Plexus reports 6.3% sequential growth in revenues to $305 Million

Initiates Q3 guidance: Revenue of $305 to $315 Million

Plexus Corp. (Nasdaq: PLXS) announced record revenues of $305.5 million for the second fiscal quarter ended April 2, 2005, up 6.3% compared to the first fiscal quarter's revenues of $287.5 million and up 20.1% compared to $254.3 million in the prior-year period. The net loss of $4.5 million for the second fiscal quarter reflects restructuring costs and asset impairments totaling $10.6 million ($9.8 million after tax) related primarily to the previously announced action to close the Bothell, WA engineering and manufacturing facility and to recognize a change in scope for a shop floor data-collection system. Excluding these special items, the Company had pro-forma net income for the second fiscal quarter of $5.3 million, or $0.12 per fully diluted share.

Dean Foate, President and Chief Executive Officer, commented, "Solid execution by our operating units and the strength of our diversified customer base drove better-than-anticipated top and bottom line performances for the quarter. Looking ahead, we remain confident about attaining revenues for the full fiscal year near the high end of our previously announced target range of 15% to 18%, despite the unsettled outlook for key end markets. For the third fiscal quarter we expect revenues to be in the range of $305 to $315 million, and we anticipate fully diluted earnings per share, before special items, to be in the range of $0.13 to $0.15. The bottom line in the fourth quarter should continue to benefit from operational improvements, which we anticipate will include advancing the new facility in Penang, Malaysia to a modest profit."

Gordon Bitter, Chief Financial Officer, added, "We remain focused on improving the company's balance sheet metrics in order to drive improved Return on Capital Employed. As a result of much improved inventory turnovers, the cash cycle improved by four days despite some erosion in days outstanding in accounts payable and accounts receivable attributable to increased back-ending of sales within the quarter. Cash flow provided by operations was $3.9 million compared to the $4.5 million used in operations in the first fiscal quarter."