Plexus Revenue Grows for Third Consecutive Quarter
Plexus Corp. (Neenah, WI) has announced that revenue for its first quarter of fiscal 2004 increased 16% to $238.5 million compared to $205.4 million in Q1 2003. Net income for the quarter was $2.5 million, or $0.06 earnings per diluted share. Excluding restructuring costs and the partial write-off of goodwill, Plexus reported a loss of ($0.9) million or ($0.02) per diluted share in the first fiscal quarter of 2003.
Dean Foate, president and chief executive officer of Plexus, said, "This is our third consecutive quarter of revenue growth and EPS improvement. The 10% sequential revenue growth in our fiscal first quarter was a result of two distinct elements. First, we experienced strengthening end-market demand, particularly in our Networking/Datacom and Medical sectors. Additionally, we are making clear progress on our commitment to build our sales and marketing into a world-class organization."
"Based on our current outlook," continued Foate, "we are expecting the revenue and earnings momentum to continue into Q2 with sales in the range of $245 to $255 million and EPS in the $0.07 to $0.09 range. Second quarter earnings will be moderated by higher SG&A expense to support the ERP system installation in our Chicago facility and by other outside professional services. Looking at the full year, we are now increasingly comfortable with our 15% to 20% revenue growth target."
Gordon Bitter, chief financial officer, said, "Improved revenues in Q1 resulted in gross margins of 8.2% for the quarter compared to 7.4% in the fourth quarter of fiscal 2003. SG&A increased during the quarter reflecting increased expenses for compensation and healthcare benefits, but declined modestly as a percent of revenue. We had a 20% effective tax rate in the first quarter due to our expanding operations in Asia, where we benefit from tax holidays."
"Cash and short-term investments at the end of the first quarter were approximately $60 million as we used approximately $19 million during the quarter, primarily to finance increased inventories to support growth. Debt remains low and the $100 million credit facility that was established early in the first quarter provides additional financial resources," Bitter said.
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