EXHIBIT 99.1
CONFERENCE CALL TOMORROW, FRIDAY OCTOBER 24 AT 8:30 AM ET
Dial in: 800-354-6885 with conference ID: Plexus
Webcast: www.videonewswire.com/PLXS/102403
[PLEXUS LOGO]
FOR IMMEDIATE RELEASE -- FINAL
PLEXUS ANNOUNCES Q4 REVENUE OF $216 MILLION
INITIATES Q1 REVENUE GUIDANCE OF $230- $240 MILLION
TARGETS FY 04 REVENUE GROWTH OF 15% - 20%
NEENAH, WI, October 23, 2003 -- Plexus Corp. (Nasdaq: PLXS), today announced
results for its fourth fiscal quarter and fiscal year ended September 30, 2003.
Dean Foate, President and Chief Executive Officer of Plexus, commented, "Revenue
in the fourth fiscal quarter increased 10% sequentially to $216 million
primarily as a result of strengthened demand from a number of existing
customers, as well as the start of production for several new customers
including LeCroy, AMX and Eastman Kodak Company's Health Imaging Group."
"Given our current outlook," Foate continued, "we are initiating revenue
guidance for the first quarter of fiscal 2004 of $230 to $240 million, and would
expect EPS in the range of $0.04 to $0.06 at these revenue levels. Looking out
past Q1 of fiscal 2004, we are targeting revenue growth of 15% to 20% over
fiscal 2003 for the full fiscal year. It is worth noting, however, that we
currently expect the second quarter of fiscal 2004 to be down sequentially, as a
result of seasonal trends and program specific reductions."
Plexus recorded a $3.9 million net loss for the fourth quarter, reflecting the
after-tax effect of $7.9 million in restructuring charges associated with a
number of the Company's cost reduction initiatives. Excluding restructuring
costs, the Company achieved net income of $440,000 and EPS of $0.01 for the
fourth quarter.
The Company provides non-GAAP supplemental information; more specifically, net
income and EPS excluding restructuring costs and the impairment of goodwill.
This non-GAAP financial data is provided to facilitate meaningful
period-to-period comparisons of underlying operational performance by
eliminating infrequent or unusual charges. Similar non-GAAP measures are used
internally by management in assessing performance of its business because such
measures provide additional insight into ongoing financial performance. Please
refer to the attached accompanying reconciliation of the GAAP net loss and EPS
to the non-GAAP supplemental data.
Gordon Bitter, CFO, added, "Reduced costs and improved revenues have expanded
gross margins to 7.4% for the quarter compared to 6.0% in the third quarter,
while reducing SG&A expense from 8.3% of sales last quarter to 7.1% this
quarter."
"We ceased operations at our Richmond, Kentucky site, as scheduled, at the end
of September," Bitter continued. "The fourth quarter restructuring charges of
$7.9 million included $2.6 million of cash charges, primarily severance costs
for Kentucky and RIF's elsewhere and $5.2 million of non-cash charges primarily
related to fixed asset write-downs."
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"The balance sheet remains strong. Cash and short-term investments at year-end
were approximately $79 million and debt remained very low. Approximately $17.3
million of cash was used during the quarter to finance the scheduled termination
of the ABS facility under which the Company had sold certain receivables without
recourse. We have just completed a new $100 million asset-backed facility that
will provide additional resources to finance growth," Bitter concluded.
For the fiscal year ended September 30, 2003 revenue was $808 million, a
reduction of $75.8 million, or 8.6% from the prior year. For the full year, the
Company reported a net loss for the year of $68.0 million, compared to a net
loss of $4.1 million in fiscal 2002.
FISCAL Q4 HIGHLIGHTS
- - Sales by industry were:
INDUSTRY Q4 - FISCAL 2003 Q3 - FISCAL 2003
Networking/Datacom 38% 37%
Medical 31% 32%
Industrial/Commercial 14% 15%
Computing 12% 12%
Transportation/Other 5% 4%
- - Top 10 customers comprised 58% of sales during the quarter, compared to 55%
in the previous quarter.
- - Siemens Medical and Juniper Networks were the only customers representing
more than 10% of sales for the quarter.
- - Cash flow used in operations was approximately $22 million for the quarter.
- - Days sales outstanding in accounts receivable increased to 47 days compared
to 46 days in the third quarter of fiscal 2003.
- - Inventory increased sequentially by approximately $15.8 million to $136.5
million, while annualized turns decreased to 6.2 turns this quarter from 6.5
turns in the third fiscal quarter of 2003.
CONFERENCE CALL/WEBCAST AND REPLAY INFORMATION
WHEN: Friday, October 23, 2003 at 8:30 a.m. Eastern
DIAL IN: 800-354-6885 with conference ID: PLEXUS
WEBCAST: www.videonewswire.com/PLXS/102403 (requires Windows Media Player)
REPLAY: 800-633-8284 or 402-977-9140 with passcode: 21161149
or www.videonewswire.com/PLXS/102403
The call will be archived until midnight on October 31, 2003.
NOTE: If you experience problems with the webcast, please email
webcastsupport@tfprn.com.
ABOUT PLEXUS CORP. -- THE PRODUCT REALIZATION COMPANY
Plexus (www.plexus.com) provides end-to-end product design, test, manufacturing,
fulfillment and aftermarket solutions to branded product vendors in the medical,
networking/datacommunications, industrial, commercial, defense and computer
electronics industries.
The Company's unique materials and manufacturing solutions, strategically
enhanced by value-added product design and engineering services, are developed
to optimize lowest total cost, scalability and responsiveness for programs
requiring flexibility, technology and quality. With over $800 million in annual
revenues, Plexus provides award-winning customer service to more than 150
branded product vendors in North America, Europe and Asia.
(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", "target" and similar terms and 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 secure new customers and
maintain its 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 in Iraq and North Korea); 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 Strategic Marketing and 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 Twelve Months Ended
Sept 30, Sept 30,
------------------------ ------------------------
2003 2002 2003 2002
--------- --------- --------- ---------
(unaudited)
Net sales $ 216,076 $ 217,475 $ 807,837 $ 883,603
Cost of sales 200,103 195,174 754,872 802,283
--------- --------- --------- ---------
Gross profit 15,973 22,301 52,965 81,320
Operating expenses:
Selling and administrative expenses 15,333 19,346 65,152 66,921
Amortization of goodwill - 1,276 - 5,203
Restructuring and impairment costs 7,855 2,394 59,344 12,581
Acquisition and merger costs - - - 251
--------- --------- --------- ---------
23,188 23,016 124,496 84,956
--------- --------- --------- ---------
Operating income (loss) (7,215) (715) (71,531) (3,636)
Other income (expense):
Interest expense (673) (752) (2,817) (3,821)
Miscellaneous 791 518 2,624 1,631
--------- --------- --------- ---------
Income (loss) before income taxes and cumulative
effect of change in accounting for goodwill (7,097) (949) (71,724) (5,826)
Income tax expense (benefit) (3,224) (397) (27,228) (1,753)
--------- --------- --------- ---------
Income (loss) before cumulative effect of change in
accounting for goodwill (3,873) (552) (44,496) (4,073)
Cumulative effect of change in accounting for
goodwill, net of income tax benefit of $4,755 - - (23,482) -
--------- --------- --------- ---------
Net income (loss) $ (3,873) $ (552) $ (67,978) $ (4,073)
========= ========= ========= =========
Earnings per share:
Basic
Income (loss) before cumulative effect of change in
accounting for goodwill $ (0.09) $ (0.01) $ (1.05) $ (0.10)
Cumulative effect of change in accounting
for goodwill - - (0.56) -
--------- --------- --------- ---------
Net income (loss) $ (0.09) $ (0.01) $ (1.61) $ (0.10)
========= ========= ========= =========
Diluted
Income (loss) before cumulative effect of change in
accounting for goodwill $ (0.09) $ (0.01) $ (1.05) $ (0.10)
Cumulative effect of change in accounting
for goodwill - - (0.56) -
--------- --------- --------- ---------
Net income (loss) $ (0.09) $ (0.01) $ (1.61) $ (0.10)
========= ========= ========= =========
Weighted average shares outstanding:
Basic 42,522 42,010 42,284 41,895
========= ========= ========= =========
Diluted 42,522 42,010 42,284 41,895
========= ========= ========= =========
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NON-GAAP SUPPLEMENTAL INFORMATION
(in thousands, except per share data)
Three Months Ended Twelve Months Ended
September 30, September 30,
--------------------------- --------------------------
2003 2002 2003 2002
---------- ------------ ---------- ---------
(unaudited)
Net loss - GAAP $ (3,873) $ (552) $ (67,978) $ (4,073)
Add cumulative effect of change in accounting
for goodwill, net of income tax benefit of
$4,755 - - (23,482) -
---------- ------------ --------- ---------
Loss before cumulative effect of change in
accounting for goodwill - GAAP (3,873) (552) (44,496) (4,073)
Add income tax benefit (3,224) (397) (27,228) (1,753)
---------- ------------ --------- ---------
Loss before income taxes and cumulative effect
of change in accounting for goodwill -- GAAP (7,097) (949) (71,724) (5,826)
Add: Restructuring and impairment costs* 7,855 2,394 59,344 12,581
Acquisition and merger costs - - - 251
Amortization of goodwill - 1,276 - 5,203
---------- ----------- -------- ---------
Income (loss) before income taxes and
excluding restructuring and impairment
costs, acquisition and merger costs and
amortization of goodwill -- Non-GAAP 758 2,721 (12,380) 12,209
Income tax expense (benefit) -- Non-GAAP 318 1,088 (5,200) 4,884
---------- ----------- --------- ---------
Net income (loss) -- Non-GAAP $ 440 $ 1,633 $ (7,180) $ 7,325
========== =========== ========= =========
Earnings per share -- Non-GAAP:
Basic $ 0.01 $ 0.04 $ (0.17) $ 0.17
========== =========== ========= =========
Diluted $ 0.01 $ 0.04 $ (0.17) $ 0.17
========== =========== ========= =========
Weighted average shares outstanding:
Basic 42,522 42,010 42,284 41,895
========== ============ ========= =========
Diluted 43,388 42,757 42,284 43,118
========== ============ ========= =========
SUMMARY OF RESTRUCTURING AND IMPAIRMENT COSTS*
Restructuring and impairment costs:
Non-cash asset impairments $ 5,240 $ 2,343 $ 32,451 $ 4,890
Severance costs 2,349 1 10,358 3,819
Lease exit costs and other 266 50 10,940 3,872
Non-cash write-off of goodwill - - 5,595 -
---------- ------------ --------- ---------
Total restructuring and impairment costs $ 7,855 $ 2,394 $ 59,344 $ 12,581
========== =========== ========= =========
(more)
PLEXUS CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
September 30, September 30,
2003 2002
------------- -------------
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 58,993 $ 63,347
Short-term investments 19,701 53,025
Accounts receivable 111,125 95,903
Inventories 136,515 94,032
Deferred income taxes 23,723 21,283
Prepaid expenses and other 8,326 14,221
-------- --------
Total current assets 358,383 341,811
Property, plant and equipment, net 131,510 170,834
Goodwill, net 32,269 64,957
Deferred income taxes 24,921 355
Other 5,198 5,988
-------- --------
Total assets $552,281 $583,945
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt and capital lease obligations $ 958 $ 1,652
Accounts payable 91,445 67,310
Customer deposits 14,779 13,904
Accrued liabilities:
Salaries and wages 17,133 17,505
Other 23,753 21,586
-------- --------
Total current liabilities 148,068 121,957
Long-term debt and capital lease obligations 23,502 25,356
Other liabilities 9,695 5,943
Shareholders' equity:
Common stock, $.01 par value, 200,000 shares authorized,
42,607 and 42,030 shares issued and outstanding, respectively 426 420
Additional paid-in-capital 261,214 256,584
Retained earnings 102,840 170,818
Accumulated other comprehensive loss 6,536 2,867
-------- --------
Total shareholders' equity 371,016 430,689
-------- --------
Total liabilities and shareholders' equity $552,281 $583,945
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