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.


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