Plexus Hits Record Q1 Sales
NEENAH, WI -- Plexus Corp. turned in a sterling fiscal first quarter, with sales jumping 14% year-on-year to a record $328.3 million.
For the period ended Dec. 31, the EMS firm
reported net income of $12.6 million, up from $3
million last year, which included a $900,000 restructuring charge. Both figures
exceeded previous company guidance.
President
and CEO Dean Foate guided for second quarter revenues of $330 million to $345
million. “Although we anticipate modest sequential revenue growth in the second
fiscal quarter, we are encouraged by recent new program wins,” he said, especially
within the defense, security and aerospace sector. He reaffirmed full-year revenue
growth guidance of 15 to 18%."
Cash flow from operations was $19.5 million, and cash and short-term investments increased $11 million from the fiscal 2005 year-end balance to $119.7 million.
For the quarter, wireline and networking sales were up 5 points year-over-year and made up 42% of sales. Wireless infrastructure was 8% of sales, down 1 point. Medical was down 5 points to 28%, industrial and commercial was up 1 point to 17%, and defense/security/aerospace was flat at 5%.
Plexus’ top 10 customers comprised 61% of sales during the quarter, the same as in the previous quarter.Juniper Networks, with 22% of sales, and General Electric, with 15% of sales, were the only customers representing 10% or more of sales for the quarter. Sales to Juniper were also up 22% sequentially.
Operating margins improved 50 basis points for the quarter and the firm projected further improvement of 70 basis points in Q2. That would bring Plexus' operating margins to 4.6%, up 250 basis points year-over-year.
