PLXS

[BigSully1]

http://stockcharts.com/h-sc/ui?s=PLXS&p=D&b=5&g=0&id=p591918615


Plexus Corp.
55 Jewelers Park Drive
Neenah, WI 54957-0156
United States - Map
Phone: 920-722-3451
Fax: 920-722-3220
Web Site: http://www.plexus.com

DETAILS  
Index Membership: S&P 600 SmallCap
S&P 1500 Super Comp
Sector: Technology
Industry: Printed Circuit Boards
Full Time Employees: NaN


BUSINESS SUMMARY  
Plexus Corp., together with its subsidiaries, operates in the electronics manufacturing services industry. It provides product realization services to original equipment manufacturers and other technology companies in the wireline/networking, wireless infrastructure, medical, industrial/commercial, and defense/security/aerospace industries. The company's product realization services include development and design, materials procurement and management, prototyping and new product introduction, testing, manufacturing, product configuration, direct order fulfillment, logistics, and test/repair. Plexus Corp. operates in the United States, Mexico, Asia, and Europe. The company was founded in 1979 and is headquartered in Neenah, Wisconsin.
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Plexus Announces Q4 Revenue of $426 Million and EPS of $0.53
Wednesday October 31, 4:04 pm ET  
Sets Fiscal 2008 Revenue Growth Target of 15% to 18%
Initiates Q1 Revenue Guidance of $440 - $460 Million


NEENAH, Wis., Oct. 31 /PRNewswire-FirstCall/ -- Plexus Corp. (Nasdaq: PLXS - News) today announced:

   -- Q4 Fiscal 2007 Results:  Revenue for the fiscal 4th quarter ended
      September 29, 2007 was $426 million with diluted GAAP EPS of $0.53,
      including $0.03 per share of stock option expense and $0.02 per share
      of restructuring costs.

   -- Fiscal 2008 Revenue Growth Target:  Consistent with the Company's
      strategic objectives, Plexus is targeting revenue growth in the range
      of 15% to 18% in fiscal 2008.

   -- Q1 Fiscal 2008 Guidance:  The Company established fiscal 1st quarter
      revenue guidance of $440 to $460 million with EPS, excluding any
      restructuring charges, in the range of $0.58 to $0.63, including
      approximately $0.03 per share of stock option expense.


Dean Foate, President and CEO, commented, "Our return on invested capital (ROIC) for fiscal 2007 of 17.6% was above our weighted average cost of capital (WACC) and consistent with our long-term financial model. Despite being at the low end of our revenue guidance for Q4, we exceeded our earnings expectations, driven primarily by a favorable mix of customer programs, better than expected labor efficiencies and strong performance by our engineering services organization (Technology Group). Relative to our guidance for Q4, our Medical Sector was exceptionally strong while our Defense Sector revenues were lower than expected, as we experienced an approximately $15 million push-out in the production schedule for a significant defense customer to the first quarter of fiscal 2008. Q4 included approximately $44 million of revenue for this customer."

Ginger Jones, Chief Financial Officer, added "Our operating income for Q4 was favorably impacted by approximately $0.01 as a result of several items: we recognized approximately $2.9 million of pre-tax benefit for shipments of inventory that we had previously written down for a financially distressed customer, which was offset by a $0.9 million pre-tax restructuring charge as we scaled our Mexican operations to match current revenue levels, as well as a $1.3 million pre-tax warranty-related charge. Offsetting the favorable net impact to operating income, we continued to experience losses in our Mexican facility, and our tax rate for fiscal 2007 was higher than expected at approximately 22%, primarily due to the regional mix of production in Q4. This resulted in an effective tax rate of 25% for the fourth quarter, which reduced diluted earnings per share for the quarter by approximately $0.04."

Foate said, "Looking forward, we are expecting a strong start to fiscal 2008, with Q1 revenue in the range of $440 million to $460 million with single digit growth in all of our Market Sectors, with the exception of our Defense Sector where we expect sequential revenue growth to exceed 25%. Including the production push-out from Q4 and a small follow-on order from our large defense customer, we are currently expecting approximately $54 million in revenue from this program in Q1 followed by approximately $26 million in Q2."

Jones commented, "Due to customer mix, we are also expecting Q1 to be an exceptionally strong earnings quarter, with EPS, excluding any restructuring charges, in the range of $0.58 to $0.63, including approximately $0.03 per share of stock option expense. Looking to future quarters in fiscal 2008, we believe that successfully executing on our strategy to gain market share and grow revenues 15% to 18% will deliver a more consistently sustainable ' 20-10-5' financial model (20% ROIC target, 10% gross margin target and 5% operating earnings target)."

Foate concluded, "We believe Plexus offers a unique value proposition that creates competitive advantage for OEMs with mid- to low-volume, higher-mix requirements in the market sectors we serve, and that this is the foundation of our goal to double the size of Plexus over a 4- to 5-year horizon. Consistent with this goal we are setting a 15% to 18% revenue growth objective for fiscal 2008. Our strong start to the year suggests that the near-term objective is achievable, yet we are mindful of growing economic uncertainly that could derail end-market demand."

Plexus provides non-GAAP supplemental information. These non-GAAP income statements 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 accompanying reconciliations of the GAAP net income and EPS to the non-GAAP supplemental data.

MARKET SECTOR BREAKOUT

Plexus reports revenue based on the market sector breakout set forth in the table below, which reflects the Company's sales and marketing focus.




       Market Sector                       Q4 - Fiscal 2007  Q3 - Fiscal 2007
   Wireline/Networking                                  42%            46%
   Wireless Infrastructure                               8%             9%
   Medical                                              21%            24%
   Industrial/Commercial                                15%            14%
   Defense/Security/Aerospace                           14%             7%



   FISCAL Q4 HIGHLIGHTS

   -- Annual ROIC was 17.6%.  The Company defines ROIC as tax-effected
      operating income, excluding restructuring costs, divided by average
      capital employed over a rolling five quarter period.  Capital employed
      is defined as equity plus debt, less cash and cash equivalents and
      short-term investments.
   -- Cash flow provided by operations was approximately $23.0 million for
      the quarter.
   -- Top 10 customers comprised 65% of sales during the quarter, up 1
      percentage point from the previous quarter.
   -- Juniper Networks Inc., with 22% of sales, and an un-named defense
      sector customer, with 10% of sales, were the only customers
      representing 10% or more of revenues for the quarter.
   -- Capital expenditures for the quarter were $10.0 million.
   -- Cash Conversion Cycle:



       Cash Conversion Cycle              Q4 - Fiscal 2007   Q3 - Fiscal 2007
   Days in Accounts Receivable                      49 Days        48 Days
   Days in Inventory                                68 Days        68 Days
   Days in Accounts Payable                       (58) Days      (53) Days
   Annualized Cash Cycle                            59 Days        63 Days



   Conference Call/Webcast and Replay Information

   What:       Plexus Corp.'s Fiscal Q4 Earnings Conference Call

   When:       Thursday, November 1st at 8:30 a.m. Eastern Time

   Where:      888-693-3477 or 973-582-2710 with conference ID:  9261576
               http://www.videonewswire.com/PLXS/110107
               (requires Windows Media Player)

   Replay:     The call will be archived until November 8, 2007 at noon
               Eastern Time
               http://www.videonewswire.com/PLXS/110107
               or via telephone replay at 877-519-4471 or 973-341-3080
               PIN: 9261576

   For further information, please contact:
   Kristian Talvitie, Vice President - Marketing, Branding and Communications
   920-969-6160 or [email protected]


About Plexus Corp. - The Product Realization Company

Plexus (http://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 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.




                                PLEXUS CORP.
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                   (in thousands, except per share data)
                                (unaudited)

                          Three Months Ended          Twelve Months Ended
                      September 29, September 30, September 29, September 30,
                            2007          2006          2007          2006

   Net sales              $425,679     $396,942      $1,546,264  $1,460,557
   Cost of sales           371,960      352,061       1,382,725   1,301,857
     Gross profit           53,719       44,881         163,539     158,700
   Operating expenses:
     Selling and
      administrative
       expenses             21,175       20,354          82,263      78,438
      Restructuring and
       asset impairment
       costs                   906          -             1,838          -
                            22,081       20,354          84,101      78,438
      Operating income      31,638       24,527          79,438      80,262
   Other income (expense):
     Interest expense         (742)        (855)         (3,168)     (3,507)
     Interest income         2,371        1,937           9,099       6,163
     Miscellaneous income
      (expense)                (32)        (223)         (1,115)        434

     Income before income taxes
      and cumulative
      effect of change in   33,235       25,386          84,254      83,352
      accounting principle
      - net of income tax

   Income tax expense
    (benefit)                8,332      (17,758)         18,536     (17,178)

   Income before
    cumulative effect
    of change in            24,903       43,144          65,718     100,530
    accounting principle

   Cumulative effect
    of change in
    accounting principle       -            505             -           505
    - net of income tax

   Net income              $24,903      $42,639         $65,718    $100,025

   Earnings per share:
     Basic:
     Income before
     cumulative              $0.54        $0.93           $1.42       $2.23
      effect of change in
      accounting principle
      - net of
      income tax
     Cumulative effect
      of change                -           0.01              -         0.01
      in accounting
      principle
      - net of income tax
                             $0.54        $0.92           $1.42       $2.22
     Diluted:
     Income before
      cumulative             $0.53        $0.92           $1.41       $2.16
      effect of change in
      accounting principle
      - net of income tax
     Cumulative effect
      of change                -           0.01              -         0.01
      in accounting
      principle - net
      of income tax
                             $0.53        $0.91           $1.41       $2.15

   Weighted average shares
    outstanding:
     Basic                  46,375       46,208          46,312      45,146
     Diluted                46,864       46,860          46,739      46,490



                                PLEXUS CORP.
                     NON-GAAP SUPPLEMENTAL INFORMATION
                   (in thousands, except per share data)
                                (unaudited)

                          Three Months Ended        Twelve Months Ended
                    September 29, September 30, September 29, September 30,
                            2007          2006          2007          2006

   Net income -               - GAAP      $24,903      $42,639      $65,718
$100,025

   Add cumulative effect
    of change in
    accounting principle
    - net of income tax         -          505            -          505

   Add income tax expense
    (benefit) **            8,332      (17,758)       18,536     (17,178)

   Income before income
    taxes and cumulative
    effect of change
    in accounting
    principle - net of
    income tax - GAAP      33,235      25,386       84,254       83,352

   Add:Restructuring and
    impairment costs*         906           -        1,838            -

   Income before cumulative
    effect of change in
    accounting - net of
    income taxes and
    excluding restructuring and
    impairment costs
    - Non-GAAP             34,141       25,386       86,092       83,352

   Income tax expense
    (benefit) - Non-GAAP    8,535          (83)      18,940          496

   Net income - Non-GAAP  $25,606      $25,469      $67,152      $82,856

   Earnings per share
    - Non-GAAP:
     Basic                  $0.55        $0.55        $1.45        $1.84
     Diluted                $0.55        $0.54        $1.44        $1.78

   Weighted average
    shares outstanding:
     Basic                 46,375       46,208       46,312       45,146
     Diluted               46,864       46,860       46,739       46,490


              * Summary of restructuring and impairment costs

   Restructuring and impairment costs:
     Severance costs         $906       $-           $1,838       $-

        ** Impact related to the reversal of the valuation allowance


   Reversal of the valuation allowance
    to income taxes           $ -    $ (17,674)      $-        $(17,674)



                                PLEXUS CORP.
                   CONDENSED CONSOLIDATED BALANCE SHEETS
                   (in thousands, except per share data)
                                (unaudited)

                                       September 29, 2007  September 30, 2006
   ASSETS
   Current assets:
     Cash and cash equivalents                     $154,109       $164,912
     Short-term investments                          55,000         30,000
     Accounts receivable                            230,826        209,737
     Inventories                                    275,854        224,342
     Deferred income taxes                           12,932         10,232
     Prepaid expenses and other                       5,434          6,226

       Total current assets                         734,155        645,449

   Property, plant and equipment, net               159,517        134,437
   Goodwill, net                                      8,062          7,400
   Deferred income taxes                              2,310          4,542
   Other                                             12,472          9,634

       Total assets                                $916,516       $801,462

   LIABILITIES AND SHAREHOLDERS' EQUITY
   Current liabilities:
     Current portion of capital lease obligations    $1,720           $997
     Accounts payable                               237,034        215,332
     Customer deposits                               10,381          7,091
     Accrued liabilities:
       Salaries and wages                            23,149         33,153
       Other                                         34,755         29,808

       Total current liabilities                    307,039        286,381

   Capital lease obligations, net of
    current portion                                  25,082         25,653
   Other liabilities                                  9,372          7,861
   Deferred income taxes                              1,758              -

   Shareholders' equity:
     Common stock, $.01 par value,
      200,000 shares authorized, 46,402
      and 46,217 shares issued
      and outstanding, respectively                     464            462
   Additional paid-in-capital                       336,603        312,785
   Retained earnings                                224,586        158,868
   Accumulated other comprehensive income            11,612          9,452

       Total shareholders' equity                   573,265        481,567

         Total liabilities and
          shareholders' equity                     $916,516       $801,462





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Source: Plexus Corp.

[BigSully1]

Plexus Announces Q1 Revenue of $458 Million and EPS of $0.58
Wednesday January 23, 4:00 pm ET 
Initiates Q2 Revenue Guidance of $440 - $460 Million


NEENAH, Wis., Jan. 23 /PRNewswire-FirstCall/ -- Plexus Corp. (Nasdaq: PLXS - News) today announced:

    -- Q1 Fiscal 2008 Results:  Revenue for the fiscal 1st quarter ended
       December 29, 2007 was $458 million with diluted GAAP EPS of $0.58,
       including $0.04 per share of stock-based compensation expense.

    -- Q2 Fiscal 2008 Guidance:  The Company established fiscal 2nd quarter
       revenue guidance of $440 to $460 million with EPS, excluding any
       restructuring charges, in the range of $0.46 to $0.51, including
       approximately $0.04 per share of stock-based compensation expense.


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 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 BREAKOUT

Plexus reports revenue based on the market sector breakout set forth in the table below, which reflects the Company's sales and marketing focus.


       Market Sector                    Q4 - F07        Q1 - F08
    Wireline/Networking              $180 M   42%    $176 M   38%
    Wireless Infrastructure           $36 M    8%     $42 M    9%
    Medical                           $87 M   21%     $94 M   21%
    Industrial/Commercial             $62 M   15%     $67 M   15%
    Defense/Security/Aerospace*       $61 M   14%     $79 M   17%
    Total Revenue                    $426 M          $458 M

    * 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.



    FISCAL Q1 HIGHLIGHTS

    -- ROIC for the first quarter was 25.9%, which was influenced positively
       by a favorable mix of programs in the quarter.  The Company defines
       quarterly ROIC as tax-effected operating income, excluding
       restructuring costs, divided by average capital employed over a rolling
       two quarter period.  Capital employed is defined as equity plus debt,
       less cash and cash equivalents and short-term investments.
    -- Cash flow provided by operations was approximately $16.6 million for
       the quarter.
    -- Top 10 customers comprised 63% of revenue during the quarter, down
       2 percentage points from the previous quarter.
    -- Juniper Networks Inc., with 19% of revenue, and an un-named defense
       sector customer, with 12% of revenue, were the only customers
       representing 10% or more of revenue for the quarter.
    -- Capital expenditures for the quarter were $13.6 million.
    -- Cash Conversion Cycle:

      Cash Conversion Cycle          Q4 - F07             Q1 - F08
    Days in Accounts Receivable      49 Days               50 Days
    Days in Inventory                68 Days               67 Days
    Days in Accounts Payable        (58) Days             (56) Days
    Annualized Cash Cycle            59 Days               61 Days



    Conference Call/Webcast and Replay Information

    What:   Plexus Corp.'s Fiscal Q1 Earnings Conference Call

    When:   Thursday, January 24th at 8:30 a.m. Eastern Time

    Where:  888-693-3477 or 973-582-2710 with conference ID:  29303618
    http://www.videonewswire.com/plxs/012408/ (requires Windows Media Player)

    Replay: The call will be archived until January 31, 2008 at noon Eastern
            Time
            http://www.videonewswire.com/plxs/012408/
            (requires Windows Media Player)
            or via telephone replay at 800-642-1687 or 706-645-9291
            PIN: 29303618


About Plexus Corp. - The Product Realization Company

Plexus (http://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

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