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Electronics Production | July 22, 2010

Plexus revenue grew in Q3

EMS provider Plexus posted record third fiscal quarter revenue of $536 million.
Dean Foate, President and CEO, commented, "Our third fiscal quarter of 2010 established a new milestone for Plexus as revenues, for the first time, surpassed $500 million. Revenues grew 9% over the prior quarter to $536 million as we experienced robust sequential growth in all of our market sectors with the exception of Wireless Infrastructure, which declined during the quarter. Earnings leverage was strong with EPS of $0.59, up 16% over the prior quarter. Return on invested capital (ROIC) improved to 19%, moving this key financial metric closer to our 20% target."

Mr. Foate continued, "Our pace of new business wins continued at a strong level. During the third fiscal quarter, we won 22 new manufacturing programs that we anticipate will generate approximately $141 million in annualized revenue. New manufacturing programs won during this period will primarily affect fiscal 2011 revenues as the programs ramp in production over the coming quarters. Our engineering services business continued to build a healthy backlog, winning approximately $16 million of new programs during the third fiscal quarter. All new business is subject to risks around the timing and ultimate realization of the anticipated revenues."

Ginger Jones, Vice President and CFO, commented, "Gross and operating margins were 10.4% and 5.0%, respectively, for the third fiscal quarter, in-line with our expectations when we set guidance for the quarter. Importantly, we are now at our target operating margin of 5%. Management of working capital was challenged during the quarter, with continued demand variability from customers and constraints in the supply-chain for components. As a result, third fiscal quarter cash cycle days increased to 75 days, up nine days from the previous fiscal quarter."

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