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BHE Benchmark Electronics

Participants
Lisa Weeks Investor Relations
Jeff Benck President and Chief Executive Officer
Roop Lakkaraju Chief Financial Officer
Jim Ricchiuti Needham & Company
Anja Soderstrom Sidoti
Call transcript
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Operator

Good evening and welcome to the Benchmark Electronics, Inc. Fourth Quarter 2020 Earnings Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Lisa Weeks. Please go ahead.

Lisa Weeks

thanks and joining call. full and Benchmark’s today operator quarter fourth year you, everyone us for for Thank XXXX earnings

and me The quarter the presentation section reference Jeff are Roop are under highlighting prepared our presentation issued this a and for release press XXXX Joining and the on the call our to earnings and performance website in President have The at being on fourth an release Benck, earnings will Lakkaraju, for review in the online as closed this that our Relations market moment CEO presentation. After release GAAP we financial the call. and www.bench.com. today, available and advice Slide we available of X the CFO. reconciliation This Investor a afternoon be we replay well Please call. as online to a following take of a is will the appendix non-GAAP the live, in the presentation. statements provided has forward-looking company webcast measures of

During discuss forward-looking our will information. we call,

remarks Actual reminder, materially these and are no in impact ongoing a statements, pandemic, Benchmark press to described COVID-XX notably uncertainties, and today’s SEC involve facts that statements, undertakes differ obligation of any historical as not statements any risks and releases from the our results are forward-looking statements. may As filings. of which most forward-looking from of the update

results, wrap Roop summary on then first including market by outlook including XXXX initiatives and the our sector and year begin initiatives balance a will and sheet will of cash quarter fourth an fourth XXXX XXXX. Jeff update covering summary by summary call, sustainability. guidance. detailed quarter ESG discuss for and XXXX, strategic will today’s of an with and quarter our up For Jeff progress a in our and results a

with the conclude then call Q&A. will We

Benck. our over If will I turn you call Jeff to turn please CEO, the will to Slide X,

Jeff Benck

earnings and healthy X.X%, higher-value achieved afternoon call operating non-GAAP share. all of Even Good our guidance improving midpoint and expenses at was gross above joining quarter. revenue and Thank thanks QX, hope you, to $X.XX we to efficiency, these was million, per $XXX you we the better the revenue today. per the margins at during In our higher Lisa. with With non-GAAP the expenses of We and for variable safe for higher-than-anticipated of sector of and our of quarter which higher $X.XX mix times. margin X%. compensation remaining target $X.X operational which everyone are resulting due were was in SG&A COVID-related non-GAAP or million share, about slightly X.X%, delivered

which are team’s flow capital coming bring operations. world, cash results the $XX around days, North particularly and communities rates fourth our in down quarter conversion the America our inventory for Our to enabled bearing at better effort free XX continued working impacting increasing fruit infection the with COVID in cycles in challenges, We including of million quarter. cash manage these amidst delivered

to continuing do to possible turn for X. all team sites work for to safe world. our environment our hard say operations Please employees, work customers. everything deliver cannot at COVID Slide enough are the to of you provide leadership force I and thank to Our their task a our around

year. had we another in achieving bookings company, the per proud we quarter, the and When business bookings that I across to strong continues XXXX for areas new over Benchmark. in face $XXX quarter I’m of to great million the a calendar report achieved goal even pandemic, of of of all million the new team over global job, $XXX bookings go-to-market do Our of a we and set consistently joined

losses regrettable contribute to elements as progress reducing As which also on many in we have shared business, I XXXX. revenue such in before, our driving made growth,

surgical companies for services aerospace control depth high system bookings and We More when were referenced for group were electronics. new to because in to achievement our want were bodes briefly electronics. soldier slide. storage We flight go-to-market with successful awarded our previously, the on shared sequencing awarded expect proposal. a challenges. In I win coupled future engineering analyzer compete engineering included of win a in also to our customer I’ve Similar device a DNA for programs to with differentiated largest highlight and programs their coupled flight and solving approach this growth this low-temperature control peer sector, a training the for program. state-of-the-art sector, in design we new we progress systems our technical manufacturing for satisfaction what manufacturing competed initiatives. on the revenue. were this and We our new awarded future robust we which we In A&D customer well medical innovative importantly, product technologies our services, manufacturing that for pharmaceutical and freezer the other most the with solution global offered advanced

business both environment products Similar sub-sectors we the new remain manufacturing and solution to broadband and projects favorable. for our to be team. a programs across sectors last box a build encouraged provided and were North box control for electronics new awarded we our In for strong very America to formula. power fixed a for awarded successful wins for our industrials, telco, a prospect in full-system with to winning remains about Benchmark scale computing for and engineering were destined where targeted In commitment plan new pipeline outsourced outsourcing we controls, new LiDAR technology the Our solution and a quarter, low-cost continues application. the One programs and continued Benchmark manufacturing solutions

XXXX, an that our despite as initiatives. out all-time the turn initiatives progress we at satisfaction If strategic you a please the with exited result will customer laid made to We our Slide year steady the with high focus X, customer on year. challenges key we associated for all of

making existing along to with relationships Benchmark, easier our progress strategic business do also improvements on it We deepening accounts. in with position our and growing made with

months. improved measure in the significantly has loss Our last XX regrettable

While we I on trends This an having further, have the and is foundation business pleased growing is customer our am to customer-centric the improve approach positive in with with base. important customer increasing impact our satisfaction this business. room

As part technology win processes of in our strategies, we to align rates. invest sector to increase

customers. we full had previously the year in mentioned, to bookings which sold As a of of new record breadth our services we

and are We growth of on to medical in experienced that To in we convert revenue revenue. bookings than XX% end, ensuring focused XX% sector. semi-cap annual more

in solid we efficiencies, enterprise this the to year. Turning made progress past initiative on

global and intent downturn locations some on previously closure long-term Ultimately, we announced for the strategy site Angleton our target. parallel, plans of were facility the closures new company. We market. machining completing personnel ramping close and employees, in shutting aerospace turbine capabilities of and assets able in transition up majority we lack these the acquiring executing fortunately, the in the our alignment of we site, to on others. customers working to remains and working our been divest announced and footprint versus last optimizing transferred which the on given continue the and our our down to assets had have In including QX the with year and We in of

the improved G&A forecasted. SG&A our In prioritization, which for investment processes, centralization we expense activities addition, managed $XXX and we was maintained management. expense million lower our to Through year, focus on than

Lastly, management to targets our flow the us improving exceed working and effective year. margins capital cash allowed for

talent in call, Finally, engaging have in later as and shifting in the our reference made we I will strides ESG our culture. update

all in We’ve I our skills with As previously, centered and continued shared our foundation in a great has Benchmark integrity on endeavors invest new, attitude, diverse organization. partnership a to talent across engages and customers.

advancing organization. all the levels efforts ESG our will rich at Our inclusion and ongoing technologically diversity in Benchmark company make innovative commitment and through a more processes to

Roop Now to call fourth turn discuss I the financial quarter will results. to over

Roop Lakkaraju

I and which the everyone to Jeff Benchmark market Total million million. and to their our safe revenue our QX, of be revenue continue afternoon. families was of you, midpoint by in guidance to and sector. $XXX was QX turn Please similar in with hope line Thank for X our revenue $XXX healthy. QX and Slide good

up vehicle the communications systems. revenues, strong to were due fourth growth fourth to revenues offset semi-cap in certain industrial, our and to telco A&D XX% transportation to Semi-cap demand revenue. elective and market market surgeries oil computing yet flat return an customers from and down ultrasound engineering in comprised and revenue sequentially semi-cap from demand, Medical demand for demand platforms increased fourth remained were was decline sequentially products increased programs quarter ventilators, X% equipment revenues overall from the quarter XXXX in the As expected, Industrial and soft. year-over-year which services. of revenue medical. continued seasonality quarter continued from support land-based the of value increase the for Conversely, and markets to have revenues XX% quarter. x-rays represented to involved and were revenues aerospace devices higher to fourth commercial fourth demand was and up for Overall, to new on devices, Traditional customers. wafer which lower markets across our in softer as and from continued stronger from radar in remains quarter-over-quarter. strength quarter muted for the and infrastructure declines fab due levels. trauma and exposed during about such in gas up defense demand and therapies, COVID-XX related Demand logic the of XX% quarter pre-COVID X% for DRAM revenues and

components high-performance data satellite in ramps program lower were center demand New secure by computing commercial network in and offset broadband and in products. and

represented quarter revenues. markets of XX% traditional fourth Our

represented Slide in customers X. to sales fourth the turn quarter. XX top Our of Please XX%

was per $X.XX. the earnings Our share GAAP quarter for

Our to GAAP force reduction around million in $X.X and of related other onetime results our other activities restructuring restructuring costs, and network included sites. totaling

margin basis was our XX a X.X%, sequential QX, gross non-GAAP For increase. point

sector improved a we per estimate During approximately positively quarter represented million versus which of increase. impacted $X.X and was absorption We basis basis $X.XX the XX gross $X.X in recoveries, number costs of million margin the customer points point the XX COVID by that QX. overall in or incurred share of mix, quarter, approximately

to was of increased margin. between investments In from XXXX, as benefits non-GAAP Non-GAAP to X.X%, Our an QX X% million, margin profits operating the was primarily and variable in gross rate lower was million and an increase and result sequentially The the and SG&A of in to jurisdictions. non-GAAP salaries U.S. due the increase ROIC our year-over-year. is compensation, higher of compensation. effective and infrastructure and IT is $X.X foreign increase variable of Non-GAAP increase other the X.X%. expenses. $X.XX for mix EPS was quarter, tax XX.X%, which QX was higher was reinstatement $XX.X million year-over-year our The due related sequential $X.X a

EPS performance. billion XXXX primarily billion, operational non-GAAP the a Slide revenues by XXXX for medical from decrease $X.X XXXX. gas $X.X versus pandemic-impacted X oil sequentially, and commercial in was improved sub-sectors. in customers elective from sector turn Our revenue our year improved market from Total to demand aerospace, XXXX lower from and for Please for full Benchmark

value For logic deterioration the XXXX led from XX% existing customer the by full with declined the and aerospace which to the respectively, from was strength year, sub-sector. medical, market across base. programs and DRAM and semi-cap slightly increasing due up Overall, commercial Semi-cap’s sector increased increased our revenues A&D higher X%, markets tools were of and year-over-year. share primarily XX%, for demand

remained the compared from XX% large were revenue the XXXX increases and programs. the additional a our Revenues QX with telco. program higher value primarily infrastructure and in to of in reminder, traditional XX% of commercial and softness from markets in delayed. contract approximately from impacts As grew investments Overall, throughout XXXX, oil commercial in new A&D was represented down the strong legacy from XX% markets sector Overall, XXXX. XX% where revenues computing existing XX% of projects year remain the in for building the XX% existing industry, Industrial demand with exit transitions medical and the revenues XX% across XXXX, related down and and in primarily many defense aerospace. gas number new were markets XXXX programs. our and Defense year-over-year, a from security

represented traditional of XXXX revenues Our markets compared XX% XX% to in XXXX.

of sales year XX% XX top represented customers full XXXX. the for Our

the that have customer, Applied one for XX% greater year. We revenue of Materials than full was

turn to XX. you will, please If Slide

earnings per for $X.XX. was fiscal XXXX GAAP year Our share

million costs included related results totaling approximately included consolidation in activity costs restructuring efforts, activities other $X $X and network, of $XX costs offset GAAP onetime other around These million. site proceeds. insurance restructuring-type Our our workforce in million million $XX in and impairment, by net to asset approximately reduction

margin this by net We increase disruptions $X approximately the was COVID-XX XXXX. caused incurred the gross COVID non-GAAP that estimate million X.X%, a with We achieved Our XX in XXXX increase. we pandemic. sequential basis operational point costs even of

an million infrastructure pandemic the X% EPS of Our compensation non-GAAP Non-GAAP the higher non-GAAP year was COVID-specific XXXX, million, cycle Please tax for increase the incurrence $XXX our Slide In in X.X%, XX.X%. performance. to to efficiencies due rate turn of our review for SG&A due The $X.X and Non-GAAP our from of XXXX primarily increase XXXX investments. was $X.XX, from and to effects is operating variable effective was was and ROIC non-GAAP conversion XXXX. X.X%. primarily cash on operational IT XX a to was costs. XXXX, in the decrease margin

year of XX to improving in and fiscal customers XXXX, inventory X resulted QX. from from Our focused be and cash were effective XX This X we continue working third days capital has Throughout the on management. in assets payments in and days improvement conversion advanced improving an general, contract quarter. days the quarter, cycle in days by fourth

Turning balance with items, sheet $XXX to a $XXX our an million was cash cash summary and million flow for December on the Slide and available at of cash in update XX our U.S. debt balance XX

from cash operations XX and we outstanding a $XX have and At our We manage term generation. had our the business, available the generated continue XXXX. borrowings on year outstanding flow in for loan for liquidity to provides return $XXX position full shows to December our QX structure, million future strong capital XXXX, invest no cash our XX, shareholders. million revolver. with to million capital and in generated We on our $XXX Slide flexibility

of million. XXXX, for in year QX represented Our allocation million XXXX. free dividends million shares fiscal $XX the and activity. repurchased $X.X year paid cash shares. million In million cash approximately $X.X we flow $XX XX QX, $XX.X X and repurchased was In Slide capital shows which full we our million, of

to had As on share of minimum, we continue At XXXX, authorization. shares offset remaining to equity repurchase December a our $XXX million approximately XX, annual dilution. will repurchase our we

and XXXX, opportunistically to Beyond considering repurchases share will dividends we conditions. that, XXXX share million From repurchases paid million shareholders. executed in our market we $XXX while evaluate $XX to in

Turning to expect normal to a $XXX sectors. Slide $XXX million, XX we our which reflects to of first quarter for XXXX from seasonality for million revenue review some guidance, range

inquiries confirm environment. and extending number can are that for supply We regarding lead of have in chain some had the times including a the components supply We chain, semiconductors certain passes.

continue any suppliers near-term will our but work beyond We to our aren’t impacts to experiencing normal expectations, future demand. customers with we supply fulfill and proactively to secure

full as our expected million. for that range margins The gross $XX We programs. will drop the and year modeling least operating will X%. to sequential X.X% and we in lower to of the gross do assets for that $XX range to X.X% is will the between guidance throughout new non-GAAP purposes. exclude margins expect be margins expect year XXXX, does increase, to provided SG&A guidance margin is be fiscal Implied X.X% impact our of restructuring QX of due costs. million expect estimated X.X% and amortization revenues intangible in ramp and and for we gross other We margins continue gross The and at

million. $X QX million restructuring and to incur expect nonrecurring in to approximately $X of other costs We

from $XX $X.XX cash is $XX to Our estimate to diluted will fiscal our capacity CapEx will production is growth. of net, XXXX non-GAAP support be of interest revenue new expenses, as range in million for customers related million outstanding operations for $X.XX investments We be flow year Other approximately earnings is midpoint expand to generate prioritize that our we through expected to which to year $XX the million $X.XX. and the million, to $XX expected $X.X per to approximately be expense share a million we of and primarily or debt.

takes no market between be weighted $XX.X around the to changes global tax for conditions customers. Jeff. effective network. The with And distribution our average QX expect our COVID-XX. to constraints known of for supply rate and QX, also because base, quarter or significant This income no all you, XX% are back due We of non-GAAP guidance for and assumes into shares that million. that, will XXXX the to expected interruptions consideration Guidance material operations assumes end further our to XX%

Jeff Benck

for Roop Thanks, that update.

XX. demand Following additional Roop’s the for Slide by XXXX wanted on comments to on guidance quarter, our view our for first of I some on color provide sector

first revenue remainder sector-specific expect continued some sector products, our this the are demand of our decline by in computing medical sequential demand oil business. computing. growth softness industrial we From seasonality gas medical programs revenue semi-cap surgery in medical for products expect slow and the and some and program supported in to dynamics. therapy new XQ, and For offset we our aerospace remain started we the commercial sequentially HPC the to slightly weakness quarter, primarily new base, ramp and products further throughout QX relatively Strong sector, expecting first in year, from and have of yet revenue the sector, In in flat COVID-XX-related to for from as elective to are half in recover. the devices industrials,

our trends capital sector. our XXXX we demand created complex medical over that in diagnostic will for equipment both deep that second and advanced in new well growth to driven and revenues XXXX, for have program and XX% medical growth We the products remain our by XXXX in on than machining precision and which of throughout number of In work-from-home we expertise demand electronics another XG in year are ramps and well as computing for expect now continue manufacturing the by grow semiconductor be positioned we will services program school-from-home wins, large flight sector design with ultrasound products half and strong remains all However, manufacturing to as a of recent benefit this e-commerce. revenues. in semi-cap, expect cloud QX, deployment and With for confidence levels. greater

In sector A&D in strides the business and will to further strong growth to first starting of back that strong to Asia and XXXX. year-over-year our flat suspect to Moving half in declines supporting programs applications new significant new and in in be visibility offset commercial in improvements revenues Customers by we are demand Independent line expect we down advanced our systems. begin not from ground-based year. sector we aerospace our business industrials, sector defense expect second weakness oil are for from this provided outlook, communications, potentially persistent a seeing and the business will we gains – in the military radar improvements. programs have time our teams have further aerospace with At in new commercial programs, and customers. that ramp XXXX. present, into existing Conversely, both Expected recovery, made our new accounts. leader half of growing development recover gas in

the even XXXX. growth, in the industrial of our the against new full had year value highest in demand confidence sector support fact, These programs outlook. In bookings softer near-term

also selective late high-performance in ramps QX our strong computing by and revenue revenue For In with overall expect strength expected traditional underscored through telco the communication satellite midyear the remain year, we in contribution XXXX. highly from projects full engagements, we we we where computing, demand growth expect markets. In in broadband the programs. in expect market, stable

some will the where I XX, now on broader to new turn perspectives Let’s year. share Slide

our Now over are XXXX. achieve bullish mid-single-digit growth that on to becoming we we’re XXXX, increasingly in ability

incremental from semi-cap computing. in medical growth continued high-performance contributions expecting are and and industrials We with markets the

grow full are expected for Our higher-value the markets to year.

revenue. again markets our total expect XX% higher-value of over to We represent annual the

least as number ramps continued year programs. targeting gross are X% benefits margins for headwinds a with full excellence and operational at the we COVID program of new our to offset costs be from We from

to below consolidation. to program. are shareholder expense returns targeting and continued shared We X% with We SG&A committed value year be our progress shareholders share management growing for effective services remain dividends also the to providing buyback full through and with and incremental quarterly from

internal and defining and an our sustainability, enterprise-wide, investments is and the our Slides which for to commitment governance, responsibility, these to advance you to people, strategy XX that wanted ESG is environmental tenets Benchmark. our key Under are implementing update imperative on will ESG turn our supporting the provide I and ESG council of oversight will the XX, cross-functional present, of strategic a COVID-XX If Board, At our an initiatives. of priority and the with community, projects comprised team ongoing response. tasked X

by strategy. with have with supplemented further our further have We to experience who ESG this partnering and accelerate specific like-minded third-party engaging by consultants customers team

information, reduction environment. we the energy been and have your of programs for in For XX years tracking monitoring almost support

represented a will but diverse more. the front, XX% of by directors Board corporate have and we On with governance we women, can do

racial flight on inclusion to expand and diversity our training focused and We a strengthen Directors platform our in have Board recruiting plans company overall through plans in diversity and to the of strategy, plan.

We to and have SASB analysis current ESG are we conducted which standards, this material programs peer a will mapping quarter. publish

upcoming annual provide will We of ESG further the updates proxy in QX. our and also sections report in

of sustainability initiatives today We as standalone for our our revenue overall Benchmark. reports is priority a in call our Growing wrap include qualitative top quantitative and XXXX to release will on of Future a improvements a both with I summary from up measures strategic XXXX. three expect want ESG and to XX. Benchmark updates strategy. Slide advance we reflecting report

feedback As over I and recurring time spent we referenced earlier, experience amount relationships. enhancing the the our a mechanisms couple years, considerable past through of customer strategic have optimizing of

ramps we full rate management must focused successfully and a on the we customers. of increasing processes new selling also to and financial in XXXX. to capabilities record account needed business. infrastructure our scale and to achieve programs, be Once levels services attach at order forecasted of Our win wins invest engagements supporting we to our on breadth are our In design improving, in new we laser-focused program which talent then are sustainable are manufacturing are through to targets, the

advancing also and delivery efforts. ESG and underpin global an to scalable and streamline initiatives foundational the sustainability creating services. these efficient As of diversity shared involves This infrastructure our I discussed earlier, inclusion

these Ultimately, in shared We to which of our IT, managing finance have scale expense our we introduced and services, concurrently model utilization HR, that equally. corporate our including growth in we model infrastructure, Revenue in year. to higher costs, our SG&A dollars groups leverage midterm last grow all faster centralized rationalized investments enables late while are and better our reflects expect earnings achieve revenue. other our to model support but not revenue created than fixed

drive value that, and I will to the to differentiated rate earnings in to conduct look on growth and investments margins portfolio in are win ability and and expand right will our We customers, the a in mix diverse is the increasing, ROIC and margin to operator to excellence and knowing to deal remain with And and initiatives sustainability these we to of with business leverages Through I the turn XXXX sector our engagements about customers, optimism, solidified strategic I executing Q&A. the years. with value and ongoing our that XXXX. through for shareholders. the forward our targeted employees end a growth higher-margin where targeting we that markets excited efforts, breadth revenue, call customer our value the path pipeline capitalize technologies and into our XXXX remain on over team’s advanced coming services. focused our increase operational achieve ongoing our have opportunities our of

Operator

question Ricchiuti ahead. & go Jim from with Company. Please Instructions] first The Needham [Operator comes

Jim Ricchiuti

on you afternoon. for Jeff are color thanks about everyone. the XXXX. Good how you. Hello thinking Thank

Jeff Benck

Sure.

Jim Ricchiuti

to and go kind of at That’s back to I’m to helpful. gross the QX margins. at demonstrate you gross looking margins being able those I gross because that looking revenue margins, were wanted levels at the

factors? you And the if may I missed You COVID highlighted did in margins quarter? it, some could, maybe gross out break of the you mix, but have there other were Roop, impact on

Roop Lakkaraju

part a it’s QX, that the this the most is right? all COVID we not about because bit so had bit down recoveries within X.X% nature QX. although then is got as and the little in your to effect. revenue revenue we’ve importantly, in roughly, a out the in that part difference SG&A the basis effect, But out market XX higher But We there’s margin, little that points taking an that of guess I of Appreciate – But in to from this question. then heart the didn’t revenue, less onetime is question, get is and the that And Jim, revenue about has look of costs got increased well. at difference, to – that So margin Roop. gross gross of traditional in comes lower – effect. in revenue of you X.X%. an We so of QX, value other market that standpoint, the absorption break

well. obviously you factored sites is part where tend there of the is, costs our have the revenue additional that some The if is piece you are will. challenges, other of that from into employee taxes, QX sort within has expenses, absorption final it these where that is that then overall, Then in also some to further things issues as or payroll potentially

‘XX, having gross the expect. year. Jim, reasonable end what other margin day, And expand to our the through piece The remind the full and talk year we is think X% I’ll we or very is for a the is at comments X% of we about through at margins you for of, least getting

Jim Ricchiuti

of of guys pretty a couple I’m these there wondering are – one slide. you you that couple a about of ramp? have Okay. sight of half Is out. verticals, And this just pretty how you some And new because other of that sight sounds instances, a terms some line confident do line think can healthy that programs on in being is of called of medical and in I second a ramp good it – and like you that are anticipating risk always the

Roop Lakkaraju

past little have probably saw a quarter. in programs, we’re because of it, programs higher I bit those fourth and these right, some in get of than qualified the thick Yes. in the confidence for even some of

really the to time. to It we’re on, new But said, a take go time. of – number in take on to quarters where win and off still does so we’ve going have see does to there’s And it we might things. it’s It multiple okay, got past, ramp up. and take engineering running sometimes

all I have cost us I sight, actually on, in two medical of things probably It’s particularly pretty industrial side we’re a in impact is confidence bullish lot of in high X that picked you there’s in think XXXX, that our won’t actually on a line particular but bit in but segments a which in the would those we in the of last say of and things wins that medical, years, which early costing increasing fact investing. up. little both – over us pretty number ‘XX,

Jim Ricchiuti

it. Got

thanks much. very Okay,

Roop Lakkaraju

Sure. Jim. Thanks,

Operator

[Operator question Sidoti. ahead. with comes next go Instructions] The Anja Soderstrom Please from

Anja Soderstrom

my for you good thank question and evening. Hi, taking

So the first industrial. to ask I want about

You there oil just big the infrastructure some in challenge is of see us you can and the oil and gas and and gas, transportation in remind the pie? how

Jeff Benck

with of a and to more around wins oscilloscope and of right, with Yes, for and that the of the But of gas. some in decline, measurement category segment. test of just have element big used things that, Obviously, beyond see are smaller and broadly group things are still there, and XX% strength, new some got a oil some that we important that us up kind and that measurement like test pretty some going where there. pick it’s kind of forward piece on is but we

the LiDAR come been some see coming time some programs those into in that is and in activity quite investing years. we also for we that, of some – have Beyond have production

about remember, So ago, a couple the industrial I year strength participating about like we year last we under think are or we in those were Because were see – and pretty we there. you areas where there. felt excited if Anja, a potential

factory some and segments those We automation in but better are as for those a points doing other and ‘XX. touch warehousing well, of few are

Anja Soderstrom

Yes, of pockets strength. Okay. follow-up my were for

areas pretty be So oil and costs gas transportation pockets be the be to pretty strengths and so that those of in, seems powerful then? the good and infrastructure to would

Roop Lakkaraju

sort of what to that vaccine affects open as once So Anja, infrastructure and and things. looks strength bit and but it’s timing little gas the how you question that does broke up obviously, these projects recovery or recover, think like rollout there, of with oil an I a the

of right So as the we hopefully and could get into we further there that be some yes, you part strength are to could latter ‘XX ‘XX. see

Anja Soderstrom

is maybe participated in some economy think any it you. the growth significantly? potential in their you thank And then UK, in as something as to that open to up I see Okay, is testing testing you expand

Jeff Benck

Yes.

And of customer them exciting less device, a building which you test have than are COVID result result. they you that. Basically, is Europe. quite you’re designs leveraging point care quickly It’s beyond And we go around the really obviously, hour. get in to in deploy government this that of able to a that then a can pretty We there’s is and that amazing bit swipe that for building get a just Europe an technology. rapid – UK have a that

It’s the beyond sense not applications excited other comment but about So about and just probably specific think other the but or that exciting COVID capability. on also most COVID. pretty does the I too because the this DNA-level viruses much things you won’t in customer technology, we’re

meaningfully we’ve volume technology But amazing for contribute fourth this pretty hope to jointly and it the where in it’s go. a phenomenal customer, ramp partner we started as been producing and to can great in work XXXX So quarter. together

Anja Soderstrom

all you. Thank Okay. was me. That for

Jeff Benck

Anja. Thanks,

Operator

turn back Lisa Weeks for concludes like would remarks. to conference over any our This to closing I the Q&A session.

Lisa Weeks

Thank you joining today. call again for our

to the to any be If follow happy up. and please follow-up put regarding that don’t to be Also have reach I Benchmark Conference a release, hesitate and with Sidoti our you call. wanted out supporting you Spring reminder will afternoon, questions earnings sharing in you April forward and quarter on our forward first we with engaging look event. great have our look a this to results Please March earnings Good you. to at we Thank on XX will afternoon.

Operator

concluded. presentation. The conference for today’s Thank you has attending now

You may disconnect. now