CONFERENCE CALL TOMORROW, THURSDAY APRIL, 24 AT 9:00 AM ET
THE COMPANY WILL NOT ACCEPT INVESTOR CALLS
PRIOR TO THE CONFERENCE CALL
Dial in: 800-362-0574 with conference ID: Plexus
Webcast: http://www.videonewswire.com/PLXS/042403
[PLEXUS (R) LOGO]
FOR IMMEDIATE RELEASE
PLEXUS ANNOUNCES Q2 REVENUE OF $191 MILLION, EPS LOSS OF $(0.12)
INITIATES Q3 REVENUE GUIDANCE OF $190 - $200 MILLION
OUTLINES $12 MILLION RESTRUCTURING PLAN
NEENAH, WI, April 23, 2003 -- Plexus Corp. (Nasdaq: PLXS), today announced
results for its second fiscal quarter ended March 31, 2003. Below, please find
summary results.
SUMMARY FINANCIAL RESULTS
(dollars in thousands, except per share data)
Three Months Ended
March 31,
2003 2002
---- ----
Sales $ 190,773 $ 231,162
Gross margin 5.0 % 8.9 %
Operating margin (3.8)% (0.9)%
Net loss $ (5,044) $ (2,154)
EPS $ (0.12) $ (0.05)
Dean Foate, President and Chief Executive Officer of Plexus, said, "Financial
results for the second quarter were in line with our revised guidance of March
20, 2003. Looking forward, we currently expect the second quarter to be our
trough quarter for the year. We are initiating revenue guidance for the third
quarter of $190 to $200 million, recognizing the current global economic
environment and the fluctuation in end-market demand across all our industry
sectors. Assuming this level of revenue, we expect an EPS loss of $(0.10) to
$(0.07) for Q3, excluding the costs of the restructuring discussed below."
Mr. Foate continued, "We continue to refine Plexus' capabilities, footprint and
resources in line with evolving customer demands. To this end, we are initiating
a restructuring program to close our Kentucky manufacturing operations and
re-focus our PCB-design group. In addition, we are effecting a reduction in
force in both our engineering and corporate organizations. We expect these
actions to better position the Company strategically, as well as to improve both
capacity utilization and the bottom line."
Tom Sabol, Chief Operating Officer, commented, "We expect the Kentucky
manufacturing site to be closed by the end of September with production shifted
to other sites in the United States and Mexico. The other actions outlined will
be completed during our fiscal third quarter. Approximately 400 employees, or 8%
of our total workforce, will be affected by this restructuring. Our combined
restructuring actions, including previously announced actions, will reduce our
global manufacturing square footage to approximately 1.4 million square feet,
from our peak of 1.8 million square feet."
(more)
Gordon Bitter, Chief Financial Officer, added, "We currently estimate
approximately $12 million of restructuring charges to close the Kentucky site,
re-focus the PCB-design group, and to effect the reduction in force. Severance
of approximately $5 million is the only significant cash charge, and the
remaining $7 million of non-cash charges relate to the expected write-down in
the value of the fixed assets in Kentucky."
Mr. Bitter continued, "These actions should result in approximately $6 million
to $8 million in annualized cost savings. We expect to record the restructuring
charge in the third fiscal quarter and begin to see the benefits in the fourth
quarter. We anticipate the full effect of the benefits will be attained in the
first quarter of fiscal 2004."
Mr. Bitter concluded, "The second quarter balance sheet remained very strong. We
had over $112 million of cash and short term investments, and the only
significant debt items are two capitalized leases in the amount of $26 million."
FISCAL Q2 HIGHLIGHTS
o Sales by industry were:
INDUSTRY Q2 - FISCAL 2003 Q1 - FISCAL 2003
-------- ---------------- ----------------
Networking/Datacom 33% 35%
Medical 33% 34%
Industrial/Commercial 16% 14%
Computing 11% 12%
Transportation/Other 7% 5%
o Top 10 customers comprised 54% of sales during the quarter, compared to 57%
in the previous quarter.
o Siemens was the only customer representing more than 10% of sales for the
quarter.
o Cash flow from operations was approximately $15 million for the quarter.
o Days sales outstanding in accounts receivable improved to 45 days compared
to 47 days in the first quarter of fiscal 2003.
o Inventory increased sequentially by approximately $0.9 million to $104.9
million, while annualized turns decreased to 6.9 turns this quarter from
7.7 turns in the first fiscal quarter of 2003.
CONFERENCE CALL/WEBCAST AND REPLAY INFORMATION
NOTE: THE COMPANY WILL NOT ACCEPT INVESTOR CALLS PRIOR TO THE APRIL 24
CONFERENCE CALL.
WHEN: April 24, 2003 at 9:00 a.m. Eastern.
DIAL IN: 800-362-0574 with conference ID: Plexus
WEBCAST: http://www.videonewswire.com/PLXS/042403 (requires Windows Media
Player)
REPLAY: 800-839-3612 or 402-220-2972 or
http://www.videonewswire.com/PLXS/042403.
The call will be archived until midnight on May 1, 2003.
NOTE: If you experience problems with the webcast, please email
webcastsupport@tfprn.com.
COMPANY DESCRIPTION
Plexus (www.plexus.com) provides product realization services on a global basis
to original equipment manufacturers (OEMs) in the networking/datacommunications,
medical, industrial, commercial and computer electronics industries. Plexus
offers engineering and product development, new product introduction (NPI),
prototyping, material procurement and management, assembly, testing,
manufacturing, complex final system assembly, global fulfillment and sustaining
services.
(more)
SAFE HARBOR AND FAIR DISCLOSURE STATEMENT
The statements contained in this release which are not historical facts (such as
statements in the future tense and statements including "believe," "expect,"
"intend," "anticipate" and similar concepts) are forward-looking statements that
involve risks and uncertainties, including, but not limited to, the economic
performance of the electronics and technology industries, the risk of customer
delays, changes, or cancellations in both on-going and new programs, the
Company's ability to complete acquisition transactions and integrate acquired
operations, the Company's ability to secure new customers and maintain its and
acquired operations' current customer base, the results of cost reduction and
restructuring efforts and our ability to execute on, and achieve anticipated
cost savings from, these efforts, possible delays in anticipated and previously
announced measures, 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, the
effect of general economic conditions and world events (such as terrorism and
the situation with Iraq), the impact of increased competition and other risks
detailed in the Company's Securities and Exchange Commission filings.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Kristian Talvitie, Director of Investor Relations and Corporate Communications
920-969-6160 or email at kristian.talvitie@plexus.com
(financial tables follow)
PLEXUS CORP.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three Months Ended Six Months Ended
March 31, March 31,
-------------------------- ---------------------------
2003 2002 2003 2002
---------- ---------- ---------- ----------
(unaudited)
Net sales $ 190,773 $ 231,162 $ 396,152 $ 431,379
Cost of sales 181,150 210,691 370,989 395,437
---------- ---------- ---------- ----------
Gross profit 9,623 20,471 25,163 35,942
Operating expenses:
Selling & administrative expenses 16,815 16,344 33,570 30,315
Amortization of goodwill - 1,289 - 2,584
Restructuring costs - 4,687 31,840 7,487
Acquisition and merger costs - 251 - 251
---------- ---------- ---------- ----------
16,815 22,571 65,410 40,637
---------- ---------- ---------- ----------
Operating loss (7,192) (2,100) (40,247) (4,695)
Other income (expense):
Interest expense (712) (965) (1,590) (2,317)
Miscellaneous 678 411 1,301 1,041
---------- ---------- ---------- ----------
Loss before income taxes and cumulative
effect of change in accounting for goodwill (7,226) (2,654) (40,536) (5,971)
Income tax benefit (2,182) (500) (14,660) (1,794)
---------- ---------- ---------- ----------
Loss before cumulative effect of change in
accounting for goodwill (5,044) (2,154) (25,876) (4,177)
Cumulative effect of change in accounting for
goodwill, net of income tax benefit of $4,755 - - (23,482) -
---------- ---------- ---------- ----------
Net loss $ (5,044) $ (2,154) $ (49,358) $ (4,177)
========== ========== ========== ==========
Earnings per share:
Basic
Loss before cumulative effect of a change in
accounting for goodwill $ (0.12) $ (0.05) $ (0.61) $ (0.10)
Cumulative effect of change in accounting
for goodwill - - (0.56) -
---------- ---------- ---------- ----------
$ (0.12) $ (0.05) $ (1.17) $ (0.10)
========== ========== ========== ==========
Diluted
Loss before cumulative effect of a change in
accounting for goodwill $ (0.12) $ (0.05) $ (0.61) $ (0.10)
Cumulative effect of change in accounting
for goodwill - - (0.56) -
---------- ---------- ---------- ----------
$ (0.12) $ (0.05) $ (1.17) $ (0.10)
========== ========== ========== ==========
Weighted average shares outstanding:
Basic 42,260 41,868 42,164 41,824
========== ========== ========== ==========
Diluted* 42,260 41,868 42,164 41,824
========== ========== ========== ==========
* For the three and six months ended March 31, 2003 and 2002, the calculations
of earnings per share on a diluted basis exclude the impact of stock options,
since they would result in an antidilutive effect.
PLEXUS CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
March 31, September 30,
2003 2002
--------------- ---------------
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 79,503 $ 63,347
Short-term investments 33,311 53,025
Accounts receivable 80,909 95,903
Inventories 104,906 94,032
Deferred income taxes 25,723 21,283
Prepaid expenses and other 13,832 14,221
--------- ---------
Total current assets 338,184 341,811
Property, plant and equipment, net 159,929 170,834
Goodwill 31,229 64,957
Deferred income taxes 7,741 355
Other 5,019 5,988
--------- ---------
Total assets $ 542,102 $ 583,945
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of capital lease obligations $ 1,726 $ 1,652
Accounts payable 61,079 67,310
Customer deposits 18,110 13,904
Accrued liabilities:
Salaries and wages 17,820 17,505
Other 24,937 21,586
--------- ---------
Total current liabilities 123,672 121,957
Capital lease obligations, net of current portion 24,494 25,356
Other liabilities 10,366 5,943
Shareholders' equity:
Common stock, $.01 par value, 200,000 shares authorized, 423 420
42,276 and 42,030 shares issued and outstanding, respectively
Additional paid-in-capital 258,303 256,584
Retained earnings 121,460 170,818
Accumulated other comprehensive income 3,384 2,867
--------- ---------
Total shareholders' equity 383,570 430,689
--------- ---------
Total liabilities and shareholders' equity $ 542,102 $ 583,945
========= =========
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