Brian Kintslinger's questions to EMKR leadership • Q3 2024
Question
Inquired about the sustainability of the recent strong bookings, the factors driving the positive trend, the composition of the current backlog, and how the backlog mix might affect long-term gross margin potential, especially considering recent cost-cutting measures.
Answer
Management responded that the bookings pipeline remains very strong, with the current quarter's early indications outpacing the last. The positive trend is attributed to a combination of the global geopolitical situation and the maturation of the sales team's efforts over the past 18 months. The product mix in the backlog has improved, particularly for the Concord facility, which is a key focus for improving gross margins. The company is actively managing this mix and working with customers on longer-term demand signals to achieve its financial targets.