News
NEENAH, WI -- Plexus Corp. today reported record revenues of $287.5 million for the quarter ended Jan. 1, up 21% over last year.
The company, which provides EMS services, reported net income of $3 million, including $900,000 in restructuring and impairment costs.
The company guided for revenues between $280 million and $290 million in the second quarter. Anticipated capital spending will be $25 million to 28 million for the year.
"Based on current end-market demand and the strength of our new business pipeline," president and chief executive Dean Foate said, "we are increasingly confident about achieving the high-end of our 15% to 18% revenue growth target for the full year."
Foate said profits were affected by theft and failure to comply with inventory control of "high-value parts" in its Mexico facility.
On a conference call Wednesday morning, the company said it while it is ramping engineering capability in Malaysia, it has "no active plans" to further consolidate other North American facilities."Our ability to provide close to home project management while leveraging lower cost (manufacturing) in Asia is turning out better for our customers," the company said.
By industry, wireline and networking made up 39% of sales, wireless infrastructure 11%, medical 31%, industrial and commercial 14%, and defense 5%.
The firm's top 10 customers comprised 60% of sales during the quarter, up from 55% sequentially. Juniper Networks (20% of sales) and GE (11%) were the two largest customers.
Inventory increased sequentially by $25.3 million, to $198.8 million, while annualized inventory turns decreased to 5.3 turns this quarter from 5.8.
Reuters reported today that the Kurdistan Workers Party (PKK) set fire Monday to a Beko Elektronik warehouse in Beylikduzu, outside Istanbul,.
According to a ranking Beko official, damage from the fire was more than $5 million and between 30,000 and 35,000 products were lost -- around half of them television sets.
Beko is a subsidiary of industrial group Koc Holding. Last year the company made more than six million TVs, making it one of the top producers in Europe, Reuters said.
The PKK has engaged in armed battles for an ethnic homeland since 1984.
U.S. federal agencies are reviewing the case on grounds of national security. At issue is Lenovo's announced plans to send Chinese computer experts and researchers to IBM's North Carolina facility, said Enterprise Security Today.
That announcement is creating some consternation at high levels in the U.S. government. Some members of the Committee on Foreign Investments in the United States are questioning whether the relocation would open the U.S. to potential acts of industrial espionage.
The CFIUS' role is to review corporate deals that involve
foreign firms to determine whether any national security threats may
arise. The
CFIUS includes the Defense Department, the U.S. Trade Representative's
office and the Commerce Department.
One analyst said concerns over the possible breach in security are warranted.
Laura DiDio, an analyst with Yankee Group, was quoted as saying, "China is a still a Communist nation. ... They're very closed,
despite these deals, and they sell stuff to people we consider enemies.
So there's a real fear here, and it's not unwarranted."
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