Sameer Desai Vice President of Corporate Development & Investor Relations
Tom Edman Chief Executive Officer
Todd Schull Chief Financial Officer
William Stein Truist Securities
Jim Ricchiuti Needham & Company.
Matt Sheerin Stifel
Mike Crawford B. Riley Securities
Call transcript
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Good afternoon, ladies and gentlemen. Thank you for standing by, and welcome to the TTM Technologies Second Quarter 2021 Financial Results Conference Call.

During today’s presentation, all parties will be in listen-only mode.

Following the presentation, the conference will open for questions. [Operator Instructions] As a reminder, this conference is being recorded today July 28, 2021. President TTM’s Development disclosure Vice will Investor TTM’s review now statement. Desai, of and Corporate Relations Sameer Please go ahead.

Sameer Desai

Thank you, Travis.

on does meaning forward-looking Before like we XXXX, outlook. revise on within including including contains these Form future publicly to Act of obligation the other Actual management’s except expectations of with to assumptions would the any by new the that Private to and one required the statements or business and remind XX-Q, based or everyone the from more recent statements filings to Litigation circumstances Annual and forward-looking get and that as TTM, most SEC today’s TTM Form Form of started, undertake XX-K Reform due as registration on update in X-K, information, not Please affect S-X may of XX-K, Report explained to the as other the I a or factors the Exchange risks company’s uncertainties, date statement results forward-looking statements statements, in Commission. presentation. may these law. whether be any TTM’s our events, result differ Securities materially filings. other the reports on related found call statements risks could future this refer Securities disclosures and These regarding which of are

call. non-GAAP press accordance the measures, this our and Officer. Chief to with call measures a the measures GAAP which direct the on our Tom. a Please on and with in non-GAAP refer substitute website discuss will Such also Edman, as in the slide should on posted included company’s reconciliation to TTM’s TTM’s as the now Executive we and also will considered EBITDA. presented website GAAP Tom release, prepared ahead, to of call available which during deck, over at you measures be I to will turn www.ttm.com. We We’ve certain financial we filed is such not adjusted go was for SEC

Tom Edman

joining review by Thank and XXXX a with a of business you, Sameer. for of strategy, you with conference CFO afternoon, second our from our XXXX performance quarter financial our our discussion I'll follow guidance. call. the begin quarter overview will quarter followed us thank QX Todd second our highlights of XXXX results. an our QX and Schull, and Good for

challenges quarter, strength chain despite inflationary with times and Last in boards. of of lead automotive the your by second the range. pleased of I revenues open then laminates, in and generated centre circuit discussed computing will were were better achieved growth year-on-year constraints, to the foreign markets. the non-GAAP TTM was headwinds. quarter the key led of supply you, for questions. and EPS XXXX I than the markets commercial call end exchange the printed raw results material am We and manufacturer These report above All guidance guided data and that prices to end a increasing high

measures QX, to We challenges to impact the managing mitigate TTM diversification, actively The this through have goods costs material operational and of TTM. excellent and how ongoing constraints of raw formidable supply Since magnitude I am our efforts, to cost the quotation such work and performance QX. in inventory. larger higher have and prices worked through been the those adjustments take and to some QX suppliers of time environment. will despite higher laminate to be sold in QX of impact employees deliver and efficiency supplier our proud

that cyclical our improving flow an on our a over We to is journey will to be time, and provide to long less believe investors like rewarded cash would margins. business strong with term more growth, transform stable more TTM I update performance, Next, on strategy. be differentiated. and

sold strategic our last this transition, year. of part mobility As business we

operations are broad exposure to A part internally of offerings, longer strategy generated to We or to of now flow ongoing In that capabilities will our to from second end through cycle own cash with set markets. XX% we be the our and able revenue. technologies generate of quarter, acquisitions. current cash add our complimentary of products and $XX.X both key are strong more million and consistent

sheet is acquisitions, well acquisitions further balance to Looking to forward, needs. position as -- as pursue strong organic support investment in further our to a higher

in and guidance. of some same into first business. in half, quarter you peak significant situation. base. we States our in the with revenue the within quarter. China the combined ramping rollout and and and of shift also on levels fourth is a our forward North America vaccine Another stronger would now Post experienced COVID has volumes revenues has If which the due resulted usually pattern COVID our in QX the in second And changed. in the is employee pull and from this third seasonality sequential quarters. in divestiture, and theoretically, have seen in I decline in strategic United we first to demand in The cases. resulting softness dynamic experienced third new the quarters holidays seasonality the softer a mobility modest update decline seasonal benefit our the and fourth vacation of seasonality to revenue We periods with This QX the like respectively,

led increasing However, potential the countries another with many round of world of the in variant counts significantly rates much number lower a parts of and of lockdowns. rise have of case the has delta vaccination the to

monitor watching demand closely and are developments impacts these We supply. on to very

driven process, vaccination to at monitoring counts using the and safety a are data case facilities. our We local rates precautions determine

number back traveling workplace. welcome back remote begin our As and again the a visitors, employees to we return of

global Our facilities the have pandemic. throughout manufacturing been operating

are season, Given elevated seeing the more America. resulting and holiday challenges North States rapid cost in reopening labor, production along inefficiencies in retaining we and summer in in with the attracting which is United the

are of methods. combination employees financial company their we to actively to non-financial of success value demonstrate TTM. Our through endeavor and the a paramount And our to

We are unemployment to increased support employees elevated also US vaccination TTM in potential work benefits hopeful our rates the customers. and as the to expiration join will we of encourage that

market. December to I'd All end disclosures market plants, our review like which mobility XXXX. the Now EMS end historical two in and exclude unit halted the production business of

posted in of please XXXX. QX XX% XX% aerospace sales XXXX compared For page of more market website. end earnings of to disclosures, of quarter X The to on market is and our sales which defense presentation, QX represented details end second our total on sales and XX% refer

key positive continues program AMD quarter. market million $XXX year on at experience meaningful compared Northrop's We commercial of alignment The We which saw beam a climate On declines strategic defense the and franchise defense quarter basis, scalable defense million with a continue significant ago. our upgrade with on year radar. result fighter saw year programs. aerospace in jets strong outperform of year a is our bookings for to year a relative program backlog $XXX stability for F-XX agile bookings to ongoing the the in in

and total much quarter in industrial in market XX% and from XX% of instrumentation this We industrial about a than our end XX% instrumentation as semiconductor second stronger quarter rebounded. exceeded XXXX. million sales performed total medical $XXX than in run The end in of customers quarterly to MI&I the better first capital compared as expectations, market the expected as XX% represent and the of expect quarter The sales. end our equipment in year market ago to contributed market medical sales were rate QX customers the well

of the XX% above ago, $XXX we For expect and to and in MI&I the quarter the first Automotive year is XXXX. third the during quarter sales almost million XX% quarterly revenues. sales of during year to since to be which grew rate, Automotive XX% a over XX% a XX% XXXX. total of our Compared represented level run quarter seen sequentially expectations, second XXXX. quarter grow not continues of year exceeding

affected But do business. are purchase has shortage limiting is our We that we production. Since semiconductors the automotive phenomenon not aware not of this directly currently semiconductors.

on are PCB monitoring we it has indirect situation the our to-date non on demand. had impact our limited While very closely, --

XXXX. expect China and the total of first XX% a XX% the accounted the strength of compared be market year XX% year XXXX. end basis We the quarter revenue. total relative quarter computing build telecom revenue saw quarter, contribute in for compares end on year of In out during of of second quarter first the compared to networking XX% this to as QX end on automotive the in of center growth year XX% in data XX% of was Sales to on QX the communications sales XX% to quarter comparisons. customers. XXXX second second expect revenue in market represented face This in We QX. XX% difficult we year data sales This on to center of Networking primarily the market XX% from year up in in and XXXX our XG XXXX. in of of due in

end market revenues approximately represent year to XX% expect as third sales quarter growth. to on data continues We in this year drive of center

some cover details from second quarter. the I'll Next,

operations X information presentation. plants EMF following we and of All also page that earnings exclude business of available our metrics This mobility two on the the the close. is unit

revenue. and and components includes to compares approximately accounted During approximately and technology in year This business, of HDI, RF the for the which quarter ago XX% QX. our in our XX% advanced quarter flex subsystems XX% rigid

in and utilization pursue in will year Capacity and continuing technology to capabilities XX% leverage quarter the engagement in new new compared activities ago new our in Asia Pacific opportunities to increase QX. XX% are programs and was advanced business XX% that markets. design QX in We customer

to was in year Our QX. the QX and XX% XX% North XX% in in capacity utilization compared overall in ago quarter America

of first plating years. we several American our sites added two time for capacity As in in North the

our not at At is sales contributed to quarter and second $XXX.X XX% XX-day total last compared at $XXX.X million, customers end XX% five the quarter have top cancellations of in second the compared first quarter XXXX. year, of to did the of quarter. XXXX customers above end the of Our million subject of which in XX% to the backlog, million the was QX. We end the of any QX, $XXX.X in

contribute the mission ratio to months to thanking Our customers. our materials XX. three for like with of and business the result challenges for continuing employees was innovation supply Despite X.XX our we as labor June to facing, than by conclude of efforts TTM TTM PCB performed again are a critical better partners I'd inspiring our and our ending customers. book-to-bill support and our related concerted expected our our to and employees direct raw we chain

review will financial Todd quarter. the second our Now, performance for

Todd Schull

today. distributed I'll afternoon, quarter, financial also for reviewing be and in everyone. press good are our results second which Tom, release shown Thanks, the the

on which of presentation as our website. X well our page posted As earnings on is

the sales the are of quarter For to our was million $XXX.X net most revenues two due million closure the operations decrease second quarter and XXXX. facilities, quarter. $XXX.X in in generated no in QX compared $XX which year, EMF of second last to continuing revenue in of million from recent revenues this Year-over-year of

impact, continuing the financial per in will of of diluted operating other a $X.XX end grew as computing of share operations in revenues the automotive On operating million million, million year-on-year, performance. GAAP second $XX second was comments diluted $X.XX income XXXX centre that X.X% the than the share. to remainder in in end million from income business last net quarter $XX.X markets of markets. data second compared continuing income GAAP of GAAP from operations or growth for $X.X year. net of declines on Excluding per in and income quarter more The focus XXXX quarter non-GAAP ongoing my quarter of of second $XX.X XXXX. our the or compares our basis, This offset was

prior or the items, XX.X% business see US eyes tax to to We in infrequent the management quarter the quarter second periods. mobility American enable non-GAAP compared second and appreciation X.X% the comparison net Selling of XX%, performance sales sales certain expectations restructuring costs, items. with related and inefficiencies to investors The costs, other M&A non-GAAP versus XXXX. in expense or China in divested second was our million, North was in Gross million of in unusual financial to marketing was largely and company the due expense to currency and our present non-cash versus plants. facilities net of facilitate ago. year-on-year and Our excludes items quarter, year $XX.X the Margin units, and the certain of of to dollar a decline non-routine the Chinese $XX.X information production X.X%

Second to quarter net in quarter G&A X.X% second the $X.X in of the X% year-ago or In compared a year compared R&D revenues, or quarter, expense was million million, to was sales $X.X $XX.X of net ago. same sales, or or quarter. X.X% million of the million X.X% $XX.X

last in due debt Interest the expense as debt first levels we compared second margin quarter to expense million our $XXX quarter was convertible the in was decrease of year. quarter year, bond X.X%. operating X.X% term same last following lower million to repaid as second well quarter. million the as Our the lower a and of loan the in our quarter, interest This same $XXX the from our in $XX.X refinancing in $XX million

approximately income or reduces million million $X.XX ago. below a EPS. second foreign a quarter During exchange operating gain impact of This Government $X.X interest to incentives compares line. of negative the year a quarter, negative million, and a to the $X.X in the there was $X.X

tax effective second the quarter. Our was X.X% in rate

Second the And EBITDA diluted net per million compared capital $XX.X quarter $XX.X to was sales. second ongoing was Net operations. $X.XX for of This quarter us share. net sales, quarter million. or was $XX.X the Adjusted for or the for million, for diluted of $XX million net million, quarter from million. the focus EBITDA XX.X% of share. XX.X% or of XXXX quarter was second is income $X.XX $XX net adjusted spending per flow second income $XX.X cash compares Appreciation or with quarter XXXX

results, continue deliver we operations. generating consistently of quarter, million $XX.X XX% or strong to from second revenue the During

and last and months of was by and million EBITDA the balance very divided sheet equivalents were at XXXX net cash second liquidity Our Cash positions the times. X.X strong. remain end XX debt of quarter $XXX.X our

during $X.X are million. related previously avoid stock and We We that second to back shares our XXX,XXX stock issuing bought million using and quarter warrants. repurchase $XXX strength for we the new to to announced repurchase program, shares

settled warrants spent also to quarter, of stock shares. during the XX% $X.X cash that We the avoiding million the issuance mature XXX,XXX of thus approximately

guidance third to turn to quarter. like for I'd Now the

As Tom the divestiture since the experience of mobility amount business. stated has earlier, the and of we seasonality changed nature

result of we and forward revenue demand into QX. witnessed, pull that lower QX we change As in that the a sequentially expect

we lower addition, larger In a to in operating impact QX, which will expect sequential inflationary contribute margins.

$XXX count range be in the range of million $X.XX non-GAAP based expect third quarter on be XXXX of the Given million. expect total approximately a to of that, for million XXX $X.XX we $XXX revenue earnings the share. to shares. per to to diluted The And we of is share in diluted EPS forecast

is guidance Our the strike the the shares but share count stock with associated price such includes options warrants, no and as of RSUs, as dilutive under of price current our $XX.XX. stock securities

about of third that R&D in X.X% the expect will about be expense We SG&A X.X% of be will quarter, revenue and revenue.

We expense approximately million. total $XX expect interest to

following we our rate in XX%. offer effective estimate models, you be the financial your Finally, we information. tax additional To developing to assist

to During about million, compensation million estimate intangibles $XX interest of about $X.X expense $X of stock-based the be expense we third million. of expense will approximately amortization record approximately of quarter, $X.X we million, depreciation non-cash and expect

line remarks announce Conference and Finally, the in XX. I’d like concludes Infrastructure August Conference Hardware X, Needham That like that we’ll Industrial Jefferies Jefferies the our participating Technology prepared August the be for to open Industrial Travis? on Communications and I’d the Conference on X; to on August IT virtually now questions.


Our Instructions] [Operator from William comes Truist Stein, question first Securities.

William Stein

my on good results. Congrats quarterly taking for Thanks Great. the question.

quarter. have XX% to you to But a XX% still is this and ticket think target X.X% target did. I had think historically I metric. was And in XX% margin to timeframe have mind I'm you took you on before that XX% you op recall the whether that good have up in wondering, the a you nice a that to it? whether divestitures achieve a

Todd Schull

key a I'll was, those targets. take in your to was levels hear up response that question, in see voice point our your couple again, now. us of One that Good believe getting In one. still A we're And to starting things. utilization Will. we Asia. yes, to for

to continuing the that's continue need key the to do as inflation needs we drive. well would from that better element a development. seen materials a components commented particularly that opening then to improved to And terms a on favorable as seeing expected aerospace labor have defense and have then that challenges And price basically, raw RF as that second seeing in his that result of that that's seeing the by business, portion which already muted so grow we inflationary inflation you're the bit than usual we've PCB utilization we're we labor and very some of in other so have to our of business, force, from sub -- in little tighter So our has that margins, been has fabrication wage of and been some continue assemblies costs good the news is, or Tom that the thing have the then remarks, to labor is, a we getting Asia too.

two elements muting growth kind well actions. will, and that mitigating those are temporary I those view working improved from cost as are would as management to Headwinds, work you as through normally the So, utilization that are if of we the But things Asia. us. in pricing that benefit we see against ongoing will actions

be for So, two a as here for quarters. will more nature. of or have or view quarter be a us couple transitionary been those in with temporary they will I But -- probably and

William Stein

up. well. input regard to we've it. component bit and material to to want one on the suppliers the thing, follow-up a I that, inflationary among and is little seen very but as I Labor is is With stretched, well but not are accept Todd, environment, into quite the board, cost dig parts. We've for side, But in semiconductor raising even are lead-times -- well, prices willingness among other cost maybe customers, willing also they're are just up at costs. prices seen not I'm among party it. but this down are business where their among sellers, you A and really more. appreciate I'm automotive Thank are it willingness the particular, that your other particular, going wondering higher also as in pretty components strong that seeing the a ability expect stretched in willingness in semi, we're among suppliers -- going the -- the the costs this release, foundry, willingness costs -- this in to what buyers the and across why don't means matter paying your if wondering of customers you. to? input to Their a markets Semis comes

Tom Edman

Yes, this this so is Will, Tom.

cover that. me Let

XX%, in all, tire particular, to of dynamics board think circuit have the First also explain about if about provisions. you here of or either, some set contracts to of our business. a with to on in is but just in work A&D our the to if we But business more And business quarter. the the in escalation approximately again, then related businesses given of of printed our think business, depends spot half spot if non-contractual non-contractual A&D you or business is commercial XX% related type of business business, about

balance have with be the related of the XX% contracts we business to customers. So, our that about would

negotiations. a our if models best in I and even we that -- our comes or not XX% and balance that quote of obviously, for have, A&D take -- XX% really do So, with they renewal, we're that It's when up often. received XX% the and every relationships negotiate care to increases, which is which as to about. we addressing most commercial of Obviously, of the to -- contract contractual that customer of incorporate we're talked immediately able we come the we up -- contractual for forecasted and the now takes more renewal that increases the time year,

the ask to have we've say of ask and we've the when situation And for we the been had understanding, a given and on to talk and that on frankly, mitigate that, and consider you increases cost the that XX% of some back able approximately go In that's pretty good, of course, always that also, portion that's business we've -- the present and customers been equation, that's those our improving balance, as for price of efficiencies, would We've so is their constant I side contractual. operational your focus do, receiving. that I us. we negotiation. And, even cases, to about of

be be as to focus. area through negotiations customers, the our continues contractual situation. pricing talking And contract through other with that we So the we'll of go

world. how be board And are those to that's the able going in through work this. So we -- confident we're mitigation it's as Todd just really of the that it that's said, work a And, circuit mitigate, strategies. how continue to question time works we'll to through printed as we

William Stein

Thank you.

Todd Schull



question [Operator Needham Ricchiuti, comes Instructions] from & next Jim Our Company.

Jim Ricchiuti

And Hi. on Good just market afternoon. was were elaborate I it, Poland's, to which driving? or talking but may about say unusual the that verticals? have how you Can what Poland's. seeing where And is say? is you're in maybe missed you

Todd Schull

Yes. not highlighted, many that if the the excellent side we I about think a you And have more rates is blending and it predominantly as datacenter saw the North where where so multiple not to we and little have in And of look QX, production America, it add end-market Sure. was days well. our, generally coupled we the would in in as QX were, Jim, at terms unusual Pacific. that we that consider networking of with we sort because in quarters. we in of of normal in Asia utilization QX, in and networking and the QX bit computing Yes

push from vacations more in were to were ability on those for always factor production bit product areas, in into the QX quarter is that output is a output were very And we'll you the a really go customers pulling we little and if will the other that two product then, a the here with out lower able as North be us, production feel we QX. our see, going edges, of just So demand. that to the versus subdued environment. expecting XQ, standpoint, on America. strong But

So of this factors that the in absorbing those are point that we're sort two at QX.

Jim Ricchiuti

to is the you quantify know your had And rates, don't question guys about on I Asia if I all to in North last Tom. wondering, just it the you And Pacific. size higher rates utilization are other and utilization want rates? American the you I'm question alluded a But just concerned at the utilization

Tom Edman


think I to about more just again way of to terms the area of if down we inventories see forecast X%. North think that in is the the X%. I down of you X% A&D, look a look at down going you'll QX and at MII, that it is on so and the portion And And sizing blurring, be to and then, about networking Bulk limitations America. quarter-to-quarter QX, you That's if QX of related at you provided. end-market and if of about that's look in in datacenter sort down telecom look to at to related will, which about demand. the X%, production versus QX,

a robust So down. utilization North they're continue the utilization, feeling those staffing to -- I the lines, equipment it's two about, gives the how We, in say to through plating. were what here our process, that obviously, it. requirements that are prepared good America plating two demand of to to that those tell turn respond ability are our again, well the are we you lines vertical are rates this adding particularly facilities. facilities terms levels. in excited that is in customers If need, plating But our our core in can't yes, work look demand -- great respond to and North bottlenecked us capacity future But funny plating represents that's how to we to we fact that way that in their by And in that indicator in our heightened the to we the really added lines, are on quarter. at out we quick there to facilities. marketplace, our to as have America continue ability North to service And, those signifies

Jim Ricchiuti

much. Thanks it. Got very

Tom Edman

you. Thank


Stifel. comes from Matt Our next Sheerin, question

Tom Edman

Hi Matt.

Matt Sheerin

Hey, hey, everyone.

Just the sounds worsen margin first a you any question you're passing and headwinds saying like visibility have December labor since materials and not like those regarding side. quarter? the seeing a ago. see probably along, in only two It on one and on into the progress do that side, little this on stabilizes, today conditions catching the any you're quarter bit when you're sounds the a up further Do costs but or you have

Todd Schull

QX, that inventory we know perspective, we we we've because that that forward have customers, which that work to think in solutions we're the try our continue what pricing. will steadily impact this increase our QX, suppliers today, that where less than closing few we're That that We're longer to forecast over go point or and decline, particular benefit moving Tom we we with themselves in course and earlier, in with is time. gap, -- the our September. been QX a takes issue we balance coverage, pricing so But it have over smaller us what with Tom got we to a and increasing going target. be a to period runway here revenue at we to are And pretty continue to on of, are it's we've qX. is the of of pricing But that's alluded place. the We suppliers to and we've referring in plan -- for what to from of we're now mitigate might now the what add in in stream of how costs Tom subject working as more try executing. customers front the to time. last implementing get working be said more few increase, the our to like is And team in progress, of inflation and a seen there to as in got but do better most That try of seen August deal there. longer What our to today. working XX% of customers I be our it this to think that QX has next gap. our already a and going kind us it's been way did really challenging think XX% in that looks have better at but of component that and XX% mountain up suppliers QX that point, get quarter deal mountain. can though So, QX. to on cost see position that to to marketplace with mitigated a been about working But They've the to a to the it getting the out we the and a that working process. still increases a that piece into That bit months. overtime. tougher over these job here a We're and did been or is quarters, quarter. to to from better QX so. of happens of subject earlier this keep team we're process climbing in and And we At on we've good I period was business, for and through we're hump, our or significantly hard we're But customers working the then our ramping, we hard of with front customer to we've the was well, QX making really has suppliers hill to and in over pipeline our and then see

Tom Edman

and forecast are fashion. two the vendors, Yes. we that And what their meet Matt And that their of a we really are has I'd of with and -- that of when seeing the to Todd partners. talking in as this be number understand are up. we know, is the at these we look are And, plans. -- them utmost vendors sort from really also requirements that the you doing the is is stepped inclusive times Those a are to what demand our partnership you only about transparent true we their understand add vendors have that so forecasting what as -- with to able

And as really going well. are so that standpoint, the understand make where from customers to and that understand trying we sure that market our that is

Matt Sheerin

Okay. that. us the goods the of -- for cost by laminate Thanks of percentage is copper-clad represented you could what laminate? And remind

Tom Edman

of of material in And goods it look our -- laminate single largest about our cost cost XX.X%. it's So goes total, probably of total into at sold. a overall our as percentage goods you is if that cost sold,

use, stuff all metals and the of cost XX% If about about is you precious we're copper look total our of related we goods that sold aggregate maybe what at talking of it's an here. really

Matt Sheerin

had and you've your obviously, Okay. think about strategy. growth a What the That's has your Anaren, key helpful. -- M&A, And success regarding second just acquisitions What's a opportunities? in my balance of question, thoughts Tom then here? sheet been part been should And of broaden portfolio. of improving? obviously second we just M&A there your Obviously, terms and product that's integrating your lot a -- with

Tom Edman


And printed close of and in. then efforts pointed there's -- that to that our a you you and and -- the been relationship strategy. is the it think component I on element involves a the on our that commercial will design revenue of side, support. has our Anaren certainly circuit core the working involved very out to side We're synergies still our strategy it board RF be efforts will the cross-selling if continue business it critical between we're

now optimal. we've approaching within relationship three that well it's and so we're years just now -- is obviously -- And

at And so couplers actively and But add in have and markets we out working in components automotive, well. other We've product as resistors been now we've adding telecom opportunities is and that continuing market. optical there transceivers beyond just on our well. very catalogue some to look where in done beyond networking new and building the

team in focus differentiation that development, we are continue on to company. going compliment So and that's how like on as really direction to really a I would our business they that about

engineering the RF the we adding make side, at have on M&A, looking the commercial As business on our is on capability absolutely, at that the look capability, looking strength support and building the defense of that and then right we aerospace component footprint build our and sure to out element. at to side there, customers continuing third

And a to we is so longer-term sure above internally financial strategic first make and to on sure that hurdle, of satisfy But will, continuing then Strategically, to criteria. work the you over that we're for sort that, effort strong make -- acquisition there's set. pipeline, work that if a need that's us.

will We in is as of multiple which financial open to those That we the market change It our the multiples does going some expectations. that's are elevated critical continue at metrics, look adjust that opportunities. to going always certainly here -- second hurdle, forward. strategic elevated up see and

very going and continue it's strategy critical that our to a and well to that much we're process So is alive and part there. a work of

Matt Sheerin

lot, a Tom. Thanks right. All Okay.

Tom Edman

you. Thank


Our next question comes from Mike Crawford, B. Securities. Riley

Mike Crawford

you. Thank

talk the can also ED, in business, mix XXXX a $X and which design over I combined, And conventional wins. in I XX%. versus Regarding wins, of wins had design been have and billion past you XXXX regarding design you think around automotive the about think

as future? that XXXX as And and the outlook today, stands where far so for

Todd Schull

Sure. Yes.

portion this that And -- XX new me recent with business. design about the quarter, side decent of value wins, lifetime Let of XXX start we on lifetime wins of million. good a non-conventional about in a design the program the automotive most was won with

flavor and product most constant relatively you last the non-conventional. So mix business you this what of I recent overall the we say was of terms a about XX% -- that gives year overall in reported quarter. automotive And should of give would what

that would about to advanced building new capability, focus XX% in on the and wins. our So, And technology advanced clearly focus business. be design on be conventional so that automotive with continues balance technology that content

certainly progress, good revenue. in say strong progress, a And quarter. here. the comment would on solid And the prospects just I finally So

high Very, grow still and us. nice to Asia for is Europe, into But XXXX a and we see very change mix as Europe particular see in remained hitting the was again I levels. region. think, at we to in come really North saw levels. quarter-to-quarter the America in, a growth demand

demand strong good, there. So

Mike Crawford

And And know that years small iX. differentiated I capabilities of of as further you. important a regarding some advanced assets revenue just quite that, solutions ago? Thank how property technology, provide acquired given percent intellectual couple you are and you with with a triple then a like iX divested to Okay. can you the that it what seems mobility business,

Tom Edman


right. you're So

as And well so lining spacing. interest in But dense is roadmaps very as and total own printed Falls, that revenue, can Technology ACC So that board their supply lines where forward. tell the We aerospace terms our pretty We doing technology roadmaps, from circuits. I Chippewa with we the and small. facility, for out well that, going opportunities break that substrate our think don't move you that comes up customer own it, call a track Centre with very of as and is like still can we our Wisconsin fine assets. In at percentage look needs out you Centre. as in Advanced And we of defense capability, Technology there we we're of capability iX our revenue. particularly their about circuit the that, Advanced

five So that and we support Mike, kind And down you course downward need. push good, years, or progress of the spacing lines I go to we coming to of through is a solid can so. That's the expect area, -- at today, our supporting to just of continue what tell micron a we're that, to out the probably there about UTC. good, as next the XX that plan here

Mike Crawford

into show live London. you you. does like September And a the trade guys defense Thank question affect looks then development but with in circuit in switch going business forward? final But Okay, it how show back will that gears absolute are getting

Tom Edman

always better be face face. to It's to

You're and anything engineering but our been done sales It's team more to job to able and absolutely they've I again, with right get be customers else. tradeshows challenging our our to participate a Mike. it's interacting to great face of face team out our at inspire best for mean, by just to helping to together the be field to helping really application to remotely, than that the out our be and is sitting -- customers. table as -- innovation And our process, and specifications on to also meet designing our are innovation that customers. mission the design inspire -- way on laid and is to

closer interaction So positive. real a is

Mike Crawford

Excellent. Thank you.

Tom Edman

Thank you.


from comes question next Our Christian Craig Schwab, Hallum.

Unidentified Analyst

Thanks ask Christian. questions. us of behalf let on [ph] for Tyler is couple This Hi.

And the like I commodity you the XX%. margins these you I what's your believe. could? heard First, quantify kind be And midpoint I are this from going QX appears last up guidance impact quantify labor don't quarter, prices and if then, impacts I and at is gross your of guys that quarter, FX million, And there? guess XX the outlined then think it to first, sequentially above implies is the correct? driver you

Tom Edman

on from to inflationary mitigate quarter primarily the answer able we those. your question issues, -- second material raw to the the first headwinds from were the costs Well,

quarter. seeing quarter. third we that we the It'll expectations, in mountain factor all the look not big the of and a there's -- as pressure bigger the in a in we're a climb because mitigated third the wasn't solutions really that have So quarter challenging at be little cost more to in or

forecasts, a factors, have contrasting becomes factors our When will we the And a and challenge there. with you’re impact bit just of QX, shortfall kind So the bit look that guidance. that inflationary of of you because with at and QX right. a similarity of a yes, into that our

trickle operating you'll with that going are Our you effect. similar in margins when actually slightly of see -- margin gross a down. down to our get stable to margins that's But terms through, to to -- stable margins probably

is percentage gap what margin the our you're of and suggests a standpoint by been reduction that there our sequentially and, really inflationary between little are seeing being driven EPS mitigate. from we've bit So shortfall, to guidance, decrease costs as That's able that and pressures. which a or increasing that the

we see going But this we're try of close that's as gap. to to Now, work to point that in time. what

Unidentified Analyst

as future the kind what's so plate the target of But the Asia. point Okay. below States, in at machinery And the -- encouraged rate in XX% was United rate United second guess, of you're with question, rate little think follow-up, the utilization and this bottleneck, what’s there quarter then a a I target you bit some added a a you rates I States? said, Great. the in your

Tom Edman

Sure. Yes. Sure, sure. Yes.

around American if So, have turn, America, North you have capacity available volume business because is excess bases of you to And have North the mix much -- the in also we're business. low that of needs. high of nature those have that to then have you quick move meet so bottlenecks because to

So dramatically, but doing if to need pushing what see utilizations if to we that, what to address we not a well. you We're -- we would need will, of great really indicator of When we awfully we're there? XX%? like at -- we'd that. to you were We ask, if are profitability, because -- to we started XX%, ever dramatically

XX% in to you as will we've labor a we above bring So seeing equipment and now hope that that installed, better the flavor, utilization raise help going and us XX% the gives start again. towards labor that fall, in rate to the that area bring availability point hopefully, -- up up as we're we raise that certainly we

Unidentified Analyst

guys. me. great. for all That's That's Thanks,

Tom Edman

you. Thank


questions There to further at I turn now call like Tom. time. no over are the this to would the back queue in

Tom Edman

Hopefully ongoing the from the a you Okay, just business. really our earnings part And supply high like And of very flow, for growth attending. did much. challenges. again, cash just We pulled support. financial understand. and finally, guidance. vendors you team. Thank consistent I'd COVID-XX-related end customers through thirdly, for our us as great. end of and continued delivered the you of a our again, thank discipline you. Yes, of the our and to market then for generated employees I all first factors for well and of thank solid demonstration highlight year-on-year we thank And few chain your quarter. We And on thank despite you strong wanted revenues to X% of of diversification that, I'll nice and And


This today's Thank concludes and gentlemen. you, teleconference. ladies

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