NEENAH, WI – Plexus reported fiscal third quarter revenue of $799.6 million, up 10.1% year-over-year and 1.3% sequentially.

For the quarter ended June 29, net income was $24.8 million, down 6.4% compared to the same period in 2018 and flat sequentially.

Operating income for the quarter was $34.4 million, an increase of 6% year-over-year and 3.7% sequentially.  

During the fiscal third quarter, Plexus won 23 manufacturing programs, representing $227 million in annualized revenue when fully ramped into production.

“We achieved record revenue of $800 million in the fiscal third quarter, a 10% increase from the comparable quarter last year,” said Todd Kelsey, president and CEO. “We delivered revenue at the high end of our guidance range through successful program ramps and healthy demand in our differentiated end markets.”

“During the fiscal third quarter, we continued to execute our capital allocation strategy by repatriating approximately $37 million of offshore cash,” said Patrick Jermain, executive vice president and CFO. “Since the enactment of US tax reform in our last fiscal year, we have brought back over $500 million.  We repurchased approximately $44 million of our shares during the fiscal third quarter, which was primarily funded with repatriated cash.

“On May 15, 2019, we refinanced our credit facility to take advantage of favorable pricing and improve our financial covenants. In addition, the maximum commitment under the credit facility was expanded to $350 million, with the potential to increase it by an additional $250 million. The maturity of the credit facility was extended to May 2024. The amended facility provides us with additional borrowing capacity and flexibility in anticipation of future growth.”

“Looking ahead to the fiscal fourth quarter, I am encouraged by the anticipated performance of our sectors that feature highly complex products and demanding regulatory environments,” said Kelsey. “We expect new program ramps and stable end markets within these sectors to soften the impact of a meaningful demand reduction in the Communications sector. Therefore, we are guiding fiscal fourth quarter revenue in the range of $760 to $800 million, which is consistent with the range we provided for our fiscal third quarter guidance.

“Looking forward to fiscal 2020, we expect another year of revenue growth, as we continue to deliver meaningful win performance and ramp new programs in our differentiated markets of healthcare/life sciences, aerospace/defense and industrial/commercial. In addition, I am pleased with the readiness of our state-of-the-art facilities in which we invested during fiscal 2019, as well as the progress of our productivity initiatives.”

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