Jabil Circuit FY 4Q14 Earnings Call Notes

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. Full transcripts can be found at Seeking Alpha

Splitting reporting into two segments

“going forward, we are going to report our business in two segments. The first segment is Jabil’s electronic manufacturing services, or EMS, segment. Our EMS segment will include our enterprise and infrastructure, high velocity, and industrial energy businesses.”

EMS segment characteristics

“The key characteristics of this segment are a common, holistic go-to-market approach; a value proposition based around leveraging IT, supply chain design, and engineering; technologies largely centered around core electronics, sharing of our large-scale manufacturing infrastructure, and the ability to serve a broad range of end markets.”

DMS Segment

“The second segment is Jabil’s diversified manufacturing services, or DMS segment. Our DMS segment includes our Nypro and Green Point brands. The key characteristics of our DMS segment are a diverse approach to engineering intensive solutions, steady participation in build to consumer markets, build to function versus build to print, access to higher growth markets, and an intense focus on material sciences and technologies.”

Differences in go to market

“So, again, as I said in the prepared comments, there’s a certain set of attributes and go-to-market strategies for our EMS business that are much, much different than the businesses that we take on for Green Point and/or Nypro.”

In EMS, driven by converging technologies

“But as I said in my prepared comments, it’s intriguing to me that as we see so many different technologies starting to converge so quickly, things like sensors, things like the additional bandwidth in wireless, things like cloud-based functions, things like appliances connecting to the internet, things going on in automotive.”

DMS opportunities in wearables, mobility, smart packaging, pharmaceuticals

“As far as the diversified space, I’d say the same thing. We’ve got great opportunities in lifestyles, wearables. Our mobility business is strong. And then our Nypro team, it’s, again, fascinating to me to see what they’re doing in the areas of packaging, what they’re doing in the areas of smart packaging, what they’re doing in the areas of pharmaceuticals, what they’re doing in the areas of overall med devices.”