NEENAH, WI – Plexus reported fiscal second quarter revenue of $767.4 million, down 2.7% year-over-year and 10% sequentially.

Net income for the quarter ended Apr. 4 was $12.9 million, a decrease of 47.8% compared to the same period last year and 58.3% sequentially.

Operating income was $17.2 million, down 48.1% year-over-year and 56.9% sequentially.

During the quarter, Plexus won 36 manufacturing programs, representing $248 million in annualized revenue when fully ramped into production. The trailing four-quarter wins total $844 million in annualized revenue when fully ramped into production.

“We achieved fiscal second quarter revenue of $767 million and adjusted diluted EPS of $0.61, excluding $0.18 due to the previously announced closure of our Boulder Design Center,” said Todd Kelsey, president and CEO. “While our results were impacted by the Covid-19 outbreak, our teams demonstrated their ability and resolve to mitigate the challenges and complexities of Covid-19. We remain committed to delivering for our customers and helping to create the products that build a better world. These include critical medical products being used by healthcare workers on the frontline of the battle against Covid‑19 and consist of infusion pumps, portable ultrasounds, hospital bed electronics, portable patient monitors, ventilators, mobile x-ray electronics and diagnostic test systems. In addition to supporting the fight against Covid-19, Plexus continues to produce products that support the essential infrastructure needs of our communities."

“Despite the precipitous onset of Covid‑19, we delivered a return on invested capital of 11.4% in the quarter,” said Patrick Jermain, executive VP and CFO. “This generated an economic return of 260 basis points above our weighted average cost of capital, creating solid shareholder value. Further, we believe that Plexus is well-positioned with a strong balance sheet as we face the future challenges presented by Covid-19. As of Apr. 4, 2020, cash totaled $227 million, while debt totaled $294 million. In addition, we have significant funding availability through our revolving credit facility should future needs arise.”

“We are dedicated to the health and safety of our team members,” Kelsey said. “As such, we continue to invest in our policies and protocols to operate in the safest manner possible. As we look forward to our fiscal third quarter, we expect to deliver revenue in the range of $790 to $830 million and GAAP diluted EPS of $0.72 to $0.82. In providing this guidance, we have taken into consideration known constraints on the global supply chain, workforce challenges, as well as the potential operational inefficiencies that could occur due to Covid-19. However, our guidance assumes no large-scale closures of our facilities, or those of our suppliers or customers due to Covid-19, nor does it assume the Covid-19 outbreak will materially impact end markets beyond what has already occurred. We commit to providing timely and transparent updates should negative material changes to our revenue and EPS expectations occur within the quarter.”

For the three months ended Apr. 4, cashflows used by operations were $29.3 million, less capital expenditures of $17 million, resulting in negative free cashflow of $46.3 million.

• Prev
• Next