Plexus (PLXS) 8-K Plexus Announces Q3 Revenue of $380 Million and EPS of $0.33

Exhibit 99.1

FOR IMMEDIATE RELEASE

Plexus Announces Q3 Revenue of $380 Million and EPS of $0.33

Initiates Q4 Revenue Guidance of $425 — $440 Million

NEENAH, WI, July 25, 2007 — Plexus Corp. (Nasdaq: PLXS) today announced:

• Q3 ‘07 Results: Revenue for the fiscal 3^rd quarter ended June 30, 2007 was $380 million with diluted GAAP EPS of $0.33, including $0.02 per share of stock option expense.

• Q4 ‘07 Guidance: The Company established fiscal 4^th quarter revenue guidance of $425 to $440 million with EPS, excluding any restructuring charges, in the range of $0.45 to $0.50, including approximately $0.03 per share of stock option expense.

Dean Foate, President and CEO, commented, “Q3 results exceeded our guidance, driven primarily by better than expected demand from our Medical market sector. Looking forward we are expecting a significant revenue increase in Q4 driven by growth in all of our market sectors with the exception of Medical. Notably, the Defense / Security / Aerospace market sector is expected to be up over 160%, as we anticipate delivering the bulk of the orders for a large defense program that began production in Q3.”

“Additionally,” Foate continued, “Q3 was another strong quarter of new business development activity, adding more than $130 million (annualized and when fully ramped) of new program revenue that included a follow-on order worth approximately $25 million for continued production of the large defense program for deliveries in Q1 of fiscal 2008. As we always note, our quarter-to-quarter results can and do vary significantly as a result of the timing of orders, our mix of business and other factors.”

Gordon Bitter, Chief Financial Officer, added, “The 10.1% gross margin achieved in the fiscal third quarter was driven by solid operational execution, despite wider losses in Mexico primarily to provide for a customer disengagement. Our Mexican site is strategically important, and we are committed to improving its financial performance. We are also executing our plan to upgrade the facility’s supply chain and manufacturing capabilities, as well as leadership, to better align our service offering with customer requirements. Moderating the impact of the Mexico loss in Q3, we received cash and recognized revenue in the U.S. on shipments of a financially distressed customer’s written-down inventory.”

Foate concluded, “Plexus’ global footprint and operating model are aligned to provide a competitive advantage for customers with mid- to low-volume, higher-mix requirements in the market sectors we target. We believe our commitment to flawless execution delivers superior performance at a competitive price for our customers, which creates value for our shareholders as we focus on the goal of consistently delivering Return on Invested Capital (ROIC) in excess of our Weighted Average Cost of Capital (WACC).”

(continues)

Plexus provides non-GAAP supplemental information. These non-GAAP income statements exclude transactions that are not expected to have an effect on future operations. Such transactions include restructuring costs, as well as the establishment or reduction of the valuation allowance for deferred tax assets. These non-GAAP financial data are provided to facilitate meaningful period-to-period comparisons of underlying operational performance by eliminating infrequent or unusual charges. Similar non-GAAP financial measures are used for internal management assessments because such measures provide additional insight into ongoing financial performance. Please refer to the attached accompanying reconciliations of the GAAP net income and EPS to the 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 sales and marketing focus.

Market Sector	Q3 – Fiscal 2007			Q2 – Fiscal 2007
Wireline/Networking		46	%		45	%
Wireless Infrastructure		9	%		8	%
Medical		24	%		25	%
Industrial/Commercial		14	%		16	%
Defense/Security/Aerospace		7	%		6	%

FISCAL Q3 HIGHLIGHTS

• Annualized ROIC was 14.7%. The Company defines ROIC as tax-effected operating income, excluding restructuring costs, divided by average capital employed, which is equity plus debt, less cash and cash equivalents and short-term investments.

• Cash flow provided by operations was approximately $14.8 million for the quarter.

• Top 10 customers comprised 64% of sales during the quarter, up 5 percentage points from the previous quarter.

• Juniper Networks Inc., with 24% of sales, was the only customer representing 10% or more of revenues for the quarter.

• Capital expenditures for the quarter were $7.8 million.

• Cash Conversion Cycle:

Cash Conversion Cycle	Q3 – Fiscal 2007	Q2 – Fiscal 2007
Days in Accounts Receivable	48 Days	49 Days
Days in Inventory	68 Days	68 Days
Days in Accounts Payable	(53) Days	(54) Days
Annualized Cash Cycle	63 Days	63 Days

(continues)

Conference Call/Webcast and Replay Information

What:	Plexus Corp.’s Fiscal Q3 Earnings Conference Call
When:	Thursday, July 26th at 8:30 a.m. Eastern Time
Where:	800-514-0843 or 973-935-8412 with conference ID: 8952440 http://www.videonewswire.com/PLXS/072607 (requires Windows Media Player)
Replay:	The call will be archived until August 3, 2007 at noon Eastern Time http://www.videonewswire.com/PLXS/072607 or via telephone replay at 877-519-4471 or 973-341-3080 PIN: 8952440

For further information, please contact:

Kristian Talvitie, Vice President – Marketing, Branding and Communications 920-969-6160 or kristian.talvitie@plexus.com

About Plexus Corp. – The Product Realization Company

Plexus ( www.plexus.com ) is an award-winning participant in the Electronics Manufacturing Services (EMS) industry, providing product design, supply chain and materials management, manufacturing, test, fulfillment and aftermarket solutions to branded product companies in the Wireline/Networking, Wireless Infrastructure, Medical, Industrial/Commercial and Defense/Security/Aerospace market sectors.

The Company’s unique Focused Factory manufacturing model and global supply chain solutions are strategically enhanced by value-added product design and engineering services. Plexus specializes in mid- to low-volume, higher-mix customer programs that require flexibility, scalability, technology and quality.

Plexus provides award-winning customer service to more than 100 branded product companies in North America, Europe and Asia.

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,” “anticipate,” “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, including, but not limited to: the economic performance of the electronics, technology and defense industries; the risk of customer delays, changes or cancellations in both ongoing and new programs; the poor visibility of future orders in the defense industry; the Company’s ability to secure new customers and maintain its current customer base; the risks of concentration of work for certain customers; material cost fluctuations and the adequate availability of components and related parts for production; the effect of changes in average selling prices; the effect of start-up costs of new programs and facilities, including our planned expansions in Asia; the adequacy of restructuring and similar charges as compared to actual expenses; the degree of success and the costs of efforts to improve the financial performance of its Mexican operations; possible unexpected costs and operating disruption in transitioning programs; the costs and inherent uncertainties of pending litigation; the effect of general economic conditions and world events (such as terrorism and war in the Middle East); the impact of increased competition; and other risks detailed in the Company’s Securities and Exchange Commission filings.

(financial tables follow)

PLEXUS CORP.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)

	Three Months Ended						Nine Months Ended
	June 30,			July 1,			June 30,			July 1,
	2007			2006			2007			2006
Net sales	$	379,574		$	397,398		$	1,120,584		$	1,063,615
Cost of sales		341,052			351,894			1,010,765			949,796
Gross profit		38,522			45,504			109,819			113,819
Operating expenses:
Selling and administrative expenses		20,169			21,554			61,087			58,084
Restructuring costs		—			—			932			—
		20,169			21,554			62,019			58,084
Operating income		18,353			23,950			47,800			55,735
Other income (expense):
Interest expense		(741	)		(821	)		(2,427	)		(2,652	)
Interest income		2,264			1,654			6,728			4,226
Miscellaneous income (expense)		(451	)		637			(1,082	)		656
Income before income taxes		19,425			25,420			51,019			57,965
Income tax expense		3,885			328			10,204			579
Net income	$	15,540		$	25,092		$	40,815		$	57,386
Earnings per share:
Basic	$	0.34		$	0.55		$	0.88		$	1.28
Diluted	$	0.33		$	0.53		$	0.87		$	1.24
Weighted average shares outstanding:
Basic		46,336			45,848			46,291			44,793
Diluted		46,722			47,274			46,704			46,391

PLEXUS CORP.
NON-GAAP SUPPLEMENTAL INFORMATION
(in thousands, except per share data)
(unaudited)

	Three Months Ended				Nine Months Ended
	June 30,		July 1,		June 30,		July 1,
	2007		2006		2007		2006
Net income — GAAP	$	15,540	$	25,092	$	40,815	$	57,386
Add income tax expense		3,885		328		10,204		579
Income before income taxes – GAAP		19,425		25,420		51,019		57,965
Add: Restructuring costs*		—		—		932		—
Income before income taxes and excluding restructuring costs – Non-GAAP		19,425		25,420		51,951		57,965
Income tax expense – Non-GAAP		3,885		328		10,390		579
Net income – Non-GAAP	$	15,540	$	25,092	$	41,561	$	57,386
Earnings per share – Non-GAAP:
Basic	$	0.34	$	0.55	$	0.90	$	1.28
Diluted	$	0.33	$	0.53	$	0.89	$	1.24
Weighted average shares outstanding:
Basic		46,336		45,848		46,291		44,793
Diluted		46,722		47,274		46,704		46,391
* Summary of restructuring costs
Restructuring costs:
Lease exit costs and other	$	—	$	—	$	—	$	—
Asset impairments		—		—		—		—
Severance costs		—		—		932		—
Total restructuring costs	$	—	$	—	$	932	$	—

PLEXUS CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
(unaudited)

	June 30,		September 30,
	2007		2006
ASSETS
Current assets:
Cash and cash equivalents	$	145,206	$	164,912
Short-term investments		45,000		30,000
Accounts receivable		199,131		209,737
Inventories		253,763		224,342
Deferred income taxes		11,482		10,232
Prepaid expenses and other		6,173		6,226
Total current assets		660,755		645,449
Property, plant and equipment, net		152,997		134,437
Goodwill, net		7,941		7,400
Deferred income taxes		3,665		4,542
Other		11,844		9,634
Total assets	$	837,202	$	801,462
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current portion of capital lease obligations	$	1,701	$	997
Accounts payable		196,617		215,332
Customer deposits		7,943		7,091
Accrued liabilities:
Salaries and wages		26,390		33,153
Other		28,990		29,808
Total current liabilities		261,641		286,381
Capital lease obligations		25,460		25,653
Other liabilities		9,664		7,861
Shareholders’ equity:
Common stock, $.01 par value, 200,000 shares authorized, 46,356 and 46,217 shares issued and outstanding, respectively		464		462
Additional paid-in-capital		329,160		312,785
Retained earnings		199,683		158,868
Accumulated other comprehensive income		11,130		9,452
Total shareholders’ equity		540,437		481,567
Total liabilities and shareholders’ equity	$	837,202	$	801,462

# # #