Flex Ltd.

Good afternoon, and thank you for standing by. Welcome to FLEX's third 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 phone. 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, Diego. Good afternoon, and welcome to Flex's third quarter fiscal 2024 earnings conference call. With me today is our Chief Executive Officer, Rev. Devaiti, and our Chief Financial Officer, Paul Lundstrom. Both will give brief remarks, followed by Q&A. Slides for today's call, as well as a copy of the earnings press release and summary financials, are available in 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 actual results to differ materially. For a full discussion of these risks and uncertainties, please see the cautionary statements in our presentation, press release, or in the risk factor 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. 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 in the summary financials posted on the Investor Relations website. As previously announced, on January 2, 2024, Flex completed the spinoff of all of its remaining interest in Nextracker to Flex shareholders. As a result of the completion of the spinoff, Nextracker became a fully independent public company. Flex no longer directly or indirectly holds any shares of Nextracker common stock, and Flex will no longer consolidate Nextracker into its financial results. Please note our guidance for fourth quarter fiscal 24 excludes any economic interest in Nextracker. And for fiscal year 2024, four-year guidance includes FLEX economic interest in Nextracker for Q1 through Q3. However, it also excludes it from Q4 fiscal 24. Lastly, the historical results of Nextracker and certain assets and liabilities included in this spinoff will be reported in FLEX's consolidated financial statements as discontinued operations beginning in FLEX's fourth quarter ending in March 31, 2024. With all that, now I'd like to turn the call over to our CEO, Revati.

With the tax-free spin that occurred in early January, making Nextracker a fully independent company, we wish them great success in the future and look forward to watching their continued growth. Through this process, we unlock tremendous value and the approach reflects in our continued focus on creating long-term shareholder value. Of course, Flex remains committed to enabling the transition to renewable energy in our core business. We serve a wide variety of customers and applications, generating over $1 billion in revenue for this market. I should also mention that we continue to expand the use of renewable energy in our own factories as part of our net zero journey. Now moving to our results on slide four, overall fiscal Q3 was another quarter of strong execution. For total flex revenue was 7.1 billion, adjusted operating margin came in at 6.7% and we delivered 71 cents of adjusted EPS. Looking at results for core flex which exclude Nextracker, we continue to execute very well with this dynamic environment. Revenue was 6.4 billion, core flex operating margin came in at a record 4.9%, up both sequentially and year-over-year, and we delivered 54 cents of EPS. Again, this was solid execution in the quarter. Now, the takeaway should be clear. Our results continue to show the resiliency of the flex model and fundamental changes to the industry. Despite significant macro-driven volume fluctuations, we've continued to deliver on our margin and EPS commitments. We remain very well positioned across the markets we serve, and this comes from our deep relationships with our customers and our ability to provide world-class quality and value in the products we manufacture. I want to share a couple of highlights from the quarter that demonstrate our strong market position. AI is driving changes in data movement, both through the data center and across the network. Our strength in hyperscale data center and networking infrastructure are key enablers of our customer success in delivering these products at scale. We've talked before about our strong positioning with multiple hyperscale customers. We're the only EMS provider with a comprehensive offering including bespoke fully integrated rack systems and power solutions ranging from embedded, discrete, and all the way up to data center critical power. In addition, We offer value-added services in design, metal, components, supply chain management integration, and aftermarket services, including circular economy. As a result of our comprehensive offerings, we continue to see very strong growth in our cloud business. On the networking side, a good example is our partnership with Cisco. Recently, we were honored to receive their 2023 Electronic Manufacturing Services Partner of the Year Award. We're also building on our 20-year partnership with Ciena, another world-class networking company to provide U.S.-based manufacturing capabilities and supply chain services, enabling Ciena to ramp high-volume production of its innovative pluggable optical technologies in support of the BEAD, the Broadband Equity Access and Deployment Programs, and the Build America by America requirements. Now looking at automotives. Next-gen mobility, including EV onboard electronics, charging infrastructure, and advanced compute systems for the software-defined vehicle remain very important long-term growth drivers. And Flex plays a key role across these ecosystems to support the OEMs, including designing or co-designing content while bringing world-class manufacturing and supply chain leadership. We have built a well-diversified portfolio of solutions for ICE, hybrid full EV, and across the spectrum of driver assistance and safety. For example, our advanced compute platform technology that powers software-defined vehicles is agnostic across ICE, hybrid, and EVs. We also have established relationships with many of the upstream semiconductor providers, as evidenced by a previously announced partnership with NVIDIA for ADAS and autonomous applications, And we recently showcased our next-gen EV power electronics full design capability with STMicroelectronics, utilizing the latest in silicon carbide MOSFET technology. So you can see Flex is well-positioned for every stage of this long-term technology transition. It is also very important to remember as a platform, we are experts in complex computing power, which gives us competitive advantage across the multiple markets. Our technology and vertical integration capabilities serve many applications, including hyperscale data centers, renewables, and next generation mobility. Our customers look to us to help them navigate the complexity and implement these integrated capabilities to give them a competitive advantage. Now, the current environment remains highly dynamic, and we're already seeing the impact from elevated interest rates in some markets and excess inventory in others. We've made it through the supply chain crisis. However, we carefully watched the situation in the Red Sea and how that could impact supply lines. We continue to execute through the cycle and we are very well positioned in markets with strong long-term secular drivers. The greater stability in margins and EPS validates the change we've made to our business and the evolution of the top tier EMS industry. We are very optimistic about our future. With that, I'll pass the call over to Paul to take you through our financials.