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Plexus Announces Q1 Revenue Of $458 Million And Eps Of $0.58
Plexus Announces Q1 Revenue of $458 Million and EPS of $0.58 Initiates Q2 Revenue Guidance of $440 - $460 Million NEENAH, WI, January 23, 2008 -- Plexus Corp. (Nasdaq: PLXS) today announced:
Dean Foate, President and CEO, commented, “Our return on invested capital (ROIC) for Q1 of 25.9% is a great way to start off fiscal 2008. Our Q1 revenue of $458 million was up 7.7% sequentially and in line with our expectations. We are establishing Q2 revenue guidance of $440 to $460 million. This implies that Q2 revenue will be relatively flat to Q1, but it is important to note that Q2 revenue includes a significant reduction of $28 million from a large un-named defense program versus the $56 million included in Q1. Excluding this defense program, revenue grew approximately 5% sequentially in Q1 and is expected to grow 3% to 8% sequentially in Q2. No additional production for this defense program is forecasted beyond Q2.” “Looking ahead to revenue for fiscal 2008,” Foate continued, “we are cautiously optimistic that our customer forecasts and new business development efforts will support revenue growth in our target range of 15% to 18%, although we remain mindful of the potential impact of a turbulent global economy.” Ginger Jones, Chief Financial Officer, added “Our gross margins for Q1 were 12.1%, consistent with our Q1 guidance. Because fiscal 2008 US income is expected to be higher than previously anticipated, we are now expecting our tax rate this year to be approximately 18% rather than the 15% rate used when we established our Q1 guidance last quarter. Consequently, our EPS in Q1 was $0.02 lower than we would have anticipated with revenue near the high-end of our guidance range. Q1 results include improved financial performance for our Mexico site, which was able to narrow operating losses to $395,000 in the first quarter through a combination of previously announced restructuring efforts and income of approximately $1 million from the shipment of previously written-down inventories.” “Looking out at the rest of the year,” continued Jones, “due to the strength of our Defense/Security/Aerospace sector, we are expecting gross margins in Q2 to be better than our 20-10-5 model (20% ROIC, 10% gross margin, 5% operating margin). We expect financial results in (continues) the second half of the fiscal year to be more consistent with our 20-10-5 model. Additionally, we remain committed to our goal of exiting the fiscal year with our Mexico facility at a break-even run rate.” Foate concluded, “Our strategic intent is to be the best EMS company in the world at serving customers with products in the mid- to low-volume, higher-mix segment of the market. Our global manufacturing operations and supply-chain solutions are uniquely engineered to provide service excellence to this segment of the EMS market. We believe that this high performance manufacturing capability, coupled with our industry leading engineering services capability, forms a powerful lowest total cost value proposition that will continue to deliver solid top line growth and generate a ROIC in excess of our weighted average cost of capital.” Plexus provides non-GAAP supplemental information. These non-GAAP income statements for fiscal 2007 exclude transactions that are not expected to have an effect on future operations. Such transactions include restructuring costs, as well as the establishment or reduction of the valuation allowance for deferred tax assets. These non-GAAP financial data are provided to facilitate meaningful period-to-period comparisons of underlying operational performance by eliminating infrequent or unusual charges. Similar non-GAAP financial measures, including ROIC, are used for internal management assessments because such measures provide additional insight into ongoing financial performance. Please refer to the attached reconciliations of GAAP net income and EPS to the non-GAAP supplemental data. MARKET SECTOR BREAKOUTPlexus reports revenue based on the market sector breakout set forth in the table below, which reflects the Company’s sales and marketing focus.
* The Defense / Security / Aerospace Sector includes revenue from a large, un-named defense program of $44 million in Q4 F07 and $56 million in Q1 F08. (continues) FISCAL Q1 HIGHLIGHTS
(continues) Conference Call/Webcast and Replay InformationWhat: Plexus Corp.’s Fiscal Q1 Earnings Conference Call When: Thursday, January 24 th at 8:30 a.m. Eastern Time Where: 888-693-3477 or 973-582-2710 with conference ID: 29303618 www.videonewswire.com/plxs/012408/ (requires Windows Media Player) Replay: The call will be archived until January 31, 2008 at noon Eastern Time www.videonewswire.com/plxs/012408/ (requires Windows Media Player) or via telephone replay at 800-642-1687 or 706-645-9291 PIN: 29303618 For further information, please contact: Ginger Jones, VP and Chief Financial Officer 920-751-5487 or ginger.jones@plexus.com About Plexus Corp. – The Product Realization Company Plexus ( www.plexus.com ) is an award-winning participant in the Electronics Manufacturing Services (EMS) industry, providing product design, supply chain and materials management, manufacturing, test, fulfillment and aftermarket solutions to branded product companies in the Wireline/Networking, Wireless Infrastructure, Medical, Industrial/Commercial and Defense/Security/Aerospace market sectors. The Company’s unique Focused Factory manufacturing model and global supply chain solutions are strategically enhanced by value-added product design and engineering services. Plexus specializes in mid- to low-volume, higher-mix customer programs that require flexibility, scalability, technology and quality. Plexus provides award-winning customer service to more than 100 branded product companies in North America, Europe and Asia. Safe Harbor and Fair Disclosure Statement The statements contained in this release which are guidance or which are not historical facts (such as statements in the future tense and statements including “believe,” “expect,” “intend,” ”plan,” “anticipate,” “goal,” “target” and similar terms and concepts), including all discussions of periods which are not yet completed, are forward-looking statements that involve risks and uncertainties, including, but not limited to: the economic performance of the electronics, technology and defense industries; the risk of customer delays, changes or cancellations in both ongoing and new programs; the poor visibility of future orders in the defense market sector and the uncertainty of defense appropriations and spending; the effects of the volume of revenue from certain sectors or programs on our margins in particular periods, the Company’s ability to secure new customers and maintain its current customer base; the risks of concentration of work for certain customers; material cost fluctuations and the adequate availability of components and related parts for production; the effect of changes in average selling prices; the effect of start-up costs of new programs and facilities, including our expansions in Asia; the adequacy of restructuring and similar charges as compared to actual expenses; the degree of success and the costs of efforts to improve the financial performance of its Mexican operations; possible unexpected costs and operating disruption in transitioning programs; the costs and inherent uncertainties of pending litigation; the effect of general economic conditions and world events (such as increases in oil prices, terrorism and war in the Middle East); the impact of increased competition; and other risks detailed in the Company’s Securities and Exchange Commission filings. (financial tables follow) PLEXUS CORP. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(in thousands, except per share data) (unaudited)
PLEXUS CORP. NON-GAAP SUPPLEMENTAL INFORMATION (in thousands, except per share data) (unaudited)
(more) CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except per share data) (unaudited)
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