Plexus announces Q3 revenue of $380 Million and EPS of $0.33
Jul 26, 2007
Initiates Q4 revenue guidance of $425 - $440 Million
Plexus Corp. (Nasdaq: PLXS) today announced:
-- Q3 '07 Results: Revenue for the fiscal 3rd quarter ended June 30, 2007 was $380 million with diluted GAAP EPS of $0.33, including $0.02 per share of stock option expense.
-- Q4 '07 Guidance: The Company established fiscal 4th quarter revenue guidance of $425 to $440 million with EPS, excluding any restructuring charges, in the range of $0.45 to $0.50, including approximately $0.03 per share of stock option expense.
Dean Foate, President and CEO, commented, "Q3 results exceeded our guidance, driven primarily by better than expected demand from our Medical market sector. Looking forward we are expecting a significant revenue increase in Q4 driven by growth in all of our market sectors with the exception of Medical. Notably, the Defense / Security / Aerospace market sector is expected to be up over 160%, as we anticipate delivering the bulk of the orders for a large defense program that began production in Q3."
"Additionally," Foate continued, "Q3 was another strong quarter of new business development activity, adding more than $130 million (annualized and when fully ramped) of new program revenue that include a follow-on order worth approximately $25 million for continued production of the large defense program for deliveries in Q1 of fiscal 2008. As we always note, our quarter-to-quarter results can and do vary significantly as a result of the timing of orders, our mix of business and other factors."
Gordon Bitter, Chief Financial Officer, added, "The 10.1% gross margin achieved in the fiscal third quarter was driven by solid operational execution, despite wider losses in Mexico primarily to provide for a customer disengagement. Our Mexican site is strategically important, and we are committed to improving its financial performance. We are also executing our plan to upgrade the facility's supply chain and manufacturing capabilities, as well as leadership, to better align our service offering with customer requirements. Moderating the impact of the Mexico loss in Q3, we received cash and recognized revenue in the U.S. on shipments of a financially distressed customer's written-down inventory."
Foate concluded, "Plexus' global footprint and operating model are aligned to provide a competitive advantage for customers with mid- to low-volume, higher-mix requirements in the market sectors we target. We believe our commitment to flawless execution delivers superior performance at a competitive price for our customers, which creates value for our shareholders as we focus on the goal of consistently delivering Return on Invested Capital (ROIC) in excess of our Weighted Average Cost of Capital (WACC)."