是你對順序庫存變化的看法是正確的，Rupl。你看看營運資金預付款和遞延收入，它們增長了 20%。那麼，美元兌美元抵消了庫存的增長嗎？不。但我仍然喜歡我們得到客戶的支持，他們願意為庫存增長存入大量現金。

And so we are getting some help there. Net inventory, when you net off working capital advances, days of inventory is about 72, and it wants to be 15 to 20 days less than that, and I think, as Revathi pointed out, as this situation slowly (inaudible), we will see those inventory levels come down. You asked a specific question on free cash flow, $550 million. Yes, that's the plan. We're driving towards $550 million. It has taken longer than what we had hoped for this inventory challenge to abate, and so it will probably be a back half loaded free cash generation year. But again, we are holding to the $550 million right now.

所以我們在那裡得到了一些幫助。淨庫存，當您扣除營運資金預付款時，庫存天數約為 72，並且希望比這少 15 到 20 天，我認為，正如 Revathi 指出的那樣，隨著這種情況緩慢（聽不清），我們將看到這些庫存水平下降。你問了一個關於自由現金流的具體問題，5.5 億美元。是的，這就是計劃。我們的目標是 5.5 億美元。這一庫存挑戰消退所用的時間比我們希望的要長，因此這可能是一個後半載的自由現金產生年。但同樣，我們現在持有 5.5 億美元。

Okay. For my follow-up, maybe I'll ask a higher-level question. So inflation and recession are obviously on top of mind of investors. Can you remind us, I mean, how do customers behave during periods of recession and inflation? And do customers tend to outsource more? Or do they take manufacturing in-house? And if I look at your results in the Agility segment, you really outperformed your guidance for the first quarter, revenues were up 16%. If that sustains, then that's one thing, but if it doesn't, and if you see a greater, deeper recession, how would your playbook change, what would you do different and how do you think Flex would fare in the next recession?

好的。對於我的後續，也許我會問一個更高層次的問題。因此，通脹和衰退顯然是投資者最關心的問題。您能否提醒我們，我的意思是，客戶在經濟衰退和通貨膨脹期間的表現如何？客戶是否傾向於外包更多？還是他們在內部進行製造？如果我看看你們在敏捷領域的業績，你們第一季度的表現確實超過了你的指導，收入增長了 16%。如果這種情況持續下去，那是一回事，但如果不是這樣，並且如果您看到更大、更嚴重的衰退，您的策略將如何改變，您會採取哪些不同的做法，以及您認為 Flex 在下一次衰退中的表現如何？

Yes. Thanks, Ruplu. I'll start, and then Paul can jump in. I'd say this is obviously top of mind to everyone. I'll first start by reminding that Flex is a very different company today, right, even from 3 years ago, I showed that slide in my opening and that we shared at the Investor Day. And from the last recession, which was at the '08, '09 cycle, we're a very different company. As an example, consumer devices was 60% of the company then and today it's 10% of the company, so significantly different, right? Our portfolio has changed. We are much more kind of -- the exposure to volatile business has changed to shorter cycle. The Reliability business, a big part of our portfolio, even within the Agility business, if you look at CEC and the Lifestyle portfolio, the types of customer mix and our product portfolio has changed.

是的。謝謝，魯普魯。我會開始，然後保羅可以加入。我想說這顯然是每個人的頭等大事。我首先要提醒的是，Flex 今天是一家非常不同的公司，對，甚至從 3 年前開始，我在開幕式上就展示了這張幻燈片，我們在投資者日分享了這張幻燈片。與上一次經濟衰退（即 08 年、09 年周期）相比，我們是一家非常不同的公司。例如，消費設備當時占公司的 60%，而今天占公司的 10%，差別如此之大，對吧？我們的投資組合發生了變化。我們更像是——對波動性業務的敞口已經變成了更短的周期。可靠性業務是我們投資組合的重要組成部分，即使在敏捷業務中，如果您查看 CEC 和生活方式組合，客戶組合的類型和我們的產品組合已經改變。

And then I'll move on to a good example of how you think about us moving forward has to be how we have performed in the last few years because we took out a pretty significant portion of our revenue as we went through portfolio changes and we went through the COVID reductions which was pretty significant, that happened in '21, and we performed extremely well through that, right? If you remember, our COVID projections (inaudible) I think revenue was down like 17%, 18%, but we had a great, fantastic full year in terms of our EPS performance and our margin performance. So I'd say we're much more different portfolio company, we're more agile and more disciplined in how we execute, so our playbook is very, very strong. We know how to manage the ups and downs really well.

然後我將繼續舉一個很好的例子，說明您如何看待我們前進的方式必須是我們在過去幾年中的表現，因為我們在經歷投資組合變化時拿出了相當大一部分收入，我們經歷了非常重要的 COVID 減少，這發生在 21 年，我們在這方面表現得非常好，對吧？如果您還記得，我們的 COVID 預測（聽不清）我認為收入下降了 17%、18%，但就每股收益表現和利潤率表現而言，我們的全年表現非常出色。所以我想說我們是一個更加不同的投資組合公司，我們在執行方面更加敏捷和自律，所以我們的劇本非常非常強大。我們知道如何很好地管理起起落落。

And then most importantly, one thing I feel very good about is the number of new programs and share gains that we have in our demand -- demand backlog right now, which makes me very -- feel very good about my forward-looking forecast. Now that being said, not everybody is immune to the macros, right, and things could change.

然後最重要的是，我感覺非常好的一件事是新項目的數量和我們在需求中的份額收益 - 現在的需求積壓，這讓我非常 - 對我的前瞻性預測感覺非常好。話雖如此，並不是每個人都對宏免疫，對，事情可能會發生變化。

So to your question of how would customers behave in this in terms of outsourced or more in-house. I would say so much has changed, Ruplu, from '08 to '09, right? The whole supply chain resiliency conversation has significantly shifted. There's very few customers who would be thinking about their supply chain strategy, the way they were thinking about it in '08 and '09. That resiliency question is top of mind. And most CEOs will know today that whatever recession that you go through is going to be temporary, and they want to come out of it with a stronger supply chain because I think the bruises everybody has sustained in the last 2, 3 years is significant. So I feel very confident that the outsourcing strategy and the dependency on EMS and contract manufacturers, if anything is going to grow through a recessionary cycle and through this -- through -- because of the supply chain issue.

因此，對於您的問題，客戶在外包或內部更多方面的表現如何。我想說，從 08 年到 09 年，Ruplu 發生了很大的變化，對吧？整個供應鏈彈性對話發生了顯著變化。很少有客戶會像 08 年和 09 年那樣考慮他們的供應鏈戰略。彈性問題是首要考慮的問題。今天大多數 CEO 都會知道，無論你經歷什麼衰退都是暫時的，他們希望通過更強大的供應鏈擺脫衰退，因為我認為每個人在過去 2 年、3 年中遭受的挫傷都很嚴重。因此，我對外包戰略以及對 EMS 和合同製造商的依賴感到非常有信心，如果有任何事情會在經濟衰退週期中增長，並且通過這個 - 通過 - 因為供應鏈問題。

In terms of agility itself, yes, 16% is a very strong and very high revenue growth. Very, very proud of what they're accomplishing here. If the macros changed significantly, agility is going to change like the rest of the businesses. But our -- currently, our demand is up not only because the market is up, because we've won a lot of new businesses, both in lifestyle and in our cloud business in CEC. So we feel good about our revenue growth there, and -- but we are, like everyone else, if there's any significant change, we think it will have an impact on us. But we feel very confident in our ability to be agile to deliver our kind of operating profit that we're talking about. So that we feel very good about.

就敏捷性本身而言，是的，16% 是非常強勁且非常高的收入增長。非常非常自豪他們在這裡取得的成就。如果宏觀發生重大變化，敏捷性將會像其他業務一樣發生變化。但是我們的 - 目前，我們的需求上升不僅因為市場上升，還因為我們贏得了許多新業務，包括生活方式和 CEC 的雲業務。因此，我們對那裡的收入增長感到滿意，而且 - 但我們和其他所有人一樣，如果有任何重大變化，我們認為這將對我們產生影響。但是我們對我們能夠靈活地交付我們正在談論的那種運營利潤感到非常有信心。讓我們感覺很好。

And congrats on the strong execution.

並祝賀強大的執行力。

Thanks, Ruplu.

謝謝，魯普魯。

(Operator Instructions) Your next question comes from Matt Sheerin of Stifel.

（操作員說明）您的下一個問題來自 Stifel 的 Matt Sheerin。

I wanted to just ask another question regarding the automotive strength that you've talked about. Revathi, you referred to the next-gen area as a hyper growth area. But what about the core business, particularly what you're seeing in terms of recovery in automotive production, perhaps by region and the outlook that you're seeing 2 to 3 quarters out from those customers?

我只想問另一個關於你所說的汽車強度的問題。 Revathi，您將下一代區域稱為超增長區域。但是核心業務呢，尤其是您所看到的汽車生產復甦方面的情況，可能是按地區劃分的，以及您從這些客戶中看到的 2 到 3 個季度的前景？

Yes. So Matt, thank you for that. So I'll give you a little bit of detail. First, starting with kind of this quarter itself, right? Our automotive business had strong double-digit growth. If you look at comparison for the kind of light vehicle production, I think it was flat for the quarter. So we've done really well against kind of what the industry itself has seen. I would say if you look at this current quarter and the next 2 quarters, our customer demand and our backlog remains very, very strong right now. And some of it has to do with kind of supply chain constraints are most significant in the automotive segment and dealer lot inventories are down.

是的。所以，馬特，謝謝你。所以我會給你一些細節。首先，從本季度本身開始，對吧？我們的汽車業務實現了兩位數的強勁增長。如果你看一下輕型汽車產量的比較，我認為本季度持平。因此，我們在行業本身所見的情況下做得非常好。我想說，如果您查看當前季度和接下來的兩個季度，我們的客戶需求和積壓訂單目前仍然非常非常強勁。其中一些與汽車領域最重要的供應鏈限制有關，經銷商庫存下降。

So we're feeling really good about automotive looking forward the next 2, 3 quarters that we have a lot of revenue to deliver. And in terms of geographies itself, it's pretty consistent, I would say, across all geographies. I'd say those shortages and the revenue backlog opportunity that exists is pretty consistent. It's not as the one is better than the other. And so overall, looking, I'd say, big growth looking forward, but the next year is very strong, and you've heard that from many of our automotive customers to that backlog is high, and we need the supply chain constraints to clear for that backlog to be delivered.

因此，我們對汽車行業感覺非常好，期待接下來的 2 到 3 個季度，我們有很多收入要交付。就地域本身而言，我想說，在所有地域中，它是相當一致的。我想說這些短缺和存在的收入積壓機會是相當一致的。這並不是因為一個比另一個更好。總體而言，我想說的是，展望未來會有很大的增長，但明年非常強勁，你已經聽說我們的許多汽車客戶的積壓訂單很高，我們需要供應鏈限制清除待交付的積壓工作。

Okay. And I wanted to just ask a question regarding the input costs that you've seen in Ghana, particularly component cost, semiconductor costs. I know most of that is a pass-through to your customers. And in some cases, they're paying multiples of the face value of those parts. Are you seeing some customers sort of pushback at some point? And are the expectations for normal price downs once we get past these lead time issues and back to a more normal supply environment?

好的。我只想問一個關於你在加納看到的投入成本的問題，特別是元件成本、半導體成本。我知道其中大部分是傳遞給您的客戶的。在某些情況下，他們支付的是這些零件面值的數倍。您是否看到某些客戶在某個時候出現了某種回擊？一旦我們克服了這些交貨時間問題並恢復到更正常的供應環境，對正常價格下跌的預期是嗎？

Well, I'd say, Matt, we haven't seen any pushback at all on it, and we don't expect that to change because the business model is set this way. And that has never been an issue, I would say, and hasn't changed even in this condition. I think that's the big plus for our business model, right? And our customers have partnered up with us very well on that, not just on labor inflation, but in all kinds of inflation. And we expect that to continue. That really hasn't changed ever in this industry, and we don't expect that will change now.

好吧，我想說，馬特，我們根本沒有看到任何阻力，我們不希望這種情況發生改變，因為商業模式是這樣設定的。我想說，這從來都不是問題，即使在這種情況下也沒有改變。我認為這是我們商業模式的一大優勢，對吧？我們的客戶在這方面與我們合作得非常好，不僅在勞動力通脹方面，而且在各種通脹方面。我們預計這種情況會繼續下去。在這個行業中，這真的從未改變過，我們預計現在也不會改變。

Your next question comes from Jim Suva of Citigroup.

您的下一個問題來自花旗集團的 Jim Suva。

A pretty basic question, and maybe it's because I'm not the smartest person or maybe I don't do good math, but your raise, you just beat and you're raising revenues for the full year, but not EPS. What's the disconnect? Or can you help me bridge that? I guess I just don't get it, maybe as much details around why there's a disconnect, that would be great?

一個非常基本的問題，也許是因為我不是最聰明的人，或者我的數學不好，但是你的加薪，你剛剛超過，你全年的收入都在增加，而不是每股收益。什麼是斷線？或者你能幫我解決這個問題嗎？我想我只是不明白，也許關於為什麼會斷開連接的詳細信息，那會很棒嗎？

No problem at all, Jim. So we -- as you know, we beat Q1. A portion of that revenue beat came from inflation pass-through. As I think you know, inflation pass-through is usually dollar for dollar without a markup. And so that's low-calorie revenue growth.

完全沒有問題，吉姆。所以我們 - 如你所知，我們擊敗了第一季度。部分收入增長來自通脹傳導。我想你知道，通貨膨脹傳遞通常是美元對美元，沒有加價。這就是低卡路里的收入增長。

As we look ahead to Q2, we'll see some of that continue. Inflation remains a bit high, and we're passing through those dollars. And so as I think about the full year, we took up the midpoint by about $700 million on the top line. We took up OP dollars about $10 million up and then we -- a little bit of pressure on interest cost, interest expense, given higher interest rates. And we were really trying to as to use Revathi's words, just give a prudent guide. We still have 3 quarters to go. There's a lot of uncertainty out there. We want to put an EPS number out to the street that we are confident that we can deliver on. And at $2.16 at the midpoint, we feel pretty good.

當我們展望第二季度時，我們將看到其中一些繼續。通貨膨脹仍然有點高，我們正在通過這些美元。因此，當我考慮全年時，我們在收入中佔據了大約 7 億美元的中點。我們佔用了大約 1000 萬美元的 OP 美元，然後我們 - 考慮到更高的利率，對利息成本和利息支出施加了一點壓力。我們真的很想用 Revathi 的話，只是給出一個謹慎的指導。我們還有 3 個季度要走。那裡有很多不確定性。我們希望將 EPS 數字公佈在我們有信心可以交付的街道上。中間價為 2.16 美元，我們感覺還不錯。

And Jim, I think you just have to look at our track record, right? Look at how we've done this quarter, look at the guide we've given for next quarter, and it seems that when you're sitting in a fiscal Q1 and you're looking forward at a very strong demand pipeline, you're looking at good -- the ability to start clearing supply chain constraints, but you're still hearing a lot of noise from the economy and all the noise around you. It doesn't feel like it's the right time to be kind of giving an upward guide on our profit and EPS yet. We -- but if you look at our track record, we've always delivered well. And I think that's what you should take to the bank. We just feel like it's not the right time to do it.

吉姆，我想你只需要看看我們的記錄，對吧？看看我們本季度的表現，看看我們為下一季度提供的指南，似乎當您處於第一財季並且您期待非常強勁的需求管道時，您看起來不錯——開始清除供應鏈限制的能力，但你仍然聽到很多來自經濟的噪音以及你周圍的所有噪音。感覺現在還不是對我們的利潤和每股收益進行向上指導的合適時機。我們——但如果你看看我們的業績記錄，我們總是交付得很好。我認為這就是你應該去銀行的。我們只是覺得現在不是做這件事的合適時機。

Well, Paul, and Revathi, thank you so much for the details and additional color, that does bridge the gap.

好吧，Paul 和 Revathi，非常感謝您提供的細節和額外的顏色，這確實彌合了差距。

Your final question comes from Melissa Fairbanks of Raymond James.

您的最後一個問題來自 Raymond James 的 Melissa Fairbanks。

I'm glad I could squeeze in. Congratulations on the great quarter and guide. And I'll echo that, thank you for the detail on the inflation recovery, that's really helpful. Are you able to quantify how much of a tailwind that was to revenue at this point? And also, is that a factor in driving the dollar value of the inventory as well?

我很高興我能擠進去。祝賀偉大的季度和指導。我會附和這一點，感謝您提供有關通脹復甦的詳細信息，這真的很有幫助。您是否能夠量化此時對收入的影響有多大？而且，這也是推動庫存美元價值的一個因素嗎？

It certainly is driving some inventory, much to my chagrin. There definitely is an inflation element in inventory. As I think about Q1 op margins, we probably had, I don't know, 10, 20 basis points of margin rate headwind because of inflation pass-through. I guess that's one way to think about it.

它肯定會增加一些庫存，這讓我很懊惱。庫存中肯定存在通貨膨脹因素。當我考慮第一季度的運營利潤率時，由於通貨膨脹的傳遞，我們可能有 10 到 20 個基點的保證金率逆風，我不知道。我想這是一種思考方式。

Okay. Perfect. And then kind of back to the inventory, as we're seeing some of the demand drivers shift away from some consumer and towards some of the more strategic verticals, your long-term key markets, is there any risk of obsolescence in the inventory? Or is there some commonality among the components, you can redirect that inventory as the demand drivers shift?

好的。完美的。然後回到庫存，因為我們看到一些需求驅動因素從一些消費者轉移到一些更具戰略性的垂直領域，即您的長期關鍵市場，庫存是否存在過時的風險？或者組件之間是否存在一些共性，您可以隨著需求驅動因素的變化重新定向庫存？

I'd say, Melissa, not for us, right, because most of our agreements are with our customers. We buy behalf on of our customers. So excess obsolescence, all of that is borne by them. And so we work very, very closely with our customers to give them a lot of help with their forecasting capabilities and intelligence around that so we can minimize that to the best we can on their behalf, but we don't take that liability. It sits with our customers. Okay. So thank you all. I'd like to just say thanks on behalf of my leadership team to our customers, our shareholders, thanks for your support. And then, of course, most importantly, to our -- to my colleagues around the world, thanks for all your contributions and your commitment to Flex. Thank you all. Bye.

我想說，Melissa，不適合我們，對，因為我們的大部分協議都是與我們的客戶達成的。我們代表客戶購買。所以過度的過時，所有這一切都由他們承擔。因此，我們與客戶非常非常密切地合作，為他們的預測能力和智能提供很多幫助，因此我們可以代表他們盡可能地減少這種情況，但我們不承擔這種責任。它與我們的客戶坐在一起。好的。所以謝謝大家。我只想代表我的領導團隊向我們的客戶、我們的股東表示感謝，感謝您的支持。然後，當然，最重要的是，感謝我們在世界各地的同事，感謝你們的所有貢獻和對 Flex 的承諾。謝謝你們。再見。

Ladies and gentlemen, this does conclude your conference call for this afternoon. We would like to thank everyone for participating and ask that you please disconnect your lines.

女士們先生們，今天下午的電話會議到此結束。我們要感謝大家的參與，並要求您斷開線路。