Fabrinet Q3 2023 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Samik Chatterjee - JPMorgan Chase & Co, Research Division - Analyst : I jumped on a bit late here, so I apologize I might be asking something that you touched on your prepared remarks early, but maybe just starting off with the sort of your customers and the nature of the conversations you're having with them related to the inventory digestion, are they giving you any more color in terms of the duration of those inventory adjustments or any more color in terms of when their order returns to a more normalized pattern? And I have a quick follow-up.

Question: Samik Chatterjee - JPMorgan Chase & Co, Research Division - Analyst : And maybe one for Csaba here. The gross margins continue to be quite robust. Maybe if you can give us a bit more color in terms of particularly sort of how you're thinking about the puts and takes in relation to the near-term drivers, including currency as well as the sort of the lower volume leverage that you have.

Question: Samik Chatterjee - JPMorgan Chase & Co, Research Division - Analyst : Just a quick one there. I think Seamus, you mentioned the inventory digestion on the telecom side. So just wondering like when you maybe even dial back, obviously, a few quarters, we have gone through a period of supply issues. Are you seeing any portions of the portfolio still being supply constrained where there is still sort of the lead times that haven't really come back to normal? And is that an additional sort of headwind that you're tackling in some parts of the portfolio, just when we check in on that and where the supply situation currently stands on most of the components you are in shortage of?

Question: Samik Chatterjee - JPMorgan Chase & Co, Research Division - Analyst : And a quick follow-up on the 800-gig products that you're already ramping. Is there any material variation in the gross margin that those come in at relative to your 400 gig given that this is more obviously sort of a (inaudible) edge of what's being done at the industry right now? How should we think about that?