NEENAH, WI - Plexus Corp., a top EMS firm, reported third-quarter net profits fell 38% on a 4.4% drop in sales.
For the quarter ended June 30, net income fell to $15.5 million on sales of $379.6 million.
The EMS firm reported sales of $397.4 million last year.
For the quarter, gross margin was 10.1%, although problems increased in the company's Mexico operations. "Our Mexican site is strategically important, and we are committed to improving its financial performance. We are also executing our plan to upgrade the facility's supply chain and manufacturing capabilities, as well as leadership, to better align our service offering with customer requirements," said CFO Gordon Bitter.
Cash flow from operations was $14.8 million for the quarter. The top 10 customers comprised 64% of sales during the quarter, up five points sequentially. Juniper Networks, at 24% of sales, was the only customer representing 10% or more of revenues for the quarter.
Capital expenditures for the quarter were $7.8 million.
In a statement, president and CEO Dean Foate said Plexus expects fourth-quarter revenue to rise "significantly," driven by growth across all markets but medical. Plexus guided for sales of $425 million to $440 million on a forecasted 160% gain in aerospace, defense and security demand.