Breaking News

Argentina Didn't Reach an Agreement With Holdouts: Mediator
Tweet TWEET

Plexus : Plexus Corp. Reports First Quarter Results

             Plexus : Plexus Corp. Reports First Quarter Results

January 16, 2013

  oFiscal first quarter revenue of $531 Million, EPS of $0.47
  oInitiates Q2 fiscal 2013 revenue guidance of $550 - $580 Million

NEENAH, WI - January 16, 2013  - Plexus Corp. (NASDAQ: PLXS), today  announced 
financial results for its fiscal first quarter ended December 29, 2012.

                                             Three Months Ended
                                December 29,   September 29,   December 31,
                                     2012            2012             2011
(US$ in thousands, except EPS)      Q1 F13         Q4 F12          Q1 F12
                                                           
Revenue                              $530,532        $594,789       $529,654
Gross profit                          $51,162         $56,244        $51,652
Operating profit                      $21,484         $27,349        $23,762
Net income                            $16,616            $728        $17,870
Earnings per share                      $0.47           $0.02          $0.51
Net income, before special
charges                               $16,616         $23,513        $17,870
Earnings per share, before
special charges                         $0.47           $0.66          $0.51
                                                             
Gross margin                             9.6%            9.5%           9.8%
Operating margin                         4.1%            4.6%           4.5%
Return on invested capital              12.6%           15.5%          14.2%

Q1 Fiscal 2013 Results (quarter ended December 29, 2012)

  oRevenue: $531 million, consistent with our updated guidance
  oDiluted EPS: $0.47, including $0.08 per share of stock-based compensation
    expense
  oReturn on invested capital (ROIC): 12.6%

Q2 Fiscal 2013 Guidance

  oRevenue: $550 to $580 million
  oDiluted EPS: $0.50 to $0.55, excluding any unanticipated restructuring
    charges and including approximately $0.08 per share of stock-based
    compensation expense

Dean Foate, President  and CEO, commented,  "Our revenue of  $531 million  and 
diluted EPS  of $0.47  was  consistent with  our  updated guidance  issued  on 
January 7, 2013. Relative to our original expectations, manufacturing  demand 
softened across all of  our sectors during the  quarter, particularly for  our 
Networking/Communications  sector  in  the  final  few  weeks.  Despite   the 
challenges in the end-market demand environment, our new business  development 
results were strong again in the first quarter. Our teams won 23 new programs
in our Manufacturing Solutions group;  we anticipate these wins will  generate 
approximately $193  million  in annualized  revenue,  when fully  ramped  into 
production. As  always, all  future revenues  are subject  to the  timing  and 
ultimate realization of customer forecasts  and orders that can be  influenced 
by economic and other factors. Our funnel of qualified business opportunities
increased during  the quarter  to $2.2  billion, up  slightly from  the  prior 
quarter."

Ginger Jones, Senior Vice President and CFO, commented, "Gross margin was 9.6%
for the  fiscal  first quarter,  above  our  expected range  due  to  positive 
customer mix and sales of certain  inventory that had previously been  written 
down. Selling and administrative expenses were in line with our  expectations 
at  $29.7  million.   Operating  margin   was  4.1%,   consistent  with   our 
expectations."

Ms. Jones concluded, "Fiscal first quarter cash cycle days, including customer
deposits, were 74 days  and significantly above our  expected range. Days  in 
receivables were  one  day higher  than  the prior  quarter.  Inventory  days 
increased fourteen days,  primarily as  a result  of lower  demand during  the 
quarter than expected. This  increase was offset by  a three-day increase  in 
accounts payable days and a one-day increase in cash deposits."

Mr. Foate continued, "We are  establishing fiscal second quarter 2013  revenue 
guidance of $550  to $580  million. At that  level of  revenue we  anticipate 
diluted EPS  of  $0.50 to  $0.55,  excluding any  unanticipated  restructuring 
charges  and   including  approximately   $0.08  per   share  of   stock-based 
compensation expense. The midpoint of  this guidance range suggests that  our 
fiscal second quarter  revenue would  be up 6%  compared to  our fiscal  first 
quarter; it reflects higher forecasted revenue from Juniper as we  supportthe 
plan to substantially complete the disengagement by June 30, 2013."

Mr. Foate concluded, "Recognizing the challenges the business will face  after 
June 30  from the  disengagement of  our largest  customer, we  remain  keenly 
focused on managing our cost structure to achieve acceptable financial results
as we work  to ramp up  new business  to replace the  Juniper revenues.  Our 
optimism is directly tied to  the $956 million in  new program wins in  fiscal 
2012 and the strong  wins in the fiscal  first quarter. Taking into  account 
the Juniper exit and the current view of ramps of this new business, our  goal 
is to work our  way back to  flat revenue for fiscal  2013 compared to  fiscal 
2012 and strive for modest revenue growth in fiscal 2014."

Plexus provides non-GAAP supplemental information  such as return on  invested 
capital ("ROIC"), free cash flow and net income before special charges.  ROIC 
is used for  internal management  assessments because  it provides  additional 
insight into ongoing financial performance. Net income before special charges
helps assess trends and  performance over time by  eliminating the effects  of 
unusual events. In addition, we provide non-GAAP measures because we  believe 
they offer insight into the metrics  that are driving management decisions  as 
well as management's  performance under the  tests that it  sets for  itself. 
Please refer to the attached reconciliations of non-GAAP supplemental data.

Market Sector Breakout

Plexus reports revenue based  on the market sector  breakout set forth in  the 
table below, which  reflects the Company's  focus on its  global business  and 
market development sector strategy.

Beginning in  fiscal 2013,  as previously  announced, we  renamed our  Medical 
sector to the  Healthcare/Life Sciences  sector. This change  stems from  our 
evolving strategy and  enhanced capabilities within  this market and  reflects 
the  industry's   continuing  approach   towards  holistic   patient   care. 
Healthcare/Life Sciences more accurately defines this growing industry, aligns
with our existing and targeted customer base, and more accurately reflects our
growth opportunities.

Market Sector ($ in millions)  Q1 F13    Q4 F12    Q1 F12
Networking/Communications     $199 37%   $228 39%   $230 43%
Healthcare/Life Sciences      $133 25%   $138 21%   $114 22%
Industrial/Commercial         $131 25%   $159 31%   $135 25%
Defense/Security/Aerospace     $68 13%   $70   9%    $51 10%
Total Revenue                 $531      $595      $530 

Fiscal Q1 Supplemental Information

  oROIC for the fiscal first quarter was 12.6%. The Company defines ROIC as
    tax-effected annualized operating income divided by average invested
    capital over a rolling two-quarter period for the first quarter and a
    rolling five-quarter period for the fourth quarter. Invested capital is
    defined as equity plus debt, less cash and cash equivalents.
  oCash flow provided by operations was approximately $9 million for the
    quarter. Capital expenditures for the quarter were $26 million. Free
    cash flow was negative for the quarter, at approximately $(17) million.
    The Company defines free cash flow as cash flow provided by (or used in)
    operations less capital expenditures.
  oTop 10 customers comprised 56% of revenue during the quarter, up 1
    percentage point from the previous quarter.
  oCash Conversion Cycle:

Cash Conversion Cycle       Q1 F13 Q4 F12  Q1 F12
Days in Accounts Receivable   50     49      46
Days in Inventory             92     78      87
Days in Accounts Payable     (61)   (58)    (57)
Days in Cash Deposits        (7)    (6)      (6)
Annualized Cash Cycle         74     63      70

Conference Call/Webcast and Replay Information:

What:    Plexus Corp.'s Fiscal Q1 Earnings Conference Call
When:    Thursday, January 17^th at 8:30 a.m. Eastern Time
Where:   (800) 927-0469 with confirmation number 3398 7298
         http://www.media-server.com/m/p/27f372dr
Replay:  The call will be archived until February 15, 2013 at midnight Eastern
         Time
         http://www.media-server.com/m/p/27f372dr
         or via telephone replay at (888) 843-7419 or (630) 652-3042 with
         confirmation number 3398 7298

For further information, please contact:

Ginger Jones, Senior VP and Chief Financial Officer
920-751-5487 or ginger.jones@plexus.com

About Plexus Corp. - The Product Realization Company

Plexus  (www.plexus.com)  delivers  optimized  Product  Realization  solutions 
through a  unique  Product  Realization  Value  Stream  service  model.  This 
customer-focused  services  model  seamlessly  integrates  innovative  product 
conceptualization, design, commercialization,  manufacturing, fulfillment  and 
sustaining  services  to  deliver   comprehensive  end-to-end  solutions   for 
customers in the America, European and Asia-Pacific regions.

Plexus  is  the  industry  leader  in  servicing  mid-to-low  volume,   higher 
complexity customer programs characterized by unique flexibility,  technology, 
quality  and  regulatory  requirements.  Award-winning  customer  service  is 
provided    to    over    140    branded    product    companies    in     the 
Networking/Communications, Healthcare/Life Sciences, Industrial/Commercial and
Defense/Security/Aerospace market sectors.

Safe Harbor and Fair Disclosure Statement

The statements contained in this release which are guidance or which are not
historical facts (such as statements in the future tense and statements
including "believe," "expect," "intend," "plan," "anticipate," "goal,"
"target" and similar terms and concepts), including all discussions of periods
which are not yet completed, are forward-looking statements that involve risks
and uncertainties. These risks and uncertainties include, but are not limited
to: the risk of customer delays, changes, cancellations or forecast
inaccuracies in both ongoing and new programs; the poor visibility of future
orders, particularly in view of current economic conditions; the effects on
Plexus of Juniper Network, Inc.'s (Juniper's) intended disengagement,
including limited visibility as to Juniper's demand during the transition and
the timing of disengagement; the economic performance of the industries,
sectors and customers we serve; the effects of the volume of revenue from
certain sectors or programs on our margins in particular periods; our ability
to secure new customers, maintain our current customer base and deliver
product on a timely basis; the particular risks relative to new or recent
customers or programs, which risks include customer and other delays, start-up
costs, potential inability to execute, the establishment of appropriate terms
of agreements, and the lack of a track record of order volume and timing; the
risks of concentration of work for certain customers; our ability to manage
successfully a complex business model characterized by high customer and
product mix, low volumes and demanding quality, regulatory, and other
requirements; the risk that new program wins and/or customer demand may not
result in the expected revenue or profitability; the fact that customer orders
may not lead to long-term relationships; the effects of shortages and delays
in obtaining components as a result of economic cycles or natural disasters;
the risks associated with excess and obsolete inventory, including the risk
that inventory purchased on behalf of our customers may not be consumed or
otherwise paid for by the customer, resulting in an inventory write-off; the
weakness of areas of the global economy and the continuing instability of the
global financial markets and banking system, including the potential inability
of our customers or suppliers to access credit facilities; the effect of
changes in the pricing and margins of products; the effect of start-up costs
of new programs and facilities, such as our announced plans to replace
facilities in Romania and the United States, and other recent, planned and
potential future expansions; increasing regulatory and compliance
requirements; possible unexpected costs and operating disruption in
transitioning programs; raw materials and component cost fluctuations; the
potential effect of fluctuations in the value of the currencies in which we
transact business; the potential effects of regional results on our taxes and
ability to use deferred tax assets; the potential effect of world or local
events or other events outside our control (such as drug cartel-related
violence in Mexico, changes in oil prices, terrorism and weather events); the
impact of increased competition; and other risks detailed in the Company's
Securities and Exchange Commission filings (particularly in Part I, Item 1A of
our annual report on Form 10-K for the fiscal year endedSeptember 29, 2012).

                            PLEXUS CORP.
           CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                (in thousands, except per share data)
                             (unaudited)
                                            Three Months Ended
                                       December 29,   December 31,
                                           2012           2011
Net sales                                    $530,532       $529,654
Cost of sales                                 479,370        478,002
                                                      
 Gross profit                                 51,162         51,652
                                                      
Operating expenses:                                    
 Selling and administrative expenses         29,678         27,890
 Operating income                       21,484         23,762
                                                      
Other income (expense):                                
 Interest expense                            (3,720)        (4,060)
 Interest income                                 397            483
 Miscellaneous                                 (475)          (545)
                                                      
 Income before income taxes                  17,686         19,640
                                                      
Income tax expense                              1,070          1,770
                                                      
Net income                                    $16,616        $17,870
                                                      
Earnings per share:                                    
 Basic                                        $0.48          $0.52
 Diluted                                      $0.47          $0.51
                                                      
Weighted average shares outstanding:                   
 Basic                                       34,836         34,600
 Diluted                                     35,283         35,181





                                 PLEXUS CORP.
                      NON-GAAP SUPPLEMENTAL INFORMATION
                    (in thousands, except per share data)
                                 (unaudited)
ROIC Calculation              Three Months      Twelve Months   Three Months
                                  Ended              Ended           Ended
                           December 29, 2012  September 29,  December 31,
                                                     2012             2011
Operating income                     $21,484             $0       $23,762
                               x           4     x         0    x         4
Annualized operating income           85,936        104,159        95,048
Tax rate                        x          6%     x        7%    x        9%
Tax impact                             5,156          7,291         8,554
Operating income (tax                                             
effected)                            $80,780        $96,868        $86,494
                                                             
                                                             
Average invested capital            $640,992       $623,021      $610,666
                                                             
ROIC                                   12.6%          15.5%         14.2%

                                     December 29,     September 29,
                                                 2012                2012
Equity                                      $664,515           $649,022
Plus:                                                   
 Debt - current                             10,310             10,211
 Debt - non-current                        259,516            260,211
Less:                                                   
 Cash and cash
equivalents                                 (274,183)          (297,619)
                                           $660,158           $621,825
                                                       
Fiscal 2013 first quarter average invested capital (December 29, 2012 and
September 29, 2012) was $640,992.

            September     June 30,    March 31,  December    October
              29, 2012         2012          2012       31, 2011      1, 2011
Equity         $649,022      $638,573     $615,296    $581,811    $558,882
Plus:                                                        
 Debt -       10,211        13,838       17,518      17,446      17,350
current
 Debt -       260,211       260,843      261,542     265,941     270,292
non-current
Less:                                                        
 Cash and
cash
equivalents   (297,619)     (277,909)    (257,754)   (248,284)   (242,107)
              $621,825      $635,345     $636,602    $616,914    $604,417
                                                            
Fiscal 2012 fourth quarter average invested capital (September 29, 2012, June
30, 2012, March 31, 2012, December 31, 2011, and October 1, 2011) was
$623,021.
Fiscal 2012 first quarter average invested capital (December 31, 2011 and
October 1, 2011) was $610,666.

Free Cash Flow Calculation

The Company defines  free cash  flow as  cash flow  provided by  (or used  in) 
operations less capital expenditures. For the three months ended December 29,
2012 cash  flow  provided by  operations  was approximately  $9  million  less 
capital expenditures of approximately $26 million, resulting in negative  free 
cash flow of approximately $(17) million.

                                 PLEXUS CORP.
                      NON-GAAP SUPPLEMENTAL INFORMATION
                    (in thousands, except per share data)
                                 (unaudited)
                                                   
                                    Three Months Ended
                   December 29,          September        December 31,
                                              29,
                       2012                2012               2011
Net income,
as reported                    $16,616         $728                 $17,870
                                                   
Non-GAAP
adjustments:                                        
Valuation                       
allowance     -                               22,785  -
                                                   
Net income,
as adjusted                    $16,616       $23,513                 $17,870
                                                    
                                                   
Diluted
earnings per
share, as
reported                         $0.47         $0.02                   $0.51
                               
Non-GAAP
adjustments:                            
Valuation                       
allowance     -                                 0.64  -
                                                    
Diluted
earnings per
share, as
adjusted                         $0.47         $0.66                   $0.51

                                 PLEXUS CORP.
                    CONDENSED CONSOLIDATED BALANCE SHEETS
                    (in thousands, except per share data)
                                 (unaudited)
                                                            
                                               December 29,   September 29,
                                                   2012            2012
ASSETS                                                        
Current assets:                                               
 Cash and cash equivalents                        $274,183         $297,619
 Accounts receivable                               290,458          323,210
 Inventories                                       480,992          457,691
 Deferred income taxes                               2,245            2,232
 Prepaid expenses and other                         19,010           15,785
                                                             
 Total current assets                           1,066,888        1,096,537
                                                             
Property, plant and equipment, net                   281,240          265,191
 Deferred income taxes                              3,980            4,335
Other                                                 41,541           42,136
                                                             
 Total assets                                  $1,393,649       $1,408,199
                                                             
LIABILITIES AND SHAREHOLDERS' EQUITY                          
Current liabilities:                                          
 Current portion of long-term debt and
capital lease obligations                            $10,310          $10,211
 Accounts payable                                  320,808          341,276
 Customer deposits                                  36,388           36,384
 Accrued liabilities:                                       
 Salaries and wages                               37,772           45,450
 Other                                            45,367           46,550
                                                             
 Total current liabilities                        450,645          479,871
                                                             
Long-term debt and capital lease obligations,
net of current portion                               259,516          260,211
Other liabilities                                     18,973           19,095
 Total non-current liabilities                    278,489          279,306
                                                             
Shareholders' equity:                                         
 Common stock, $.01 par value, 200,000 shares
authorized,                                                   
 48,856 and 48,851 shares issued,
respectively,                                                 
 and 34,840 and 35,097 shares outstanding,
respectively                                             489              489
 Additional paid-in-capital                        438,379          435,546
 Common stock held in treasury, at cost,
14,016 and 13,754, respectively                    (406,180)        (400,110)
 Retained earnings                                 613,529          596,913
 Accumulated other comprehensive income             18,298           16,184
                                                             
 Total shareholders' equity                        664,515          649,022
                                                             
 Total liabilities and shareholders' equity    $1,393,649       $1,408,199

                                     ###

------------------------------------------------------------------------------

This announcement is distributed by Thomson Reuters on behalf of Thomson
Reuters clients.

The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other
applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of
the
information contained therein.

Source: Plexus via Thomson Reuters ONE
HUG#1670958