SANMINA CORP — Call Transcript 2026

Good afternoon, ladies and gentlemen, and welcome to Sanmina's first quarter Fiscal 2026 earnings conference call. At this time, all lines are in listen only mode. Following the presentation, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Monday, January 26, 2026. I would now like to turn the conference over to Paige Melching, SVP of Investor Communications. Please go ahead. Thanks, Konstantin. Good afternoon, ladies and gentlemen, and welcome to Sanmina's 1Q Fiscal 2026 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 today's call is Jure Sola, Chairman and Chief Executive Officer. Good afternoon. Jon Faust, Executive Vice President and Chief Financial Officer. Good afternoon. 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 in the slides provided on our website. Please turn to slide three 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. 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 to, and expressly disclaims any obligation to, update or alter any of the forward-looking statements made in this earnings release, the earnings presentation, the conference call, or in 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, we have provided you with statements of operation for the first quarter ended December 27, 2025, on a GAAP basis, as well as certain non-GAAP financial information. A reconciliation between the GAAP and non-GAAP financial information is also provided in the press release and slides posted on our website. In general, our non-GAAP information excludes restructuring costs, acquisition and integration costs, non-cash stock-based compensation expense, amortization expense, and other unusual or infrequent items. 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, tax, net income, and earnings per share, we are referring to our non-GAAP information. I'd now like to turn the call over to Jure. Thanks, Paige. Good afternoon, ladies and gentlemen. Welcome, and thank you all for being here with us today. Happy New Year and all the best to all of you. First, I would like to take this opportunity to recognize our employees and Sanmina leadership team for doing a great job. So to you, Sanmina's team, thank you for your dedication, hard work, and delivering excellent service to our customers. Please turn to slide number four. Ladies and gentlemen, I can tell you that I'm very pleased with our performance for the first quarter. Overall, we're executing according to our plan. Revenue came in at $3.19 billion non-GAAP operating margin at 6%, and non-GAAP diluted earnings per share of $2.38. We delivered strong cash flow from operation of $179 million. Again, I'm excited about the future opportunities that we have in front of us. 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 the results and future goals. Jon and I will open for questions and answers. Now, I'd like to turn this call over to Jon. Jon. Great. Thank you, Jure. And good afternoon, ladies and gentlemen, and thank you for joining today's earnings call. Before I review our financial results for the quarter, I want to acknowledge the entire Sanmina team for their focused execution and thank them for delivering a solid start to the new fiscal year. Now, please turn to slide six, where I'll speak to the financial highlights. We're very pleased with our first quarter results, which, as you can see, either met or exceeded all of our outlook commitments. Our revenue of $3.19 billion and our non-GAAP operating margin of 6.0% each came in toward the high end of our outlook. In regards to revenue, both the core Sanmina business and the ZT Systems business came in near the high end of their respective outlook ranges. Also, our non-GAAP diluted earnings per share of $2.38 exceeded our outlook. These results represent a great start to fiscal 2026 and set us on the right path towards achieving our growth and margin expansion objectives for the year. Now, please turn to slide seven, where I'll speak to the P&L performance. As I just mentioned, we delivered revenue of $3.19 billion, which was up 59% compared to the same period a year ago. This was driven primarily by growth in the communications networks and cloud and AI infrastructure end markets for the core Sanmina business and the addition of the ZT Systems business, which Jure will speak to in more detail as a part of his prepared remarks. Non-GAAP gross profit was $298 million, or 9.3% of revenue, up 30 basis points compared to the same period a year ago. This was driven by favorable mix as well as operational efficiencies. Non-GAAP operating expenses were $106 million, or 3.3% of revenue, down 10 basis points compared to the same period a year ago. We continue to make targeted investments to drive future growth, but are doing so in a very structured and disciplined manner. Non-GAAP operating profit was $192 million, or 6.0% of revenue, up 40 basis points compared to the same period a year ago and at the 6% level for the second quarter in a row. This is a result of revenue growth, favorable mix, and strong operational discipline. Non-GAAP other income and expense was a net expense of $19.1 million, which was $3.9 million favorable to our guidance driven by our strong cash generation. Non-GAAP diluted earnings per share came in at $2.38 based on approximately 56 million shares outstanding and up 66.1% compared to the same period a year ago. As we mentioned on our prior call, we expect fiscal 2026 to be a growth year, and our results for the 1Q represent a solid start towards achieving that objective. Now, please turn to slide 8, where I'll speak to the segment results. IMS revenue came in at $2.79 billion, up 72% compared to the same period a year ago, driven primarily by growth in the communications networks and cloud and AI infrastructure and markets for the core Sanmina business and the addition of the ZT Systems business. IMS non-GAAP gross margin was 8.7%, up 80 basis points compared to the same period a year ago. This was due primarily to favorable mix, including the impact from the addition of ZT Systems revenue and operational efficiencies in both the core Sanmina and ZT Systems businesses. CPS revenue came in at $434 million, up 4.3% compared to the same period a year ago. CPS non-GAAP gross margin was 12.9%, up 40 basis points compared to the same period a year ago. That being said, the 12.9% is lower than our recent performance, and that's due to multiple investments that came online to support new programs, which we expect will deliver margin accretive growth in the near future, as well as a few program transitions. While we executed well, we continue to see opportunity for further improvement in both revenue growth and margin expansion, which we will continue to focus on going forward. Now, please turn to slide nine, where I'll speak to the balance sheet highlights. We maintained a very strong balance sheet in the first quarter. Cash and cash equivalents were $1.42 billion. At the end of the quarter, we had no outstanding borrowings on our $1.5 billion revolver, leaving us with substantial liquidity of approximately $3.6 billion to support the expected growth of the business. We ended the quarter with inventory of $2.2 billion, net of customer advances, which is up 74% versus the same period a year ago, driven by the ZT Systems acquisition. Inventory terms, net of customer advances, were 5.3x for the quarter, down from 5.8x in the same period a year ago, driven by the ZT Systems acquisition. It's also important to note that that Q1 calculation only includes two months of ZT Systems cost of goods sold. Now, that being said, core Sanmina inventory turns, net of customer advances, improved for the quarter both sequentially and versus the same period a year ago. While we're pleased with these results, we believe there is still room for improvement. Our non-GAAP pre-tax ROIC was 32.1% for the quarter, well above our weighted average cost of capital and a sizable improvement from the 23.5% from the same period a year ago. We continue to have one of the strongest balance sheets in the industry with a net leverage ratio of 0.8x. This ratio is calculated conservatively by annualizing our Q1 EBITDA results, as using the pro forma trailing 12 months for ZT Systems wouldn't accurately represent the current run rate of the business. Our long-term net leverage target remains 1.0x-2.0x, and we expect our leverage to increase into this range over time as we invest in working capital to support the growth of the ZT Systems business. I want to emphasize our commitment to maintaining a healthy balance sheet, which means carefully managing the liquidity needed to invest in the business and capitalize on the strategic opportunities that further excel our position in the market with strong financial policies to guide our decision-making process. To be clear, our goal remains to achieve investment-grade ratings over time. Now, please turn to slide 10, where I'll speak to the cash flow highlights. As a result of the team's disciplined working capital management, our first quarter cash flow from operations came in at a solid $179 million. Capital expenditures were $87 million for the quarter, slightly above our outlook. As I've mentioned before, we will continue to make strategic investments in the technologies and capabilities needed to strengthen our position in the market and to support our growth expectations, and we expect to fund these efforts through our strong cash flow generation in line with our capital allocation strategy. To that end, we anticipate ongoing targeted investments in both capacity and technologies across our operations in the United States, India, and Mexico to drive further growth and margin expansion across all of our end markets. Free cash flow was $92 million, enabled by our strong working capital management and operational discipline. During the quarter, we repurchased 516,000 shares for approximately $79 million to offset dilution for the year. At quarter end, we had approximately $160 million remaining on our current share repurchase program. Our strong cash flow performance has provided us with the financial flexibility to allow for continued investments in the business while also returning capital to shareholders, all within a disciplined and balanced capital allocation framework. Now, please turn to slide 11, where I'll speak to our capital allocation strategy. When it comes to capital allocation, it's incredibly important to have a clear strategy and a well-defined set of priorities when making decisions. As we shared with you before, our first priority is to invest in our business to drive long-term organic growth and margin expansion. We evaluate all investments with discipline and take a structured ROI-based approach. Second, we continuously evaluate strategic acquisition and partnership opportunities, which need to meet our ROI expectations to help accelerate our growth. Third, we carefully manage our balance sheet and liquidity position with a focus on our long-term net leverage target, as well as our long-term goal of achieving investment-grade ratings. Finally, when appropriate, we return capital to shareholders through share repurchases, subject to maintaining a strong balance sheet and liquidity position. We have and will continue to execute on this strategy by utilizing these options, which enables us to take advantage of opportunities to grow our business. Now, please turn to slide 12, where I'll provide our outlook for the second quarter, which is based on current customer forecasts, a full quarter of the ZT Systems business, and taking into account ongoing market uncertainties stemming from tariffs and the geopolitical landscape. Our second quarter outlook is as follows. We expect revenue between $3.1 billion-$3.4 billion. At the midpoint of $3.25 billion, that reflects 62% growth compared to the same period a year ago. We continue to expect the core Sanmina business to grow high single digits this fiscal year. As for ZT Systems, the business is performing well and in line with our expectations as we work through the transition period, and we're very excited and focused on the opportunities and future ahead. Non-GAAP operating margin of 5.7%-6.2%, dependent on the mix of the business. We expect other income and expense to be a net expense of approximately $26 million, as it now includes a full quarter of our new debt structure. We expect our non-GAAP effective tax rate to be between 21%-23%. We estimate an approximate $3 million non-cash reduction to our net income to reflect our India joint venture partners' equity interest. Non-GAAP diluted earnings per share in the range of $2.25-$2.55, based on approximately 56 million fully diluted shares outstanding. At the midpoint of $2.40, that represents a 66.7% increase compared to the same period a year ago. Capital expenditures are expected to be around $95 million as we continue to invest strategically to support our future growth expectations. Finally, depreciation of approximately $45 million. In summary, fiscal 2026 is off to a great start. We remain focused on driving revenue growth, margin expansion, and cash generation while maintaining a healthy balance sheet and making investments that further support our strategic objectives. Based on our Q1 performance and our outlook for the second quarter, combined with the demand signals from our customers, we continue to expect fiscal 2026 to be a growth year. There's a lot of work ahead of us, but we are very excited about our future. And with that, let me turn the call back over to Jure. Thank you, Jon. Ladies and gentlemen, let me add a few more comments about our results for the first quarter and the rest of the fiscal year 2026 and beyond. So please turn to slide 14. As you heard from Jon, we delivered strong results for the first quarter. We delivered revenue on non-GAAP operating margin at the high end of our outlook, and non-GAAP diluted earnings per share exceeded our outlook. Most important, fiscal year 2026 is on track to our expectation. The way I would say it, great start to fiscal year 2026. As you can see, our consistent execution is driving our financial performance. Also, I can tell you this is an exciting time to be in Sanmina. Please turn to slide 15. Let's look at the revenue by end market for the first quarter 2026. For communication networks, cloud, and AI infrastructure, that came in around 62% in total. Sanmina's core business in this segment grew year-over-year approximately 20%. ZT revenue came per our plan at the high end of our guidance, in total of $1.964 billion. For industrial, energy, medical, defense, and aerospace, automotive, and transportation, that was 38% of our revenue or $1.226 billion. That was slightly down year-over-year, about 3%. The way I would review this segment is it's very consistent and stable. This is a heavily regulated market that we participate, and we focus on mission-critical and advanced technology products. I'll talk more about it later on about the future about this segment. As you can see, Sanmina is well diversified within market leaders. Bookings continues to be solid over 1%, over 1, I should say, solid demand on existing business and strong pipeline of new projects. At this time, we're seeing a very positive trend across the majority of our focused end markets. To tell you more about it, please turn to slide 16. Now, let me talk to you more about end markets the way we see it today. Overall, it's a very positive trend for us as we look at the fiscal year 2026 and beyond. For communication networks and cloud infrastructure, we are well positioned for growth in this segment. For the communication segment, we participate mainly in high-density, high-performance networks. We see strong demand for high-performance switches and enterprise storage. We're also growing and expanding our Optical advanced packaging products business. We do high-performance network systems from 400 GB, 800 GB, and we're starting to ship 1.6 TB. For cloud and AI infrastructure, we see a strong demand, strong growth opportunities, and we are well positioned in cloud and AI end market. We see a strong pipeline of new projects to drive the growth for the second half of calendar year 2026 and calendar year 2027 and beyond. Now, let me talk to you about industrial and energy. For industrial and energy, we have a great base of customers. We have strong demand for power products to support AI data centers and solid demand for safety and surveillance equipment. We see solid new projects in the pipeline to drive future growth. Industrial and energy is the very strong segment for us. So let me tell you more about our expansion of a new state-of-the-art factory in Houston, Texas, for our energy business. Outlook for electricity demand is very positive. There are several areas for these power markets where Sanmina will play, such as distribution, transmission, and storage of electrical power. In the energy segment, such as distribution, we're going to focus on medium voltage transformers. For transmission, we're going to focus on grid-scale transformers. And for storage, battery storage systems. Here, we basically get involved in the early stage of product design to full system and utilizing our vertical integration, such as electronics, machining, fabrication, bus bars, etc. On this extension, I should say, of this energy business, we've been working for the last couple of years. So we made the decision to basically grow this business because, as I said earlier, the outlook for electricity demand is very positive. For these projects, we partnered with a company called KONČAR, out of Europe, Croatia, to co-design custom medium voltage transformers for our customers, plus other opportunities for the USA market. We have a long-term commitment from our customer. This is a large industry-leading strategic customer for Sanmina. We're ramping up this facility right now, and we're planning to ship a few units in late 2026 and be ready for full production in calendar year 2027. It's an exciting opportunity for our energy business and also for Sanmina. Let me tell you more about the medical. Medical is well diversified within a market that we participate in. We're starting to see a recovery in this medical segment. We expect medical drug delivery devices to grow in fiscal year 2026 and 2027. Overall, medical business for us, we see solid opportunities in the pipeline. For defense and aerospace, we continue to see strong demand for the next few years. This segment continues to do well. We see strong opportunities in the pipeline for the next few years. For our automotive, this business for us is starting to become more stable. We do have a great customer base. What we see for next year is that we have new programs that will drive that growth for us. For industrial and energy, medical, defense, aerospace, automotive, and transportation, overall, we see solid opportunities in this segment. We expect to see more growth in the second half of fiscal year 2026. Now, please turn to slide 17. Now, let me tell you more about Sanmina's ZT Systems AI business. I can tell you that we are executing to the plan. Integration is on track and is doing well. The good thing about this acquisition is it's immediately accretive to our EPS. ZT Systems margins are in line with our core Sanmina, as Jon told you. And most important, we do have strong management and technical team in place. So where do we go from here? We expect more growth in the second half of the calendar year, driven by new projects. As I said before, and we're saying this again, the goal is to double Sanmina revenue in the next two years. And what we see today, the AI opportunities are on track to deliver $16+ billion in our calendar year 2027. We're also pursuing vertical integration opportunities for AI. As you see on this slide, on the right side of the slide, when we talk about full system integration for AI data center at the scale. So you can see all the way from design to the full system. Our capabilities for AI data center are industry-leading, from components and liquid cooling racks to full system integration at scale. Please turn to slide 18. Let me talk to you about our priorities. Number one, we are focused on our customers as we always did. The focus is to continue to broaden and deepen our customer partnership. We are also adding new market-leading customers to our base. Number two, continue to focus on leadership in technology. Our technology is a competitive advantage in high-technology markets. Our capabilities are in place, from design to full system at scale, and we are planning to do more for the future. Number three, how to execute on ZT Systems opportunities. ZT Systems is working on large opportunities for AI data center business, mainly new projects driven. Sanmina is well positioned. We are investing in an AI data center and continue to expand capacity for the future requirements for fiscal year 2027 and 2028. Of course, number four is to continue to drive profitable and sustainable growth. In Sanmina, we call this building big for the future while staying true to our core values, focusing on margin expansion, continuing to diversify to higher and sustainable margin business. I can tell you that we are forecasting steady improvements in operating margin. Short term, we're forecasting 5.7%-6% operating margin. Longer term, we expect to improve those margins from 6%-7%+. Overall, our strategy is to build bigger and stronger Sanmina for the future and always maximize shareholder value for our investors. Please turn to slide 19. In summary, we are focused on sustainable and profitable growth. As Jon mentioned, this is a great start to fiscal year 2026. We expect core Sanmina to grow in the high single digits. We expect strong demand from AI hardware in the second half of calendar year 2026, 2027 into 2028, all driven by new platform, new technology projects. We have capacity and power requirements to support customer demand for present demand, but we are continuing to invest for the future. We're focused on market diversification with higher margin opportunities. Our manufacturing footprint is well aligned with our customer requirements, and we do have strong USA presence. The key to our strategy, again, is to continue to remain focused on Sanmina strategy and to be a partner of choice with the market leaders. So ladies and gentlemen, now I would like to thank you all for your time and support. Operator, we're now ready to open the lines for questions and answers. Thank you again. Thank you. Ladies and gentlemen, we will now begin the question and answer session. If you have a question, please press star followed by the number one on your touch-tone phone. You will hear a prompt that your hand has been raised. If you would like to withdraw from the polling process, please press star then the number two. If you are using a speakerphone, please make sure to lift your handset before pressing any keys. Your first question comes from the line of Ruplu Bhattacharya from Bank of America. Please go ahead. Hi, Jure. Thank you for taking my question. Can you help me parse through the sequential revenue guidance for the March quarter? Looks like revenues at the midpoint are guided up $60 million. If I think about it, ZT, you should have a full quarter of revenues, which is about $1.4 billion. That means that ZT itself is contributing, say, $500 million of incremental revenues, two months versus three months in the March quarter. So is something weaker sequentially, like any color you can give us on revenue from legacy Sanmina versus ZT non-accelerated versus ZT NVIDIA? How are you seeing the trends in those different buckets of revenue? Okay. First of all, actually, our business is improving in the second quarter. So let me explain that. Yes, you're right. We only had two months. I don't think it's. You cannot take two months divided by two, multiplied by three because of the transition of our business. This business is mainly, all business is being transitioned, and we now strictly focus on what we call base business that's going to stay with us and the future business. So if you really look at it today, from our perspective, we're only guiding one quarter at a time. But overall, if you look at the street expectation, we feel comfortable with that. We're just guiding one quarter. For the first quarter, we're shipping more than a street expectation by approximately $100+ million. So as we're guiding $3.1 million-$3.4 million, Sanmina business itself, the core business, will grow quarter-over-quarter and will grow double digits year-over-year, okay? And we expect ZT Systems to grow quarter-over-quarter. So overall, we expect a strong quarter. Most importantly, I think we are positioning the company for the new product, new platforms that are going to be coming up in the end of the fiscal year and calendar year. And we're investing for that. So we're really excited about the future about that. So that's all I have to say. Jon, anything else you want to add to that? I think you covered it well, Jure. I mean, first and foremost, just talking about the Q1 results, Ruplu, both parts of the business, core Sanmina and ZT Systems performed well at the high end of the range. We did provide specific guidance in that first quarter, but we're very pleased to see both parts of the business do well. Yeah, just like Jure was saying, ZT Systems is effectively in line with our expectations. You go all the way back to May 19th and what we said, and pretty much everything we've said and committed about the business has been happening the way that we expected, including in Q1. We're very excited about the future. The transition is taking place like we expect, and we're just focused on executing those new opportunities. Yes. And if I can add to that, Ruplu, I think we have a lot of interest from existing customers and future customers in what's going on. And as I said in my prepared statement, the most importantly, I think the more I learn about ZT's management, I'm very comfortable, very excited with the team, what they can do. They're basically self-sufficient going forward. So very excited. It's a great acquisition for Sanmina, and this will transform Sanmina. I mean, there's no way we could get to $16 billion in 2027 without the potential that we have and the new platforms coming out. Okay. I appreciate the details there. Can I ask a conceptual question about ZT? As I see the business, there are really three parts to the business, right? There's the non-accelerated part, which would be just non-GPU servers or racks. Then there's the accelerated part, and there's some legacy NVIDIA business you would have. And then, obviously, you're going to be ramping with AMD in the second half of the year, as you said. As we think about this total revenue, I think last quarter we were talking about high $5-$6 billion, and the guidance implied something like $5.7 billion. Does that $5.7 billion kind of factor in some decline in the NVIDIA part of the business? Whereas as you ramp AMD, you're going to be focused more on that, and so that will ramp. So any thoughts on how fast that transition can occur this year? Do you think that you will ramp AMD in time for any offset to the NVIDIA business that might decline? Yeah. Good question, Ruplu, Jon. So just to clarify and a reminder for everyone, back on May 19th, we said when we'd close the transaction, we'd expect the revenue run rate to be between $5 billion-$6 billion, right? So that was implying that we had a point of view on how that transition was going to occur with the accelerated compute component to the portfolio. And it pretty much landed right in our expectations, right? You annualize our Q1 guide to two months, and you get to $5.7 billion. But we're still going through that transition right now. And a lot of the old platforms at this point now have rolled off. So we're really just focused about the future. But that's why we wanted to be clear. At the time, we were just guiding the Q1 number that we did, and now we're guiding Q2. The opportunity, like Jure was saying, for accelerated compute specifically is huge. That's what we're focused on right now and doing our part of that to be able to execute on that demand and on that opportunity. That really comes towards the end of our calendar, at the end of calendar 2026. Yeah. If I can add to that, we really, I think opportunities utilizing AMD partnership is huge for us and all the investment being made to be able to support those future requirements. So Ruplu, I would just say, you know us, we like to guide one quarter at a time. We feel very comfortable about our guidance. As you can see, we are increasing our earnings per share. This is the second quarter that we deliver 6%. I think we can expand margins both on Sanmina side and ZT side in the future. Those are exciting things. And there's a lot of vertical integration opportunities that we're starting to kind of work on that. It's going to take some time. But in a year from now, we should be able, that part of the business when it comes to vertical integration around the AI data center will improve. Then our core business around data center is doing really well. We like what we have. As I said in my prepared statement, only a few businesses is that automotive was down, but it's getting stable. Everything else is starting to move in the right direction. Thanks for that. Can I ask a clarification, Jure? I know you're not guiding for the full year, but one thing you said in your prepared remarks is that when you look at consensus estimates, you're comfortable with that. If I look at consensus for 2026, right now it's about $14 billion of revenue. And I think your last guidance for ZT was kind of in that high $5 billion-$6 billion range. Are you still comfortable? Is that the message today that you're still? Yeah. The message is, if you look at the first call, we believe we have a very good chance of hitting $14 billion. $14 billion. Okay. I understand. And then can I ask last question? As much as I hate to tell you on a yearly basis, but let me just put it this way. I'm personally more excited what's in front of us, what opportunities we have today than in May when we did a deal and even a lot stronger than 90 days ago. A lot of work in front of us, but we're not afraid of work. Right. If I can speak one last one then. Jure, let's move beyond data center. If you look at the communications market, right? Sanmina is strong in optical and networking. How are you? That market has been going through many years of inventory correction. How do you see that recovering? What is happening? Can you give us what happened in the December quarter and how you see the March quarter in terms of the overall communications market, whether it's optical or networking or whatever the parts you play in? Yeah. Very strong. I mean, very strong today. I mean, we have some material shortages out there around memory and some of the special ASICs, custom ASICs. But very strong demand. And we expect, first of all, it was very strong in December quarter. It'll continue to be strong in March quarter. I think it'll be very strong the rest of the year. Okay. Thank you for all the details. But Ruplu, one quarter at a time, but we're excited about the year and the future. Okay. Thank you for all the details, Jure. Appreciate it. Thank you. Thanks, Ruplu. Your next question comes from the line of Steven Fox from Fox Advisors. Please go ahead. Hello, Steve. Hi. Good afternoon. Thanks for taking my question. I guess just off of all that, maybe you can tie that into the operating margin. It looks like the operating margin was a little bit better in the quarter. It looks like it could even be flattish this quarter. Can you talk about some of the things going on, puts and takes, and why you're able to hang on to that six-handle, maybe not only this quarter but next quarter? And then I had a follow-up question. Yeah. Steve, this is Jon. So very pleased with the operating margin for the quarter. As I was saying in my prepared remarks, pretty consistent with where we exited last year in Q4. And it's largely dependent on mix. That was a big factor in our business. But it's also the same levers that we're always focused on that we're talking about. And just to be clear and to reiterate that, but we're always looking to drive operational efficiencies within both of our businesses or within both of our segments, both IMS and CPS. Clearly, the addition of ZT had helped out as well. We're always looking for opportunities to get more efficient with our SG&A cost structure too. And we're really focused on growing those businesses that are accretive to the overall margin profile. Last year, Jure and I talked a lot about investments that we were making in CPS in particular that would be margin accretive. And we're starting to see some of those investments coming online. So that created a little bit of short-term pressure in CPS in particular, but long-term, the opportunity is there. So it's the same set of levers that we're always executing on. And that's what we're going to continue to do going forward. Yeah. Just. And Steve. If I can add to that, and investments that we are making, especially as you look at the end of 2026, 2027 year, it's a lot of it in the businesses that can deliver the higher margin for us. So the key for us, that's why we feel, of course, you got to take one day at a time, one quarter at a time. But we are positioning the company to really push for the higher margin business, something that is sustainable, not just for one quarter, but it's sustainable for many quarters. As you can see, our business is becoming more technology-driven. It requires a higher return on investment to be able to make investments for the future. Just to be clear, when we're talking about mix here, Jon, are we talking about mix of components, products, and services, or mix across certain markets? I was referring more to across components, products, and services, Steve. I think at the end of the day, I think the key important thing to remember here is that even with the acquisition of ZT Systems, our core strategy hasn't changed. What Sanmina wants to focus on, clearly that added to the overall IMS part of the portfolio. And that's great. It's essentially an extension of the TAM more broadly into the data center and market, or as we call it, the cloud and AI infrastructure and market. But the core strategy of always trying to get better on all the programs across all of our businesses hasn't changed. And then also our focus on our cost structure and just growing CPS to be a bigger component of the overall mix. So core strategy hasn't changed. Excited about ZT. And just on ZT, they've been executing well. Pretty much everything that we've said back to May, we've executed on to date. Now we're focused, as Jure was saying, on all the opportunities we've got ahead of us in that business. Got it. And then just as a follow-up, can you just help us a little bit more on the ZT wins for later in the year? It sounds like you have confidence in these wins that you've won some substantial stuff. But I'm wondering if you can give us colors to, is it all accelerated compute-related, legacy technology too? How would you sort of describe what and why you're winning that you have confidence in doing like $14 billion on a path to $16 billion in revs? I think number one, why we're winning is execution. This is a great team. They're known to execute. They have a very strong relationship with existing customers. And the way we are structuring for the future and the technology that are coming out, these are very difficult systems. And I believe that we are positioned. Our customers believe that we're positioned to win. We still have to go work on it and deliver. Opportunities, Steve, are there. I mean, opportunity is not an issue. I think it's all about timing and making sure that we do what we said we're going to do as we're making commitments to our customers. Anything else, Jon? No, the only thing I would add to that, Steven, Ruplu talked about it earlier, but there's multiple components to the ZT business, and all of them we're interested in and we're investing in. Accelerated compute is certainly the part of it that has the most growth potential. But we're focused on all aspects. Yeah. And I think what I would just also add, we don't talk too much about it, but I think we're able to. There was a lot of talk, "Hey, we're not going to be able to retain all customers." I think our team is doing a great job, and we have a high confidence that those customers will grow in the future, and we're going to be adding new customers to that. So from an opportunity point of view, that's not an issue. I think the demand for at least what we see today, what we hear from our customers, like I said, there's a lot of opportunity. We are investing for the future. As you just heard from Jon earlier, we spent, what, over $85 million last quarter? 87. 87. We're going to be spending around $90+. That's all for future. That's 90% of that is really for 2027, for 2028. Got it. Understood. Thank you. Thanks a lot, Steve. Ladies and gentlemen, as a reminder, if you would like to ask a question, please press star followed by the number one on your touch-tone phone. If you are using a speakerphone, please make sure to lift your handset before pressing any keys. Your next question comes from the line of Anja Soderstrom from Sidoti. Please go ahead. Hello, Anja. Hi. Hi. Thank you for taking my question. So within industrial medical auto and defense, where was the pocket of weakness there? That's all that. Well, I think as I said in my prepared statement, I think we had some weakness in the last couple of quarters in automotive and transportation, part of the way we measure it. They're starting to stabilize. And it's mainly driven by some of the new programs that are coming that we want. And so I would say that business is going to be short-term stable, but the longer term, I think we'll start recovering. Medical is starting to recover pretty nicely. We're pretty well diversified there. Defense and aerospace, it's pretty stable. It's all about these are long-term programs. And just sometimes they don't move as fast, but the demand for those are solid. Industrial, I just talked about earlier. That's a very good market for us. We talked about expansion down in Houston, Texas. We do have orders on the books already for what we call medium voltage transformers that we co-designed with this Croatian European company. We're very excited about that. Actually, customer wants the product today. So overall, that segment, we expect it to grow more growth in the second half of our fiscal year, calendar year 2026. Okay. Did you say you expected that to grow sequentially in the second quarter or? Yes. We're going to see some growth in the second quarter, but we'll see more growth in the second half of our fiscal year 2026. Okay. Thank you. And then in terms of the cash cycle days, you said there were some things going on in this quarter that rolled that up. Do you think we'll see a drop in the second quarter? Is that going to be taking some time to get that down or? Yeah. What I was referring to there, Anja, is that whether it's our, I was talking primarily in my prepared remarks about inventory turns. And in that calculation, you've got the full amount of inventory that came over from ZT, but only 2 months of the cost of goods sold. So it somewhat distorts the calculation. Same thing applies for the cash conversion cycle, but that also applies to revenue as well. So I think we'll be a little bit better. But all in all, we're pleased with the performance of the business on that front. And it's per our expectations. As I mentioned, for Core Sanmina, we drove improvement on inventory turns. And that's been the big area that we've been focused on for the last couple of years. So we continue to do well on that front, but more work to be done. ZT, once we've got a full quarter in there, I think you'll get a more realistic view of inventory turns, cash conversion cycle. As always in our business, that's always going to be an area of focus of where can we optimize, how can we do better. Okay. Thank you. That was all for me. Thank you, Anja. There are no further questions at this time. I would like to turn the call back to Jure Sola for closing comments. Sir, please go ahead. Well, ladies and gentlemen, again, thank you for your time you spent with us today. Hopefully, we answered most of your questions. If not, please contact us. Looking forward to talking to you, if not in the near term, 90 days from now. Thanks a lot. Bye-bye. Ladies and gentlemen, this concludes today's conference call. Thank you very much for your participation. You may now disconnect.

Speaker 4: Good afternoon, ladies and gentlemen, and welcome to Sanmina's first quarter Fiscal 2026 earnings conference call. At this time, all lines are in listen only mode. Following the presentation, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Monday, January 26, 2026. I would now like to turn the conference over to Paige Melching, SVP of Investor Communications. Please go ahead. Good afternoon, ladies and gentlemen, and welcome to Sanmina's first quarter Fiscal 2026 earnings conference call. good afternoon ladies and gentlemen and welcome to sanmina's first quarter fiscal 2026 earnings conference call At this time, all lines are in listen only mode. at this time all lines are in listen only mode Following the presentation, we will conduct a question-and-answer session. following the presentation we will conduct a question-and-answer session If at any time during this call you require immediate assistance, please press star zero for the operator. if at any time during this call you require immediate assistance please press star zero for the operator This call is being recorded on Monday, January 26, 2026. this call is being recorded on monday january 26 2026 I would now like to turn the conference over to Paige Melching, SVP of Investor Communications. i would now like to turn the conference over to paige melching svp of investor communications Please go ahead. please go ahead

Speaker 5: Thanks, Konstantin. Good afternoon, ladies and gentlemen, and welcome to Sanmina's 1Q Fiscal 2026 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 today's call is Jure Sola, Chairman and Chief Executive Officer. Thanks, Konstantin. thanks konstantin Good afternoon, ladies and gentlemen, and welcome to Sanmina's 1Q Fiscal 2026 earnings call. good afternoon ladies and gentlemen and welcome to sanmina's 1q fiscal 2026 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. 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 today's call is Jure Sola, Chairman and Chief Executive Officer. joining me on today's call is jure sola chairman and chief executive officer

Speaker 3: Good afternoon. Good afternoon. good afternoon

Speaker 5: Jon Faust, Executive Vice President and Chief Financial Officer. Jon Faust, Executive Vice President and Chief Financial Officer. jon faust executive vice president and chief financial officer

Speaker 2: Good afternoon. Good afternoon. good afternoon

Speaker 5: 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 in the slides provided on our website. Please turn to slide three 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. 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. 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. 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 in the slides provided on our website. you can follow along with our prepared remarks in the slides provided on our website Please turn to slide three of our presentation and take note of our Safe Harbor Statement. please turn to slide three 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. during this conference call we may make projections or other forward-looking statements regarding future events or the future financial performance of the company We caution you that such statements are just projections. 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'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 to, and expressly disclaims any obligation to, update or alter any of the forward-looking statements made in this earnings release, the earnings presentation, the conference call, or in 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, we have provided you with statements of operation for the first quarter ended December 27, 2025, on a GAAP basis, as well as certain non-GAAP financial information. A reconciliation between the GAAP and non-GAAP financial information is also provided in the press release and slides posted on our website. In general, our non-GAAP information excludes restructuring costs, acquisition and integration costs, non-cash stock-based compensation expense, amortization expense, and other unusual or infrequent items. The company is under no obligation to, and expressly disclaims any obligation to, update or alter any of the forward-looking statements made in this earnings release, the earnings presentation, the conference call, or in the investor relations section of our website, whether as a result of new information, future events, or otherwise, unless otherwise required by law. the company is under no obligation to and expressly disclaims any obligation to update or alter any of the forward-looking statements made in this earnings release the earnings presentation the conference call or in 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, we have provided you with statements of operation for the first quarter ended December 27, 2025, on a GAAP basis, as well as certain non-GAAP financial information. included in our press release and slides issued today we have provided you with statements of operation for the first quarter ended december 27 2025 on a gaap basis as well as certain non-gaap financial information A reconciliation between the GAAP and non-GAAP financial information is also provided in the press release and slides posted on our website. a reconciliation between the gaap and non-gaap financial information is also provided in the press release and slides posted on our website In general, our non-GAAP information excludes restructuring costs, acquisition and integration costs, non-cash stock-based compensation expense, amortization expense, and other unusual or infrequent items. in general our non-gaap information excludes restructuring costs acquisition and integration costs non-cash stock-based compensation expense amortization expense and other unusual or infrequent items 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, tax, net income, and earnings per share, we are referring to our non-GAAP information. I'd now like to turn the call over to Jure. Any comments we make on this call as it relates to the income statement measures will be directed at our non-GAAP financial results. 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, tax, net income, and earnings per share, we are referring to our non-GAAP information. accordingly unless otherwise stated in this conference call when we refer to gross profit gross margin operating income operating margin tax net income and earnings per share we are referring to our non-gaap information I'd now like to turn the call over to Jure. i'd now like to turn the call over to jure

Speaker 3: Thanks, Paige. Good afternoon, ladies and gentlemen. Welcome, and thank you all for being here with us today. Happy New Year and all the best to all of you. First, I would like to take this opportunity to recognize our employees and Sanmina leadership team for doing a great job. So to you, Sanmina's team, thank you for your dedication, hard work, and delivering excellent service to our customers. Please turn to slide number four. Ladies and gentlemen, I can tell you that I'm very pleased with our performance for the first quarter. Overall, we're executing according to our plan. Revenue came in at $3.19 billion non-GAAP operating margin at 6%, and non-GAAP diluted earnings per share of $2.38. We delivered strong cash flow from operation of $179 million. Again, I'm excited about the future opportunities that we have in front of us. Thanks, Paige. thanks paige Good afternoon, ladies and gentlemen. good afternoon ladies and gentlemen Welcome, and thank you all for being here with us today. welcome and thank you all for being here with us today Happy New Year and all the best to all of you. happy new year and all the best to all of you First, I would like to take this opportunity to recognize our employees and Sanmina leadership team for doing a great job. first i would like to take this opportunity to recognize our employees and sanmina leadership team for doing a great job So to you, Sanmina's team, thank you for your dedication, hard work, and delivering excellent service to our customers. so to you sanmina's team thank you for your dedication hard work and delivering excellent service to our customers Please turn to slide number four. please turn to slide number four Ladies and gentlemen, I can tell you that I'm very pleased with our performance for the first quarter. ladies and gentlemen i can tell you that i'm very pleased with our performance for the first quarter Overall, we're executing according to our plan. overall we're executing according to our plan Revenue came in at $3.19 billion non-GAAP operating margin at 6%, and non-GAAP diluted earnings per share of $2.38. revenue came in at $3.19 billion non-gaap operating margin at 6% and non-gaap diluted earnings per share of $2.38 We delivered strong cash flow from operation of $179 million. we delivered strong cash flow from operation of $179 million Again, I'm excited about the future opportunities that we have in front of us. again i'm excited about the future opportunities that we have in front of us 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 the results and future goals. Jon and I will open for questions and answers. Now, I'd like to turn this call over to Jon. Jon. Now let's go to our agenda for today's call. now let's go to our agenda for today's call We have Jon, our CFO, to review details of our results for you. we have jon our cfo to review details of our results for you I will follow up with additional comments about the results and future goals. i will follow up with additional comments about the results and future goals Jon and I will open for questions and answers. jon and i will open for questions and answers Now, I'd like to turn this call over to Jon. now i'd like to turn this call over to jon Jon. jon

Speaker 2: Great. Thank you, Jure. And good afternoon, ladies and gentlemen, and thank you for joining today's earnings call. Before I review our financial results for the quarter, I want to acknowledge the entire Sanmina team for their focused execution and thank them for delivering a solid start to the new fiscal year. Now, please turn to slide six, where I'll speak to the financial highlights. We're very pleased with our first quarter results, which, as you can see, either met or exceeded all of our outlook commitments. Our revenue of $3.19 billion and our non-GAAP operating margin of 6.0% each came in toward the high end of our outlook. In regards to revenue, both the core Sanmina business and the ZT Systems business came in near the high end of their respective outlook ranges. Also, our non-GAAP diluted earnings per share of $2.38 exceeded our outlook. Great. great Thank you, Jure. thank you jure And good afternoon, ladies and gentlemen, and thank you for joining today's earnings call. and good afternoon ladies and gentlemen and thank you for joining today's earnings call Before I review our financial results for the quarter, I want to acknowledge the entire Sanmina team for their focused execution and thank them for delivering a solid start to the new fiscal year. before i review our financial results for the quarter i want to acknowledge the entire sanmina team for their focused execution and thank them for delivering a solid start to the new fiscal year Now, please turn to slide six, where I'll speak to the financial highlights. now please turn to slide six where i'll speak to the financial highlights We're very pleased with our first quarter results, which, as you can see, either met or exceeded all of our outlook commitments. we're very pleased with our first quarter results which as you can see either met or exceeded all of our outlook commitments Our revenue of $3.19 billion and our non-GAAP operating margin of 6.0% each came in toward the high end of our outlook. our revenue of $3.19 billion and our non-gaap operating margin of 6.0% each came in toward the high end of our outlook In regards to revenue, both the core Sanmina business and the ZT Systems business came in near the high end of their respective outlook ranges. in regards to revenue both the core sanmina business and the zt systems business came in near the high end of their respective outlook ranges Also, our non-GAAP diluted earnings per share of $2.38 exceeded our outlook. also our non-gaap diluted earnings per share of $2.38 exceeded our outlook These results represent a great start to fiscal 2026 and set us on the right path towards achieving our growth and margin expansion objectives for the year. Now, please turn to slide seven, where I'll speak to the P&L performance. As I just mentioned, we delivered revenue of $3.19 billion, which was up 59% compared to the same period a year ago. This was driven primarily by growth in the communications networks and cloud and AI infrastructure end markets for the core Sanmina business and the addition of the ZT Systems business, which Jure will speak to in more detail as a part of his prepared remarks. Non-GAAP gross profit was $298 million, or 9.3% of revenue, up 30 basis points compared to the same period a year ago. This was driven by favorable mix as well as operational efficiencies. These results represent a great start to fiscal 2026 and set us on the right path towards achieving our growth and margin expansion objectives for the year. these results represent a great start to fiscal 2026 and set us on the right path towards achieving our growth and margin expansion objectives for the year Now, please turn to slide seven, where I'll speak to the P&L performance. now please turn to slide seven where i'll speak to the p&l performance As I just mentioned, we delivered revenue of $3.19 billion, which was up 59% compared to the same period a year ago. as i just mentioned we delivered revenue of $3.19 billion which was up 59% compared to the same period a year ago This was driven primarily by growth in the communications networks and cloud and AI infrastructure end markets for the core Sanmina business and the addition of the ZT Systems business, which Jure will speak to in more detail as a part of his prepared remarks. this was driven primarily by growth in the communications networks and cloud and ai infrastructure end markets for the core sanmina business and the addition of the zt systems business which jure will speak to in more detail as a part of his prepared remarks Non-GAAP gross profit was $298 million, or 9.3% of revenue, up 30 basis points compared to the same period a year ago. non-gaap gross profit was $298 million or 9.3% of revenue up 30 basis points compared to the same period a year ago This was driven by favorable mix as well as operational efficiencies. this was driven by favorable mix as well as operational efficiencies Non-GAAP operating expenses were $106 million, or 3.3% of revenue, down 10 basis points compared to the same period a year ago. We continue to make targeted investments to drive future growth, but are doing so in a very structured and disciplined manner. Non-GAAP operating profit was $192 million, or 6.0% of revenue, up 40 basis points compared to the same period a year ago and at the 6% level for the second quarter in a row. This is a result of revenue growth, favorable mix, and strong operational discipline. Non-GAAP other income and expense was a net expense of $19.1 million, which was $3.9 million favorable to our guidance driven by our strong cash generation. Non-GAAP diluted earnings per share came in at $2.38 based on approximately 56 million shares outstanding and up 66.1% compared to the same period a year ago. Non-GAAP operating expenses were $106 million, or 3.3% of revenue, down 10 basis points compared to the same period a year ago. non-gaap operating expenses were $106 million or 3.3% of revenue down 10 basis points compared to the same period a year ago We continue to make targeted investments to drive future growth, but are doing so in a very structured and disciplined manner. we continue to make targeted investments to drive future growth but are doing so in a very structured and disciplined manner Non-GAAP operating profit was $192 million, or 6.0% of revenue, up 40 basis points compared to the same period a year ago and at the 6% level for the second quarter in a row. non-gaap operating profit was $192 million or 6.0% of revenue up 40 basis points compared to the same period a year ago and at the 6% level for the second quarter in a row This is a result of revenue growth, favorable mix, and strong operational discipline. this is a result of revenue growth favorable mix and strong operational discipline Non-GAAP other income and expense was a net expense of $19.1 million, which was $3.9 million favorable to our guidance driven by our strong cash generation. non-gaap other income and expense was a net expense of $19.1 million which was $3.9 million favorable to our guidance driven by our strong cash generation Non-GAAP diluted earnings per share came in at $2.38 based on approximately 56 million shares outstanding and up 66.1% compared to the same period a year ago. non-gaap diluted earnings per share came in at $2.38 based on approximately 56 million shares outstanding and up 66.1% compared to the same period a year ago As we mentioned on our prior call, we expect fiscal 2026 to be a growth year, and our results for the 1Q represent a solid start towards achieving that objective. Now, please turn to slide 8, where I'll speak to the segment results. IMS revenue came in at $2.79 billion, up 72% compared to the same period a year ago, driven primarily by growth in the communications networks and cloud and AI infrastructure and markets for the core Sanmina business and the addition of the ZT Systems business. IMS non-GAAP gross margin was 8.7%, up 80 basis points compared to the same period a year ago. This was due primarily to favorable mix, including the impact from the addition of ZT Systems revenue and operational efficiencies in both the core Sanmina and ZT Systems businesses. As we mentioned on our prior call, we expect fiscal 2026 to be a growth year, and our results for the 1Q represent a solid start towards achieving that objective. as we mentioned on our prior call we expect fiscal 2026 to be a growth year and our results for the 1q represent a solid start towards achieving that objective Now, please turn to slide 8, where I'll speak to the segment results. now please turn to slide 8 where i'll speak to the segment results IMS revenue came in at $2.79 billion, up 72% compared to the same period a year ago, driven primarily by growth in the communications networks and cloud and AI infrastructure and markets for the core Sanmina business and the addition of the ZT Systems business. ims revenue came in at $2.79 billion up 72% compared to the same period a year ago driven primarily by growth in the communications networks and cloud and ai infrastructure and markets for the core sanmina business and the addition of the zt systems business IMS non-GAAP gross margin was 8.7%, up 80 basis points compared to the same period a year ago. ims non-gaap gross margin was 8.7% up 80 basis points compared to the same period a year ago This was due primarily to favorable mix, including the impact from the addition of ZT Systems revenue and operational efficiencies in both the core Sanmina and ZT Systems businesses. this was due primarily to favorable mix including the impact from the addition of zt systems revenue and operational efficiencies in both the core sanmina and zt systems businesses CPS revenue came in at $434 million, up 4.3% compared to the same period a year ago. CPS non-GAAP gross margin was 12.9%, up 40 basis points compared to the same period a year ago. That being said, the 12.9% is lower than our recent performance, and that's due to multiple investments that came online to support new programs, which we expect will deliver margin accretive growth in the near future, as well as a few program transitions. While we executed well, we continue to see opportunity for further improvement in both revenue growth and margin expansion, which we will continue to focus on going forward. Now, please turn to slide nine, where I'll speak to the balance sheet highlights. We maintained a very strong balance sheet in the first quarter. Cash and cash equivalents were $1.42 billion. CPS revenue came in at $434 million, up 4.3% compared to the same period a year ago. cps revenue came in at $434 million up 4.3% compared to the same period a year ago CPS non-GAAP gross margin was 12.9%, up 40 basis points compared to the same period a year ago. cps non-gaap gross margin was 12.9% up 40 basis points compared to the same period a year ago That being said, the 12.9% is lower than our recent performance, and that's due to multiple investments that came online to support new programs, which we expect will deliver margin accretive growth in the near future, as well as a few program transitions. that being said the 12.9% is lower than our recent performance and that's due to multiple investments that came online to support new programs which we expect will deliver margin accretive growth in the near future as well as a few program transitions While we executed well, we continue to see opportunity for further improvement in both revenue growth and margin expansion, which we will continue to focus on going forward. while we executed well we continue to see opportunity for further improvement in both revenue growth and margin expansion which we will continue to focus on going forward Now, please turn to slide nine, where I'll speak to the balance sheet highlights. now please turn to slide nine where i'll speak to the balance sheet highlights We maintained a very strong balance sheet in the first quarter. we maintained a very strong balance sheet in the first quarter Cash and cash equivalents were $1.42 billion. cash and cash equivalents were $1.42 billion At the end of the quarter, we had no outstanding borrowings on our $1.5 billion revolver, leaving us with substantial liquidity of approximately $3.6 billion to support the expected growth of the business. We ended the quarter with inventory of $2.2 billion, net of customer advances, which is up 74% versus the same period a year ago, driven by the ZT Systems acquisition. Inventory terms, net of customer advances, were 5.3x for the quarter, down from 5.8x in the same period a year ago, driven by the ZT Systems acquisition. It's also important to note that that Q1 calculation only includes two months of ZT Systems cost of goods sold. Now, that being said, core Sanmina inventory turns, net of customer advances, improved for the quarter both sequentially and versus the same period a year ago. At the end of the quarter, we had no outstanding borrowings on our $1.5 billion revolver, leaving us with substantial liquidity of approximately $3.6 billion to support the expected growth of the business. at the end of the quarter we had no outstanding borrowings on our $1.5 billion revolver leaving us with substantial liquidity of approximately $3.6 billion to support the expected growth of the business We ended the quarter with inventory of $2.2 billion, net of customer advances, which is up 74% versus the same period a year ago, driven by the ZT Systems acquisition. we ended the quarter with inventory of $2.2 billion net of customer advances which is up 74% versus the same period a year ago driven by the zt systems acquisition Inventory terms, net of customer advances, were 5.3 x for the quarter, down from 5.8 x in the same period a year ago, driven by the ZT Systems acquisition. inventory terms net of customer advances were 5.3 x for the quarter down from 5.8 x in the same period a year ago driven by the zt systems acquisition It's also important to note that that Q1 calculation only includes two months of ZT Systems cost of goods sold. it's also important to note that that q1 calculation only includes two months of zt systems cost of goods sold Now, that being said, core Sanmina inventory turns, net of customer advances, improved for the quarter both sequentially and versus the same period a year ago. now that being said core sanmina inventory turns net of customer advances improved for the quarter both sequentially and versus the same period a year ago While we're pleased with these results, we believe there is still room for improvement. Our non-GAAP pre-tax ROIC was 32.1% for the quarter, well above our weighted average cost of capital and a sizable improvement from the 23.5% from the same period a year ago. We continue to have one of the strongest balance sheets in the industry with a net leverage ratio of 0.8x. This ratio is calculated conservatively by annualizing our Q1 EBITDA results, as using the pro forma trailing 12 months for ZT Systems wouldn't accurately represent the current run rate of the business. Our long-term net leverage target remains 1.0x-2.0x, and we expect our leverage to increase into this range over time as we invest in working capital to support the growth of the ZT Systems business. While we're pleased with these results, we believe there is still room for improvement. while we're pleased with these results we believe there is still room for improvement Our non-GAAP pre-tax ROIC was 32.1% for the quarter, well above our weighted average cost of capital and a sizable improvement from the 23.5% from the same period a year ago. our non-gaap pre-tax roic was 32.1% for the quarter well above our weighted average cost of capital and a sizable improvement from the 23.5% from the same period a year ago We continue to have one of the strongest balance sheets in the industry with a net leverage ratio of 0.8 x. we continue to have one of the strongest balance sheets in the industry with a net leverage ratio of 0.8 x This ratio is calculated conservatively by annualizing our Q1 EBITDA results, as using the pro forma trailing 12 months for ZT Systems wouldn't accurately represent the current run rate of the business. this ratio is calculated conservatively by annualizing our q1 ebitda results as using the pro forma trailing 12 months for zt systems wouldn't accurately represent the current run rate of the business Our long-term net leverage target remains 1.0 x-2.0 x, and we expect our leverage to increase into this range over time as we invest in working capital to support the growth of the ZT Systems business. our long-term net leverage target remains 1.0 x-2.0 x and we expect our leverage to increase into this range over time as we invest in working capital to support the growth of the zt systems business I want to emphasize our commitment to maintaining a healthy balance sheet, which means carefully managing the liquidity needed to invest in the business and capitalize on the strategic opportunities that further excel our position in the market with strong financial policies to guide our decision-making process. To be clear, our goal remains to achieve investment-grade ratings over time. Now, please turn to slide 10, where I'll speak to the cash flow highlights. As a result of the team's disciplined working capital management, our first quarter cash flow from operations came in at a solid $179 million. Capital expenditures were $87 million for the quarter, slightly above our outlook. I want to emphasize our commitment to maintaining a healthy balance sheet, which means carefully managing the liquidity needed to invest in the business and capitalize on the strategic opportunities that further excel our position in the market with strong financial policies to guide our decision-making process. i want to emphasize our commitment to maintaining a healthy balance sheet which means carefully managing the liquidity needed to invest in the business and capitalize on the strategic opportunities that further excel our position in the market with strong financial policies to guide our decision-making process To be clear, our goal remains to achieve investment-grade ratings over time. to be clear our goal remains to achieve investment-grade ratings over time Now, please turn to slide 10, where I'll speak to the cash flow highlights. now please turn to slide 10 where i'll speak to the cash flow highlights As a result of the team's disciplined working capital management, our first quarter cash flow from operations came in at a solid $179 million. as a result of the team's disciplined working capital management our first quarter cash flow from operations came in at a solid $179 million Capital expenditures were $87 million for the quarter, slightly above our outlook. capital expenditures were $87 million for the quarter slightly above our outlook As I've mentioned before, we will continue to make strategic investments in the technologies and capabilities needed to strengthen our position in the market and to support our growth expectations, and we expect to fund these efforts through our strong cash flow generation in line with our capital allocation strategy. To that end, we anticipate ongoing targeted investments in both capacity and technologies across our operations in the United States, India, and Mexico to drive further growth and margin expansion across all of our end markets. Free cash flow was $92 million, enabled by our strong working capital management and operational discipline. During the quarter, we repurchased 516,000 shares for approximately $79 million to offset dilution for the year. At quarter end, we had approximately $160 million remaining on our current share repurchase program. As I've mentioned before, we will continue to make strategic investments in the technologies and capabilities needed to strengthen our position in the market and to support our growth expectations, and we expect to fund these efforts through our strong cash flow generation in line with our capital allocation strategy. as i've mentioned before we will continue to make strategic investments in the technologies and capabilities needed to strengthen our position in the market and to support our growth expectations and we expect to fund these efforts through our strong cash flow generation in line with our capital allocation strategy To that end, we anticipate ongoing targeted investments in both capacity and technologies across our operations in the United States, India, and Mexico to drive further growth and margin expansion across all of our end markets. Free cash flow was $92 million, enabled by our strong working capital management and operational discipline. to that end we anticipate ongoing targeted investments in both capacity and technologies across our operations in the united states india and mexico to drive further growth and margin expansion across all of our end markets. free cash flow was $92 million enabled by our strong working capital management and operational discipline During the quarter, we repurchased 516,000 shares for approximately $79 million to offset dilution for the year. during the quarter we repurchased 516,000 shares for approximately $79 million to offset dilution for the year At quarter end, we had approximately $160 million remaining on our current share repurchase program. at quarter end we had approximately $160 million remaining on our current share repurchase program Our strong cash flow performance has provided us with the financial flexibility to allow for continued investments in the business while also returning capital to shareholders, all within a disciplined and balanced capital allocation framework. Now, please turn to slide 11, where I'll speak to our capital allocation strategy. When it comes to capital allocation, it's incredibly important to have a clear strategy and a well-defined set of priorities when making decisions. As we shared with you before, our first priority is to invest in our business to drive long-term organic growth and margin expansion. We evaluate all investments with discipline and take a structured ROI-based approach. Second, we continuously evaluate strategic acquisition and partnership opportunities, which need to meet our ROI expectations to help accelerate our growth. Our strong cash flow performance has provided us with the financial flexibility to allow for continued investments in the business while also returning capital to shareholders, all within a disciplined and balanced capital allocation framework. our strong cash flow performance has provided us with the financial flexibility to allow for continued investments in the business while also returning capital to shareholders all within a disciplined and balanced capital allocation framework Now, please turn to slide 11, where I'll speak to our capital allocation strategy. now please turn to slide 11 where i'll speak to our capital allocation strategy When it comes to capital allocation, it's incredibly important to have a clear strategy and a well-defined set of priorities when making decisions. when it comes to capital allocation it's incredibly important to have a clear strategy and a well-defined set of priorities when making decisions As we shared with you before, our first priority is to invest in our business to drive long-term organic growth and margin expansion. as we shared with you before our first priority is to invest in our business to drive long-term organic growth and margin expansion We evaluate all investments with discipline and take a structured ROI-based approach. we evaluate all investments with discipline and take a structured roi-based approach Second, we continuously evaluate strategic acquisition and partnership opportunities, which need to meet our ROI expectations to help accelerate our growth. second we continuously evaluate strategic acquisition and partnership opportunities which need to meet our roi expectations to help accelerate our growth Third, we carefully manage our balance sheet and liquidity position with a focus on our long-term net leverage target, as well as our long-term goal of achieving investment-grade ratings. Finally, when appropriate, we return capital to shareholders through share repurchases, subject to maintaining a strong balance sheet and liquidity position. We have and will continue to execute on this strategy by utilizing these options, which enables us to take advantage of opportunities to grow our business. Now, please turn to slide 12, where I'll provide our outlook for the second quarter, which is based on current customer forecasts, a full quarter of the ZT Systems business, and taking into account ongoing market uncertainties stemming from tariffs and the geopolitical landscape. Our second quarter outlook is as follows. We expect revenue between $3.1 billion-$3.4 billion. Third, we carefully manage our balance sheet and liquidity position with a focus on our long-term net leverage target, as well as our long-term goal of achieving investment-grade ratings. third we carefully manage our balance sheet and liquidity position with a focus on our long-term net leverage target as well as our long-term goal of achieving investment-grade ratings Finally, when appropriate, we return capital to shareholders through share repurchases, subject to maintaining a strong balance sheet and liquidity position. finally when appropriate we return capital to shareholders through share repurchases subject to maintaining a strong balance sheet and liquidity position We have and will continue to execute on this strategy by utilizing these options, which enables us to take advantage of opportunities to grow our business. we have and will continue to execute on this strategy by utilizing these options which enables us to take advantage of opportunities to grow our business Now, please turn to slide 12, where I'll provide our outlook for the second quarter, which is based on current customer forecasts, a full quarter of the ZT Systems business, and taking into account ongoing market uncertainties stemming from tariffs and the geopolitical landscape. now please turn to slide 12 where i'll provide our outlook for the second quarter which is based on current customer forecasts a full quarter of the zt systems business and taking into account ongoing market uncertainties stemming from tariffs and the geopolitical landscape Our second quarter outlook is as follows. our second quarter outlook is as follows We expect revenue between $3.1 billion-$3.4 billion. we expect revenue between $3.1 billion-$3.4 billion At the midpoint of $3.25 billion, that reflects 62% growth compared to the same period a year ago. We continue to expect the core Sanmina business to grow high single digits this fiscal year. As for ZT Systems, the business is performing well and in line with our expectations as we work through the transition period, and we're very excited and focused on the opportunities and future ahead. Non-GAAP operating margin of 5.7%-6.2%, dependent on the mix of the business. We expect other income and expense to be a net expense of approximately $26 million, as it now includes a full quarter of our new debt structure. We expect our non-GAAP effective tax rate to be between 21%-23%. We estimate an approximate $3 million non-cash reduction to our net income to reflect our India joint venture partners' equity interest. At the midpoint of $3.25 billion, that reflects 62% growth compared to the same period a year ago. at the midpoint of $3.25 billion that reflects 62% growth compared to the same period a year ago We continue to expect the core Sanmina business to grow high single digits this fiscal year. we continue to expect the core sanmina business to grow high single digits this fiscal year As for ZT Systems, the business is performing well and in line with our expectations as we work through the transition period, and we're very excited and focused on the opportunities and future ahead. as for zt systems the business is performing well and in line with our expectations as we work through the transition period and we're very excited and focused on the opportunities and future ahead Non-GAAP operating margin of 5.7%-6.2%, dependent on the mix of the business. non-gaap operating margin of 5.7%-6.2% dependent on the mix of the business We expect other income and expense to be a net expense of approximately $26 million, as it now includes a full quarter of our new debt structure. we expect other income and expense to be a net expense of approximately $26 million as it now includes a full quarter of our new debt structure We expect our non-GAAP effective tax rate to be between 21%-23%. we expect our non-gaap effective tax rate to be between 21%-23% We estimate an approximate $3 million non-cash reduction to our net income to reflect our India joint venture partners' equity interest. we estimate an approximate $3 million non-cash reduction to our net income to reflect our india joint venture partners' equity interest Non-GAAP diluted earnings per share in the range of $2.25-$2.55, based on approximately 56 million fully diluted shares outstanding. At the midpoint of $2.40, that represents a 66.7% increase compared to the same period a year ago. Capital expenditures are expected to be around $95 million as we continue to invest strategically to support our future growth expectations. Finally, depreciation of approximately $45 million. In summary, fiscal 2026 is off to a great start. We remain focused on driving revenue growth, margin expansion, and cash generation while maintaining a healthy balance sheet and making investments that further support our strategic objectives. Based on our Q1 performance and our outlook for the second quarter, combined with the demand signals from our customers, we continue to expect fiscal 2026 to be a growth year. There's a lot of work ahead of us, but we are very excited about our future. Non-GAAP diluted earnings per share in the range of $2.25-$2.55, based on approximately 56 million fully diluted shares outstanding. non-gaap diluted earnings per share in the range of $2.25-$2.55 based on approximately 56 million fully diluted shares outstanding At the midpoint of $2.40, that represents a 66.7% increase compared to the same period a year ago. at the midpoint of $2.40 that represents a 66.7% increase compared to the same period a year ago Capital expenditures are expected to be around $95 million as we continue to invest strategically to support our future growth expectations. capital expenditures are expected to be around $95 million as we continue to invest strategically to support our future growth expectations Finally, depreciation of approximately $45 million. finally depreciation of approximately $45 million In summary, fiscal 2026 is off to a great start. in summary fiscal 2026 is off to a great start We remain focused on driving revenue growth, margin expansion, and cash generation while maintaining a healthy balance sheet and making investments that further support our strategic objectives. we remain focused on driving revenue growth margin expansion and cash generation while maintaining a healthy balance sheet and making investments that further support our strategic objectives Based on our Q1 performance and our outlook for the second quarter, combined with the demand signals from our customers, we continue to expect fiscal 2026 to be a growth year. based on our q1 performance and our outlook for the second quarter combined with the demand signals from our customers we continue to expect fiscal 2026 to be a growth year There's a lot of work ahead of us, but we are very excited about our future. there's a lot of work ahead of us but we are very excited about our future And with that, let me turn the call back over to Jure. And with that, let me turn the call back over to Jure. and with that let me turn the call back over to jure

Speaker 3: Thank you, Jon. Ladies and gentlemen, let me add a few more comments about our results for the first quarter and the rest of the fiscal year 2026 and beyond. So please turn to slide 14. As you heard from Jon, we delivered strong results for the first quarter. We delivered revenue on non-GAAP operating margin at the high end of our outlook, and non-GAAP diluted earnings per share exceeded our outlook. Most important, fiscal year 2026 is on track to our expectation. The way I would say it, great start to fiscal year 2026. As you can see, our consistent execution is driving our financial performance. Also, I can tell you this is an exciting time to be in Sanmina. Please turn to slide 15. Let's look at the revenue by end market for the first quarter 2026. Thank you, Jon. thank you jon Ladies and gentlemen, let me add a few more comments about our results for the first quarter and the rest of the fiscal year 2026 and beyond. ladies and gentlemen let me add a few more comments about our results for the first quarter and the rest of the fiscal year 2026 and beyond So please turn to slide 14. so please turn to slide 14 As you heard from Jon, we delivered strong results for the first quarter. as you heard from jon we delivered strong results for the first quarter We delivered revenue on non-GAAP operating margin at the high end of our outlook, and non-GAAP diluted earnings per share exceeded our outlook. we delivered revenue on non-gaap operating margin at the high end of our outlook and non-gaap diluted earnings per share exceeded our outlook Most important, fiscal year 2026 is on track to our expectation. most important fiscal year 2026 is on track to our expectation The way I would say it, great start to fiscal year 2026. the way i would say it great start to fiscal year 2026 As you can see, our consistent execution is driving our financial performance. as you can see our consistent execution is driving our financial performance Also, I can tell you this is an exciting time to be in Sanmina. also i can tell you this is an exciting time to be in sanmina Please turn to slide 15. please turn to slide 15 Let's look at the revenue by end market for the first quarter 2026. let's look at the revenue by end market for the first quarter 2026 For communication networks, cloud, and AI infrastructure, that came in around 62% in total. Sanmina's core business in this segment grew year-over-year approximately 20%. ZT revenue came per our plan at the high end of our guidance, in total of $1.964 billion. For industrial, energy, medical, defense, and aerospace, automotive, and transportation, that was 38% of our revenue or $1.226 billion. That was slightly down year-over-year, about 3%. The way I would review this segment is it's very consistent and stable. This is a heavily regulated market that we participate, and we focus on mission-critical and advanced technology products. I'll talk more about it later on about the future about this segment. As you can see, Sanmina is well diversified within market leaders. For communication networks, cloud, and AI infrastructure, that came in around 62% in total. for communication networks cloud and ai infrastructure that came in around 62% in total Sanmina's core business in this segment grew year-over-year approximately 20%. sanmina's core business in this segment grew year-over-year approximately 20% ZT revenue came per our plan at the high end of our guidance, in total of $1.964 billion. zt revenue came per our plan at the high end of our guidance in total of $1.964 billion For industrial, energy, medical, defense, and aerospace, automotive, and transportation, that was 38% of our revenue or $1.226 billion . for industrial energy medical defense and aerospace automotive and transportation that was 38% of our revenue or $1.226 billion That was slightly down year-over-year, about 3%. that was slightly down year-over-year about 3% The way I would review this segment is it's very consistent and stable. the way i would review this segment is it's very consistent and stable This is a heavily regulated market that we participate, and we focus on mission-critical and advanced technology products. this is a heavily regulated market that we participate and we focus on mission-critical and advanced technology products I'll talk more about it later on about the future about this segment. i'll talk more about it later on about the future about this segment As you can see, Sanmina is well diversified within market leaders. as you can see sanmina is well diversified within market leaders Bookings continues to be solid over 1%, over 1, I should say, solid demand on existing business and strong pipeline of new projects. At this time, we're seeing a very positive trend across the majority of our focused end markets. To tell you more about it, please turn to slide 16. Now, let me talk to you more about end markets the way we see it today. Overall, it's a very positive trend for us as we look at the fiscal year 2026 and beyond. For communication networks and cloud infrastructure, we are well positioned for growth in this segment. For the communication segment, we participate mainly in high-density, high-performance networks. We see strong demand for high-performance switches and enterprise storage. We're also growing and expanding our Optical advanced packaging products business. We do high-performance network systems from 400 GB, 800 GB, and we're starting to ship 1.6 TB. Bookings continues to be solid over 1%, over 1, I should say, solid demand on existing business and strong pipeline of new projects. bookings continues to be solid over 1% over 1 i should say solid demand on existing business and strong pipeline of new projects At this time, we're seeing a very positive trend across the majority of our focused end markets. at this time we're seeing a very positive trend across the majority of our focused end markets To tell you more about it, please turn to slide 16. to tell you more about it please turn to slide 16 Now, let me talk to you more about end markets the way we see it today. now let me talk to you more about end markets the way we see it today Overall, it's a very positive trend for us as we look at the fiscal year 2026 and beyond. overall it's a very positive trend for us as we look at the fiscal year 2026 and beyond For communication networks and cloud infrastructure, we are well positioned for growth in this segment. for communication networks and cloud infrastructure we are well positioned for growth in this segment For the communication segment, we participate mainly in high-density, high-performance networks. for the communication segment we participate mainly in high-density high-performance networks We see strong demand for high-performance switches and enterprise storage. we see strong demand for high-performance switches and enterprise storage We're also growing and expanding our Optical advanced packaging products business. we're also growing and expanding our optical advanced packaging products business We do high-performance network systems from 400 GB, 800 GB, and we're starting to ship 1.6 TB. we do high-performance network systems from 400 gb 800 gb and we're starting to ship 1.6 tb For cloud and AI infrastructure, we see a strong demand, strong growth opportunities, and we are well positioned in cloud and AI end market. We see a strong pipeline of new projects to drive the growth for the second half of calendar year 2026 and calendar year 2027 and beyond. Now, let me talk to you about industrial and energy. For industrial and energy, we have a great base of customers. We have strong demand for power products to support AI data centers and solid demand for safety and surveillance equipment. We see solid new projects in the pipeline to drive future growth. Industrial and energy is the very strong segment for us. So let me tell you more about our expansion of a new state-of-the-art factory in Houston, Texas, for our energy business. Outlook for electricity demand is very positive. For cloud and AI infrastructure, we see a strong demand, strong growth opportunities, and we are well positioned in cloud and AI end market. for cloud and ai infrastructure we see a strong demand strong growth opportunities and we are well positioned in cloud and ai end market We see a strong pipeline of new projects to drive the growth for the second half of calendar year 2026 and calendar year 2027 and beyond. we see a strong pipeline of new projects to drive the growth for the second half of calendar year 2026 and calendar year 2027 and beyond Now, let me talk to you about industrial and energy. now let me talk to you about industrial and energy For industrial and energy, we have a great base of customers. for industrial and energy we have a great base of customers We have strong demand for power products to support AI data centers and solid demand for safety and surveillance equipment. we have strong demand for power products to support ai data centers and solid demand for safety and surveillance equipment We see solid new projects in the pipeline to drive future growth. we see solid new projects in the pipeline to drive future growth Industrial and energy is the very strong segment for us. industrial and energy is the very strong segment for us So let me tell you more about our expansion of a new state-of-the-art factory in Houston, Texas, for our energy business. so let me tell you more about our expansion of a new state-of-the-art factory in houston texas for our energy business Outlook for electricity demand is very positive. outlook for electricity demand is very positive There are several areas for these power markets where Sanmina will play, such as distribution, transmission, and storage of electrical power. In the energy segment, such as distribution, we're going to focus on medium voltage transformers. For transmission, we're going to focus on grid-scale transformers. And for storage, battery storage systems. Here, we basically get involved in the early stage of product design to full system and utilizing our vertical integration, such as electronics, machining, fabrication, bus bars, etc. On this extension, I should say, of this energy business, we've been working for the last couple of years. So we made the decision to basically grow this business because, as I said earlier, the outlook for electricity demand is very positive. There are several areas for these power markets where Sanmina will play, such as distribution, transmission, and storage of electrical power. there are several areas for these power markets where sanmina will play such as distribution transmission and storage of electrical power In the energy segment, such as distribution, we're going to focus on medium voltage transformers. in the energy segment such as distribution we're going to focus on medium voltage transformers For transmission, we're going to focus on grid-scale transformers. for transmission we're going to focus on grid-scale transformers And for storage, battery storage systems. and for storage battery storage systems Here, we basically get involved in the early stage of product design to full system and utilizing our vertical integration, such as electronics, machining, fabrication, bus bars, etc. On this extension, I should say, of this energy business, we've been working for the last couple of years. here we basically get involved in the early stage of product design to full system and utilizing our vertical integration such as electronics machining fabrication bus bars etc on this extension i should say of this energy business we've been working for the last couple of years So we made the decision to basically grow this business because, as I said earlier, the outlook for electricity demand is very positive. so we made the decision to basically grow this business because as i said earlier the outlook for electricity demand is very positive For these projects, we partnered with a company called KONČAR, out of Europe, Croatia, to co-design custom medium voltage transformers for our customers, plus other opportunities for the USA market. We have a long-term commitment from our customer. This is a large industry-leading strategic customer for Sanmina. We're ramping up this facility right now, and we're planning to ship a few units in late 2026 and be ready for full production in calendar year 2027. It's an exciting opportunity for our energy business and also for Sanmina. Let me tell you more about the medical. Medical is well diversified within a market that we participate in. We're starting to see a recovery in this medical segment. We expect medical drug delivery devices to grow in fiscal year 2026 and 2027. Overall, medical business for us, we see solid opportunities in the pipeline. For these projects, we partnered with a company called KONČAR, out of Europe, Croatia, to co-design custom medium voltage transformers for our customers, plus other opportunities for the USA market. for these projects we partnered with a company called končar out of europe croatia to co-design custom medium voltage transformers for our customers plus other opportunities for the usa market We have a long-term commitment from our customer. we have a long-term commitment from our customer This is a large industry-leading strategic customer for Sanmina. this is a large industry-leading strategic customer for sanmina We're ramping up this facility right now, and we're planning to ship a few units in late 2026 and be ready for full production in calendar year 2027. we're ramping up this facility right now and we're planning to ship a few units in late 2026 and be ready for full production in calendar year 2027 It's an exciting opportunity for our energy business and also for Sanmina. it's an exciting opportunity for our energy business and also for sanmina Let me tell you more about the medical. let me tell you more about the medical Medical is well diversified within a market that we participate in. medical is well diversified within a market that we participate in We're starting to see a recovery in this medical segment. we're starting to see a recovery in this medical segment We expect medical drug delivery devices to grow in fiscal year 2026 and 2027. we expect medical drug delivery devices to grow in fiscal year 2026 and 2027 Overall, medical business for us, we see solid opportunities in the pipeline. overall medical business for us we see solid opportunities in the pipeline For defense and aerospace, we continue to see strong demand for the next few years. This segment continues to do well. We see strong opportunities in the pipeline for the next few years. For our automotive, this business for us is starting to become more stable. We do have a great customer base. What we see for next year is that we have new programs that will drive that growth for us. For industrial and energy, medical, defense, aerospace, automotive, and transportation, overall, we see solid opportunities in this segment. We expect to see more growth in the second half of fiscal year 2026. Now, please turn to slide 17. Now, let me tell you more about Sanmina's ZT Systems AI business. I can tell you that we are executing to the plan. Integration is on track and is doing well. For defense and aerospace, we continue to see strong demand for the next few years. for defense and aerospace we continue to see strong demand for the next few years This segment continues to do well. this segment continues to do well We see strong opportunities in the pipeline for the next few years. we see strong opportunities in the pipeline for the next few years For our automotive, this business for us is starting to become more stable. for our automotive this business for us is starting to become more stable We do have a great customer base. we do have a great customer base What we see for next year is that we have new programs that will drive that growth for us. what we see for next year is that we have new programs that will drive that growth for us For industrial and energy, medical, defense, aerospace, automotive, and transportation, overall, we see solid opportunities in this segment. for industrial and energy medical defense aerospace automotive and transportation overall we see solid opportunities in this segment We expect to see more growth in the second half of fiscal year 2026. we expect to see more growth in the second half of fiscal year 2026 Now, please turn to slide 17. now please turn to slide 17 Now, let me tell you more about Sanmina's ZT Systems AI business. now let me tell you more about sanmina's zt systems ai business I can tell you that we are executing to the plan. i can tell you that we are executing to the plan Integration is on track and is doing well. integration is on track and is doing well The good thing about this acquisition is it's immediately accretive to our EPS. ZT Systems margins are in line with our core Sanmina, as Jon told you. And most important, we do have strong management and technical team in place. So where do we go from here? We expect more growth in the second half of the calendar year, driven by new projects. As I said before, and we're saying this again, the goal is to double Sanmina revenue in the next two years. And what we see today, the AI opportunities are on track to deliver $16+ billion in our calendar year 2027. We're also pursuing vertical integration opportunities for AI. As you see on this slide, on the right side of the slide, when we talk about full system integration for AI data center at the scale. The good thing about this acquisition is it's immediately accretive to our EPS. the good thing about this acquisition is it's immediately accretive to our eps ZT Systems margins are in line with our core Sanmina, as Jon told you. zt systems margins are in line with our core sanmina as jon told you And most important, we do have strong management and technical team in place. and most important we do have strong management and technical team in place So where do we go from here? so where do we go from here We expect more growth in the second half of the calendar year, driven by new projects. we expect more growth in the second half of the calendar year driven by new projects As I said before, and we're saying this again, the goal is to double Sanmina revenue in the next two years. as i said before and we're saying this again the goal is to double sanmina revenue in the next two years And what we see today, the AI opportunities are on track to deliver $16+ billion in our calendar year 2027. and what we see today the ai opportunities are on track to deliver $16+ billion in our calendar year 2027 We're also pursuing vertical integration opportunities for AI. we're also pursuing vertical integration opportunities for ai As you see on this slide, on the right side of the slide, when we talk about full system integration for AI data center at the scale. as you see on this slide on the right side of the slide when we talk about full system integration for ai data center at the scale So you can see all the way from design to the full system. Our capabilities for AI data center are industry-leading, from components and liquid cooling racks to full system integration at scale. Please turn to slide 18. Let me talk to you about our priorities. Number one, we are focused on our customers as we always did. The focus is to continue to broaden and deepen our customer partnership. We are also adding new market-leading customers to our base. Number two, continue to focus on leadership in technology. Our technology is a competitive advantage in high-technology markets. Our capabilities are in place, from design to full system at scale, and we are planning to do more for the future. Number three, how to execute on ZT Systems opportunities. ZT Systems is working on large opportunities for AI data center business, mainly new projects driven. Sanmina is well positioned. So you can see all the way from design to the full system. so you can see all the way from design to the full system Our capabilities for AI data center are industry-leading, from components and liquid cooling racks to full system integration at scale. our capabilities for ai data center are industry-leading from components and liquid cooling racks to full system integration at scale Please turn to slide 18. please turn to slide 18 Let me talk to you about our priorities. let me talk to you about our priorities Number one, we are focused on our customers as we always did. number one we are focused on our customers as we always did The focus is to continue to broaden and deepen our customer partnership. the focus is to continue to broaden and deepen our customer partnership We are also adding new market-leading customers to our base. we are also adding new market-leading customers to our base Number two, continue to focus on leadership in technology. number two continue to focus on leadership in technology Our technology is a competitive advantage in high-technology markets. our technology is a competitive advantage in high-technology markets Our capabilities are in place, from design to full system at scale, and we are planning to do more for the future. our capabilities are in place from design to full system at scale and we are planning to do more for the future Number three, how to execute on ZT Systems opportunities. number three how to execute on zt systems opportunities ZT Systems is working on large opportunities for AI data center business, mainly new projects driven. zt systems is working on large opportunities for ai data center business mainly new projects driven Sanmina is well positioned. sanmina is well positioned We are investing in an AI data center and continue to expand capacity for the future requirements for fiscal year 2027 and 2028. Of course, number four is to continue to drive profitable and sustainable growth. In Sanmina, we call this building big for the future while staying true to our core values, focusing on margin expansion, continuing to diversify to higher and sustainable margin business. I can tell you that we are forecasting steady improvements in operating margin. Short term, we're forecasting 5.7%-6% operating margin. Longer term, we expect to improve those margins from 6%-7%+. Overall, our strategy is to build bigger and stronger Sanmina for the future and always maximize shareholder value for our investors. Please turn to slide 19. In summary, we are focused on sustainable and profitable growth. We are investing in an AI data center and continue to expand capacity for the future requirements for fiscal year 2027 and 2028. we are investing in an ai data center and continue to expand capacity for the future requirements for fiscal year 2027 and 2028 Of course, number four is to continue to drive profitable and sustainable growth. of course number four is to continue to drive profitable and sustainable growth In Sanmina, we call this building big for the future while staying true to our core values, focusing on margin expansion, continuing to diversify to higher and sustainable margin business. in sanmina we call this building big for the future while staying true to our core values focusing on margin expansion continuing to diversify to higher and sustainable margin business I can tell you that we are forecasting steady improvements in operating margin. i can tell you that we are forecasting steady improvements in operating margin Short term, we're forecasting 5.7%-6% operating margin. short term we're forecasting 5.7%-6% operating margin Longer term, we expect to improve those margins from 6%-7%+. longer term we expect to improve those margins from 6%-7%+ Overall, our strategy is to build bigger and stronger Sanmina for the future and always maximize shareholder value for our investors. overall our strategy is to build bigger and stronger sanmina for the future and always maximize shareholder value for our investors Please turn to slide 19. please turn to slide 19 In summary, we are focused on sustainable and profitable growth. in summary we are focused on sustainable and profitable growth As Jon mentioned, this is a great start to fiscal year 2026. We expect core Sanmina to grow in the high single digits. We expect strong demand from AI hardware in the second half of calendar year 2026, 2027 into 2028, all driven by new platform, new technology projects. We have capacity and power requirements to support customer demand for present demand, but we are continuing to invest for the future. We're focused on market diversification with higher margin opportunities. Our manufacturing footprint is well aligned with our customer requirements, and we do have strong USA presence. The key to our strategy, again, is to continue to remain focused on Sanmina strategy and to be a partner of choice with the market leaders. So ladies and gentlemen, now I would like to thank you all for your time and support. As Jon mentioned, this is a great start to fiscal year 2026. as jon mentioned this is a great start to fiscal year 2026 We expect core Sanmina to grow in the high single digits. we expect core sanmina to grow in the high single digits We expect strong demand from AI hardware in the second half of calendar year 2026, 2027 into 2028, all driven by new platform, new technology projects. we expect strong demand from ai hardware in the second half of calendar year 2026 2027 into 2028 all driven by new platform new technology projects We have capacity and power requirements to support customer demand for present demand, but we are continuing to invest for the future. we have capacity and power requirements to support customer demand for present demand but we are continuing to invest for the future We're focused on market diversification with higher margin opportunities. we're focused on market diversification with higher margin opportunities Our manufacturing footprint is well aligned with our customer requirements, and we do have strong USA presence. our manufacturing footprint is well aligned with our customer requirements and we do have strong usa presence The key to our strategy, again, is to continue to remain focused on Sanmina strategy and to be a partner of choice with the market leaders. the key to our strategy again is to continue to remain focused on sanmina strategy and to be a partner of choice with the market leaders So ladies and gentlemen, now I would like to thank you all for your time and support. so ladies and gentlemen now i would like to thank you all for your time and support Operator, we're now ready to open the lines for questions and answers. Thank you again. Operator, we're now ready to open the lines for questions and answers. operator we're now ready to open the lines for questions and answers Thank you again. thank you again

Speaker 4: Thank you. Ladies and gentlemen, we will now begin the question and answer session. If you have a question, please press star followed by the number one on your touch-tone phone. You will hear a prompt that your hand has been raised. If you would like to withdraw from the polling process, please press star then the number two. If you are using a speakerphone, please make sure to lift your handset before pressing any keys. Your first question comes from the line of Ruplu Bhattacharya from Bank of America. Please go ahead. Thank you. thank you Ladies and gentlemen, we will now begin the question and answer session. ladies and gentlemen we will now begin the question and answer session If you have a question, please press star followed by the number one on your touch-tone phone. if you have a question please press star followed by the number one on your touch-tone phone You will hear a prompt that your hand has been raised. you will hear a prompt that your hand has been raised If you would like to withdraw from the polling process, please press star then the number two. if you would like to withdraw from the polling process please press star then the number two If you are using a speakerphone, please make sure to lift your handset before pressing any keys. if you are using a speakerphone please make sure to lift your handset before pressing any keys Your first question comes from the line of Ruplu Bhattacharya from Bank of America. your first question comes from the line of ruplu bhattacharya from bank of america Please go ahead. please go ahead

Speaker 6: Hi, Jure. Thank you for taking my question. Can you help me parse through the sequential revenue guidance for the March quarter? Looks like revenues at the midpoint are guided up $60 million. If I think about it, ZT, you should have a full quarter of revenues, which is about $1.4 billion. That means that ZT itself is contributing, say, $500 million of incremental revenues, two months versus three months in the March quarter. So is something weaker sequentially, like any color you can give us on revenue from legacy Sanmina versus ZT non-accelerated versus ZT NVIDIA? How are you seeing the trends in those different buckets of revenue? Hi, Jure. hi jure Thank you for taking my question. thank you for taking my question Can you help me parse through the sequential revenue guidance for the March quarter? can you help me parse through the sequential revenue guidance for the march quarter Looks like revenues at the midpoint are guided up $60 million. looks like revenues at the midpoint are guided up $60 million If I think about it, ZT, you should have a full quarter of revenues, which is about $1.4 billion. if i think about it zt you should have a full quarter of revenues which is about $1.4 billion That means that ZT itself is contributing, say, $500 million of incremental revenues, two months versus three months in the March quarter. that means that zt itself is contributing say $500 million of incremental revenues two months versus three months in the march quarter So is something weaker sequentially, like any color you can give us on revenue from legacy Sanmina versus ZT non-accelerated versus ZT NVIDIA? so is something weaker sequentially like any color you can give us on revenue from legacy sanmina versus zt non-accelerated versus zt nvidia How are you seeing the trends in those different buckets of revenue? how are you seeing the trends in those different buckets of revenue

Speaker 3: Okay. First of all, actually, our business is improving in the second quarter. So let me explain that. Yes, you're right. We only had two months. I don't think it's. You cannot take two months divided by two, multiplied by three because of the transition of our business. This business is mainly, all business is being transitioned, and we now strictly focus on what we call base business that's going to stay with us and the future business. So if you really look at it today, from our perspective, we're only guiding one quarter at a time. But overall, if you look at the street expectation, we feel comfortable with that. We're just guiding one quarter. For the first quarter, we're shipping more than a street expectation by approximately $100+ million. Okay. okay First of all, actually, our business is improving in the second quarter. first of all actually our business is improving in the second quarter So let me explain that. so let me explain that Yes, you're right. yes you're right We only had two months. we only had two months I don't think it's. i don't think it's You cannot take two months divided by two, multiplied by three because of the transition of our business. you cannot take two months divided by two multiplied by three because of the transition of our business This business is mainly, all business is being transitioned, and we now strictly focus on what we call base business that's going to stay with us and the future business. this business is mainly all business is being transitioned and we now strictly focus on what we call base business that's going to stay with us and the future business So if you really look at it today, from our perspective, we're only guiding one quarter at a time. so if you really look at it today from our perspective we're only guiding one quarter at a time But overall, if you look at the street expectation, we feel comfortable with that. but overall if you look at the street expectation we feel comfortable with that We're just guiding one quarter. we're just guiding one quarter For the first quarter, we're shipping more than a street expectation by approximately $100+ million. for the first quarter we're shipping more than a street expectation by approximately $100+ million So as we're guiding $3.1 million-$3.4 million, Sanmina business itself, the core business, will grow quarter-over-quarter and will grow double digits year-over-year, okay? And we expect ZT Systems to grow quarter-over-quarter. So overall, we expect a strong quarter. Most importantly, I think we are positioning the company for the new product, new platforms that are going to be coming up in the end of the fiscal year and calendar year. And we're investing for that. So we're really excited about the future about that. So that's all I have to say. Jon, anything else you want to add to that? So as we're guiding $3.1 million-$3.4 million, Sanmina business itself, the core business, will grow quarter-over-quarter and will grow double digits year-over-year, okay? so as we're guiding $3.1 million-$3.4 million sanmina business itself the core business will grow quarter-over-quarter and will grow double digits year-over-year okay And we expect ZT Systems to grow quarter-over-quarter. and we expect zt systems to grow quarter-over-quarter So overall, we expect a strong quarter. so overall we expect a strong quarter Most importantly, I think we are positioning the company for the new product, new platforms that are going to be coming up in the end of the fiscal year and calendar year. most importantly i think we are positioning the company for the new product new platforms that are going to be coming up in the end of the fiscal year and calendar year And we're investing for that. and we're investing for that So we're really excited about the future about that. so we're really excited about the future about that So that's all I have to say. so that's all i have to say Jon, anything else you want to add to that? jon anything else you want to add to that

Speaker 2: I think you covered it well, Jure. I mean, first and foremost, just talking about the Q1 results, Ruplu, both parts of the business, core Sanmina and ZT Systems performed well at the high end of the range. We did provide specific guidance in that first quarter, but we're very pleased to see both parts of the business do well. Yeah, just like Jure was saying, ZT Systems is effectively in line with our expectations. You go all the way back to May 19th and what we said, and pretty much everything we've said and committed about the business has been happening the way that we expected, including in Q1. We're very excited about the future. The transition is taking place like we expect, and we're just focused on executing those new opportunities. I think you covered it well, Jure. i think you covered it well jure I mean, first and foremost, just talking about the Q1 results, Ruplu, both parts of the business, core Sanmina and ZT Systems performed well at the high end of the range. i mean first and foremost just talking about the q1 results ruplu both parts of the business core sanmina and zt systems performed well at the high end of the range We did provide specific guidance in that first quarter, but we're very pleased to see both parts of the business do well. we did provide specific guidance in that first quarter but we're very pleased to see both parts of the business do well Yeah, just like Jure was saying, ZT Systems is effectively in line with our expectations. yeah just like jure was saying zt systems is effectively in line with our expectations You go all the way back to May 19th and what we said, and pretty much everything we've said and committed about the business has been happening the way that we expected, including in Q1. you go all the way back to may 19th and what we said and pretty much everything we've said and committed about the business has been happening the way that we expected including in q1 We're very excited about the future. we're very excited about the future The transition is taking place like we expect, and we're just focused on executing those new opportunities. the transition is taking place like we expect and we're just focused on executing those new opportunities

Speaker 3: Yes. And if I can add to that, Ruplu, I think we have a lot of interest from existing customers and future customers in what's going on. And as I said in my prepared statement, the most importantly, I think the more I learn about ZT's management, I'm very comfortable, very excited with the team, what they can do. They're basically self-sufficient going forward. So very excited. It's a great acquisition for Sanmina, and this will transform Sanmina. I mean, there's no way we could get to $16 billion in 2027 without the potential that we have and the new platforms coming out. Yes. yes And if I can add to that, Ruplu, I think we have a lot of interest from existing customers and future customers in what's going on. and if i can add to that ruplu i think we have a lot of interest from existing customers and future customers in what's going on And as I said in my prepared statement, the most importantly, I think the more I learn about ZT's management, I'm very comfortable, very excited with the team, what they can do. and as i said in my prepared statement the most importantly i think the more i learn about zt's management i'm very comfortable very excited with the team what they can do They're basically self-sufficient going forward. they're basically self-sufficient going forward So very excited. so very excited It's a great acquisition for Sanmina, and this will transform Sanmina. it's a great acquisition for sanmina and this will transform sanmina I mean, there's no way we could get to $16 billion in 2027 without the potential that we have and the new platforms coming out. i mean there's no way we could get to $16 billion in 2027 without the potential that we have and the new platforms coming out

Speaker 6: Okay. I appreciate the details there. Can I ask a conceptual question about ZT? As I see the business, there are really three parts to the business, right? There's the non-accelerated part, which would be just non-GPU servers or racks. Then there's the accelerated part, and there's some legacy NVIDIA business you would have. And then, obviously, you're going to be ramping with AMD in the second half of the year, as you said. As we think about this total revenue, I think last quarter we were talking about high $5-$6 billion, and the guidance implied something like $5.7 billion. Does that $5.7 billion kind of factor in some decline in the NVIDIA part of the business? Whereas as you ramp AMD, you're going to be focused more on that, and so that will ramp. So any thoughts on how fast that transition can occur this year? Okay. okay I appreciate the details there. i appreciate the details there Can I ask a conceptual question about ZT? can i ask a conceptual question about zt As I see the business, there are really three parts to the business, right? as i see the business there are really three parts to the business right There's the non-accelerated part, which would be just non-GPU servers or racks. there's the non-accelerated part which would be just non-gpu servers or racks Then there's the accelerated part, and there's some legacy NVIDIA business you would have. then there's the accelerated part and there's some legacy nvidia business you would have And then, obviously, you're going to be ramping with AMD in the second half of the year, as you said. and then obviously you're going to be ramping with amd in the second half of the year as you said As we think about this total revenue, I think last quarter we were talking about high $5-$6 billion, and the guidance implied something like $5.7 billion. as we think about this total revenue i think last quarter we were talking about high $5-$6 billion and the guidance implied something like $5.7 billion Does that $5.7 billion kind of factor in some decline in the NVIDIA part of the business? does that $5.7 billion kind of factor in some decline in the nvidia part of the business Whereas as you ramp AMD, you're going to be focused more on that, and so that will ramp. whereas as you ramp amd you're going to be focused more on that and so that will ramp So any thoughts on how fast that transition can occur this year? so any thoughts on how fast that transition can occur this year Do you think that you will ramp AMD in time for any offset to the NVIDIA business that might decline? Do you think that you will ramp AMD in time for any offset to the NVIDIA business that might decline? do you think that you will ramp amd in time for any offset to the nvidia business that might decline

Speaker 2: Yeah. Good question, Ruplu, Jon. So just to clarify and a reminder for everyone, back on May 19th, we said when we'd close the transaction, we'd expect the revenue run rate to be between $5 billion-$6 billion, right? So that was implying that we had a point of view on how that transition was going to occur with the accelerated compute component to the portfolio. And it pretty much landed right in our expectations, right? You annualize our Q1 guide to two months, and you get to $5.7 billion. But we're still going through that transition right now. And a lot of the old platforms at this point now have rolled off. So we're really just focused about the future. But that's why we wanted to be clear. At the time, we were just guiding the Q1 number that we did, and now we're guiding Q2. Yeah. yeah Good question, Ruplu, Jon. good question ruplu jon So just to clarify and a reminder for everyone, back on May 19th, we said when we'd close the transaction, we'd expect the revenue run rate to be between $5 billion-$6 billion, right? so just to clarify and a reminder for everyone back on may 19th we said when we'd close the transaction we'd expect the revenue run rate to be between $5 billion-$6 billion right So that was implying that we had a point of view on how that transition was going to occur with the accelerated compute component to the portfolio. so that was implying that we had a point of view on how that transition was going to occur with the accelerated compute component to the portfolio And it pretty much landed right in our expectations, right? and it pretty much landed right in our expectations right You annualize our Q1 guide to two months, and you get to $5.7 billion. you annualize our q1 guide to two months and you get to $5.7 billion But we're still going through that transition right now. but we're still going through that transition right now And a lot of the old platforms at this point now have rolled off. and a lot of the old platforms at this point now have rolled off So we're really just focused about the future. so we're really just focused about the future But that's why we wanted to be clear. but that's why we wanted to be clear At the time, we were just guiding the Q1 number that we did, and now we're guiding Q2. at the time we were just guiding the q1 number that we did and now we're guiding q2 The opportunity, like Jure was saying, for accelerated compute specifically is huge. That's what we're focused on right now and doing our part of that to be able to execute on that demand and on that opportunity. That really comes towards the end of our calendar, at the end of calendar 2026. The opportunity, like Jure was saying, for accelerated compute specifically is huge. the opportunity like jure was saying for accelerated compute specifically is huge That's what we're focused on right now and doing our part of that to be able to execute on that demand and on that opportunity. that's what we're focused on right now and doing our part of that to be able to execute on that demand and on that opportunity That really comes towards the end of our calendar, at the end of calendar 2026. that really comes towards the end of our calendar at the end of calendar 2026

Speaker 3: Yeah. If I can add to that, we really, I think opportunities utilizing AMD partnership is huge for us and all the investment being made to be able to support those future requirements. So Ruplu, I would just say, you know us, we like to guide one quarter at a time. We feel very comfortable about our guidance. As you can see, we are increasing our earnings per share. This is the second quarter that we deliver 6%. I think we can expand margins both on Sanmina side and ZT side in the future. Those are exciting things. And there's a lot of vertical integration opportunities that we're starting to kind of work on that. It's going to take some time. But in a year from now, we should be able, that part of the business when it comes to vertical integration around the AI data center will improve. Yeah. yeah If I can add to that, we really, I think opportunities utilizing AMD partnership is huge for us and all the investment being made to be able to support those future requirements. if i can add to that we really i think opportunities utilizing amd partnership is huge for us and all the investment being made to be able to support those future requirements So Ruplu, I would just say, you know us, we like to guide one quarter at a time. so ruplu i would just say you know us we like to guide one quarter at a time We feel very comfortable about our guidance. we feel very comfortable about our guidance As you can see, we are increasing our earnings per share. as you can see we are increasing our earnings per share This is the second quarter that we deliver 6%. this is the second quarter that we deliver 6% I think we can expand margins both on Sanmina side and ZT side in the future. i think we can expand margins both on sanmina side and zt side in the future Those are exciting things. those are exciting things And there's a lot of vertical integration opportunities that we're starting to kind of work on that. and there's a lot of vertical integration opportunities that we're starting to kind of work on that It's going to take some time. it's going to take some time But in a year from now, we should be able, that part of the business when it comes to vertical integration around the AI data center will improve. but in a year from now we should be able that part of the business when it comes to vertical integration around the ai data center will improve Then our core business around data center is doing really well. We like what we have. As I said in my prepared statement, only a few businesses is that automotive was down, but it's getting stable. Everything else is starting to move in the right direction. Then our core business around data center is doing really well. then our core business around data center is doing really well We like what we have. we like what we have As I said in my prepared statement, only a few businesses is that automotive was down, but it's getting stable. as i said in my prepared statement only a few businesses is that automotive was down but it's getting stable Everything else is starting to move in the right direction. everything else is starting to move in the right direction

Speaker 6: Thanks for that. Can I ask a clarification, Jure? I know you're not guiding for the full year, but one thing you said in your prepared remarks is that when you look at consensus estimates, you're comfortable with that. If I look at consensus for 2026, right now it's about $14 billion of revenue. And I think your last guidance for ZT was kind of in that high $5 billion-$6 billion range. Are you still comfortable? Is that the message today that you're still? Thanks for that. thanks for that Can I ask a clarification, Jure? can i ask a clarification jure I know you're not guiding for the full year, but one thing you said in your prepared remarks is that when you look at consensus estimates, you're comfortable with that. i know you're not guiding for the full year but one thing you said in your prepared remarks is that when you look at consensus estimates you're comfortable with that If I look at consensus for 2026, right now it's about $14 billion of revenue. if i look at consensus for 2026 right now it's about $14 billion of revenue And I think your last guidance for ZT was kind of in that high $5 billion-$6 billion range. and i think your last guidance for zt was kind of in that high $5 billion-$6 billion range Are you still comfortable? are you still comfortable Is that the message today that you're still? is that the message today that you're still

Speaker 3: Yeah. The message is, if you look at the first call, we believe we have a very good chance of hitting $14 billion. Yeah. yeah The message is, if you look at the first call, we believe we have a very good chance of hitting $14 billion. the message is if you look at the first call we believe we have a very good chance of hitting $14 billion

Speaker 6: $14 billion. Okay. I understand. And then can I ask last question? $14 billion. $14 billion Okay. okay I understand. i understand And then can I ask last question? and then can i ask last question

Speaker 3: As much as I hate to tell you on a yearly basis, but let me just put it this way. I'm personally more excited what's in front of us, what opportunities we have today than in May when we did a deal and even a lot stronger than 90 days ago. A lot of work in front of us, but we're not afraid of work. As much as I hate to tell you on a yearly basis, but let me just put it this way. as much as i hate to tell you on a yearly basis but let me just put it this way I'm personally more excited what's in front of us, what opportunities we have today than in May when we did a deal and even a lot stronger than 90 days ago. i'm personally more excited what's in front of us what opportunities we have today than in may when we did a deal and even a lot stronger than 90 days ago A lot of work in front of us, but we're not afraid of work. a lot of work in front of us but we're not afraid of work

Speaker 6: Right. If I can speak one last one then. Jure, let's move beyond data center. If you look at the communications market, right? Sanmina is strong in optical and networking. How are you? That market has been going through many years of inventory correction. How do you see that recovering? What is happening? Can you give us what happened in the December quarter and how you see the March quarter in terms of the overall communications market, whether it's optical or networking or whatever the parts you play in? Right. right If I can speak one last one then. if i can speak one last one then Jure, let's move beyond data center. jure let's move beyond data center If you look at the communications market, right? if you look at the communications market right Sanmina is strong in optical and networking. sanmina is strong in optical and networking How are you? how are you That market has been going through many years of inventory correction. that market has been going through many years of inventory correction How do you see that recovering? how do you see that recovering What is happening? what is happening Can you give us what happened in the December quarter and how you see the March quarter in terms of the overall communications market, whether it's optical or networking or whatever the parts you play in? can you give us what happened in the december quarter and how you see the march quarter in terms of the overall communications market whether it's optical or networking or whatever the parts you play in

Speaker 3: Yeah. Very strong. I mean, very strong today. I mean, we have some material shortages out there around memory and some of the special ASICs, custom ASICs. But very strong demand. And we expect, first of all, it was very strong in December quarter. It'll continue to be strong in March quarter. I think it'll be very strong the rest of the year. Yeah. yeah Very strong. very strong I mean, very strong today. i mean very strong today I mean, we have some material shortages out there around memory and some of the special ASICs, custom ASICs. i mean we have some material shortages out there around memory and some of the special asics custom asics But very strong demand. but very strong demand And we expect, first of all, it was very strong in December quarter. and we expect first of all it was very strong in december quarter It'll continue to be strong in March quarter. it'll continue to be strong in march quarter I think it'll be very strong the rest of the year. i think it'll be very strong the rest of the year

Speaker 6: Okay. Thank you for all the details. Okay. okay Thank you for all the details. thank you for all the details

Speaker 3: But Ruplu, one quarter at a time, but we're excited about the year and the future. But Ruplu, one quarter at a time, but we're excited about the year and the future. but ruplu one quarter at a time but we're excited about the year and the future

Speaker 6: Okay. Thank you for all the details, Jure. Appreciate it. Okay. okay Thank you for all the details, Jure. thank you for all the details jure Appreciate it. appreciate it

Speaker 2: Thank you. Thanks, Ruplu. Thank you. thank you Thanks, Ruplu. thanks ruplu

Speaker 4: Your next question comes from the line of Steven Fox from Fox Advisors. Please go ahead. Your next question comes from the line of Steven Fox from Fox Advisors. your next question comes from the line of steven fox from fox advisors Please go ahead. please go ahead

Speaker 2: Hello, Steve. Hello, Steve. hello steve

Speaker 7: Hi. Good afternoon. Thanks for taking my question. I guess just off of all that, maybe you can tie that into the operating margin. It looks like the operating margin was a little bit better in the quarter. It looks like it could even be flattish this quarter. Can you talk about some of the things going on, puts and takes, and why you're able to hang on to that six-handle, maybe not only this quarter but next quarter? And then I had a follow-up question. Hi. hi Good afternoon. good afternoon Thanks for taking my question. thanks for taking my question I guess just off of all that, maybe you can tie that into the operating margin. i guess just off of all that maybe you can tie that into the operating margin It looks like the operating margin was a little bit better in the quarter. it looks like the operating margin was a little bit better in the quarter It looks like it could even be flattish this quarter. it looks like it could even be flattish this quarter Can you talk about some of the things going on, puts and takes, and why you're able to hang on to that six-handle, maybe not only this quarter but next quarter? can you talk about some of the things going on puts and takes and why you're able to hang on to that six-handle maybe not only this quarter but next quarter And then I had a follow-up question. and then i had a follow-up question

Speaker 2: Yeah. Steve, this is Jon. So very pleased with the operating margin for the quarter. As I was saying in my prepared remarks, pretty consistent with where we exited last year in Q4. And it's largely dependent on mix. That was a big factor in our business. But it's also the same levers that we're always focused on that we're talking about. And just to be clear and to reiterate that, but we're always looking to drive operational efficiencies within both of our businesses or within both of our segments, both IMS and CPS. Clearly, the addition of ZT had helped out as well. We're always looking for opportunities to get more efficient with our SG&A cost structure too. And we're really focused on growing those businesses that are accretive to the overall margin profile. Yeah. yeah Steve, this is Jon. steve this is jon So very pleased with the operating margin for the quarter. so very pleased with the operating margin for the quarter As I was saying in my prepared remarks, pretty consistent with where we exited last year in Q4. as i was saying in my prepared remarks pretty consistent with where we exited last year in q4 And it's largely dependent on mix. and it's largely dependent on mix That was a big factor in our business. that was a big factor in our business But it's also the same levers that we're always focused on that we're talking about. but it's also the same levers that we're always focused on that we're talking about And just to be clear and to reiterate that, but we're always looking to drive operational efficiencies within both of our businesses or within both of our segments, both IMS and CPS. and just to be clear and to reiterate that but we're always looking to drive operational efficiencies within both of our businesses or within both of our segments both ims and cps Clearly, the addition of ZT had helped out as well. clearly the addition of zt had helped out as well We're always looking for opportunities to get more efficient with our SG&A cost structure too. we're always looking for opportunities to get more efficient with our sg&a cost structure too And we're really focused on growing those businesses that are accretive to the overall margin profile. and we're really focused on growing those businesses that are accretive to the overall margin profile Last year, Jure and I talked a lot about investments that we were making in CPS in particular that would be margin accretive. And we're starting to see some of those investments coming online. So that created a little bit of short-term pressure in CPS in particular, but long-term, the opportunity is there. So it's the same set of levers that we're always executing on. And that's what we're going to continue to do going forward. Last year, Jure and I talked a lot about investments that we were making in CPS in particular that would be margin accretive. last year jure and i talked a lot about investments that we were making in cps in particular that would be margin accretive And we're starting to see some of those investments coming online. and we're starting to see some of those investments coming online So that created a little bit of short-term pressure in CPS in particular, but long-term, the opportunity is there. so that created a little bit of short-term pressure in cps in particular but long-term the opportunity is there So it's the same set of levers that we're always executing on. so it's the same set of levers that we're always executing on And that's what we're going to continue to do going forward. and that's what we're going to continue to do going forward Yeah. Just. Yeah. yeah Just. just

Speaker 3: And Steve. And Steve. and steve If I can add to that, and investments that we are making, especially as you look at the end of 2026, 2027 year, it's a lot of it in the businesses that can deliver the higher margin for us. So the key for us, that's why we feel, of course, you got to take one day at a time, one quarter at a time. But we are positioning the company to really push for the higher margin business, something that is sustainable, not just for one quarter, but it's sustainable for many quarters. As you can see, our business is becoming more technology-driven. It requires a higher return on investment to be able to make investments for the future. If I can add to that, and investments that we are making, especially as you look at the end of 2026, 2027 year, it's a lot of it in the businesses that can deliver the higher margin for us. if i can add to that and investments that we are making especially as you look at the end of 2026 2027 year it's a lot of it in the businesses that can deliver the higher margin for us So the key for us, that's why we feel, of course, you got to take one day at a time, one quarter at a time. so the key for us that's why we feel of course you got to take one day at a time one quarter at a time But we are positioning the company to really push for the higher margin business, something that is sustainable, not just for one quarter, but it's sustainable for many quarters. but we are positioning the company to really push for the higher margin business something that is sustainable not just for one quarter but it's sustainable for many quarters As you can see, our business is becoming more technology-driven. as you can see our business is becoming more technology-driven It requires a higher return on investment to be able to make investments for the future. it requires a higher return on investment to be able to make investments for the future

Speaker 7: Just to be clear, when we're talking about mix here, Jon, are we talking about mix of components, products, and services, or mix across certain markets? Just to be clear, when we're talking about mix here, Jon, are we talking about mix of components, products, and services, or mix across certain markets? just to be clear when we're talking about mix here jon are we talking about mix of components products and services or mix across certain markets

Speaker 2: I was referring more to across components, products, and services, Steve. I think at the end of the day, I think the key important thing to remember here is that even with the acquisition of ZT Systems, our core strategy hasn't changed. What Sanmina wants to focus on, clearly that added to the overall IMS part of the portfolio. And that's great. It's essentially an extension of the TAM more broadly into the data center and market, or as we call it, the cloud and AI infrastructure and market. But the core strategy of always trying to get better on all the programs across all of our businesses hasn't changed. And then also our focus on our cost structure and just growing CPS to be a bigger component of the overall mix. So core strategy hasn't changed. Excited about ZT. And just on ZT, they've been executing well. I was referring more to across components, products, and services, Steve. i was referring more to across components products and services steve I think at the end of the day, I think the key important thing to remember here is that even with the acquisition of ZT Systems, our core strategy hasn't changed. i think at the end of the day i think the key important thing to remember here is that even with the acquisition of zt systems our core strategy hasn't changed What Sanmina wants to focus on, clearly that added to the overall IMS part of the portfolio. what sanmina wants to focus on clearly that added to the overall ims part of the portfolio And that's great. and that's great It's essentially an extension of the TAM more broadly into the data center and market, or as we call it, the cloud and AI infrastructure and market. it's essentially an extension of the tam more broadly into the data center and market or as we call it the cloud and ai infrastructure and market But the core strategy of always trying to get better on all the programs across all of our businesses hasn't changed. but the core strategy of always trying to get better on all the programs across all of our businesses hasn't changed And then also our focus on our cost structure and just growing CPS to be a bigger component of the overall mix. and then also our focus on our cost structure and just growing cps to be a bigger component of the overall mix So core strategy hasn't changed. so core strategy hasn't changed Excited about ZT. excited about zt And just on ZT, they've been executing well. and just on zt they've been executing well Pretty much everything that we've said back to May, we've executed on to date. Now we're focused, as Jure was saying, on all the opportunities we've got ahead of us in that business. Pretty much everything that we've said back to May, we've executed on to date. pretty much everything that we've said back to may we've executed on to date Now we're focused, as Jure was saying, on all the opportunities we've got ahead of us in that business. now we're focused as jure was saying on all the opportunities we've got ahead of us in that business

Speaker 7: Got it. And then just as a follow-up, can you just help us a little bit more on the ZT wins for later in the year? It sounds like you have confidence in these wins that you've won some substantial stuff. But I'm wondering if you can give us colors to, is it all accelerated compute-related, legacy technology too? How would you sort of describe what and why you're winning that you have confidence in doing like $14 billion on a path to $16 billion in revs? Got it. got it And then just as a follow-up, can you just help us a little bit more on the ZT wins for later in the year? and then just as a follow-up can you just help us a little bit more on the zt wins for later in the year It sounds like you have confidence in these wins that you've won some substantial stuff. it sounds like you have confidence in these wins that you've won some substantial stuff But I'm wondering if you can give us colors to, is it all accelerated compute-related, legacy technology too? but i'm wondering if you can give us colors to is it all accelerated compute-related legacy technology too How would you sort of describe what and why you're winning that you have confidence in doing like $14 billion on a path to $16 billion in revs? how would you sort of describe what and why you're winning that you have confidence in doing like $14 billion on a path to $16 billion in revs

Speaker 3: I think number one, why we're winning is execution. This is a great team. They're known to execute. They have a very strong relationship with existing customers. And the way we are structuring for the future and the technology that are coming out, these are very difficult systems. And I believe that we are positioned. Our customers believe that we're positioned to win. We still have to go work on it and deliver. Opportunities, Steve, are there. I mean, opportunity is not an issue. I think it's all about timing and making sure that we do what we said we're going to do as we're making commitments to our customers. I think number one, why we're winning is execution. i think number one why we're winning is execution This is a great team. this is a great team They're known to execute. they're known to execute They have a very strong relationship with existing customers. they have a very strong relationship with existing customers And the way we are structuring for the future and the technology that are coming out, these are very difficult systems. and the way we are structuring for the future and the technology that are coming out these are very difficult systems And I believe that we are positioned. and i believe that we are positioned Our customers believe that we're positioned to win. our customers believe that we're positioned to win We still have to go work on it and deliver. we still have to go work on it and deliver Opportunities, Steve, are there. opportunities steve are there I mean, opportunity is not an issue. i mean opportunity is not an issue I think it's all about timing and making sure that we do what we said we're going to do as we're making commitments to our customers. i think it's all about timing and making sure that we do what we said we're going to do as we're making commitments to our customers Anything else, Jon? Anything else, Jon? anything else jon

Speaker 2: No, the only thing I would add to that, Steven, Ruplu talked about it earlier, but there's multiple components to the ZT business, and all of them we're interested in and we're investing in. Accelerated compute is certainly the part of it that has the most growth potential. But we're focused on all aspects. No, the only thing I would add to that, Steven, Ruplu talked about it earlier, but there's multiple components to the ZT business, and all of them we're interested in and we're investing in. no the only thing i would add to that steven ruplu talked about it earlier but there's multiple components to the zt business and all of them we're interested in and we're investing in Accelerated compute is certainly the part of it that has the most growth potential. accelerated compute is certainly the part of it that has the most growth potential But we're focused on all aspects. but we're focused on all aspects

Speaker 3: Yeah. And I think what I would just also add, we don't talk too much about it, but I think we're able to. There was a lot of talk, "Hey, we're not going to be able to retain all customers." I think our team is doing a great job, and we have a high confidence that those customers will grow in the future, and we're going to be adding new customers to that. So from an opportunity point of view, that's not an issue. I think the demand for at least what we see today, what we hear from our customers, like I said, there's a lot of opportunity. We are investing for the future. As you just heard from Jon earlier, we spent, what, over $85 million last quarter? Yeah. yeah And I think what I would just also add, we don't talk too much about it, but I think we're able to. and i think what i would just also add we don't talk too much about it but i think we're able to There was a lot of talk, "Hey, we're not going to be able to retain all customers." I think our team is doing a great job, and we have a high confidence that those customers will grow in the future, and we're going to be adding new customers to that. there was a lot of talk "hey we're not going to be able to retain all customers." i think our team is doing a great job and we have a high confidence that those customers will grow in the future and we're going to be adding new customers to that So from an opportunity point of view, that's not an issue. so from an opportunity point of view that's not an issue I think the demand for at least what we see today, what we hear from our customers, like I said, there's a lot of opportunity. i think the demand for at least what we see today what we hear from our customers like i said there's a lot of opportunity We are investing for the future. we are investing for the future As you just heard from Jon earlier, we spent, what, over $85 million last quarter? as you just heard from jon earlier we spent what over $85 million last quarter

Speaker 2: 87. 87. 87

Speaker 3: 87. We're going to be spending around $90+. That's all for future. That's 90% of that is really for 2027, for 2028. 87. 87 We're going to be spending around $90+. we're going to be spending around $90+ That's all for future. that's all for future That's 90% of that is really for 2027, for 2028. that's 90% of that is really for 2027 for 2028

Speaker 7: Got it. Understood. Thank you. Got it. got it Understood. understood Thank you. thank you

Speaker 2: Thanks a lot, Steve. Thanks a lot, Steve. thanks a lot steve

Speaker 4: Ladies and gentlemen, as a reminder, if you would like to ask a question, please press star followed by the number one on your touch-tone phone. If you are using a speakerphone, please make sure to lift your handset before pressing any keys. Your next question comes from the line of Anja Soderstrom from Sidoti. Please go ahead. Ladies and gentlemen, as a reminder, if you would like to ask a question, please press star followed by the number one on your touch-tone phone. ladies and gentlemen as a reminder if you would like to ask a question please press star followed by the number one on your touch-tone phone If you are using a speakerphone, please make sure to lift your handset before pressing any keys. if you are using a speakerphone please make sure to lift your handset before pressing any keys Your next question comes from the line of Anja Soderstrom from Sidoti. your next question comes from the line of anja soderstrom from sidoti Please go ahead. please go ahead

Speaker 3: Hello, Anja. Hello, Anja. hello anja

Speaker 1: Hi. Hi. Thank you for taking my question. So within industrial medical auto and defense, where was the pocket of weakness there? That's all that. Hi. hi Hi. hi Thank you for taking my question. thank you for taking my question So within industrial medical auto and defense, where was the pocket of weakness there? so within industrial medical auto and defense where was the pocket of weakness there That's all that. that's all that

Speaker 3: Well, I think as I said in my prepared statement, I think we had some weakness in the last couple of quarters in automotive and transportation, part of the way we measure it. They're starting to stabilize. And it's mainly driven by some of the new programs that are coming that we want. And so I would say that business is going to be short-term stable, but the longer term, I think we'll start recovering. Medical is starting to recover pretty nicely. We're pretty well diversified there. Defense and aerospace, it's pretty stable. It's all about these are long-term programs. And just sometimes they don't move as fast, but the demand for those are solid. Industrial, I just talked about earlier. That's a very good market for us. We talked about expansion down in Houston, Texas. Well, I think as I said in my prepared statement, I think we had some weakness in the last couple of quarters in automotive and transportation, part of the way we measure it. well i think as i said in my prepared statement i think we had some weakness in the last couple of quarters in automotive and transportation part of the way we measure it They're starting to stabilize. they're starting to stabilize And it's mainly driven by some of the new programs that are coming that we want. and it's mainly driven by some of the new programs that are coming that we want And so I would say that business is going to be short-term stable, but the longer term, I think we'll start recovering. and so i would say that business is going to be short-term stable but the longer term i think we'll start recovering Medical is starting to recover pretty nicely. medical is starting to recover pretty nicely We're pretty well diversified there. we're pretty well diversified there Defense and aerospace, it's pretty stable. defense and aerospace it's pretty stable It's all about these are long-term programs. it's all about these are long-term programs And just sometimes they don't move as fast, but the demand for those are solid. and just sometimes they don't move as fast but the demand for those are solid Industrial, I just talked about earlier. industrial i just talked about earlier That's a very good market for us. that's a very good market for us We talked about expansion down in Houston, Texas. we talked about expansion down in houston texas We do have orders on the books already for what we call medium voltage transformers that we co-designed with this Croatian European company. We're very excited about that. Actually, customer wants the product today. So overall, that segment, we expect it to grow more growth in the second half of our fiscal year, calendar year 2026. We do have orders on the books already for what we call medium voltage transformers that we co-designed with this Croatian European company. we do have orders on the books already for what we call medium voltage transformers that we co-designed with this croatian european company We're very excited about that. we're very excited about that Actually, customer wants the product today. actually customer wants the product today So overall, that segment, we expect it to grow more growth in the second half of our fiscal year, calendar year 2026. so overall that segment we expect it to grow more growth in the second half of our fiscal year calendar year 2026

Speaker 1: Okay. Did you say you expected that to grow sequentially in the second quarter or? Okay. okay Did you say you expected that to grow sequentially in the second quarter or? did you say you expected that to grow sequentially in the second quarter or

Speaker 3: Yes. We're going to see some growth in the second quarter, but we'll see more growth in the second half of our fiscal year 2026. Yes. yes We're going to see some growth in the second quarter, but we'll see more growth in the second half of our fiscal year 2026. we're going to see some growth in the second quarter but we'll see more growth in the second half of our fiscal year 2026

Speaker 1: Okay. Thank you. And then in terms of the cash cycle days, you said there were some things going on in this quarter that rolled that up. Do you think we'll see a drop in the second quarter? Is that going to be taking some time to get that down or? Okay. okay Thank you. thank you And then in terms of the cash cycle days, you said there were some things going on in this quarter that rolled that up. and then in terms of the cash cycle days you said there were some things going on in this quarter that rolled that up Do you think we'll see a drop in the second quarter? do you think we'll see a drop in the second quarter Is that going to be taking some time to get that down or? is that going to be taking some time to get that down or

Speaker 2: Yeah. What I was referring to there, Anja, is that whether it's our, I was talking primarily in my prepared remarks about inventory turns. And in that calculation, you've got the full amount of inventory that came over from ZT, but only 2 months of the cost of goods sold. So it somewhat distorts the calculation. Same thing applies for the cash conversion cycle, but that also applies to revenue as well. So I think we'll be a little bit better. But all in all, we're pleased with the performance of the business on that front. And it's per our expectations. As I mentioned, for Core Sanmina, we drove improvement on inventory turns. And that's been the big area that we've been focused on for the last couple of years. So we continue to do well on that front, but more work to be done. Yeah. yeah What I was referring to there, Anja, is that whether it's our, I was talking primarily in my prepared remarks about inventory turns. what i was referring to there anja is that whether it's our i was talking primarily in my prepared remarks about inventory turns And in that calculation, you've got the full amount of inventory that came over from ZT, but only 2 months of the cost of goods sold. and in that calculation you've got the full amount of inventory that came over from zt but only 2 months of the cost of goods sold So it somewhat distorts the calculation. so it somewhat distorts the calculation Same thing applies for the cash conversion cycle, but that also applies to revenue as well. same thing applies for the cash conversion cycle but that also applies to revenue as well So I think we'll be a little bit better. so i think we'll be a little bit better But all in all, we're pleased with the performance of the business on that front. but all in all we're pleased with the performance of the business on that front And it's per our expectations. and it's per our expectations As I mentioned, for Core Sanmina, we drove improvement on inventory turns. as i mentioned for core sanmina we drove improvement on inventory turns And that's been the big area that we've been focused on for the last couple of years. and that's been the big area that we've been focused on for the last couple of years So we continue to do well on that front, but more work to be done. so we continue to do well on that front but more work to be done ZT, once we've got a full quarter in there, I think you'll get a more realistic view of inventory turns, cash conversion cycle. As always in our business, that's always going to be an area of focus of where can we optimize, how can we do better. ZT, once we've got a full quarter in there, I think you'll get a more realistic view of inventory turns, cash conversion cycle. zt once we've got a full quarter in there i think you'll get a more realistic view of inventory turns cash conversion cycle As always in our business, that's always going to be an area of focus of where can we optimize, how can we do better. as always in our business that's always going to be an area of focus of where can we optimize how can we do better

Speaker 1: Okay. Thank you. That was all for me. Okay. okay Thank you. thank you That was all for me. that was all for me

Speaker 3: Thank you, Anja. Thank you, Anja. thank you anja

Speaker 4: There are no further questions at this time. I would like to turn the call back to Jure Sola for closing comments. Sir, please go ahead. There are no further questions at this time. there are no further questions at this time I would like to turn the call back to Jure Sola for closing comments. i would like to turn the call back to jure sola for closing comments Sir, please go ahead. sir please go ahead

Speaker 3: Well, ladies and gentlemen, again, thank you for your time you spent with us today. Hopefully, we answered most of your questions. If not, please contact us. Looking forward to talking to you, if not in the near term, 90 days from now. Thanks a lot. Bye-bye. Well, ladies and gentlemen, again, thank you for your time you spent with us today. well ladies and gentlemen again thank you for your time you spent with us today Hopefully, we answered most of your questions. hopefully we answered most of your questions If not, please contact us. if not please contact us Looking forward to talking to you, if not in the near term, 90 days from now. looking forward to talking to you if not in the near term 90 days from now Thanks a lot. thanks a lot Bye-bye. bye-bye

Speaker 4: Ladies and gentlemen, this concludes today's conference call. Thank you very much for your participation. You may now disconnect. Ladies and gentlemen, this concludes today's conference call. ladies and gentlemen this concludes today's conference call Thank you very much for your participation. thank you very much for your participation You may now disconnect. you may now disconnect