Fabrinet

Q4 2022 Earnings Conference Call

8/15/2022

spk01: Good afternoon. Welcome to Fabrinet's Financial Results Conference call for the fourth quarter of fiscal year 2022. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session, and instructions on how to participate will be provided at that time. As a reminder, today's call is being recorded. I would now like to turn the call over to your host, Gerald Simajanian, VP of Investor Relations.
spk00: Thank you, Operator, and good afternoon, everyone.
spk02: Thank you for joining us on today's conference call to discuss Fabrinet's financial and operating results for the fourth quarter of the fiscal year 2022, which ended June 24, 2022. With me on the call today are Seamus Grady, Chief Executive Officer, and Chavez Ferra, Chief Financial Officer. This call is being webcast, and a replay will be available on the Investors section of our website, located at investor.fabrinet.com. During this call, we will present both GAAP and non-GAAP financial measures. Please refer to the investor section of our website for important information, including our earnings press release and investor presentation, which include our GAAP to non-GAAP reconciliation. In addition, today's discussion will contain forward-looking statements about the future financial performance of the company. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from management's current expectations. These statements reflect our opinions only as of the date of this presentation, and we undertake no obligation to revise them in light of new information or future events, except as required by law. For a description of the risk factors that may affect our results, please refer to our recent SEC filings, in particular the section captioned risk factors in our form 10Q filed on May 3, 2022. We will begin the call with remarks from Seamus and Chaba, followed by time for questions. I would now like to turn the call over to Fabulous CEO, Seamus Grady. Seamus?
spk07: Thank you, Gerald. Good afternoon, everyone, and thank you for joining us on our call today. We delivered a strong fourth quarter performance with revenue that was at the upper end of our guidance range and non-gap earnings per share that was above our guidance. We produced these results in spite of ongoing supply chain headwinds. Strong demand across our key end markets helped drive revenue of $587.9 million, an increase of 15% from a year ago and 4% from Q3. Record non-GAAP earnings per share of $1.68 was a result of strong execution and exceptionally strong margins, with non-GAAP operating margin reaching a new quarterly high of 10.7%. Our results for the year as a whole represented several records for Friberdine. Fiscal 2022 revenue of $2.26 billion increased 20% from the prior year, and with non-GAAP operating margin of 10.3% for the year, we generated $6.13 in non-GAAP earnings per share, an increase of 31% from a year ago, reflecting strong execution throughout the year. Looking at the quarter more closely, we delivered record optical communications revenue with both telecom and datacom revenue up sequentially and year over year. Automotive, which remains our largest non-optical communications category, also had a record quarter, while industrial laser was down sequentially, but remains within the range of the last several quarters. Overall demand for our services continues to be very strong. As demand and revenue have increased over the course of the year, so has the corresponding impact of supply constraints that we've discussed for the last several quarters. Parts and components that are in tightest supply are still largely commodity parts that impact all of our end markets. While we have started to see some improvements in supply availability for certain parts, the most significant constraint to our growth continues to be the supply environment, which we are managing as effectively as possible. To ensure that capacity does not become a limiting factor for our growth, we have been constructing our largest manufacturing building to date. We are pleased to announce that we recently opened our one million square foot building nine at our Chambury campus. This one building expands our global footprint by approximately 50% and provides us with ample capacity to continue growing our business over the next several years. As we mentioned last quarter, we are in discussions with a number of customers looking to expand in our new building. and we're making good progress on that front. In fact, we have already begun installing equipment for our first customer at Building 9 and expect that if all goes well, we could start to see revenue from this facility by the end of the September quarter. In addition, we are in the process of installing equipment for two additional customers who are slated to start production by the end of the calendar year. Looking ahead to the first quarter and fiscal 2023, we're very optimistic about our long-term prospects for continued growth and strong profitability. In the last two years, we demonstrated our ability to improve margins while simultaneously delivering double-digit revenue growth, which illustrates that our long-term strategy is working. As we look ahead, we're optimistic that we'll be able to continue to deliver on our goals of driving top line growth and expanding operating margins. As a result, We are confident that we can now target non-GAAP operating margins of above 10% compared to our prior target in the upper 9% range. In summary, our strong fourth quarter was a high note on which to end an excellent year. Despite the supply challenges the industry is experiencing, we delivered strong top-line growth with record earnings, demonstrating the inherent leverage in our business model. We're optimistic that we can extend this track record of profitable growth as our business continues to scale in fiscal 2023 and in the years ahead. Now, I'd like to turn the call over to Chaba for additional financial details on our fourth quarter and our guidance for the first quarter of fiscal 2023. Chaba.
spk04: Thank you, Seamus, and good afternoon, everyone. With strong demand trends, we continue to be in a supply-constrained environment. Still, we managed to achieve revenue that was at the upper end of our guidance range at $587.9 million, representing 15% growth from a year ago and 4% growth from the third quarter. With improving margins, our bottom line grew faster than the top line, with non-GAAP earnings per share of $1.68, which was 9 cents above the top end of our guidance range, and 28% increase from a year ago. and 12% increase from Q3. I would like to point out that we were able to achieve this result without including expedite fees in our revenue. Rather, we pass on these expenses directly to customers so there is no impact on our income statement. This is important because it means we do not expect to be negatively impacted by the removal of these fees as supply constraints begin to ease. By end market, Optical communications revenue was $464.7 million, up 20% from a year ago and 6% from Q3. Within optical, telecom revenue was a record $371.9 million, up 20% from a year ago and 4% sequentially. Datacom revenue of $92.8 million increased 20% from a year ago and 14% sequentially. By technology, silicon photonics revenue was $151.1 million, an increase of 37% from a year ago and 4% sequentially. Revenue from products rated at speeds of 400 gig or more was $178.9 million, up 34% from a year ago but down 5% from Q3 as the supply constraint impact increased on some of these products in the quarter. Meanwhile, revenue from 100 gig products increased 14% sequentially, largely due to revenue that was pushed from Q3 to Q4 as we qualified alternative parts for a certain program, as we discussed last quarter. Non-optical communications revenue was $123.2 million and represented 21% of total revenue. Within nonoptical communications, automotive revenue reached a record $56 million, up 5% from last quarter, assisted by improvement in supply availability. Industrial laser revenue was $37.2 million, down 5% sequentially, but remaining stable with trends over the last two years. Other nonoptical communications revenue was $30 million. As I discussed the details of our P&L, expense and profitability metrics provided are on a non-GAAP basis, unless otherwise noted. A reconciliation of GAAP to non-GAAP measures is included in our earnings press release and investor presentation, which you can find in the investor relations section of our website. Strong execution produced very healthy margins in the quarter. Gross margin reached 13% with a foreign exchange tailwind contributing about 20 basis points. We expect cross margin to moderate in the first quarter due primarily to an annual merit increases. Operating expenses in the quarter were $13.5 million, or 2.3% of revenue, in line with expectations. This produced record operating income of $62.8 million, or 10.7% of revenue. While we expect operating margin to dampen a small amount in the first quarter, we are optimistic that many of the operating efficiencies we have enjoyed in fiscal 2022 will endure as we look ahead. We are excited to be able to deliver on our commitment to increase margins over time, and as such, we are now targeting trending operating margins to be above 10%, though we could see quarterly dips below that level from time to time. Effective tax rate was 3.3% for the fourth quarter. Non-GAAP net income was $62.6 million, or $1.68 per diluted share, which is a quarterly record and above our guidance range. On a GAAP basis, net income was $1.51 per diluted share. For the full fiscal year 2022, revenue was a record, $2.26 billion. an increase of 20% from fiscal 2021. With operating margins of 10.3% for the year, non-GAAP net income was also a record at $6.13 per share, with an increase of 31% from a year ago. Turning to the balance sheet and cash flow statements. At the end of the fourth quarter, cash, restricted cash, and investments were $478.5 million, down 36%. from the end of the third quarter. Operating cash flow was $16.3 million. With CapEx of $14.3 million, free cash flow was $2.1 million in the quarter. For the year, free cash flow was $34.7 million. With construction of Building 9 now complete, we expect free cash flow to increase significantly in fiscal 2023. During the quarter, our buyback activity increased through both our 10B51 plan and open market purchases. We repurchased approximately 353,000 shares at an average price of $88.67 per share for a total cash outlay of $31.3 million. For the year, we repurchased approximately 630,000 shares for a total cash outlay of nearly $60 million. reflecting our commitment to return value to shareholders. As a result, $21.3 million remained in our share repurchase authorization at the end of the quarter. Since then, our board has authorized an additional $78.7 million for repurchases, increasing the total authorization to $100 million. Now I will turn to our guidance for the first quarter of fiscal year 2023. Demand for our services remains very strong across our business. Though supply chain constraints persist and have gotten worse in some areas, we are encouraged to see some pockets of improvement, and we anticipate the supply chain headwinds will be slightly lower than in Q4 at approximately $25 to $30 million. Keep in mind that Q1 is a 14-week quarter, which is one week longer than a typical quarter, and this should be considered when making comparisons to other periods. We estimate the impact of this extra week to be $20 million of additional revenue in Q1, which we will not see in Q2. With these factors in mind, we anticipate revenue of $620 to $640 million in Q1. Due to our annual merit increases, which I mentioned, we expect growth margin and operating margin to moderate from the fourth quarter. As such, we anticipate non-GAAP net income to be in the range of $1.72 to $1.79 per diluted share. In summary, we are very pleased with our strong execution in the fourth quarter and all of fiscal 2022. We are optimistic that positive demand trends can continue and then coupled with a potential easing of supply constraints gives us confidence that we can continue to deliver strong top-line growth and increasing margins over the long term. Operator, we are now ready to open the call for questions.
spk01: Thank you. To ask a question, please press star 1 1 on your telephone. Please stand by while we compile the Q&A roster. Our first question comes from the line of Alex Henderson of Needham & Company. Alex Henderson, your line is open.
spk03: Great. Thank you very much. First off, congratulations, a great quarter, obviously executing superbly, which is what we would expect from you. Clearly, the exchange rates are helping your numbers considerably as a result of the fact that you're selling dollars and a lot of your costs are in local currencies. Can you talk a little bit about the structure of your hedges as we go into slide 23? I assume that you're fully hedged near end and then lesser and lesser over time. But how does the current exchange rates impact your structure? And relative to the offset against that, obviously, the economy in Thailand is doing quite well. There's obviously inflation to deal with. So I assume you're seeing wage inflation as an offset. Can you talk a little bit about those two in context to each other? Thanks.
spk04: Hi Alex, this is Cele. Thanks. So let me address first the exchange rate question. So we haven't really changed our hedging profile recently. So we maintain our hedging program, which is a layered hedge. We are hedged out 100% for the next quarter, 50% for the quarter after, and 25% in the third quarter. So obviously in the last two quarters, it has already resulted 20 basis point gross margin tailwinds in our numbers. So obviously in the last quarter, the Thai baht has continued to depreciate. So we continue to expect that this is going to represent a tailwind as we wind down our hedges and continue buying the currencies as we execute the program. So that's one part. So it's been 20 basis point in last quarter and 20 basis point in Q3. So we expect this to continue in the future. Now, when it comes to inflation and headwinds, we typically have our annual merit increases in our fiscal first quarter. So given the higher inflation rates, that's also reflective in our annual merit increases. So that's certainly going to represent bit of headwind in Q1, which we anticipate that we can make it up in the next couple of quarters by efficiency improvements. So again, while we have continuous tailwind from exchange rate in the first quarter, we do anticipate a little bit of deterioration on gross margins from the inflation and from the merit increases. But overall, in Q1, our bottom line has benefited about six cents from exchange rates. So it's been a nice pickup over the last six months.
spk03: So if I look out into the FY23 period, since we're at year end 22 on this print, you've posted a very nice 20% growth rate, 15% in the most recent quarter. You've got a significant backlog on the supply chain. Your customers have significant backlogs, and their customers have significant backlogs. As you think through the mechanics of all of that, I mean, looking at Sienna, it's got over 100% of a four-year product sales and backlog and has never seen cancellations. How do you mechanically think through the growth rate? Should we be thinking 15% to 20% per 23 is an attainable level? or do you have other macro concerns that you're winning against that?
spk08: I think Alex, this is Seamus. We're just going to guide one quarter at a time. We're not going to get too far ahead of ourselves. We do continue to see very strong demand, but that's the encouraging part. We are limited by component supply, I think, like everybody right now, but demand continues to be very strong, and we're not seeing really any let-up in demand We're seeing a slight improvement in supply, so that's a little bit encouraging. Much too early to declare victory, but it is encouraging to see supply beginning to alleviate somewhat. But, you know, we're not going to guide really beyond Q1 at this point, but, you know, we do remain, like I say, we do remain quite optimistic about the overall demand environment that we see.
spk03: You can't blame it after trying. One more question, then I'll see the floor. Related to the supply chain issues, obviously parts availability is a big piece of it, but the other piece of it is those expedite fees that you're passing through and not recognizing in your costs. And what about the spot market and pricing of parts in general? Any news flow on those particular issues?
spk08: Yeah, the expedite fees, you're correct. We pass those through to our customers. We don't mark them up or anything like that. and we don't count it as revenue. So the nice thing about that is as the expedite fees go away, hopefully over the coming quarters, there's zero impact to us in terms of our revenue. On the expedite fees and the brokers and whatnot, no particular change. Maybe prices coming down a little bit in the broker market. That's a bit anecdotal, but we are seeing some reduction in the big premiums we were seeing a year ago. It has begun to ease a little bit. in the broker market. But it's a bit anecdotal at this stage, a bit early to draw any big conclusions, but maybe improving a little bit.
spk03: Great. I'll see you at the floor.
spk01: Thanks. Thanks, Alex. Thanks, Alex. Thank you. Once again, to ask a question, please press star 1-1 on your telephone. Again, that's star 1-1 on your telephone to ask a question. Our next question comes from the line of Tim Savageau of Northland Capital Markets. Tim Savageau, your line is open.
spk05: Okay, thanks. Sorry, good afternoon and congrats on the great results. So looking at your kind of segment commentary, it does seem like you saw some strength or pickup on the Rotem side in the quarter, or at least on your kind of non-speed rated products. I want to confirm that that's the case and you know, whether that is indicative of improving supply, given that, you know, that's been a real pain point there. And then whether you expect that to continue, you know, if you look at your apples to apples guide, you know, 587 to 610, I guess would be comparable mid range. Do you expect telecom to continue to drive that or, or any other particular segments moving around there in the guide? Thanks.
spk08: I think on the, The ROADM strength, Tim, it's hard for us to comment on that without, you know, maybe inadvertently giving guidance for one or two of our customers. So, you know, we maybe leave our results to speak for themselves. You know, we have more than ROADMs in non-speed rated. There's several other components and products in there. But, yeah, so we won't really comment on ROADMs specifically. But, yeah, you're right, our non-speed rated business is quite strong. The The midpoint of our guidance, when you adjust for the additional $20 million we're getting for the 14th week, you're exactly right. The midpoint of the guidance would be 610 when you back out the $20 million that we're picking up at the 14th week. We believe nice growth quarter on quarter, nice growth year on year. We're just really limited by component supply, but doing our very best, and I think our team has done a fantastic job to get our share of the components and maybe in some cases our unfair share of the components. So I would like to thank our team for the great job they've been doing there to help us get through the supply situation. So 610 at the midpoint of the guidance and the overall very, very strong demand and just purely limited by supply, Tim.
spk05: Okay, maybe I'll try one more time. Yeah, but if you look at that 610, I guess, you know, in terms of the sequential growth, or you can take it year over year, however you want, do you look for, you know, broad-based strengths across the various element of your business? Or, you know, you saw, well, I've seen a nice pickup in Datacom last quarter as well. So anything like that to call out in terms of particular drivers across the segments?
spk08: Yeah, I think telecom is quite strong. Datacom was strong, but some of that growth in datacom came from, you may recall, we had $15 million because of a qualification issue the prior quarter that got pushed into Q4. But still, even with that, datacom remains quite strong. I think we feel good about all the markets we serve. Laser continues to be a little bit soft, but datacom, we see it being strong. Telecom is strong. automotive is very strong for us, and particularly LiDAR. We have some really good growth in LiDAR. We're also starting to see some good growth in 400ZR, some very good growth in 400ZR. A little bit early to start calling it out separately as its own category, but it's probably getting there over the next few quarters. So good sort of growth drivers across all the segments we serve, maybe with the exception of laser, which is a little bit flat for us.
spk01: Great, thanks. Thank you. Our next question is a follow-up from Alex Henderson of Needham & Company. Alex Henderson, your line is open.
spk03: Super, thanks. So I was hoping we could talk a little bit about the systems business, whether you're seeing any progress in terms of bringing additional customers on and how you see the systems portion of your business moving participating in the quarter that you reported and in the outlook going forward?
spk08: Yeah, so we continue to pursue, as you rightly pointed out, Alex, we continue to pursue new systems business at both existing customers and new customers, and really in situations where we're already making a lot of the content. System build, box build on its own isn't really a good fit for us. But when we're already producing a lot of the content, it can be a really good fit for us. The timing of new wind, it's very hard to predict. They're usually driven by maybe external catalysts to do with program changes and other suppliers and whatnot. So there's usually a number of external catalysts that we don't particularly control. So it's hard to predict the timing of those. But like I said, while we're optimistic, there will be more system business for us to announce in the future. We can't really predict when that might be. Again, the current supply environment is not helping things because, of course, with any big system transfer, the first thing you have to do is build a buffer of inventory. And as you'll appreciate, it's hard to build a buffer when most companies are struggling to get enough parts to build just the minimum that's required to satisfy the immediate demand. But it's still very much in our focus, and I think we've shown, with the significant wins we've had over the last few years, we're able to bring on that business in a way that actually helps our margin because we can do it without really any incremental operating expenses. Our operating expenses have remained quite flat over the last several years as we've grown the revenue nicely. But nothing specific to announce at this point, Alex, but still very much in focus for us.
spk03: Yeah, I suppose we could just dig into that a little bit. So can you talk about whether it's growing faster or slower than the corporate average? Can you talk about whether the net impact on margins is positive, negative, neutral relative to that business?
spk08: It's very hard to say. It really does vary by program. Some programs are a little bit harder than the average. Some programs are lower. Overall, in terms of growth, it's probably a net contributor to growth because we've been bringing on those big programs and then growing those programs, both with the programs we originally transferred, let's say, but also new wins since we've transferred those programs. So we've grown both the volume with the programs we transferred, we've also won additional programs with those customers. So overall, I think it's been a net contributor to growth. Margin, it's probably at or about the corporate average, but like I say, we're able to do it without any incremental OPEX, so it does help the overall situation.
spk03: I understand. And so you have now grandfathered the original handoffs. That's fully apples to apples plus incremental program growth. So I assume that that's an ongoing kind of trajectory. Is it your sense that the existing customers have a fair amount additional business that they could hand off to you, or do you think that they're relatively sated in terms of – the transferals?
spk08: I think it depends on really which company we're talking about or which companies we're talking about. Obviously, some companies are bigger than others and would have a lot of business that they outsource still with our competitors. So we like to make sure we maximize our market share. We don't need to produce everything for our customers, but we do like to be an important and significant supplier for our customers. So I think there's certainly plenty of headroom left to grow with the system business that we've already won. We've already got some very nice growth, but I think there's still a lot of runway left to continue to grow that business.
spk03: One more question around technology. Co-packaged optics has been kind of just off the edge of the headlights for a while. Has there been any change in that sector? Is it something that's starting to percolate through your opportunity set, or is it still pretty far out and past the headlights?
spk08: I think it's a little bit of both. So we are working on co-packaged optics, let's say products that have co-packaged optics with our customers to develop the processes that would be required to produce those co-packaged optics products in the future when they become more mainstream. So we're working on that. There's another school of thought that says, of course, co-packaged optics, that the pluggable optics will continue for a very long time. And we're working with, let's say, a separate number of customers who are very focused on making sure the pluggables continue for a long time. We're quite, if you like, agnostic to the technology. Whichever one wins, we don't mind. We're happy to work with all our customers. In terms of co-packaged optics becoming mainstream, yeah, I think you're right. It's a bit beyond the The headlights right now, it's probably, if I had to put a date on it, it'd be hard to see it happening anytime soon. It's been probably three years out, two and a half, three years out, something like that. So we're working, like I said, we're working with customers on co-packaged optics. We're also working with other customers on all kinds of exotic pluggable solutions that would mean the pluggables would continue for a very long time.
spk03: Last question, then I'll see the floor again. So in the 400 gig plus arena, obviously very nice growth, but I assume that you're also seeing additional new products coming into the pipeline that have yet to ramp. Can you talk a little just about, you know, what that pipeline looks like relative to, you know, the 400 gig plus segment? Is there a continuation of additional products that are going to drive that growth at strong rates for an extended period of time?
spk08: Yeah, there's a couple of categories, I would say. There's 400 ZR in the telecom space that's really just starting to get going. Like I say, we're seeing some nice revenue from it. It's growing very nicely. We have three customers in particular that have well, four customers, I should say. Three are shipping. One is maybe struggling a little bit with the design and the power envelope. But three of our customers are shipping volume, now varying degrees of volume. But three of our customers are shipping the 400 DR product right now. And then, of course, we have 800 gig. And what we see is the adoption of 800 gig inside the data center about to take place as well. So there's a nice, I would say, a nice pipeline of Again, for us, it falls into the category of 400 gig and above. We don't like to give too much detail beyond that because, again, Alex, we're always concerned that we don't want to inadvertently announce a product on behalf of one of our customers. But suffice to say, we have a nice pipeline of both 400 ZR and 800 gig products that we're working on.
spk03: Perfect. Thank you very much.
spk01: Thank you very much, Alex. Thank you. Our next question comes from Ethan Waddell of B Reilly. Ethan Waddell, your line is open.
spk06: Hi, thank you for taking my question. I was wondering if your component shortage are concentrated in any of your reporting segments or verticals, or if they're more broadly distributed? Thanks.
spk08: They're very broadly distributed, actually, and it's not, typically it's not any particularly exotic component that's In question, it's usually, let's say, standard commodity-type electronic components. But no, it's not unique to one. All of our industry segments that we support are equally, I would say, equally affected by the component shortages.
spk06: Okay, thanks. That's helpful. And then one follow-up. You mentioned having a buffer inventory, and I was wondering if you could provide any color as to kind of how you expect to see that change as conditions normalize.
spk08: Yeah, our inventory has grown over the last while as we've tried to position inventory to support our customers' demand. And sometimes you have, if you need 100 components, you have 99 of them. And if you don't have that last one, you can't ship. So we end up carrying maybe a little bit more inventory on the balance sheet than we'd like to in an ideal world. But the good news is it's good inventory. And it's inventory that's tied to specific customer demand and customer order. So there's no particular risk. If anything, it presents an opportunity for us as we clear, let's say, the components that were short that caused the inventory to increase in the first place. As we clear those component issues and begin to get matched sets, we should begin to see that those inventory levels alleviate as we convert inventory to cash and ship products for our customers. So it does give us, hopefully, a little bit of an advantage in the coming quarters as we start to see those component charges clear so we can satisfy the customer's needs.
spk06: Certainly. Thank you.
spk01: You're welcome. Thank you. We have a follow-up question from Tim Sauvageot of Northland Capital Markets. Tim Sauvageot, your line is open.
spk05: Thanks. I wanted to follow up on the 400 gig front. And you called out... ZR is getting increasingly driving growth there. I wonder if you can maybe quantify that a little bit. I know you're probably off a small base, but any sense for where that contribution is right now or where you expect it to be? and you know despite that what i assume would be a very strong sequential increase in zr you did see an overall decline in 400 gig revenues and i wonder if you could talk about the uh the drivers there hi tim this is cheva let me let me take that so overall 400 zr has been ramping over the last four fourth quarter so on an annual basis again it represents
spk04: a high single-digit portion of our revenue. So we said we would start calling out when it reaches 10%. It's not quite there, but the growth in this segment has been quite significant over the last couple of quarters. Sequentially, it grew in Q4 to Q3, but overall, on a yearly basis, it's now representing about a high single digit of our revenues. Now in terms of the other part of the 400 gig portfolio, I mentioned in my prepared remarks that we did have a little bit of surprise in that segment from material constraints. So that set us back a little bit. Otherwise, if we had those components, we could have been higher and sequentially up in that segment too. The temporary decline is supply-related, but overall the strength is there from ZR, and it's a high single digital.
spk05: Great. Really appreciate that color. And don't see a filing out yet, but I wonder if you can comment for us on 10% customers, maybe number and what they were in the aggregate, or to the extent you can disclose something prior to the filing.
spk04: Yeah, sure. 10K is coming out tomorrow, so we will have that disclosed in our 10K. We had three customers over 10%. In a descending order, Cisco was a slightly higher than 25% customer. Infinera was above 12%, and Lumentum was above 10%. So these three customers have represented overall, I think, about 48% of total revenue.
spk05: Awesome. Thanks again.
spk06: You're welcome.
spk01: Thank you. At this time, I'd like to turn the call back over to Seamus Grady for closing remarks. Sir?
spk08: Thank you for joining our call today. We're excited to deliver a strong performance in Q4 and all of fiscal 2022. despite supply chain issues impacting many industries. We're optimistic that with continued strong demand and significant new capacity, we will be able to deliver more strong performances in the quarters and years ahead. We look forward to speaking with you again and seeing those of you who will be attending the Jefferies Conference at the end of the month. Thank you and goodbye.
spk01: Ladies and gentlemen, that does conclude today's program. Thank you for your participation. You may now disconnect.
spk00: Ladies and gentlemen, that does conclude today's program.
spk01: Thank you for your participation. You may now disconnect.
Disclaimer

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