Celestica Inc. (NYSE:CLS) Q3 2023 Earnings Call Transcript

Rob Mionis: Yeah. Todd, I wouldn’t provide too much detail yet on the quarters themselves. Just as we are focusing really right now on the fourth quarter and then we will look at full year, we will give more color as we go along. But what I would say is that, more of it is going to be towards the back half. Although, we are getting the orders on the 800G side, there aren’t going to be material shipments happening in the first half of next year. It’s really tail end related. But that being said, we are seeing strong hyperscaler demand in each of the quarters next year and so even if we are not shipping the energy product, there still is a large part of our portfolio that’s 400G and some hyperscalers are still buying 400G. Some have not yet shifted to the 800G in a meaningful way, and then, of course, the compute side, we are seeing demand continue throughout all the next year.

Todd Coupland: Yeah. Yeah. One last question for me. So this is more of a strategic question. Obviously, you have collapsed the multi-node structure and your large shareholder has divested its holdings. You have a strong position in a key trend in the tech market right now. How are you thinking about sort of like strategic positioning of the company from an M&A perspective? Is this something investors should have on their minds? Could there be consolidation in the EMS sector as a result of this strong demand trend. Just give us your thoughts on that? Thanks a lot.

Rob Mionis: Thanks, Todd. We are very happy with the progress that we have made in executing our strategic plan. And right now, on the M&A side, as Mandeep mentioned in other calls, we continue to have a very tight filter and be very selective on looking for M&A deals. We are keen to look for capability based M&A and we are also very keenly focused on expanding our services business, especially as it relates to servicing our CCS and hyperscaler customers. But we don’t see any big moves on the horizon.

Todd Coupland: Thank you.

Mandeep Chawla: Thanks Todd.

Operator: There are no further questions at this time. I’d now like to turn the call back over to Mr. Rob Mionis for any closing remarks.

Rob Mionis: Thank you. I am pleased that we posted another solid quarter marked by our highest quarterly adjusted EPS ever. We continue to see positive momentum as we enter the final quarter and into 2024. We also look forward to hosting you at our investor update towards the end of November. Thank you again for joining today’s call and we look forward to updating you next month.

Operator: Thank you, sir. Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your lines. Have a lovely day.