Plexus : Plexus Corp. Reports Second Quarter Results

             Plexus : Plexus Corp. Reports Second Quarter Results

April 17, 2013

  *Fiscal second quarter revenue of $558 million, EPS of $0.52

  *Initiates Q3 fiscal 2013 revenue guidance of $550 - $580 million

NEENAH, WI -  April 17, 2013  - Plexus Corp.  (NASDAQ: PLXS), today  announced 
financial results for its fiscal second quarter ended March 30, 2013.

                                            Three Months Ended
                            March 30, 2013     December 29,     March 31, 2012
(US$ in thousands, except       Q2 F13            Q1 F13            Q2 F12
Revenue                           $557,824         $530,532           $573,470
Gross profit                       $52,021          $51,162            $54,624
Operating profit                   $23,188          $21,484            $25,768
Net income                         $17,975          $16,616            $19,958
Diluted earnings per share           $0.52            $0.47              $0.56
Gross margin                          9.3%             9.6%               9.5%
Operating margin                      4.2%             4.1%               4.5%
Return on invested capital           12.7%            12.6%              14.4%

Q2 Fiscal 2013 Results (quarter ended March 30, 2013)

  *Revenue: $558 million, relative to our guidance of $550 to $580 million

  *Diluted EPS: $0.52, including $0.08 per share of stock-based  compensation 
    expense, relative to our guidance of $0.50 to $0.55

  *Return on invested capital (ROIC): 12.7%

Q3 Fiscal 2013 Guidance   

  *Revenue: $550 to $580 million

  *Diluted EPS:  $0.55  to $0.62,  excluding  any restructuring  charges  and 
    including  approximately  $0.08  per  share  of  stock-based  compensation 

Dean Foate, Chairman,  President and  CEO, commented,  "Fiscal second  quarter 
revenues were up 5% sequentially to  $558 million, with diluted EPS of  $0.52. 
Revenue performance in our Networking/Communications sector was  meaningfully 
below our expectations as several customers struggled with end-market  demand. 
While we experienced forecast volatility in other sectors, the end results for
the quarter  were  relatively  in  line with  our  guidance.  The  previously 
disclosed disengagement of Juniper Networks remains on track, with  production 
expected to cease as of the end of our fiscal third quarter of 2013."

Mr. Foate  continued, "During  the quarter,  we  won 33  new programs  in  our 
Manufacturing  Solutions  group;  we  anticipate  these  wins  will   generate 
approximately $143  million  in annualized  revenue,  when fully  ramped  into 
production. While these results were  below our strong performance in  recent 
quarters, our funnel  of qualified business  opportunities improved about  10% 
during the quarter to $2.4 billion."

Ginger Jones, Senior Vice President and CFO, commented, "Gross margin was 9.3%
for the fiscal second quarter, at the top of our expected range due  primarily 
to positive customer mix. Selling and administrative expenses were lower than
our expectations at $28.8  million, the result  of continuing cost  management 
initiatives. As  a result,  operating  margin was  4.2%, slightly  above  our 

Ms. Jones  continued, "During  the fiscal  second quarter  we purchased  $15.5 
million of our shares at  an average price of $25.17  per share under the  $50 
million stock repurchase program approved on October 23, 2012. Fiscal year to
date we have purchased $21.5  million of our shares  under this program at  an 
average price of  $24.56 per share.   We expect  to complete this  repurchase 
program relatively consistently over the balance of fiscal 2013. This program
reflects our desire to  return cash to shareholders  in a disciplined way  and 
our commitment to total shareholder return."

Ms. Jones  concluded,  "Fiscal  second  quarter  cash  cycle  days,  including 
customer deposits, were  64 days and  better than our  expectations. Days  in 
receivables were five days higher than the prior quarter and were offset by  a 
decrease of five days  in inventory compared to  the prior quarter.  Accounts 
payable days stayed  flat as  compared to  the prior  quarter, while  customer 
deposits increased by  ten days  related to a  customer disengagement  deposit 
from Juniper Networks. We generated $27 million of free cash flow during  the 

Mr. Foate concluded, "We  are establishing fiscal  third quarter 2013  revenue 
guidance of $550  to $580  million. At that  level of  revenue we  anticipate 
diluted EPS  of  $0.55  to  $0.62, excluding  any  restructuring  charges  and 
including approximately $0.08 per  share of stock-based compensation  expense. 
The midpoint of this  guidance range suggests that  our fiscal third  quarter 
revenue would  be up  slightly  compared to  our  fiscal second  quarter.  We 
currently anticipate  $1.0 to  $1.5 million  of restructuring  charges in  our 
fiscal third quarter, primarily for severance related to the disengagement  of 
Juniper Networks."

Plexus provides non-GAAP supplemental information  such as return on  invested 
capital ("ROIC"), free cash flow and earnings excluding restructuring charges.
ROIC  is  used  for  internal  management  assessments  because  it  provides 
additional insight  into  ongoing  financial  performance.  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.  Earnings  excluding 
restructuring charges is  provided to facilitate  meaningful period to  period 
comparisons of  underlying performance  by eliminating  infrequent or  unusual 
charges. Please refer to the attached reconciliations of non-GAAP supplemental

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. 

Market Sector ($ in millions)  Q2 F13     Q1 F13     Q2 F12
Networking/Communications     $213 38%     $199 37%     $210 37%
Healthcare/Life Sciences      $129 23%     $133 25%     $114 20%
Industrial/Commercial         $140 25%     $131 25%     $189 33%
Defense/Security/Aerospace     $76 14%      $68 13%      $60 10%
Total Revenue                 $558         $531         $573

Fiscal Q2 Supplemental Information

  *ROIC for the fiscal second quarter was 12.7%. The Company defines ROIC as
    tax-effected annualized  operating  income  divided  by  average  invested 
    capital over a rolling three-quarter period  for the second quarter and  a 
    rolling two-quarter period  for the  first quarter.  Invested capital  is 
    defined as equity plus debt, less cash and cash equivalents.

  *Cash flow provided  by operations  was approximately $54  million for  the 
    quarter. Capital expenditures  for the  quarter were  $27 million.  Free 
    cash flow was positive for the quarter, at approximately $27 million. The
    Company defines  free cash  flow as  cash flow  provided by  (or used  in) 
    operations less capital expenditures. 

  *Top 10  customers  comprised 57%  of  revenue  during the  quarter,  up  1 
    percentage point from the previous quarter.

  *Cash Conversion Cycle:

Cash Conversion Cycle       Q2 F13 Q1 F13  Q2 F12
Days in Accounts Receivable   55     50      47
Days in Inventory             87     92      87
Days in Accounts Payable     (61)   (61)    (62)
Days in Cash Deposits        (17)   (7)      (6)
Annualized Cash Cycle         64     74      66

Conference Call/Webcast and Replay Information:

What:    Plexus Corp.'s Fiscal Q2 Earnings Conference Call and Webcast
When:    Thursday, April 18^th at 8:30 a.m. Eastern Time
Where:   The webcast is accompanied by reference materialsthat can be found at
         The live webcast may also be accessed at: 

         Participants may also listen to the call by calling 1-800-264-7882
         with confirmation: 3449452. 
Replay:  The call will be archived until May 18, 2013 at 11:59 p.m. Central
         Time at
         or via telephone replay at 1-888-843-7419 or 1-630- 652-3042 with
         Passcode: 3449 4452#

For further information, please contact:

Ginger Jones, Senior VP and Chief Financial Officer
1-920-751-5487 or

About Plexus Corp. - The Product Realization Company

Plexus  (  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.'sintended  disengagement; the  adequacy  of 
restructuring and similar charges as compared to actual expenses; 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, instability  in the  Korean 
peninsula, 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 ended September29, 2012). 

                                PLEXUS CORP.
                    (in thousands, except per share data)
                            Three Months Ended          Six Months Ended
                          March 30,     March 31,      March 30,  March 31,
                            2013         2012           2013         2012
Net sales                   $557,824      $573,470      $1,088,356  $1,103,124
Cost of sales                505,803       518,846         985,173     996,848
 Gross profit                52,021        54,624         103,183     106,276
Operating expenses:
 Selling and                28,833        28,856          58,511      56,746
administrative expenses
    Operating income      23,188        25,768          44,672      49,530
Other income (expense):
 Interest expense           (3,640)       (4,020)         (7,360)     (8,080)
 Interest income                383           415             780         898
 Miscellaneous                    -           228           (475)       (317)
 Income before income       19,931        22,391          37,617      42,031
Income tax expense             1,956         2,433           3,026       4,203
Net income                   $17,975       $19,958         $34,591     $37,828
Earnings per share:
 Basic                       $0.52         $0.57           $1.01       $1.09
 Diluted                     $0.52         $0.56           $1.00       $1.07
Weighted average shares outstanding:
 Basic                      34,286        34,874          34,253      34,737
 Diluted                    34,694        35,658          34,673      35,431

                                 PLEXUS CORP.
                    (in thousands, except per share data)
ROIC Calculation       Six Months Ended     Three Months      Six Months Ended
                          March 30,       December 29,       March 31,
                             2013               2012                2012
Operating income                $44,672           $21,484              $49,530
                          x           2       x         4        x           2
Annualized operating
income                           89,344            85,936               99,060
Tax rate                  x          8%       x        6%        x         10%
Tax impact                        7,148             5,156                9,906
Operating income (tax
effected)                       $82,196           $80,780              $89,154
Average invested               $645,402          $640,992             $619,311
ROIC                              12.7%             12.6%                14.4%

                                March 30,     December 29,      September
                                  2013              2012               29,
Equity                            $669,047           $664,515         $649,022
 Debt - current                    2,893             10,310           10,211
 Debt -                          258,789            259,516          260,211
 Cash and cash
equivalents                      (276,507)          (274,183)        (297,619)
                                  $654,222           $660,158         $621,825
Fiscal 2013 second quarter average invested capital (March 30, 2013, December
29, 2012 and September 29, 2012) was $645,402.
Fiscal 2013 first quarter average invested capital (December 29, 2012 and
September 29, 2012) was $640,992.

                               March 31,     December 31,   October 1,
                                     2012              2011            2011
Equity                               $615,296          $581,811       $558,882
 Debt -                              17,518            17,446         17,350
 Debt -                             261,542           265,941        270,292
    Cash and cash
        equivalents                 (257,754)         (248,284)      (242,107)
                                     $636,602          $616,914       $604,417
Fiscal 2012 second quarter average invested capital (March 31, 2012, December
31, 2011 and October 1, 2011) was $619,311.

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 March  30, 
2013 cash  flow provided  by  operations was  approximately $54  million  less 
capital expenditures of approximately $27 million, resulting in positive  free 
cash flow of approximately $27 million.

                                 PLEXUS CORP.
                    (in thousands, except per share data)
                                                 March 30,      September 29,
                                                    2013             2012
Current assets:
 Cash and cash equivalents                       $276,507           $297,619
 Accounts receivable                              335,279            323,210
 Inventories                                      484,327            457,691
 Deferred income taxes                              2,246              2,232
 Prepaid expenses and other                        22,199             15,785
  Total current assets                          1,120,558          1,096,537
Property, plant and equipment, net                  295,138            265,191
  Deferred income taxes                             3,771              4,335
Other                                                41,609             42,136
  Total assets                                 $1,461,076         $1,408,199
Current liabilities:
 Current portion of long-term debt and capital
lease obligations                                    $2,893            $10,211
 Accounts payable                                 337,694            341,276
 Customer deposits                                 96,778             36,384
 Accrued liabilities:
  Salaries and wages                              34,646             45,450
  Other                                           43,163             46,550
  Total current liabilities                       515,174            479,871
Long-term debt and capital lease obligations,
net of current portion                              258,789            260,211
Other liabilities                                    18,066             19,095
  Total non-current liabilities                   276,855            279,306
Shareholders' equity:
 Common stock, $.01 par value, 200,000 shares
  48,944 and 48,851 shares issued,
  and 34,313 and 35,097 shares outstanding,
respectively                                            489                489
 Additional paid-in-capital                       441,208            435,546
 Common stock held in treasury, at cost,
14,631 and 13,754, respectively                   (421,651)          (400,110)
 Retained earnings                                631,504            596,913
 Accumulated other comprehensive income            17,497             16,184
 Total shareholders' equity                       669,047            649,022
  Total liabilities and shareholders' equity   $1,461,076         $1,408,199



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