Flex Ltd.

Good afternoon and thank you for standing by. Welcome to FLEX's first quarter fiscal 2024 earnings conference call. Presently, all participants are in a listen-only mode. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question, please press star 1 on your telephone. If you would like to withdraw your question, please press star 2. As a reminder, This call is being recorded. I will now turn the call over to Mr. David Rubin. You may begin.

Thank you, Jenny. Good afternoon and welcome to Flex's first quarter fiscal 2024 earnings conference call. With me today is our Chief Executive Officer, Revathy Advaiti, and our Chief Financial Officer, Paul Lundstrom. Both will give brief remarks followed by Q&A. Slides for today's call as well as the copy of the earnings press release and summary financials are available on the investor relations section at flex.com. This call is being recorded and will be available for replay on our corporate website. As a reminder, today's call contains forward-looking statements which are based on our current expectations and assumptions. These statements involve risks and uncertainties that could cause our actual results to differ materially. For full discussion of these risks and uncertainties, Please see the cautionary statements in our presentation, press release, or in the risk factors section in our most recent filings with the SEC. Note this information is subject to change, and we undertake no obligation to update these forward-looking statements. Lastly, please note, unless otherwise stated, all results provided will be non-GAAP measures, and all growth metrics will be on a year-over-year basis. The full non-GAAP to GAAP reconciliations can be found in the appendix slides of today's presentation, as well as the summary financials. posted again on our investor relations website. Now I'd like to turn the call over to our CEO, Revati.

Thank you, David. Good afternoon and thank you for joining us today. As we move into our new fiscal year, we continue to make progress in our long-term strategy and deliver consistent results. Starting with our fiscal Q1 results on slide four, overall it was another solid quarter. Revenue came in at $7.3 billion, which is flat with last year's exceptionally strong Q1. Adjusted operating margin came in at 5.1%, and we delivered 57 cents of adjusted EPS. On July 3rd, we completed a follow-on offering for Nextracker. We still own about 51% of the company, but this marks yet another significant step forward. Now turning to slide five. Now looking at core flex fundamentals, we continue to navigate the dynamic microenvironment with trends in the current quarter relatively in line with our expectations. Consumer-facing markets remain soft from several factors, including higher interest rates and lingering post-COVID spending normalization in a few areas. As we indicated last quarter, we also experienced some slowing in enterprise IT, but so far it is performing to our prior expectations and we continue to monitor demand indicators. On the other hand, we also faced a difficult comp this year in CEC after it grew 30% last year. However, we continue to see strength in most of our secular driven markets, and that's one of the benefits of having our well-diversified portfolio. There's a lot of hype around AI right now. Maybe I can help separate a little fact from fiction, at least for what it means to us. We all know that the compute and power requirements of generative AI are highly intensive. This has led to changing technical requirements in the data center. From a manufacturing perspective, these changing needs are creating new opportunities. I should say, however, this has been the trend for a little while now, and it's already driving some of our business. In CEC, we've talked about share gains driven by our bespoke cloud offering based on our unique design, vertically integrated manufacturing, and value added fulfillment solutions. That is what helped drive triple digit growth in our cloud business last year. These same capabilities have led to additional wins, including one ramping in the back half of this year. With our expertise in power, we have developed a new power module solution, which, for example, is suited to the needs of the more intensive GPU-based computing, and we are seeing strong customer adoption here. And of course, changes in the cloud core design means changes to critical power configurations, and that's what's driving additional conversions. It's safe to say cloud technical needs will change as applications evolve over time. We have a highly adaptable platform operating at scale, so we continue to be well-positioned to capture these opportunities. Now switching gears a little bit, healthcare trends remain intact. Elective procedure demand is strong and hospital capex is steady. We're experiencing some slowing in medical equipment related to life sciences. but this appears largely a result of normalization after an extended period of exceptionally strong demand for testing products from the pandemic. Now, looking at the automotive space, our EV and ADAS customer demand remains strong. Technology transitions are driven by important long-term trends, and we have built a business based on customer and geographic diversity. As our automotive business makes its way Towards $4 billion in revenue, we're adding value on multiple levels to drive deeper and higher-valued engagements. Our next-gen mobility bookings continue to grow. That's building on our momentum from record bookings from the last fiscal year. All of this comes from our proven design and engineering capabilities, our multi-discipline technology expertise, and decades of experience with the unique demands of the automotive industry. Now, another important secular trend from which we're all benefiting is the global renewable energy transition. We're currently ramping both microinverter and EV fast charge production in the U.S., and these are just two examples of how well we are positioned to help enable the global shift to renewable energy. Last year, our renewables-related hardware revenue was just over $1.2 billion within our $6.5 billion industrial business unit. We expect renewables to grow again this year with improving long-term prospects as the rules and benefits of the IRA are finalized and fully understood. Again, having a diversified portfolio from a product, customer, and geographic perspective is an important attribute to managing through the cycles and delivering consistent results over time. We continue to believe the fundamentals of outsource manufacturing are strong, and we remain very optimistic about our future. Our focus on providing a wide range of manufacturing capabilities and services where our customers need them across the globe is our competitive advantage. By leveraging our core capabilities and capitalizing on the long-term secular growth drivers, we will continue to drive value creation in the years to come. With that, I'll turn it over to Paul to take you through our financials.