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© plexus (illustration purposes only) Electronics Production | April 20, 2017

Plexus reports on 2Q/2017 revenue of USD 604 million

Todd Kelsey, President and CEO, commented, “We delivered solid earnings despite weaker than anticipated sales within our Communications market sector, resulting in revenue of USD 604 million.”
"We delivered GAAP diluted EPS of USD 0.84, USD 0.05 above the top end of our guidance range. Robust productivity improvements, favorable product mix, and exceptional engineering solutions performance all contributed. Looking ahead to the fiscal third quarter, we currently expect that continued end-market weakness within our Communications market sector and a forecast adjustment with a large Industrial/Commercial customer will offset meaningful growth within the remainder of our business. As a result, we are guiding revenue in the range of USD 595 to 625 million. When coupled with anticipated operating margin performance at the high end of our target range, we expect fiscal third quarter 2017 GAAP diluted EPS to be in the range of USD 0.68 to 0.76.”

© Plexus

Patrick Jermain, Senior Vice President and CFO, commented, “During the fiscal second quarter, we further improved our operating performance, delivering GAAP operating margin of 5.4 percent. We believe our strong operating performance over the last several quarters will continue and are guiding GAAP operating margin in the range of 4.8 to 5.2 percent for the fiscal third quarter. Return on Invested Capital was 16.8 percent for the fiscal second quarter, 630 basis points above our weighted average cost of capital. We were pleased to generate this level of return given the challenging revenue environment, which negatively impacted our cash cycle days. While accounts receivable days sequentially improved, inventory days increased significantly, primarily due to lower than anticipated revenue and increased inventory to support ramping new programs. Prudent management of capital expenditures during the quarter offset higher working capital, resulting in a similar level of invested capital to the prior quarter. Through the first six months of fiscal 2017, we have exceeded our cash flow expectations by delivering more than USD 90 million in free cash flow.”

Fiscal third quarter 2017 revenue guidance has been set to USD 595 to 625 million with GAAP diluted EPS of USD 0.68 to 0.76.

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