NEENAH, WI -- Plexus announced fiscal second quarter revenue of $967 million, down 9.7% from a year ago on lower healthcare/life sciences and industrial demand, offset in part by higher demand for aerospace.

Net income dropped to $16.1 million, down from $40.8 million in 2023.

Plexus took $13 million in restructuring charges in the quarter, which ended Mar. 30.

GAAP operating margin was 3%, down 230 basis points, and gross profit fell nearly $15 million, to $88.1 million. Operating income was cut nearly in half to $29.5 million.

In a statement, Todd Kelsey, chief executive, commented, “Plexus delivered fiscal second quarter revenue of $967 million which met the top end of our guidance. Non-GAAP operating margin of 4.2% met our expectation entering the quarter. In addition, we generated free cash flow of $65 million, a particularly strong result.

“For the fiscal second quarter, our team won 32 new manufacturing programs worth $255 million in annualized revenue. Capitalizing on the value created by our differentiated service offering and superior execution, our go-to-market organization is winning significant new outsourcing opportunities and capturing market share in support of sustaining our industry-leading revenue growth.”

The contract electronics assembler guided for fiscal third quarter revenue of $960 million to $1 billion.

“We believe our revenue growth is in the early stages of inflecting higher, benefiting from robust demand within our Aerospace and Defense market sector, gradually recovering semiconductor capital equipment demand and new program ramps that are mitigating inventory correction headwinds in our Healthcare/Lifesciences and Industrial market sectors," said Kelsey. "For the fiscal third quarter, our non-GAAP operating margin excludes approximately $6.5 million of restructuring charges associated with realigning manufacturing capabilities to best support long-term customer needs and also excludes approximately $6.2 million of stock-based compensation expense.”