NEENAH, WI -- Plexus Corp. reported record fiscal fourth-quarter net income of $42.6 million on a 23% hike in revenues over last year. For the quarter ended Sept. 30, the EMS firm's sales hit $396.9 million, bringing full year revenues to a record $1.46 billion, a 19% increase over 2005.

For the quarter, net income was up 305%, including a $17.7 million gain due to tax provisions and a $500,000 loss on the adoption of "FIN 47" concerning conditional asset retirement obligations. Non-GAAP quarterly net income was $25.5 million, a company record for the fourth quarter. Net income for fiscal 2006 was a record $100 million, reversing fiscal 2005's net loss of $12.4 million.

For the year, operating margins rose 5.5% and the company reported a 28.8% after-tax return on capital employed. Cash on hand at year-end was $194.9 million, up $86.2 million. The company forecast capital expenditures to increase substantially in fiscal 2007 to approximately $70 million to support anticipated growth in Asia and reinvestment requirements in North America.

For the quarter, cash flow from operations was approximately $33.5 million. Capital expenditures were $8.6 million. Cash conversion cycle was flat sequentially at 50 days. Inventory days dropped by two days to 58 days.

By sector, Plexus said wireline and networking made up 38% of sales, medical 25%, industrial/commercial 18%, defense/security/aerospace 11% and wireless infrastructure 8%. All sectors showed little sequential change.

The company's top 10 customers comprised 59% of sales during the quarter, down 4 points sequentially. Juniper Networks, 17% of sales, and General Electric, 12% of sales, were the only customers representing 10% for the quarter.

In a press statement, president and chief executive Dean Foate said, "Consistent with our recent experience, we are targeting annual revenue growth in the range of 15% to 18% in fiscal 2007. We anticipate revenues for the first quarter to be in the range of $385 million to $395 million and expect diluted earnings per share (before any restructuring costs) in the range of $0.31 to $0.35. He said the lower sequential revenues are attributable to lower expectations for a large defense program offset in part by the ramp of recent new program wins.

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