The following is a summary of the Sanmina Corporation (SANM) Q4 2024 Earnings Call Transcript:

Financial Performance:

• Sanmina reported Q4 revenue of $2.02 billion, an increase from the guidance of $1.9 billion to $2.0 billion, and up 9.6% sequentially.

• Non-GAAP gross profit for Q4 was $175 million, or 8.7% of revenue, which is at the higher end of outlook and a 20-basis point increase sequentially.

• Non-GAAP operating profit for Q4 was $107 million, or 5.3% of revenue, reflecting stability in operating margin despite increased operating expenses.

Business Progress:

• Sanmina experienced revenue growth across the majority of its end markets, particularly in communication networks and cloud infrastructure.

• The company is making strategic investments to enhance technologies and capabilities, particularly focusing on cloud data center solutions and AI architecture.

Opportunities:

• Sanmina forecasts high-single-digit revenue growth for FY '25, driven by customer forecasts, new and existing programs.

• Expansion into high-technology areas like AI-driven cloud infrastructure is expected to provide new business opportunities.

• The company sees potential for growth in industrial sectors with energy projects, factory automation, and safety equipment, along with ongoing opportunities in medical devices reflecting steady demand.

Risks:

• Sanmina notes ongoing inventory adjustments with its customers, suggesting potential short-term fluctuations in demand.

• The company points to 'targeted investments' which might impact short-term profitability while aiming for long-term growth.

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