NEENAH, WI -- Plexus on Wednesday announced fiscal second-quarter net income rose 3% year-over-year to $18.5 million despite flat sales. For the period ended March 29, the EMS provider reported revenue of $557.6 million, toward the upper end of previous company guidance and up 4% sequentially.

Gross margin was 9.5% for the period, and GAAP operating margin was 3.4%.

Plexus took $6 million in restructuring and one-time charges in the quarter, primarily related to its previously announced transition from a manufacturing facility in Juarez to Guadalajara, and recorded a discrete tax benefit $3.7 million. During the quarter, Plexus' Manufacturing Solutions group won 41 new programs.

While the networking/communications sector has shed $51 million in revenue year-over-year due primarily to the loss of Juniper Networks as its top customer, Plexus made up for the change with higher medical sales (up $41 million to $167 million for the period), which at 30% is now the company's largest sector. Industrial/commercial ranks third at 26% and defense/aerospace came in at 15%.

Chairman, CEO and president Dean Foate said the new program wins are expected to generate $159 million in annualized revenue when fully ramped into production.

The EMS firm guided for fiscal third-quarter revenue of $600 million to $630 million.

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