The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Ruplu Bhattacharya - Bank of America - Analyst
: Hi, Jure. Thanks for taking my questions. First, starting on tariffs, did you see any pull forward of demand in fiscal 2Q ahead of the potential tariff
increases? And have any of your customers asked you to move manufacturing around to different regions?
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APRIL 28, 2025 / 9:00PM, SANM.OQ - Q2 2025 Sanmina Corp Earnings Call
Question: Ruplu Bhattacharya - Bank of America - Analyst
: Okay. Okay. So as a follow-up, looks like when I look at what you said about fiscal '25 revenues growing, I think Jon talked about 7% year-on-year
growth at the midpoint. I think you said 6% to 8%. So just using that, that would imply like around 6% year-on-year growth for fiscal 4Q using the
midpoint of your guidance for fiscal 3Q. Are you seeing any slowdown in demand in fiscal second half of '25 or any thoughts on -- have you seen
any change in customer buying behavior or are you just being prudent in the guidance?
Question: Ruplu Bhattacharya - Bank of America - Analyst
: Okay, that's helpful. If I can ask a question on inventory, it looks like gross inventory dollars were up 9% sequentially. What drove that and how
should we think about working capital trend and cash flow and uses of cash for the rest of the year?
Question: Ruplu Bhattacharya - Bank of America - Analyst
: Okay, that's helpful. If I can squeeze one more in. In the communications and market, Yuri, I think you talked a little bit about demand. Can you
help us rank order, like which was strong, which was weak, in terms of optical versus routing switching versus wireless? How are you seeing demand
trending? Because networking was going through an inventory correction. Are you seeing anything positive? And how are you seeing these three
things, optical routing and wireless, coming back?
Question: Ruplu Bhattacharya - Bank of America - Analyst
: Okay. Thank you for all the details. Appreciate it.
Question: Steven Fox - Fox Advisors LLC - Analyst
: Hi. Good afternoon, guys. I guess, first of all, I was wondering if you can go back to the prepared remarks where you mentioned that some second-half
investments in capacity and technology in India, US, and Mexico. Can you just sort of expand on that, what that comment is related to, what you're
doing more specifically? And then I had a follow-up.
Question: Steven Fox - Fox Advisors LLC - Analyst
: That's all super helpful. And then I was just curious. You've mentioned for the last few quarters now how you're looking to do more RAC integration.
You obviously have a lot of the pieces to that puzzle. Can you, one, give us an update on how you've progressed in there and how do you sort of
penetrate with cloud guys in a bigger way in what seems to be becoming a pretty competitive market? Thanks very much.
Question: Anja Soderstrom - Sidoti & Co LLC - Analyst
: Hi, and thank you for taking my questions.
Question: Anja Soderstrom - Sidoti & Co LLC - Analyst
: I'm good. So you mentioned some new customer wins. In what area are those mainly, and how is the competitive environment for those with
Windows?
Question: Anja Soderstrom - Sidoti & Co LLC - Analyst
: So you mentioned you added some new customer wins in the quarter. In what area were those, I mean?
Question: Anja Soderstrom - Sidoti & Co LLC - Analyst
: Okay, thank you. And how is the competitive process for you to win those?
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APRIL 28, 2025 / 9:00PM, SANM.OQ - Q2 2025 Sanmina Corp Earnings Call
Question: Anja Soderstrom - Sidoti & Co LLC - Analyst
: Okay, thank you. And in terms of the tariffs, in the event that they would stick and your customers would like to move their production around,
what is your capacity utilization worldwide?
Question: Anja Soderstrom - Sidoti & Co LLC - Analyst
: Okay, thank you.
Question: Anja Soderstrom - Sidoti & Co LLC - Analyst
: Okay, great. Thank you. That was helpful. That was helpful for me.
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APRIL 28, 2025 / 9:00PM, SANM.OQ - Q2 2025 Sanmina Corp Earnings Call
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