News
By the end of its fiscal 2005 second quarter, the company will lay off 160 workers and close 100,000 sq. ft. of capacity, Plexus said in a press statement.
The move is expected to generate $2 million in pretax savings per year.
The closure is not expected to impact fiscal 2004 fourth quarter revenue or EPS guidance (excluding restructuring charges and valuation allowance. Plexus updated its revenue guidance to be at the low end of its previously announced range of $270 million to $280 million.
The company will take charges over the next three quarters, $4 million to $5 million in the fourth quarter and $6 million to $8 million over the following two quarters.
Plexus also said start-up costs of its new Malaysian facility are higher than expected, due in part to a slower-than-expected rate of customer qualifications.For its fiscal fourth quarter ended Aug. 31, revenue climbed to $1.63 billion from $1.30 billion. Excluding one-time charges items, Jabil posted a profit of $54.7 million.
The company guided for 2005 revenue of $7.2 billion to $7.4 billion, $1.75 billion to $1.85 billion in the first quarter.
Jabil president Tim Main told analysts during a conference call yesterday that conditions in the industry were stable. "I would characterize the current environment as stable and steady. From my perspective, the prospects for our business and industry are as good as they've been at any time in the last four years,"
The company reported new program wins in consumer, instrumentation and medical, and peripheral applications. However, it said it saw weakness in communications.
Caskh from operations was nearly $100 million, and cash conversion cycle days remained at 26.
The firms will provide on-site equipment service, training, and applications support.
The firms are:
- D-TEK, headquartered in Taiwan, has offices in Shanghai, Shenzhen, Suzhou and DongGuan, China.
- Leeport is based in Hong Kong, with offices in Bejing, Shanghai, Shenzhen and Chongqin, China. Other locations include Singapore, Taiwan, Macau and Malaysia.
- Bejing-based ATS also has offices in Tianjin and Shanghai.
- SSI Shanghai is a wholly owned subsidiary of SSI Taiwan, headquartered in Taipei. Other locations include Shanghai, Shenzhen, and Hsinchu and Kaohsiung, Taiwan.
Asymtek is retaining an existing rep firm, Electronic Scientific Engineering.
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