Plexus Corp. (NASDAQ:PLXS) Q4 2023 Earnings Call Transcript

Anja Soderstrom: Thank you. And I think you and your peers have in the past said that due to the uncertainty in terms of the supply chain challenges and whatnot, some potential customers have had been reluctant to ship some outsourcing model. What do you see there now given the current economic conditions?

Steve Frisch: Yes. I think the concept there, what we talked about historically is if you go back to, say, COVID period, there is a general hesitancy maybe to make some decisions? Do we want to outsource – there is reduced travel. We want to be able to go and see the facility that we will be moving our product to. And certainly, I think over the past few quarters, we’ve seen that reverse. And so I think that the tendency to make decisions has come back. I think the larger deals that Todd talked to earlier also is representative of that dynamic in that shift.

Anja Soderstrom: Okay, that was all from me.

Operator: I would now like to turn it back to Todd Kelsey for closing remarks.

Todd Kelsey: All right. Thank you, Felicia. Well, I thought in closing, I would spend just a bit of time talking about our fiscal 2024 outlook and how we see that playing out. And I guess, I would start by saying it looks much the same as we thought 90 days ago. So we expected we’d be in a bit of a revenue through where over Q3 and Q4 of fiscal 2023 into Q1 of 2024, playing out as we expected, but then driving into strong growth in Q2, Q3 and Q4 of fiscal 2024 as we saw stabilization in markets, acceleration of new program ramps, some lessening of supply chain constraints. So that’s still playing out. And I’d also note that in spite of the strong margin performance of 2023, we believe we can continue to expand margins as revenue increases and we gain better leverage with maybe the only caveat being our fiscal Q2, where we have the seasonal headwinds due to compensation adjustments and such, which come into play.

So everything is looking on track for us for fiscal 2024 based on what we thought a quarter ago. And we continue to progress the way we expect, and that’s what gives us confidence we can exit the year around the 5.5% operating margin range and drive towards this $5 billion in revenue at 5.5% in our 25%. So lots of confidence as we look forward. Then in closing, I just want to thank everybody again for joining our call. We appreciate the interest in Plexus and all of your support. Have a nice day.

Operator: Thank you for your participation in today’s conference. This does conclude the program. You may now disconnect.