NEENAH, WI – Plexus reported fiscal first quarter revenue of $830.4 million, down 2.6% year-over-year and 9.1% sequentially.

For the quarter ended Jan. 2, net income was $36.2 million, up 16.7% compared to the same period last year and down 4% sequentially. Operating income was $46.9 million, up 17.4% year-over-year and down 7% sequentially.

During the period, Plexus won 35 manufacturing programs, representing $223 million in annualized revenue when fully ramped into production. Trailing four-quarter wins totaled a record $1 billion in annualized revenue when fully ramped into production.

“Our operations achieved strong results in the fiscal first quarter,” said Todd Kelsey, president and CEO. “We expanded GAAP operating margin to 5.6% through our focus on productivity improvements and expense management, along with solid performance from our engineering solutions team. This operating margin represents the third consecutive quarter in excess of 5%. Revenue of $830 million was in line with our expectations and at the midpoint of our guidance. Through this combination, we delivered GAAP diluted earnings per share of $1.23, which was well above the top end of our guidance range.

“Our go-to-market team’s sustained focus on leveraging our exceptional execution to drive new business development opportunities produced strong results again this past quarter. Within the fiscal first quarter, Plexus won 35 new programs, including a meaningful number of new customer engagements. These wins represent $223 million in annualized revenue when fully ramped into production and contribute to our trailing four-quarter wins total of a record $1 billion. In addition, we expanded Plexus’ funnel of qualified manufacturing opportunities by nearly $600 million from the prior quarter to a record $3.3 billion. This healthy rate of new program wins and the considerable expansion in the funnel of qualified opportunities should position us well to achieve our 9% to 12% revenue CAGR goal over the longer term.”  

“With our exceptional operating performance, we delivered return on invested capital of 16.3%, sequentially improved by 230 basis points and the highest return delivered in more than three years,” said Patrick Jermain, executive VP and CFO. “This result generated economic return of 820 basis points above our weighted average cost of capital, creating substantial shareholder value. Further, we continue to maintain a solid balance sheet. We ended the quarter with cash in excess of $350 million and no outstanding borrowing under our revolving credit facility, while investing in working capital, capital expenditures and our share repurchase program. We reconfirm our fiscal 2021 expectation for free cash flow of approximately $100 million.  

“We anticipate a robust fiscal second quarter due to expected increases in medical equipment demand, recent strengthening in our industrial sector and sustained operational excellence. We are guiding revenue of $860 to $900 million, GAAP operating margin in the range of 5% to 5.5% and GAAP diluted earnings per share of $1.17 to $1.32. Our guidance assumes Covid-19 will not materially impact end markets or our operations beyond what has already occurred. Long-term visibility into end markets remains limited, yet our history of strong execution provides the opportunity to continue to capture potential upside demand that may arise. Looking to the second half of fiscal 2021, while we currently anticipate revenue relatively consistent with the fiscal second quarter guidance and operating margin to moderate from the fiscal first quarter result, we believe Plexus is positioned to drive strong EPS growth for fiscal 2021.”

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