Plexus Announces Fiscal Third Quarter Financial Results


Reading time ( words)

Plexus announced financial results for our fiscal third quarter ended July 3, 2021, and guidance for our fiscal fourth-quarter ending October 2, 2021.

Fiscal Third Quarter 2021 Information

  • Won 31 manufacturing programs during the quarter representing approximately $275 million in annualized revenue when fully ramped into production
  • Trailing four-quarter wins total a record $1.1 billion in annualized revenue when fully ramped into production
  • Purchased $27.3 million of our shares at an average price of $93.53 per share under our existing share repurchase program. A balance of $26.1 million remains outstanding under the $100 million fiscal 2021 programs.

Todd Kelsey, President and CEO, commented, “We delivered fiscal third-quarter revenue of $814 million, GAAP operating margin of 4.5% and GAAP EPS of $0.95. Revenue met the high end of our revised expectation provided at the June 8, 2021, Stifel Virtual Cross Sector Insight Conference. This result was primarily due to the resilience and outstanding efforts of our team members in Penang, Malaysia amidst the challenging conditions created by government-mandated workforce curtailments in response to the COVID-19 pandemic. GAAP operating margin and EPS significantly exceeded our updated outlook on the better than anticipated revenue performance of our Penang operations, an outstanding contribution from our Engineering Solutions team and lower than anticipated healthcare costs.” 

Kelsey continued, “Our strong business development performance continued during our fiscal third quarter. We won 31 new manufacturing programs that represent approximately $275 million in annualized revenue when fully ramped into production. In addition, our trailing four-quarter wins expanded from the prior quarter to $1.1 billion. The wins reflect ongoing momentum in new customer engagements and multiple opportunities for our Aftermarket Services team, including an expansion of the notable new relationship highlighted last quarter.” 

Patrick Jermain, Executive Vice President and CFO, commented, “During the fiscal third quarter, we delivered return on invested capital of 15.9%. This equates to an economic return of 780 basis points above our weighted average cost of capital, creating solid shareholder value. Fiscal third quarter cash cycle of 80 days was consistent with our expectations and contributed to $31 million in free cash flow for the quarter. The majority of this quarter’s free cash flow was allocated to repurchasing approximately $27 million of stock under our share repurchase program, continuing our commitment to shareholder returns.”

Kelsey further commented, “I am pleased that as one of three manufacturers in Penang, Malaysia approved to establish an on-site COVID-19 vaccination clinic, we began vaccinations last week for our team members, customers, suppliers and other local manufacturers. We expect that vaccination efforts, coupled with the productivity improvements implemented by our regional leadership team, will allow our Penang operations to function closer to typical levels of manufacturing output during the fiscal fourth quarter despite ongoing workforce curtailment guidelines. As a result, we are guiding fiscal fourth quarter revenue of $875 to $915 million, GAAP operating margin of 4.8 to 5.2% and GAAP EPS of $1.13 to $1.29. Our guidance assumes that supply chain constraints and COVID-19 do not materially impact end markets or our operations beyond what is already anticipated.”

Kelsey concluded, “Looking forward, I see the potential to deliver double-digit revenue growth for fiscal 2022 while driving sustained industry leading operational performance. Enabling our growth expectations are the ongoing recovery in equipment used in elective medical procedures, an improving commercial aerospace market, sustained program win strength inclusive of new customer engagements, and our support of secular growth markets, including warehouse and factory automation, robotic assisted surgery and commercial space.”

Business Segment and Market Sector Revenue

Plexus 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 Plexus’ market sector focused strategy. Top 10 customers comprised 55% of revenue for both the second and third quarters of fiscal 2021.

Share

Print


Suggested Items

RTW SMTAI: Steve Greathouse Discusses Award, Highlights Need for New Engineers

10/29/2018 | Real Time with...SMTAI
Steve Greathouse, senior staff engineer at Plexus Corp., and recipient of SMTA’s Excellence in Leadership Award this year, speaks about the magic of the SMTA as a collaborative and supportive professional organization. He also discusses the need for “new blood” to join the manufacturing workforce as more senior engineers leave the industry.

Collaboration between OEM and EMS to Combat Head-on-Pillowing Defects (Part 2)

08/28/2015 | I-Connect007
There have been many publications, industry workshops, and symposia that describe process mitigation techniques for minimizing the occurrence of head-on-pillow defects during surface mount assembly. In this article, the authors address the root cause of the HoP defect—specifically the link between HoP defects and component warpage.



Copyright © 2021 I-Connect007. All rights reserved.