Electronics Production | January 25, 2007
Plexus announces Q1 revenue of $381 Million
Plexus has announced results for its fiscal first quarter and provided forward-looking guidance for its fiscal second quarter and its full fiscal year 2007.
Revenue for the 1st fiscal quarter ended December 30, 2006 was $381 million. The Company established 2nd quarter revenue guidance of $345 to $355 million with EPS. Plexus revised its full fiscal year revenue growth target to 8% to 12% over fiscal 2006. Dean Foate, President and CEO, commented, "From a revenue perspective, in Q1 we achieved slightly better than expected performance in our Medical market sector. While the Wireline market sector experienced double-digit growth over the previous quarter, Q1 sales for this market sector remained lower than we had expected. Our other market sectors also experienced lower than expected sales, resulting in slightly less than expected overall revenue in Q1. As we look to Q2, we are experiencing softness with a number of customers across all of our market sectors. Additionally, we continue to have poor visibility into the decision-making process concerning potential follow-on orders for a large defense contract." "We expect revenue growth to resume in the second half of our fiscal year," continued Foate. "However, given the outlook for Q2, general ambiguity around longer-term economic conditions, and uncertainty around the defense contract, we feel it is prudent to revise our FY '07 revenue expectations." "Profits in Q2 and the back half of the year will be adversely impacted by some product mix shifts, as well as the investments we are making to better position Plexus for the long term," said Gordon Bitter, Chief Financial Office. "We expect our new facility in Malaysia to be operational in the fiscal second quarter, and the expansion in China to be completed by September. We are also upgrading manufacturing equipment in Mexico and some sites in the US. Despite these investments, we have ample liquidity to continue to support the growth of current and new customers, and we continue to have one of the lowest debt-to-equity ratios in the industry."