Plexus strong in tough times

The company recorded revenues of USD 568 million during its Q4, above the midpoint of our guidance range, but down modestly from the prior quarter. Revenues for the full year of 2013 were USD 2.23 billion, down 3.4% from prior year. Dean Foate, Chairman, President and CEO, commented, "During the quarter, we won 34 new programs in our Manufacturing Solutions group; we anticipate these wins will generate approximately USD 155 million in annualized revenue when fully ramped into production. The wins performance this quarter results in trailing four quarter wins of approximately USD 703 million in annualized revenue, or 31% of trailing four quarter revenue." Fourth quarter highlight:

• Revenue USD 567.7 million (USD 571.9 million Q3)
• Gross profit USD 54.5 million (USD 55.4 million Q3)
• Operation profit USD 26.7 million (USD 25.1 million Q3)
• Net income USD 24.4 (USD 23.2 million Q3)

Ginger Jones, Senior Vice President and CFO, commented, "Gross margin was 9.6% for the fiscal fourth quarter, and included charges of approximately USD 0.4 million related to the consolidation of manufacturing facilities in Neenah, WI. Our focused cost management initiatives delivered selling and administrative expenses significantly lower than expectations at USD 27.8 million. The resulting operating margin of 4.7% was above our expectations." Ms. Jones concluded, "We completed the fiscal year with strong cash cycle results. Fiscal fourth quarter cash cycle days, including customer deposits, were 53 days and better than our expectations. As a result of strong operating earnings and working capital improvements, we generated USD 68 million of free cash flow during the quarter and USD 101 million during the fiscal year."