Plexus' Profits Down in March Quarter PDF Print E-mail
Written by Mike Buetow   
Wednesday, 17 April 2013 20:13

NEENAH, WI -- Plexus reported net income of $17.98 million, down 10% year-over-year, for its fiscal second quarter.

Revenue ticked down 2.7% to $557.8 million, in part due to the EMS company's loss of its longtime largest customer, Juniper. Revenues were up 5% sequentially for the period ended March 30.

In a press release, chairman, president and CEO Dean Foate said, "Revenue performance in our Networking/Communications sector was meaningfully below our expectations as several customers struggled with end-market demand. While we experienced forecast volatility in other sectors, the end results for the quarter were relatively in line with our guidance. The previously disclosed disengagement of Juniper Networks remains on track, with production expected to cease as of the end of our fiscal third quarter of 2013."

The contract electronics assembler won 33 new programs during the period, from which it expects approximately $143 million in annualized revenue when fully ramped.

Gross margin was 9.3% on positive customer mix, and operating margin was 4.2%. Both figures beat company expectations.

The company guided for fiscal third quarter revenue of $550 million to $580 million.

By sector, netwokring and communications made up 38% of sales, healthcare/life sciences 23%, industrial 25% and defense/aerospace 14%. Plexus generated $27 million of free cash flow during the quarter.  Cash flow from operations was approximately $54 million. Capital expenditures were $27 million.



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