Thomas Ingham

On behalf of Todd Coupland, Thomas Ingham asked for a bridge between commentary about data center lease pauses by hyperscalers and Celestica's strong bookings growth. He also asked if recent design wins could lead to additional 10% customers.

Answer

President and CEO Rob Mionis stated that inside the data center, hyperscaler customers continue to invest heavily in AI/ML and networking, and Celestica is not seeing any slowdown impacting its multi-year backlog. Regarding new 10% customers, he confirmed there is potential for another one to emerge from new program wins, likely in the 2027 timeframe. CFO Mandeep Chawla noted this would also depend on total revenue growth.

Thomas Ingham questioned why Celestica's Communications segment margins are not higher, comparing them to peers with double-digit margins, given the increasing mix of high-value networking products. He also asked if the DeepSeek development is expected to favor custom silicon over merchant silicon.

Answer

President and CEO Rob Mionis clarified that the Communications segment is a blend of high-margin HPS networking and traditional EMS revenue, which impacts the blended margin. CFO Mandeep Chawla added that the HPS business is accretive to the record 7.9% CCS operating margin and performs in the 'same ZIP code' as ODM peers. Mionis also confirmed Celestica's focus is on the growing custom silicon market for specialized AI applications.

On behalf of Todd Coupland, Thomas Ingham asked for OEM feedback on the timeline to adjust to tariff impacts and what assumptions BlackBerry has embedded in its guidance regarding this uncertainty. He also inquired about the key growth drivers for the 50% of QNX business that originates outside the U.S.

Answer

CEO John Giamatteo responded that OEMs are still navigating the tariff situation without flagging material downturns, just general uncertainty. CFO Tim Foote added that the guidance range was broadened to reflect this uncertainty. Regarding international business, Giamatteo highlighted the vehicle OS initiative, especially in Europe, as a key driver. Foote also emphasized the strategic investment in expanding into the general embedded market (GEM) in verticals like medical and industrial to diversify and grow the total addressable market.

Thomas Ingham from CIBC asked about the estimated GMV from China and the potential impact of U.S. tariffs under a new administration on Shopify's merchants.

Answer

President Harley Finkelstein stated that Shopify's role is to provide merchants with tools to navigate any political or economic environment. He specified that China has not historically been a significant area for the company. CFO Jeff Hoffmeister added that they do not foresee any administrative changes impacting the fundamental drive for entrepreneurship.

Thomas Ingham, on for Todd Coupland, asked if the competitive opportunity from the Veritas-Cohesity deal has begun and questioned the impact of the macroeconomy on enterprise spending.

Answer

CEO Bipul Sinha confirmed they are receiving more calls from customers concerned about the uncertainty of the Veritas-Cohesity merger. Regarding the macro environment, he stated that Rubrik is not seeing any change in demand within its segment, as cyber resilience remains a top priority for boards and executives. He affirmed that market momentum remains strong.

Thomas Ingham, on for Todd Coupland, asked for details on the Lightspeed Capital business, including capital deployed, and inquired about the outlook for operating expenses.

Answer

CFO Asha Bakshani reported a net cash outflow of approximately $15 million for the Capital program during the quarter, emphasizing a focus on managing risk as the nascent business scales. Regarding OpEx, she stated that while top-line growth will be the main driver of leverage, the company maintains an 'unwavering focus on prudent spend' and continues to find cost efficiencies.

Asked for an assessment of current market conditions and inquired about the potential uses of AI, specifically whether it would be for internal efficiency or for developing merchant-facing products using customer data.

Answer

Philip Fayer stated that market conditions appear stable, with strong volume and activity year-to-date. On AI, he explained that Nuvei is exploring both merchant-facing applications (like enhanced reporting and transaction routing) and internal uses. The immediate focus is on internal efficiency to improve processes, reduce call times, and help the company scale profitably.