Plexus Corp.

All participants are in a listen-only mode. After a brief discussion by management, we will open the conference call for questions. Conference call is scheduled to last approximately one hour. Please note, this conference is being recorded. I would now like to turn the call over to Sean Harrison, Plexus Vice President of Communications and Investor Relations. Sean?

Thank you, Felicia. Good morning and thank you for joining us today. Some of the statements made and information provided during our call today will be forward-looking statements, including without limitation those regarding revenue, gross margin, selling and administrative expense, operating margin, other income and expense, taxes, cash cycle, capital allocation, and future business outlook. Forward-looking statements are not guarantees since their inherent difficulties in predicting future results and actual results could differ materially from those expressed or implied in the forward-looking statements. For a list of factors that could cause actual results to differ materially from those discussed, please refer to the company's periodic SEC filings, particularly the risk factors in our Form 10-K filing, so the fiscal year ended October 1, 2022, as supplemented by our Form 10-Q filings and the Safe Harbor Impaired Disclosure Statement in our press release. We encourage participants on the call this morning to access the live webcast and supporting materials at Plexus' website at www.plexus.com. Clicking on Investors at the top of that page. Joining me today are Todd Kelsey, Chief Executive Officer, Steve Frisch, President and Chief Strategy Officer, Pat Germain, Executive Vice President and Chief Financial Officer, and Oliver Mim, Executive Vice President and Chief Operating Officer. Consistent with prior earnings calls, Todd will provide summary comments before turning the call over to Steve and Pat for further details. Let me now turn the call over to Todd Kelsey. Todd?

Thank you, Sean. Good morning, everyone. Please advance to slide three. Fiscal 2023 was an exceptional year for Plexus. Our team's focus on delivering operational excellence and customer service excellence resulted in outstanding financial performance. In addition, we advanced our sustainable and responsible business practices, aligning to our vision to help create the products that build a better world. As we will discuss in more detail, the accelerating momentum built in fiscal 2023 supports our confidence in achieving $5 billion in revenue with 5.5% GAAP operating margin by our fiscal 2025. Please advance to slide four. For fiscal 2023, we delivered revenue growth in excess of 10%, 5.2% non-GAAP operating margin, 16% non-GAAP EPS growth, and free cash flow of $62 million. While we have consistently delivered industry leading revenue growth and profitability, this result represents the first time in 15 years we have delivered double digit revenue growth with greater than 5% operating margin. With momentum building in many of our markets, increasing new program ramps, and the opportunity to capture the ongoing unfulfilled demand as supply chain challenges lessen, we continue to forecast accelerating revenue growth as fiscal 2024 progresses. Please advance to slide 5 for a review of our fiscal fourth quarter results. Our fiscal fourth quarter represented our fifth consecutive quarter with revenue in excess of $1 billion and our sixth consecutive quarter with non-GAAP operating margin exceeding 5%. We delivered quarterly revenue of $1.02 billion, slightly exceeding the midpoint of our guidance. The continued progress by our team in its ability to clear supply mitigated ramp delays and inventory correction activity with some healthcare life sciences customers. In addition, we again undershipped demand this quarter by at least $100 million, primarily as a result of component shortages. For the quarter, we delivered GAAP operating margin of 5.2%, including 57 basis points of stock-based compensation expense, meeting the high end of guidance. GAAP EPS exceeded guidance at $1.44 per share, including 21 cents of stock-based compensation expense. Please advance to slide six. In the fiscal fourth quarter, we won 30 new manufacturing programs worth $192 million when fully ramped into production. After delivering record performance in our fiscal third quarter, we witnessed some delay in closing new program win opportunities late in the fiscal fourth quarter. Nonetheless, customer interest remains high in our geographically diverse and industry-leading capabilities. In addition, our funnel of qualified manufacturing opportunities although down sequentially due to harvesting and normal turnover activity, expanded nearly $300 million year over year, exiting fiscal 2023 at $3.7 billion. This funnel continues to include a greater than typical number of large opportunities in each of our market sectors, positioning Plexus to maintain strong manufacturing wins momentum and robust revenue growth over the long term. Please advance to slide seven. We are guiding fiscal first quarter revenue of $990 million to $1.03 billion, GAAP operating margin of 4.8 to 5.3 percent, inclusive of approximately 52 basis points of stock-based compensation expense, and GAAP EPS of $1.15 to $1.33. Our GAAP EPS guidance includes approximately 19 cents of stock-based compensation expense. We expect to benefit from sustained robust commercial aerospace demand and improving semiconductor capital equipment demand, while also facing headwinds as a result of short-term inventory corrections with certain healthcare life sciences customers and a reduction of components procured at above market prices to more normal levels. Looking further ahead, we continue to forecast accelerating revenue growth as fiscal 2024 progresses. leveraging strong demand in our aerospace and defense and industrial market sectors, accelerating new program ramp momentum, and lessening supply chain challenges, which creates the opportunity to capture our ongoing backlog of customer demand. As revenue growth accelerates, we also anticipate operating margin expansion. Consequently, we remain confident in achieving our goal of $5 billion in revenue with 5.5% gap operating margin by our fiscal 2025. Please advance to slide eight. Finally, I'd like to provide an update on our advances in furthering our sustainable and responsible business practices, as well as share some exciting recent recognition. I'm extremely proud of how our team members supported our vision of helping to build a better world in fiscal 2023. First, we contributed over 19,000 volunteer hours to our local communities, an increase of 300% year-over-year. Next, we made a significant expansion of the reach and impact of our employee resource groups, where we added two new groups and 15 chapters globally. Additionally, we donated over $1 million through our Plexus Charitable Foundation. Further, we delivered sustainable solutions within our operations, as we expect to substantially exceed our 5% energy intensity reduction goal for fiscal 2023. This is following a 12% reduction in fiscal 2022. Finally, we realized a shared benefit from collaborating with companies to help design and produce more sustainable products. During our fiscal second quarter 2023 earnings call, We highlighted our partnership with BEVI, where we manufacture the Smart Water Dispenser at our Appleton, Wisconsin facility. This product highlights how we engage with our customers to combine innovation and sustainability to help build a better world. The BEVI Smart Water Dispenser is capable of delivering 40,000 different varieties of delicious water. while BEVI installations have saved the equivalent of over 400 million single-use water bottles to date, including more than 120,000 at our Plexus US sites. Last week, the BEVI Smart Water Dispenser was voted the coolest thing made in Wisconsin for 2023 in a competition held by Wisconsin Manufacturers and Commerce, the most influential business association in Wisconsin. A wonderful recognition for BEVI and our Plexus team. I will now turn the call over to Steve for additional analysis of the performance of our market sectors.