NEENAH, WI – Owing to supply chain challenges, Plexus will not meet its fiscal first quarter revenue guidance of $825 million to $865 million, the firm says.
The company now projects fiscal first quarter revenue of $815 million to $820 million, which will include roughly $2 million of unanticipated severance costs associated with a facility transition in the Asia-Pacific region.
"While the demand environment remains robust, new and unexpected supplier delivery shortfalls in the Americas region resulted in a revenue, GAAP operating margin, GAAP EPS and free cash flow shortfall,” said CEO Todd Kelsey. “We anticipate these supply chain headwinds will persist in the near term."
Plexus management will provide an update on fiscal first quarter results and second fiscal quarter guidance Jan. 27.
"For our fiscal second quarter, we currently anticipate sequential growth in revenue, but limited improvement in GAAP diluted EPS, since ongoing costs to support expected robust customer demand and a seasonal increase in compensation expenses will burden profitability. Based upon the strength seen in customer forecasts that are supported by numerous new program ramps, we anticipate sequential growth in revenue and an expansion in profitability during the second half of fiscal 2022. Further, we remain focused on returning to our long-term 9-12% revenue CAGR and 5.5% GAAP operating margin goals."