Plexus Posts Revenue of $619M for Q3 FY2017

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Plexus Corp. has announced a revenue of $619 million for the third quarter of its fiscal year ended July 1, 2017. The company has also announced revenue guidance of $660 to $700 million with GAAP diluted EPS of $0.77 to $0.87 for its fiscal fourth quarter ending September 30, 2017.

During the quarter, the company won 32 Manufacturing Solutions programs, representing approximately $220 million in annualized revenue when fully ramped into production. Meanwhile, trailing four quarter Manufacturing Solutions wins total approximately $839 million in annualized revenue when fully ramped into production.

"I am pleased we delivered fiscal third quarter revenue and GAAP EPS above the midpoint of our guidance range. Our continued strong operating performance enabled us to achieve our fifth consecutive quarter within or above our target operating margin range of 4.7% to 5.0%," commented Todd Kelsey, President and CEO.

Patrick Jermain, Senior Vice President and CFO, said, "Our fiscal third quarter ROIC was 16.1%, a result that is 560 basis points above our weighted average cost of capital and exceeds our 500 basis point Economic Return goal. Consistent with our expectations, fiscal third quarter working capital requirements increased to support new program ramps occurring during the fiscal fourth quarter. Despite the additional working capital requirements, we delivered approximately $7 million of free cash flow during the quarter and expect to improve on this result during the fiscal fourth quarter."

Kelsey concluded, "We expect fiscal fourth quarter revenue to increase significantly as a result of ramping previously reported program wins. Consequently, we are guiding fiscal fourth quarter revenue in the range of $660 to $700 million. At this revenue level, in conjunction with continued strong operating performance, we anticipate GAAP EPS in the range of $0.77 to $0.87. Our wins momentum and qualified funnel of opportunities remain robust, giving us confidence that we can achieve meaningful growth in fiscal 2018."

Business Segment and Market Sector Revenue

The company measures operational performance and allocates resources on a geographic segment basis. Plexus also reports revenue based on the market sector breakout set forth in the table below, which reflects the Company’s global market sector focused business development strategy. Top 10 customers comprised 54% of revenue during the quarter, consistent with the fiscal second quarter of 2017.

About Plexus Corp.

Plexus Corp. 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. For more information, click here.