Sanmina Corp (SANM) 2024 Q4 法說會逐字稿

Good afternoon, ladies and gentlemen and welcome to the Sanmina's fourth quarter and fiscal year 2024 earnings conference call at this time. (Operator Instructions)

女士們、先生們，下午好，歡迎此時參加 Sanmina 第四季和 2024 財年財報電話會議。（操作員說明）

I would now like to turn the conference over to Paige Melching, Senior Vice President of Investor Communications. Please go ahead.

現在我想將會議交給投資者傳播部高級副總裁 Paige Melching。請繼續。

Thank you, Ludy. Good afternoon, ladies and gentlemen and welcome to Sanmina's fourth quarter in fiscal year 2024 earnings call. A copy of our press release and slides for today's discussion are available on our website at sanmina.com in the investor relations section. Joining me on this on today's call is Jure Sola Chairman and Chief Executive Officer.

謝謝你，盧迪。女士們先生們下午好，歡迎參加 Sanmina 2024 財年第四季的財報電話會議。您可以在我們網站 sanmina.com 的投資者關係部分獲取我們今天討論的新聞稿和幻燈片的副本。Jure Sola 董事長兼執行長也出席了今天的電話會議。

Good afternoon.

午安.

And Jon Faust, Executive Vice President and Chief Financial Officer.

還有喬恩·福斯特，執行副總裁兼財務長。

Good afternoon.

午安.

Before I turn the call over to Jure, let me remind everyone that today's call is being webcasted and recorded and will be available on our website. You can follow along with our prepared remarks and the slides provided on our website. Please turn to slide 3 of our presentation and take note of our safe Harbor statement. During this conference call, we may make projections or other forward-looking statements regarding future events or the future financial performance of the company.

在將電話轉交給 Jure 之前，請允許我提醒大家，今天的電話會議正在進行網路廣播和錄音，並將在我們的網站上發布。您可以按照我們準備好的評論和我們網站上提供的幻燈片進行操作。請翻到我們簡報的幻燈片 3，並注意我們的安全港聲明。在本次電話會議期間，我們可能會對未來事件或本公司未來財務表現做出預測或其他前瞻性陳述。

We caution you that such statements are just projections. The company's actual results could differ materially from those projected in these statements as a result of factors set forth in the safe harbor statement, the company is under no obligation and expressly disclaims any such obligation to update or alter any of the forward-looking statements made in this earnings release, the earnings presentation, the conference call or the investor relations section of our website, whether as a result of new information, future events or otherwise, unless otherwise required by law included in our press release and slides issued today.

我們提醒您，此類陳述只是預測。由於安全港聲明中規定的因素，公司的實際結果可能與這些聲明中的預測結果存在重大差異，公司沒有義務並明確聲明不承擔任何更新或更改任何前瞻性聲明的義務在本財報、財報、電話會議或我們網站的投資者關係部分中，無論是由於新資訊、未來事件或其他原因，除非我們今天發布的新聞稿和幻燈片中包含法律另有要求。

We have provided you with statements of operation for the fourth quarter and fiscal year ended September 28, 2024, on a GAAP basis as well as certain non-GAAP Financial information, a reconciliation between the GAAP and non-GAAP Financial information is available in the press release and slides posted on our website. In general, our non-GAAP information excludes restructuring costs, acquisition and integration costs, noncash stock-based compensation, expense, amortization, expense and other unusual or infrequent items.

我們已向您提供了截至 2024 年 9 月 28 日的第四季度和財年的營運報表，這些報表基於 GAAP 以及某些非 GAAP 財務信息，GAAP 和非 GAAP 財務資訊之間的調節表可在我們網站上發布的新聞稿和幻燈片。一般來說，我們的非公認會計準則資訊不包括重組成本、收購和整合成本、非現金股票薪酬、費用、攤提、費用和其他不尋常或不常見的項目。

Any comments we make on this call as it relates to the income statement measures will be directed at our non-GAAP financial results accordingly, unless otherwise stated in this conference call. When we refer to gross profit, gross margin, operating income, operating margin taxes, net income and earnings per share, we are referring to our non-GAAP information. I would now like to turn the call over to Jure.

除非本次電話會議另有說明，否則我們在本次電話會議上發表的任何與損益表指標相關的評論都將針對我們的非公認會計準則財務業績。當我們提到毛利、毛利率、營業收入、營業利潤稅、淨利和每股盈餘時，我們指的是我們的非公認會計準則資訊。我現在想把電話轉給 Jure。

Thanks Paige and good afternoon, Ladies and gentlemen, welcome and thank you all for being here with us today. First, I would like to take this opportunity to recognize Sanmina's leadership team and our employees for doing a great job. So, to use Sanmina's team, thank you for your dedication and delivering excellent service to our customers. You finished the year with a solid momentum. For the fourth quarter, you deliver solid revenue of $2.02 billion and non-GAAP EPS of $0.43 per share again to Sanmina's employees, thank you and let's keep it up.

謝謝佩奇，下午好，女士們、先生們，歡迎並感謝大家今天和我們在一起。首先，我想藉此機會對 Sanmina 的領導團隊和員工的出色工作表示認可。因此，感謝 Sanmina 團隊的奉獻精神並為我們的客戶提供優質的服務。你以強勁的勢頭結束了這一年。第四季度，您再次為 Sanmina 的員工帶來了 20.2 億美元的穩定收入和每股 0.43 美元的非公認會計原則每股收益，謝謝您，讓我們繼續努力。

Now let's go to our agenda for today's call. We have Jon, our CFO to review details of our results for you. I will follow up with additional comments about Sanmina results and future goals. Then Jon and I will open for question and answers and now I'd like to turn this call over to Jon.

現在讓我們進入今天電話會議的議程。我們的財務長 Jon 將為您審核我們結果的詳細資訊。我將隨後對 Sanmina 的結果和未來目標發表更多評論。然後喬恩和我將開放問答環節，現在我想將這個電話轉給喬恩。

Thank you, Jure and good afternoon, ladies and gentlemen. And thank you for joining us here today. Before we go to the financial results, I want to thank the entire Sanmina team for their hard work and dedication and for executing a solid close to the fiscal year.

謝謝 Jure，女士們先生們下午好。感謝您今天加入我們。在我們公佈財務表現之前，我要感謝整個 Sanmina 團隊的辛勤工作和奉獻精神，以及在財年結束前的紮實工作。

Now please turn to slide 5 to discuss the P&L highlights. We are very pleased with our fourth quarter results as we delivered revenue of $2.02 billion which exceeded our outlook of $1.9 billion to $2.0 billion and was up 9.6% sequentially. We saw sequential growth across the majority of our end markets and year over year growth in our communication networks and cloud infrastructure and market which Jure will speak to in more detail as a part of his prepared remarks.

現在請翻到投影片 5 來討論損益要點。我們對第四季度的業績非常滿意，我們實現了 20.2 億美元的收入，超出了我們 19 億至 20 億美元的預期，比上一季增長了 9.6%。我們看到我們大多數終端市場的連續成長，以及我們的通訊網路和雲端基礎設施和市場的逐年增長，Jure 將在他準備好的演講中更詳細地談到這一點。

Non-GAAP gross profit was $175 million or 8.7% of revenue at the higher end of our outlook, and up 20 basis points sequentially, this was driven by favourable mix in our CPS segment which I will comment more on shortly as well as focused execution and strong operating discipline. Non-GAAP operating expenses were $68.2 million above our outlook as we continued to make targeted investments in the business to drive future growth.

非GAAP 毛利為1.75 億美元，占我們預期較高端的收入的8.7%，比上一季度增長了20 個基點，這是由我們的CPS 部門的有利組合推動的，我將很快對此進行更多評論以及重點執行和嚴格的操作紀律。由於我們繼續對業務進行有針對性的投資以推動未來成長，因此非 GAAP 營運費用比我們的預期高出 6,820 萬美元。

Non-GAAP operating profit was $107 million or 5.3% of revenue in line with our outlook and flat sequentially driven by the higher non-GAAP operating expenses that I just referenced. It's important to note that our non-GAAP operating margin continues to be in line with the 5% to 6% short-term range that we had previously communicated. Non-GAAP other income and expense was $2.8 million favourable to our guidance driven by our strong cash flow results, non-GAAP diluted earnings per share came in at $1.43 based on approximately $56 million shares outstanding, exceeding the high end of our outlook of $1.30 to $1.40.

非 GAAP 營業利潤為 1.07 億美元，佔營收的 5.3%，與我們的預期一致，並且由於我剛才提到的非 GAAP 營業費用增加而與上一季持平。值得注意的是，我們的非 GAAP 營業利潤率繼續符合我們先前溝通的 5% 至 6% 的短期範圍。非 GAAP 其他收入和支出為 280 萬美元，有利於我們強勁現金流業績的指引，基於約 5600 萬美元的已發行股票，非 GAAP 攤薄每股收益為 1.43 美元，超過了我們預期的上限 1.30 美元至1.40 美元。

Now please turn to slide 6 to review the quarterly trends. As we have discussed previously, we expected FY24 to be a transition year while we partnered with our customers across multiple end markets to adjust inventory levels, which ultimately led to a year over year revenue decline.

現在請翻到投影片 6 回顧季度趨勢。正如我們之前所討論的，我們預計 2024 財年將是一個過渡年，同時我們與多個終端市場的客戶合作調整庫存水平，最終導致收入同比下降。

However, we also said that we expected the second half of the year to be better than the first and we delivered on that commitment as revenue flattened out in the third quarter and grew almost 10% sequentially in the fourth quarter, which puts us on a great trajectory as we head into the new fiscal year.

然而，我們也表示，我們預計下半年會好於上半年，我們兌現了這一承諾，因為第三季度收入持平，第四季度環比增長近 10%，這使我們當我們進入新的財政年度時，我們將取得良好的發展軌跡。

In addition, we delivered non-GAAP gross margin of 8.7% for the quarter, a 20 basis points improvement sequentially and held it relatively steady throughout the year despite a fluctuating revenue base driven by favourable mix and strong operating discipline. Our non-GAAP operating margin was 5.3% for the quarter, which was flat sequentially and relatively stable throughout the year and was well within our 5% to 6% short-term outlook range.

此外，儘管有利的組合和嚴格的營運紀律導致收入基礎波動，但我們本季的非公認會計原則毛利率為 8.7%，比上一季提高了 20 個基點，並且全年保持相對穩定。本季我們的非 GAAP 營業利潤率為 5.3%，與上一季持平，全年相對穩定，完全在我們 5% 至 6% 的短期展望範圍內。

We also delivered strong non-GAAP diluted earnings per share with our fourth quarter actuals coming in at $1.43 which was a 14% improvement sequentially and we started to turn the corner with a 1% improvement versus the prior year. Now please turn to slide 7 to discuss the segment results. IMS revenue came in at $1.63 billion up 10.1% sequentially driven by growth across the majority of our end markets.

我們還實現了強勁的非 GAAP 攤薄每股收益，第四季度實際收益為 1.43 美元，比上一季度增長了 14%，並且我們開始扭轉局面，與上年相比增長了 1%。現在請翻到投影片 7 來討論分部結果。在我們大多數終端市場成長的推動下，IMS 營收達到 16.3 億美元，季增 10.1%。

IMS non-GAAP gross margin was 7.3% down 30 basis points sequentially and 70 basis points compared to the same period a year ago due primarily to unfavourable mix. We believe there is room for margin expansion in IMS and expect to see improvements in the new fiscal year. CPS revenue came in at $418 million up 7.6% sequentially driven by higher demand in multiple end markets as well as the two programs that were delayed in the prior quarter.

IMS 非 GAAP 毛利率為 7.3%，比上一季下降 30 個基點，與去年同期相比下降 70 個基點，這主要是由於不利的組合。我們相信 IMS 的利潤率還有擴大的空間，並預計在新財年會有所改善。由於多個終端市場需求增加以及上一季推遲的兩個項目，CPS 營收季增 7.6%，達到 4.18 億美元。

CPS non-GAAP gross margin was 13.6% up 210 basis points sequentially and up 280 basis points compared to the same period a year ago. We are pleased with the performance of the CPS business this quarter and we will continue to focus on driving improvements going forward. Now, please turn to slide 8 to discuss our fiscal year results on the quarterly trend slide. I commented on how FY24 was a transition year, but also how we delivered on our commitments and made a lot of progress with the business.

CPS 非 GAAP 毛利率為 13.6%，較上一季上升 210 個基點，較去年同期上升 280 個基點。我們對本季 CPS 業務的表現感到滿意，我們將繼續專注於推動未來的改善。現在，請翻到投影片 8，討論我們在季度趨勢投影片上的財年業績。我評論了 2024 財年是一個過渡年，以及我們如何兌現承諾並在業務方面取得了很大進展。

To provide a few examples. As you can see on this slide, non-GAAP gross margin grew 20 basis points year over year, despite the lower revenue base and was significantly higher than the two years prior to that. This was driven by the successful diversification of our business and strong operating discipline.

舉幾個例子。正如您在這張幻燈片中看到的，儘管收入基礎較低，但非 GAAP 毛利率同比增長了 20 個基點，並且明顯高於前兩年。這是由我們成功的業務多元化和嚴格的營運紀律所推動的。

While our non-GAAP operating margin declined 40 basis points versus the prior year. That was primarily due to the targeted investments that we made in the business to drive future growth and was still significantly higher than the two years prior to that. Similarly, while our non-GAAP earnings per share declined 16% versus the prior year, they were up 13% versus the fiscal 2022 results and up 46% versus the fiscal 2021 results.

雖然我們的非 GAAP 營業利潤率比前一年下降了 40 個基點。這主要是由於我們為推動未來成長而對該業務進行了有針對性的投資，並且仍顯著高於前兩年。同樣，雖然我們的非 GAAP 每股盈餘較上年下降 16%，但較 2022 財年業績成長 13%，較 2021 財年業績成長 46%。

Now please turn to slide 9 to discuss the balance sheet highlights. As with the P&L results, we closed the fiscal year well and maintain the very strong balance sheet that I have referenced all year long. Cash and cash equivalents were $626 million and at the end of the quarter, we had no outstanding borrowings on our $800 million revolver leaving us with substantial liquidity of approximately $1.5 billion. We ended the fourth quarter with inventory of $1.33 billion which was down approximately 4% sequentially while managing inventory in absolute dollars is important. It will fluctuate based on customer demand. And that's why we believe it's most important to focus on inventory terms.

現在請翻到投影片 9，討論資產負債表要點。與損益表結果一樣，我們很好地結束了本財年，並保持了我全年提到的非常強勁的資產負債表。現金和現金等價物為 6.26 億美元，截至本季末，我們的 8 億美元循環貸款沒有未償還借款，這使我們擁有約 15 億美元的大量流動資金。在第四季結束時，我們的庫存為 13.3 億美元，比上一季下降了約 4%，而以絕對美元管理庫存非常重要。它會根據客戶需求而波動。這就是為什麼我們認為專注於庫存條件是最重要的。

Our inventory turns improved to 5.4 times this quarter, which represents a significant improvement from the 4.9 times in the prior quarter. This is a great result but there is still room to improve and inventory turn will continue to be a focus area for us going forward. Our non-GAAP Pretax ROIC was 23% for the quarter, well above our weighted average cost of capital and a solid improvement from the 21.1% last quarter.

本季我們的庫存週轉率提高至 5.4 倍，較上一季的 4.9 倍顯著改善。這是一個很好的結果，但仍有改進的空間，庫存週轉將繼續成為我們未來的重點領域。本季我們的非 GAAP 稅前 ROIC 為 23%，遠高於我們的加權平均資本成本，較上季的 21.1% 有了顯著改善。

We continue to have one of the strongest balance sheets in the industry with no net debt and a low gross leverage ratio of 0.51 times which puts us in a great position to execute on our strategy to drive growth and margin expansion. Now please turn to slide 10 where I'll talk about cash flow and capital allocation highlights.

我們仍然擁有業內最強勁的資產負債表之一，沒有淨債務，總槓桿率低至 0.51 倍，這使我們處於執行推動成長和利潤擴張策略的有利位置。現在請翻到投影片 10，我將在其中討論現金流和資本配置要點。

Thanks to disciplined working capital management by the team, our fourth quarter, cash flow from operations was $52 million and came in very strong for the fiscal year at $340 million. Capital expenditures were $23 million for the quarter and $109 million for the year or 1.4% of revenue. This is in line with our historical levels of CapEx spending which typically ranges between 1% to 2% of revenue.

由於團隊嚴格的營運資本管理，我們第四季的營運現金流為 5,200 萬美元，本財年的現金流量非常強勁，達到 3.4 億美元。本季資本支出為 2,300 萬美元，全年資本支出為 1.09 億美元，佔營收的 1.4%。這符合我們的資本支出支出歷史水平，通常佔收入的 1% 至 2%。

As we move forward into the new fiscal year, we will continue to make strategic investments in the technologies and capabilities required to strengthen our position in the market and to support our long-term financial objectives. Free cash flow was $29 million for the quarter and $231 million for the year up $186 million versus the prior year.

隨著我們進入新的財政年度，我們將繼續對所需的技術和能力進行策略性投資，以加強我們的市場地位並支持我們的長期財務目標。本季自由現金流為 2,900 萬美元，全年自由現金流為 2.31 億美元，較上年增加 1.86 億美元。

Now, turning to our capital returns to shareholders. During the quarter, we repurchased 945,000 shares for approximately $65 million which equates to a total of $4 million shares for approximately $227 million for the year. Now, just to provide some more perspective, that means we returned almost 100% of free cash flow to shareholders going forward, we intend to continue to repurchase shares opportunistically as we still believe our stock is undervalued.

現在，轉向我們對股東的資本回報。在本季度，我們以約 6,500 萬美元的價格回購了 945,000 股股票，相當於全年總計回購了 400 萬美元的股票，價值約 2.27 億美元。現在，為了提供更多的視角，這意味著我們將幾乎 100% 的自由現金流返還給股東，我們打算繼續機會主義地回購股票，因為我們仍然認為我們的股票被低估。

Our strong cash flow performance gives us the flexibility to continue to invest in the business while also returning capital to our shareholders through a disciplined and balanced capital allocation approach. To conclude on the fiscal 2024 results. I would like to commend the entire Sanmina team for doing an excellent job in a very challenging market environment.

我們強勁的現金流表現使我們能夠靈活地繼續投資業務，同時透過嚴格和平衡的資本分配方法向股東返還資本。對 2024 財年業績進行總結。我要讚揚整個 Sanmina 團隊在充滿挑戰的市場環境中所做的出色工作。

At the start of this year, we explained to investors that it would be a transition year as we partnered with our customers to work through inventory absorption. While it certainly was challenging, we executed very well and ultimately delivered on three key priorities for the year. Number one, expanding gross margin, number two, making targeted investments in the business to drive future growth and number three, generating solid cash flow, all of which helped us establish a strong foundation for the future.

今年年初，我們向投資者解釋說，這將是一個過渡年，因為我們與客戶合作，努力吸收庫存。雖然這確實具有挑戰性，但我們執行得非常好，最終實現了今年的三個關鍵優先事項。第一，擴大毛利率，第二，對業務進行有針對性的投資以推動未來成長，第三，產生穩定的現金流，所有這些都幫助我們為未來奠定了堅實的基礎。

This is a testament to our resilience, our ability to operate in dynamic market conditions and to deliver on what we say we will, which Jure and I and the rest of the management team are very proud of. Now, please turn to slide 11 where I will cover our outlook for the first quarter of fiscal 2025 which is based on what we were seeing in the market and the forecast from our customers. Our outlook is as follows.

這證明了我們的韌性、我們在動態市場條件下運作的能力以及我們兌現承諾的能力，Jure 和我以及管理團隊的其他成員對此感到非常自豪。現在，請轉到投影片 11，我將根據我們在市場上看到的情況和客戶的預測，介紹我們對 2025 財年第一季的展望。我們的展望如下。

We expect revenue between $1.925 billion to $2.025 billion non-GAAP gross margin of 8.4% to 8.8% dependent on mix operating expenses of $62 million to $66 million. As a reminder as our revenue grows, we believe our operating expenses will provide leverage as we have driven efficiencies in the organization and don't expect to make material increases. Non-GAAP operating margin of 5.3% to 5.7%. We expect other income and expense to be approximately $8 million.

我們預計收入在 19.25 億美元至 20.25 億美元之間，非 GAAP 毛利率為 8.4% 至 8.8%，取決於 6,200 萬美元至 6,600 萬美元的混合營運費用。提醒一下，隨著我們收入的成長，我們相信我們的營運支出將提供槓桿作用，因為我們提高了組織的效率，並且預計不會大幅增加。非公認會計準則營業利益率為 5.3% 至 5.7%。我們預計其他收入和支出約為 800 萬美元。

For the tax rate, we expect a range of 20% to 22% which includes the final utilization of our US federal net operating losses. The expected impact of the pillar two global minimum tax mix of jurisdictional earnings and other tax credits and incentives. We estimate an approximate $3million to $3.5 million non-cash reduction to our net income to reflect our India joint venture partner's equity interest. Non-GAAP EPS in the range of $1.30 to $1.40 based on approximately $56 million fully diluted shares outstanding.

對於稅率，我們預計範圍為 20% 至 22%，其中包括我們美國聯邦淨經營虧損的最終利用。第二支柱全球最低稅收組合的管轄收入和其他稅收抵免和激勵措施的預期影響。我們估計我們的淨利潤將減少約 300 萬至 350 萬美元的非現金，以反映我們印度合資夥伴的股權。基於約 5600 萬美元的完全稀釋已發行股票，非 GAAP 每股收益為 1.30 美元至 1.40 美元。

Please note that the new tax rate change has an impact of approximately $0.7 on the non-GAAP EPS outlook for the first quarter. Capital expenditures to be around $30 million and finally depreciation of approximately $30 million. In summary, based on the demand signals from our customers and our first quarter outlook, we expect FY25 to be a growth year. We have the right set of customers and capabilities to be successful and I'm excited about the opportunities ahead with that. Let me turn the call over to Jure.

請注意，新的稅率變化對第一季非 GAAP 每股收益前景產生約 0.7 美元的影響。資本支出約 3,000 萬美元，最終折舊約 3,000 萬美元。總之，根據客戶的需求訊號和我們第一季的展望，我們預計 2025 財年將是成長的一年。我們擁有合適的客戶和成功的能力，我對未來的機會感到興奮。讓我把電話轉給 Jure。

Thank you, Jon. Ladies and gentlemen, let me add a few more comments about our results for the fourth quarter and fiscal year 2024. And I will tell you more about our outlook for fiscal year '25 and future goals. Please turn to slide 13.

謝謝你，喬恩。女士們、先生們，讓我對我們第四季和 2024 財年的業績再補充一些評論。我將向您詳細介紹我們對 25 財年的展望和未來目標。請翻到投影片 13。

As you heard from Jon, our team delivered solid execution and excellent service to our customers revenue and non-GAAP EPS exceeded our outlook as we are starting to see better visibility from our customers. Most of our customers continue to burn through their inventories. I can tell you today that things are getting better.

正如您從喬恩那裡聽到的那樣，我們的團隊為客戶提供了可靠的執行力和卓越的服務，收入和非公認會計原則每股收益超出了我們的預期，因為我們開始看到客戶有更好的可見性。我們的大多數客戶繼續消耗庫存。今天我可以告訴你，情況正在好轉。

Sanmina's team continues to demonstrate resilience by delivering solid financial results, non-GAAP growth margin and operating margin came in line with our outlook. We delivered sequential year over year growth in communication networks and cloud infrastructure segment and sequential growth in industrial medical defense, aerospace and automotive segments. To talk more about it, please turn to slide 14. Let's look at the revenue by end market for the fourth quarter.

Sanmina 的團隊透過提供穩健的財務表現、非公認會計準則成長利潤率和營業利潤率與我們的預期一致，繼續展現出韌性。我們在通訊網路和雲端基礎設施領域實現了同比連續成長，在工業醫療國防、航空航太和汽車領域實現了連續成長。要詳細討論它，請轉到幻燈片 14。讓我們來看看第四季按終端市場劃分的收入。

As you heard from Jon, the revenue was up 9.6%. Sequentially, we saw growth in majority of our end markets for industrial medical defense and aerospace and automotive that came in $1 billion $253 million. That was 62% of our revenue and it was up quarter over quarter of 6%. Communication networks and cloud infrastructure came in at $765 million that was 38% of our revenue and that came up at 16% quarter over quarter, TOP10 customers represented 51.3% of our revenue. And for the fourth quarter, we had no customers over 10% of our revenue.

正如您從 Jon 那裡聽到的，收入增長了 9.6%。隨後，我們看到工業醫療國防、航空航太和汽車等大部分終端市場的成長，收入達到 10 億美元，達到 2.53 億美元。這占我們營收的 62%，比上一季成長了 6%。通訊網路和雲端基礎設施收入為 7.65 億美元，占我們營收的 38%，季增 16%，TOP10 客戶占我們營收的 51.3%。第四季度，我們沒有客戶佔營收的 10% 以上。

I can tell you that we continue to see solid bookings book to bill was 1 to 1 for the fourth quarter. Please turn slide 15. Now let me talk to you more about fiscal year '24 markets for industrial medical defense and automotive that was 65% of our revenue for a year. Industrial approximately was 27% high-performance communication network was 20% and high-performance cloud infrastructure. Approximately 15% defense and aerospace and automotive was 18% medical, approximately 20%. As you can see, Sanmina is well diversified company. Now please turn to slide 16.

我可以告訴你，我們繼續看到第四季的預訂量與帳單比例為 1 比 1。請翻投投影片 15。現在讓我與您詳細談談 24 財年工業醫療防禦和汽車市場，該市場占我們一年收入的 65%。工業約佔27%，高效能通訊網路佔20%，高效能雲端基礎設施佔20%。大約 15% 是國防和航空航天，而汽車是 18%，醫療大約是 20%。正如您所看到的，Sanmina 是一家多元化的公司。現在請翻到投影片 16。

Now let me talk to you about end markets and what we are seeing today. What we are seeing today I can tell you we see positive trends for fiscal year '25. For industrial we see we have solid customer base, and we are exciting a lot of new projects in our pipeline. We have some great opportunities around energy generation and storage, power controls and management systems, factory automation and semiconductor equipment and safety equipment.

現在讓我和大家談談終端市場以及我們今天所看到的情況。我可以告訴您，我們今天看到的情況是 25 財年的正面趨勢。對於工業領域，我們擁有堅實的客戶基礎，並且我們正在開發許多新專案。我們在能源產生和儲存、電力控制和管理系統、工廠自動化以及半導體設備和安全設備方面有一些巨大的機會。

Overall, I can tell you this segment is doing well for medical is mainly driven by digital health and medical devices. We have a strong base of customers for a long time here. We are well diversified within the market itself. Overall, I would say it's a stable demand with a good future opportunity in front of us. For defense and aerospace. We continue to see solid demand from critical defense projects including Sina products itself. New programs win will drive the growth for us. We are also growing our advanced printed circuit boards business for defense market.

總的來說，我可以告訴你，這個細分市場在醫療領域表現良好，主要是由數位健康和​​醫療設備推動的。長期以來，我們在這裡擁有強大的客戶群。我們在市場本身內實現了多元化。總體而言，我認為這是一個穩定的需求，並且我們面前有一個良好的未來機會。用於國防和航空航天。我們繼續看到包括新浪產品本身在內的關鍵國防項目的強勁需求。新項目的獲勝將推動我們的成長。我們也正在發展國防市場的先進印刷電路板業務。

And we are also starting to expand our precision machining systems. We believe there's a lot of opportunity there. For our motive in transportation in this segment, I can tell you that our customer base is doing well in this challenging market. Our business here is mainly based on around electrical vehicles, electrical chargers, but I can tell you that we have a strong pipeline of new opportunities to drive the growth in fiscal year '25. For communication networks and cloud infrastructure. Also, we see positive trends.

我們也開始擴展我們的精密加工系統。我們相信那裡有很多機會。對於我們在這一領域的運輸的動機，我可以告訴您，我們的客戶群在這個充滿挑戰的市場中表現良好。我們這裡的業務主要基於電動車、充電器，但我可以告訴您，我們有大量新機會來推動 25 財年的成長。用於通訊網路和雲端基礎設施。此外，我們還看到了積極的趨勢。

We focus on high-density high-performance networks and cloud infrastructure. AI architecture is driving new opportunities for us. We are expanding our optical business, and we are expanding optical advanced packaging. Cloud infrastructure is driving new opportunities for Sanmina. AI requirements are continuing to evolve at a rapid pace and it's driving technology advancement. So, what does that mean for us is driving a new business opportunity and we are well positioned in this segment. Now please turn to slide 17.

我們專注於高密度高效能網路和雲端基礎架構。人工智慧架構正在為我們帶來新的機會。我們正在擴大我們的光學業務，我們正在擴大光學先進封裝。雲端基礎設施正在為 Sanmina 帶來新的機會。人工智慧需求持續快速發展，推動技術進步。因此，這對我們來說意味著推動新的商機，而我們在這一領域處於有利地位。現在請翻到投影片 17。

I would like to spend a few minutes talking to you what we do for cloud data center. Well, today Sanmina provides end to end solution, Sanmina has been investing heavily and expanding into this growth segment. So, what do we do? First of all, we do not compete with our customers. We work together with our customers to service this segment.

我想花幾分鐘與您談談我們為雲端資料中心所做的事情。那麼，今天 Sanmina 提供端到端解決方案，Sanmina 一直在大力投資並擴展到這個成長領域。那麼，我們該怎麼辦？首先，我們不與客戶競爭。我們與客戶合作，為這一細分市場提供服務。

As you can see on this slide, we provide rack enclosure, which is basically open compute both standard and custom. We provide cables, we provide advanced optical modules. We provide custom memory; we fabricate high technology printed circuit boards. We assemble the boards that go into this system including back planes. We also have a group what we call Viking Enterprise Solution that does a full design server and storage systems we build believe, build basically complete system through joint development or [ODM] for our customers, we provide cooling manifolds for the racks and enclosures.

正如您在這張幻燈片中看到的，我們提供機架外殼，它基本上是標準和客製化的開放式計算。我們提供電纜，我們提供先進的光模組。我們提供客製化記憶體；我們製造高科技印刷電路板。我們組裝進入該系統的板，包括背板。我們還有一個稱為Viking Enterprise Solution 的團隊，負責完整設計伺服器和儲存系統，我們相信，透過共同開發或[ODM] 為我們的客戶建造基本完整的系統，我們為機架和機櫃提供冷卻歧管。

We are also partnering with a third party around liquid, and we have been heavily investing in this segment ourselves. We also provide buzz bars that go into these racks, precision plastics. And end of the day, we build a full system integration for these segments, and we are providing what we call internally built to order and configured to order. So, Sanmina is well involved in this segment, and we continue to invest because we believe we see a great future for us. Please turn to slide 18.

我們也與第三方圍繞 Liquid 進行合作，我們自己也在這一領域進行了大量投資。我們還提供安裝在這些機架中的嗡嗡聲條，精密塑膠。最終，我們為這些細分市場建立了完整的系統集成，並且我們提供所謂的內部按訂單建立和按訂單配置的服務。因此，Sanmina 充分參與了這個領域，我們繼續投資，因為我們相信我們看到了美好的未來。請翻到幻燈片 18。

Now let me talk to you about fiscal year '25 outlook. As Jon said, our fiscal year '25 outlook is based on our customer's forecast today. I can tell you that we are forecasting revenue to grow high single digits in fiscal year '25. The growth will come from new and existing programs. We continue to diversify with the target market and developing, adding new customers to our portfolio. We focused on margin expansion.

現在讓我來和大家談談 25 財年的展望。正如 Jon 所說，我們的 25 財年展望是基於客戶今天的預測。我可以告訴您，我們預計 25 財年的營收將實現高個位數成長。成長將來自新的和現有的計劃。我們持續實現目標市場多元化並不斷發展，為我們的產品組合增加新客戶。我們專注於利潤率擴張。

Our non-GAAP EPS should grow faster than revenue margin expansion should be driven by revenue growth which we expect in fiscal year 2025 new programs with the higher margin opportunities. And we are going to continue to improve our manufacturing efficiencies as our business grows. And also, we are going to get benefits from OpEx leverage.

我們的非公認會計原則的每股盈餘成長速度應該快於營收利潤率的成長，這應該是由營收成長推動的，我們預期 2025 財年的新計畫將帶來更高的利潤率機會。隨著業務的成長，我們將繼續提高製造效率。此外，我們也將從營運支出槓桿中獲益。

We expect to generate strong cash flow to fund investments in technology that we are investing right now and capital equipment for future growth. Again, we expect fiscal year '25 to be a growth year for us. Now, please turn to slide 19. Let's talk about our priorities. Sanmina priorities are aligned and focused. Sanmina strategy is mainly built around our customers. We have what we call internally customer centric strategy. We will continue to build around our great diversified customer base and we will continue to deliver competitive advantage by providing leading technology for our customers in these heavy regulated markets.

我們預計將產生強勁的現金流，為我們目前正在投資的技術和未來成長的資本設備提供資金。我們再次預期 25 財年將是我們的成長年。現在，請翻到投影片 19。讓我們談談我們的優先事項。Sanmina 的優先事項是一致且重點突出的。Sanmina 策略主要圍繞著我們的客戶制定。我們有所謂的內部以客戶為中心的策略。我們將繼續圍繞我們多元化的客戶群進行建設，並透過在這些嚴格監管的市場中為客戶提供領先的技術來繼續提供競爭優勢。

We remain focused in a long-term growth, margin expansion and strong cash flow. We are focused on margin expansion and short term. Our operating margin goal is to deliver 5% to 6% and longer term, our goal is to deliver operating margin of 6%-plus. We believe that our business will allow us to do that and type of technology that we are expanding into, and we will continue to maximize the shareholders' value. We are not going to do anything crazy, but we will focus on growth and profitability and servicing our customers. So, we believe we will provide a maximized shareholder value in the short-term and the long-term, please turn to slide 20.

我們仍然專注於長期成長、利潤率擴張和強勁的現金流。我們專注於利潤擴張和短期。我們的營業利潤率目標是實現 5% 至 6%，從長遠來看，我們的目標是實現 6% 以上的營業利潤率。我們相信，我們的業務將使我們能夠做到這一點以及我們正在擴展的技術類型，並且我們將繼續實現股東價值最大化。我們不會做任何瘋狂的事情，但我們將專注於成長和盈利能力以及為客戶提供服務。因此，我們相信我們將在短期和長期內提供最大化的股東價值，請翻至投影片 20。

In summary, we continue to execute on our strategy that we have been talking to you. Fiscal year '24 was a transition year. We finished the fourth quarter with solid momentum and with a strong customer base that gave us a growth for fiscal year '25.

總而言之，我們將繼續執行我們一直在與您討論的策略。24 財年是過渡年。我們以強勁的勢頭和強大的客戶基礎結束了第四季度，這使我們在 25 財年實現了成長。

We have ongoing focus on diversifying the growth markets and expanding it to new customers. And, we have been investing in that and we are going to continue to invest in that. Sanmina has well established manufacturing footprint and is well aligned with our customer needs. We will deliver consistent cash generation to fund the business with discipline approach.

我們持續關注成長市場的多元化並將其擴展到新客戶。而且，我們一直在這方面進行投資，並將繼續對此進行投資。Sanmina 擁有完善的製造足跡，並且非常符合我們的客戶需求。我們將透過紀律方法提供持續的現金生成，為業務提供資金。

We remain focused on the fundamentals and future financial performance and the most important will continue to be a partner of choice with our top customers, industry, market leaders. So, ladies and gentlemen, now what I would like to, first of all, thank you for your support. Operator, we are ready to open the lines for question and answers. Thank you again.

我們仍然專注於基本面和未來的財務業績，最重要的是我們將繼續成為我們頂級客戶、產業、市場領導者的首選合作夥伴。女士們、先生們，現在我想先感謝你們的支持。接線員，我們已準備好開放問答線路。再次感謝您。

(Operator Instructions)

（操作員說明）

Ruplu Bhattacharya, Bank of America.

魯普盧‧巴塔查亞 (Ruplu Bhattacharya)，美國銀行。

Hi, Jure. Thanks for taking my questions. Jure, I just wanted to clarify something, and I have a question on the cloud segment. I think last year you had said that this was about 16% of revenues and I think on today's call, you said 15% of revenue. So just from the math because revenues is down year on year, looks like even in cloud, it went from $1.4 billion to $1.1 billion. Where do you see growth within the cloud business? I mean, what specifically are the growth areas? And how should we think about cloud? Do you think the business grows now from 2024 to 2025? And what growth rate should we think of for this business?

嗨，朱爾。感謝您回答我的問題。Jure，我只是想澄清一些事情，我有一個關於雲部分的問題。我想去年你曾說過這大約是收入的 16%，我想在今天的電話會議上，你說的是收入的 15%。因此，僅從數學上看，由於收入逐年下降，即使在雲端領域，收入也從 14 億美元降至 11 億美元。您認為雲端業務的成長點在哪裡？我的意思是，具體的成長領域是什麼？我們該如何看待雲？您認為從 2024 年到 2025 年，業務會成長嗎？我們應該考慮這項業務的成長率是多少？

Well, excellent question. First of all. Yeah, you are right. If you, that's what we use the word transition. '24 was from a growth point of view for us was a challenging year affected by the inventory, too much inventory in a pipeline with our customers. But if you look at where we are today, we focus in a high-performance network which is and a lot of that most of our customers, I would say 60%, 70% of our key partners are their product being shipped to the data centers to cloud. We have been investing a lot and as I just showed you on that slide 17, if you look at it is that we provide a lot of the critical technologies that goes into these systems and we believe we are well positioned and we are working on our new programs that we believe will grow and we are very optimistic and very positive for growth in this segment in what we call communication networks and cloud infrastructure.

嗯，很好的問題。首先。是的，你是對的。如果你，這就是我們使用的「過渡」這個詞。從成長的角度來看，24 年對我們來說是充滿挑戰的一年，受到庫存影響，我們的客戶庫存過多。但如果你看看我們今天所處的位置，我們專注於高效能網絡，這是我們大多數客戶的一部分，我想說，我們 60%、70% 的主要合作夥伴都將他們的產品運送到數據中心到雲。我們一直在投入大量資金，正如我剛剛在幻燈片17 上向您展示的那樣，如果您仔細觀察，您會發現我們提供了許多進入這些系統的關鍵技術，我們相信我們處於有利位置，並且正在努力開發我們的技術。 我們相信這些新項目將會成長，我們對通訊網路和雲端基礎設施領域的成長非常樂觀和積極。

Okay. Thanks for that. And then maybe just on the communication side, I mean, I know Sanmina has a good, very strong optical footprint. Can you talk about the trends you are seeing in communication, specifically in networking and optical? You said that maybe the inventory correction is coming to an end. How many more quarters of that do you see? And even within communications, where do you see growth in fiscal 25?

好的。謝謝你。然後也許只是在通訊方面，我的意思是，我知道 Sanmina 擁有良好、非常強大的光學足跡。您能談談您在通訊領域（特別是網路和光纖領域）看到的趨勢嗎？你說也許庫存調整即將結束。您還看到多少季度？即使在通訊領域，您認為 25 財年的成長在哪些方面？

Well, first of all, as I mentioned in my prepared statement Ruplu, inventory is definitely coming down. Some customers already clear pretty well and a few customers are thrilled, still going through it. But overall, I believe it's coming to the end, I would say a quarter as you saw our inventory turns are going up, we expect it to continue to reduce those. But where the business is coming, I think we come across all our key customers. I think we are well positioned in that we are networking side of the business as you mentioned I think our optical networks are very strong. We focus on our high-end performance, I mean, IP networking capabilities that we do for our key customers. All of these key customers today are positioned for a growth and that's what we are hearing from them. So, we are pretty optimistic about this group.

嗯，首先，正如我在 Ruplu 準備的聲明中提到的，庫存肯定會下降。有些客戶已經很清楚了，有些客戶很興奮，但仍在經歷它。但總的來說，我相信它即將結束，我想說一個季度，因為你看到我們的庫存週轉率正在上升，我們預計它將繼續減少。但在業務發展的地方，我認為我們會遇到所有的關鍵客戶。我認為我們處於有利地位，因為我們是業務的網路方面，正如您所提到的，我認為我們的光纖網路非常強大。我們專注於我們的高端性能，我的意思是，我們為主要客戶提供的 IP 網路功能。今天所有這些關鍵客戶都處於成長的狀態，這就是我們從他們那裡聽到的。所以，我們對這個群體非常樂觀。

Okay. Got it. If I can ask Jon a couple of quick questions. Just on, I wanted to focus on margins. So fiscal 4Q revenue came strong at the high-end operating margin was at the low end. You mentioned some investments. How should we think about the progression of operating margin in fiscal '25? And can you just talk about your areas of investment in this year?

好的。知道了。我可以問喬恩幾個簡單的問題嗎？剛才，我想關注利潤。因此，第四季營收強勁，而高端營業利潤率處於低端。您提到了一些投資。我們該如何看待 25 財年營業利益率的進展？能談談今年的投資領域嗎？

Yeah, sure. Thanks for the questions, Ruplu. So just to touch on the first point as you think about Q4 results, we did come in on the higher end of gross margin a little bit on the lower end of operating margin due to those targeted investments, right? As we look ahead, we still see margin expansion, as I was saying in my prepared remarks in both the IMS and CPS segments. And I'm talking gross margin there. So, we see opportunity on that front also, as we return to revenue growth, we think that we'll get natural operating leverage from OpEx.

是的，當然。謝謝你的提問，魯普魯。因此，當您考慮第四季度的業績時，僅觸及第一點，由於這些有針對性的投資，我們的毛利率確實較高，但營業利潤率較低，對嗎？展望未來，正如我在 IMS 和 CPS 領域準備好的演講中所說，我們仍然看到利潤率擴張。我說的是毛利率。因此，我們也看到了這方面的機會，當我們恢復收入成長時，我們認為我們將從營運支出中獲得自然的營運槓桿。

We, we talked about that too, but in this last quarter and in Q4, specifically, when you look at the OpEx Jure and I are always looking at investment opportunities. That's part of what we do through an ROI based approach, and we have a decent percentage of our OpEx, it's variable in nature. So that, that gives us the flexibility to be able to invest when we need to and pull back when we need to. And for this quarter specifically, I will give you three areas of investment.

我們也討論過這一點，但在最後一個季度和第四季度，特別是當你查看 OpEx Jure 時，我一直在尋找投資機會。這是我們透過基於投資回報率的方法所做的一部分，我們的營運支出佔相當大的比例，它本質上是可變的。因此，這使我們能夠靈活地在需要時進行投資，並在需要時撤回。具體來說，對於本季度，我將向您介紹三個投資領域。

One was across R&D mainly around the programs that Jure was talking about in the cloud and data center space. Number two looking at some strategic opportunities, some more SG&A spending related to try and lock in those strategic opportunities to drive growth for the future. And then number three in our workforce. And so, all the time, we are looking at those opportunities and whenever we feel like we have got a good one that makes sense to invest in, we will do that, and we had those opportunities this quarter.

其中之一是研發，主要圍繞 Jure 所談論的雲端和資料中心領域的專案。第二，著眼於一些策略機遇，更多與嘗試鎖定這些策略機會以推動未來成長相關的SG&A支出。然後在我們的勞動力中排名第三。因此，我們一直在尋找這些機會，每當我們覺得有一個值得投資的好機會時，我們就會這樣做，本季我們就有了這些機會。

Okay. Thanks for that. Jon and maybe just the final one for me. Can you just remind us of your priorities for cash in fiscal '25 and maybe you can also time in when you look at the market right now, you see opportunity for inorganic growth, meaning M&A or how would you think about buybacks or for their capital rebalancing the balance sheet taking out more debt. So, any thoughts on priorities of cash? Thank you.

好的。謝謝你。喬恩，也許只是我的最後一個。您能否提醒我們您在 25 財年的現金優先事項，也許您也可以在您現在觀察市場時，看到無機成長的機會，這意味著併購，或者您如何看待回購或資本重新平衡資產負債表，減少更多債務。那麼，對於現金的優先順序有什麼想法嗎？謝謝。

Yeah, I would say our priorities for capital allocation haven not changed. And really the foundation for that reply is to drive growth and just to remind you of what the priorities are. Number one is around organic investments and I just talked about some of those that we were making also in capital expenditures, right? We look at that just to make sure as I mentioned in my prepared remarks around having the right capabilities put in place to be successful and provide a competitive advantage for our customers.

是的，我想說我們的資本配置優先事項沒有改變。實際上，該答案的基礎是推動成長，並提醒您優先事項是什麼。第一個是有機投資，我剛剛談到了我們在資本支出方面所做的一些投資，對嗎？我們關注這一點只是為了確保正如我在準備好的演講中提到的那樣，擁有正確的能力以取得成功並為我們的客戶提供競爭優勢。

That's number one, number two on strategic acquisitions, Jure made a comment, I'm sure he will say some more words that we are not looking to do anything crazy, but we certainly are always looking at opportunities there to help expand our portfolio and to be successful free is around debt. And as we don't have a lot of long-term debt, right? We have no net debt, and our gross leverage ratio is pretty low when you look across the industry and then last, as we did a lot of this year is cherry purchases. And as I mentioned, my prepared remarks we still feel that we are undervalued, but we will take that same discipline, or I based approach to make decisions between which of those priorities we want to pursue first.

這是關於策略收購的第一、第二，Jure 發表了評論，我相信他還會再說一些話，我們不打算做任何瘋狂的事情，但我們當然一直在尋找機會來幫助擴大我們的投資組合，自由的成功離不開債務。因為我們沒有很多長期債務，對吧？我們沒有淨債務，當你縱觀整個行業時，我們的總槓桿率相當低，最後，因為我們今年做了很多櫻桃採購。正如我所提到的，在我準備好的言論中，我們仍然認為我們被低估了，但我們將採取同樣的紀律，或者基於我的方法來做出決定，我們首先要追求哪些優先事項。

Yeah, just to add a few things on that, if you look at the area that we are playing, especially for our future. As I said, there's a lot technologies is more involving now because of demand around the AI and so on. That's perfect for our company because we believe we can grow organically. We got plenty of cash. We don't need to do anything crazy just to go do acquisition for acquisition’s sake. So, I will focus organic growth and deliver the right solution for our customers and make money and I believe that we are positioned to do that, and our focus is a growth and growth. So hopefully you will see that more in the next few years and that's the focus for us. '25 '26 '27 a great time for Sanmina Corporation.

是的，如果你看看我們正在從事的領域，特別是對於我們的未來，就添加一些內容。正如我所說，由於人工智慧等方面的需求，現在有許多技術更加涉及。這對我們公司來說是完美的，因為我們相信我們可以有機成長。我們有很多現金。我們不需要做任何瘋狂的事情，只是為了收購而收購。因此，我將專注於有機成長，為我們的客戶提供正確的解決方案並賺錢，我相信我們有能力做到這一點，我們的重點是成長和成長。所以希望您在接下來的幾年裡會看到更多，這就是我們的重點。 '25 '26 '27 對 Sanmina 公司來說是一個美好的時光。

Okay. Thank you for all the details. Appreciate.

好的。感謝您提供所有詳細資訊。欣賞。

Thanks, Ruplu.

謝謝，魯普魯。

Anja Soderstrom, Sidoti and Company.

Anja Soderstrom，西多蒂公司。

Yes. Hello. This is Alex on for [Anja]. Thanks for taking questions.

是的。你好。這是亞歷克斯的[安雅]。感謝您提出問題。

She has a better voice. So go ahead, Alex.

她的聲音更好聽。所以，繼續吧，亞歷克斯。

I try my best to honour her. Maybe we could just start on the improvements to cash flow. So, I think we have talked about some of the confidence around top line and margin. Could you talk a little bit about room for further improvement in cash flow and what some of the drivers would be?

我盡我所能來尊重她。也許我們可以從改善現金流開始。因此，我認為我們已經討論了有關營收和利潤率的一些信心。您能否談談現金流進一步改善的空間以及一些驅動因素是什麼？

Yeah. absolutely, Alex. Thanks for the question. So, number one, we had a great year for cash flow as I was talking about earlier, but there's still definitely opportunity ahead. Jure had mentioned and I mentioned too about our inventory turns improvement this quarter, but we still think longer term, we should be back up above six and even if you look at our cash conversion cycles, so great improvement this past quarter got to about 68 days, we were in the mid-70s there for a while, but there's still improvement to be had because if you go back further into our history, cash conversion cycle is more in the mid-50s. So, I think on the opportunity or on the inventory front, more opportunity to continue to work through that absorption. And we think that will get better with growth, even accounts payable our DPO, we think there's some room there, but I would [tee] it up mostly to our cash conversion cycle overall. So that's what we are going to be focused on.

是的。絕對是，亞歷克斯。謝謝你的提問。因此，第一，正如我之前所說，我們今年的現金流非常好，但未來肯定還有機會。Jure 提到過，我也提到本季度我們的庫存週轉率改善，但我們仍然認為從長遠來看，我們應該回到6 以上，即使你看看我們的現金轉換週期，上個季度的巨大改善達到了68 左右幾天來，我們曾經一度處於 70 年代中期，但仍有改進的空間，因為如果你進一步回顧我們的歷史，現金轉換週期更多是在 50 年代中期。因此，我認為在機會或庫存方面，有更多機會繼續透過吸收進行工作。我們認為，隨著成長，情況會變得更好，甚至我們的 DPO 的應付帳款，我們認為還有一些空間，但我會主要根據我們的整體現金轉換週期來調整。這就是我們要關注的重點。

Great, very helpful. Thank you. And I think we heard, we heard a fair amount about how AI was affecting the business and creating new business opportunities. Curious if you could share a little bit about how you are integrating and utilizing AI and maybe how that's changing the business internally and perhaps aiding margin.

太棒了，非常有幫助。謝謝。我想我們聽到了很多關於人工智慧如何影響業務並創造新商機的資訊。我很好奇您是否可以分享一些關於如何整合和利用人工智慧的信息，以及這如何改變內部業務並可能有助於提高利潤。

Yeah, Alex, this is Jure, let me first of all, make a comment what we do outside. First of all around AI it really started about the last, let's say 18 months that we started to see movement in this direction, especially in the last 12 months, we see a lot of new opportunities that our partners and what I mean by partners, the customers they had in our portfolio for over 10 years plus are expanding their business around it and we see a fair amount of growth and that's why we are more optimistic about '25. What we are seeing today is that especially in the communication and cloud customer base is they are very optimistic.

是的，Alex，我是 Jure，首先讓我評論我們在外面做什麼。首先，圍繞著人工智慧，它實際上是在過去18 個月開始的，我們開始看到這個方向的發展，特別是在過去12 個月，我們看到了很多新的機會，我們的合作夥伴以及我所說的合作夥伴，他們在我們的投資組合中擁有超過 10 年的客戶正在圍繞它擴展他們的業務，我們看到了相當大的增長，這就是為什麼我們對 '25 更加樂觀。我們今天看到的是，特別是在通訊和雲端客戶群中，他們非常樂觀。

We the key partners and I just talked about what we add a lot of critical components when it comes to high technology, printed circuit boards, mechanical system, liquid cooling capabilities, custom optical modules. So, Sanmina participates in a very complex system. And that's what we are known for. And that's why we are excited about the opportunity we around AI. So, we believe AI is going to be around not just here for the next 12 months, but hopefully there's a lot of opportunities in next 2-3 years for us, which we are investing and also other markets that I mentioned earlier, such as a defense and so on.

我們主要合作夥伴和我剛剛討論了在高科技、印刷電路板、機械系統、液體冷卻功能、定制光學模組方面我們添加了許多關鍵組件。因此，Sanmina 參與了一個非常複雜的系統。這就是我們聞名的原因。這就是為什麼我們對人工智慧周圍的機會感到興奮。因此，我們相信人工智慧不僅會在未來 12 個月內出現，而且希望在未來 2-3 年內為我們帶來很多機會，我們正在投資這些機會以及我之前提到的其他市場，例如防禦等等。

But back to internally AI definitely we are working with some of our customers and some partners that we believe that we can use AI in a lot of different ways to improve our efficiencies through manufacturing, we have a very smart manufacturing, set up across all our manufacturing around the world. But we believe in a lot of these cases where we can potentially use artificial intelligence to move in the right direction around the supply chain. Definitely, as 70%, 80% of our cost is materials that we buy around the world and in 22 countries. So, a lot of those things we feel we can do better. We have to be a better company. So, we are investing back inside also to basically become more competitive and bring a little bit more profits to the bottom line on anything.

但回到內部人工智慧，我們肯定正在與一些客戶和一些合作夥伴合作，我們相信我們可以透過許多不同的方式使用人工智慧來提高製造效率，我們擁有非常聰明的製造，在我們所有的領域都建立了製造業遍布世界各地。但我們相信，在許多這樣的情況下，我們可以利用人工智慧來推動供應鏈朝著正確的方向發展。當然，我們成本的 70%、80% 是我們在世界各地和 22 個國家購買的材料。所以，我們覺得很多事情我們可以做得更好。我們必須成為一家更好的公司。因此，我們重新投資內部也是為了變得更具競爭力，並為任何事情的底線帶來更多的利潤。

I think you said it. Well, you are the only one that I would add to that is employee productivity. We talked about the port the portfolio, like what's happening in the end markets and what we are doing from a manufacturing perspective, but then our own employees too working with our it team and otherwise so yeah.

我想你已經說過了。嗯，我唯一要補充的是員工生產力。我們討論了連接埠和產品組合，例如終端市場正在發生的事情以及我們從製造角度正在做的事情，但我們自己的員工也與我們的 IT 團隊合作，其他方面也是如此。

Very helpful. Thank you. And last one from us. I think you did a nice job talking about capital allocation priorities and M&A pipeline maybe just to touch on one other facet. I know the reliance industries joint venture happened a couple of years ago, so maybe we could just get an update on how that's trending and your thoughts around additional joint venture opportunities.

非常有幫助。謝謝。還有我們的最後一張。我認為您在資本配置優先事項和併購管道方面做得很好，也許只是觸及了另一個方面。我知道信實工業合資企業發生在幾年前，所以也許我們可以了解最新的趨勢以及您對其他合資機會的想法。

But good question, Alex. First of all, yeah, the deal was done a little bit over a year ago. I can tell you where two years. Yeah, time flies. We are very happy with the partnership that we have with reliance and also opportunities we have in India for India market. And also, India we believe the next few years will become a major exporter in high technology products for North America, Europe and other parts of the world.

但好問題，亞歷克斯。首先，是的，這筆交易是一年多前完成的。我可以告訴你兩年在哪裡。是的，時間過得真快。我們對我們的信賴夥伴關係以及我們在印度市場上擁有的機會感到非常滿意。此外，我們相信印度在未來幾年將成為北美、歐洲和世界其他地區高科技產品的主要出口國。

So, we like what's going on? Actually, we are ahead of the game. We are doing a lot better than what I thought we are going to do. We continue to invest, and we make a major investment this year to position our group in India for our growth. So, we are very optimistic and there's a lot of work left to do. But also, there's a lot of opportunities there, but very happy with our partnership with reliance, Jon, anything else I missed?

那麼，我們喜歡發生了什麼事？事實上，我們處於領先地位。我們做得比我想像的要好得多。我們繼續投資，今年我們進行了一項重大投資，以幫助我們的集團在印度成長。因此，我們非常樂觀，還有很多工作要做。而且，那裡有很多機會，但對我們與 Reliance 的合作關係非常滿意，喬恩，我還錯過了什麼嗎？

I think the only other thing that I would add here, you touched on all the key points, right? But the unique set up that we have in there whereas we manage the business, but reliance owns the majority of the state. So, any customers that are looking to work with an indigenous India [CIA] company, they can work with Sanmina and achieve that. So, a pretty unique aspect to the JV.

我想我要在這裡添加的唯一另一件事是，您觸及了所有關鍵點，對吧？但是，我們在管理業務時擁有獨特的設置，但信賴擁有國家的大部分股份。因此，任何希望與印度本土 [CIA] 公司合作的客戶都可以與 Sanmina 合作並實現這一目標。因此，這對於合資企業來說是一個非常獨特的方面。

Yeah, but percentage is almost 50%-50% Correct. Anything else, Alex?

是的，但百分比幾乎是 50%-50% 正確。還有什麼嗎，亞歷克斯？

No, that's all from us. Thank you very much.

不，這都是我們的。非常感謝。

Thank you. operator. Is there any more questions?

謝謝。操作員。還有其他問題嗎？

We have no further questions at this time?

目前我們沒有其他問題了嗎？

Well, ladies and gentlemen, first of all, I appreciate your time. And you are spending with us today and if there's any questions that we did not answer, please get back to us and looking forward, talking to you in approximately 90 days from now. All the best. Thanks a lot.

女士們，先生們，首先，非常感謝您抽出寶貴的時間。您今天正在與我們一起度過，如果有任何我們沒有回答的問題，請回覆我們，並期待在大約 90 天內與您交談。一切順利。多謝。

Thank you and ladies and gentlemen, this can switch today's conference call. Thank you all for participating. You may now disconnect.

謝謝各位，女士們先生們，這可以改變今天的電話會議。感謝大家的參與。您現在可以斷開連線。