NEENAH, WI -- Plexus Corp. reported first-quarter revenue of $456 million, at the low end of company guidance and flat with last year. Revenues declined 4% sequentially.  Net income for the quarter ended Jan. 3 was $17 million, down 59%. The EMS firm's Medical and Defense/Security/Aerospace sectors grew sequentially, offset by declines in Wireless Infrastructure, Wireline/Networking and Industrial/Commercial.

For the quarter, gross margins were 10.2% and and operating margins were 4.5% (4.7% before restructuring charges). Return on invested capital was 16.1% for the quarter. Inventory days rose four, to 77, and the cash conversion cycle in days dropped four, to 68.

The company took $600,000 in pretax restructuring charges during the quarter related to workforce reductions in Juarez, Mexico. Overall North American operations headcount has been reduced 15%, with "modest" headcount reductions in engineering services operations. Cash flow from operations was approximately $49.4 million for the quarter. Plexus's top 10 customers comprised 61% of revenue during the quarter, consistent with the previous quarter, with Juniper Networks was the only customer at 10% or more of revenue (18%).

The company guided for fiscal second-quarter revenue of $375 million to $405 million.  The company expects restructuring charges of approximately $500,000 in the second fiscal quarter.

In a press release, president and CEO Dean Foate said, "This sequential reduction in revenue reflects significant softness in our customers' end-markets, channel inventory reductions and a seasonal decline driven largely by a significant Medical sector account. While we are ramping a number of new programs won in recent quarters, this incremental business is not sufficient to overcome the difficult end-market environment. The second fiscal quarter will be challenging and while we currently anticipate it will be the trough quarter for the fiscal year, the reduced outlook for the entire fiscal year prompts us to take immediate action on further cost reduction initiatives."

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