NEENAH, WI – Plexus reported fiscal second quarter revenue of $881 million, up 14.8% year-over-year and 6.1% sequentially.

Net income for the quarter ended Apr. 3 was $41.8 million, an increase of 223.1% compared to the same quarter of 2020 and up 15.4% sequentially.

Operating income was $50.7 million, up 194.5% year-over-year and 8.2% sequentially.

The company won 42 manufacturing programs during the quarter, representing $284 million in annualized revenue when fully ramped into production. Trailing four quarter wins total a record $1.04 billion in annualized revenue when fully ramped into production.

“Our robust fiscal second quarter results highlight the advantages of our unique value proposition and consistent focus on operational excellence,” said Todd Kelsey, president and CEO. “Our GAAP operating margin of 5.75% expanded 11 basis points from the prior quarter, representing the best performance in more than a decade and the fourth consecutive quarter in excess of 5%. Productivity gains, expense management and another solid performance from our Engineering Solutions team contributed to better than anticipated profitability. Revenue of $881 million was in line with our expectation and at the midpoint of our guidance. Through this combination, we delivered GAAP EPS of $1.42, which exceeded the top end of our guidance range.

“Leveraging the record $3.3 billion funnel of qualified manufacturing opportunities from our fiscal first quarter, we won 42 new manufacturing programs. For the second consecutive quarter, these program wins include a number of meaningful new customer engagements, positioning us for further growth. These wins, which include a notable Aftermarket Services engagement, represent $284 million in annualized revenue when fully ramped into production and contribute to our trailing four quarter wins, once again, exceeding $1 billion.

“We anticipate our robust performance will continue for the fiscal third quarter based on incrementally stronger demand, particularly in our Healthcare/Life Sciences sector, and confidence in our ability to consistently execute. We are guiding revenue of $875 to $915 million, GAAP operating margin of 5.1% to 5.6% and GAAP EPS of $1.23 to $1.38. Our guidance assumes that neither supply chain constraints, which are a near term limiter in our ability to meet customer demand upside, nor Covid-19 will materially impact end markets or our operations beyond what is already anticipated.

“We believe we have a platform to sustain strong revenue growth moving forward through the strengthening in the overall demand environment, including equipment used in elective medical procedures, an eventual commercial aerospace market recovery, our ability to support secular growth markets and the acceleration in new program wins. Looking beyond fiscal 2021, we are confident these factors support our goal to achieve 9% to 12% annual revenue growth, while continuing to deliver industry-leading operating performance.”

“Given the strength of our balance sheet and free cash flow generation, we elected to repay our 364-day term loan of $138 million three months early,” said Patrick Jermain, executive VP and CFO. “We ended the quarter with ample liquidity, given our cash balance of approximately $295 million and only $38 million borrowed under our $350 million revolving credit facility. In addition, we reconfirm our fiscal 2021 expectation for free cash flow of approximately $100 million.”

For the three months ended Apr. 3, cash flows provided by operations were $82.1 million, less capital expenditures of $7.3 million, resulting in free cash flow of $74.8 million.

PCB EAST: The original East Coast technical conference and exhibition! Returning to the Boston suburbs in June 2021! 

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