Electronics Production | October 28, 2009
Plexus post revenue of $393 million in Q4
EMS provider Plexus reports fiscal fourth quarter revenue of $393 million.
Dean Foate, President and CEO, commented, "Fiscal fourth quarter revenues grew 4% sequentially, the first sequential increase in revenue since the fourth fiscal quarter of 2008. While overall revenues were within our guidance range, we experienced significant demand volatility during the quarter. When compared to our expectations at the time we set guidance for the quarter, our Wireless and Industrial/Commercial sectors performed substantially better, while our Wireline/Networking and Medical sectors did not perform as well. Revenues in the Defense/Security/Aerospace sector grew during the quarter, although slightly below earlier expectations. Our pace of new business wins continues at a healthy level. During Q4 we won 13 new manufacturing programs that we currently anticipate will generate approximately $122 million in annualized revenue when fully ramped into production over the coming quarters, subject to risks around the timing and ultimate realization of the forecasted revenues." Mr. Foate continued, "We currently anticipate modest revenue growth in our fiscal first quarter of 2010 as we benefit from the ramp of new business wins and signs of improving customer demand. We are establishing fiscal first quarter revenue guidance of $405 to $430 million with diluted EPS of $0.31 to $0.36, excluding any restructuring charges and including approximately $0.05 per share of stock-based compensation expense." Mr. Foate concluded, "Fiscal 2009 was a difficult year as we experienced our first full-year decline in revenue since fiscal 2003. Before we put fiscal 2009 in the rear-view mirror, it is important to acknowledge that fiscal 2009 was a 'relative' victory as our revenue declined just 12 percent while many of our competitors experienced declines exceeding 20 percent. I believe our team managed well in a difficult environment, moving quickly to re-align costs. While our financial metrics were below our goals, we continued to be an industry leader in profitability and generated strong cash flows. Importantly, we gained significant share with several of our customers while we experienced record new business wins during the fiscal year. We executed prudently on capacity investments to support anticipated growth. This 'relative' victory in fiscal 2009 demonstrates the increasing strength of the Plexus brand. I believe our unique value proposition helps create competitive advantage for customers with product realization service requirements in the mid- to low-volume, higher-mix segment of the electronic manufacturing marketplace. Looking ahead to fiscal 2010, we currently anticipate returning to growth. But, given the current macroeconomic environment and the uncertainty in customers' forecasts, we are refraining from providing full year fiscal 2010 revenue targets."