NEENAH — Despite a drop in customer orders contract electronics manufacturer Plexus Corp. still posted third quarter net income of $22 million.
The Neenah-based firm Wednesday reported third quarter revenue of $559 million, down from its second quarter revenues of $568 million, but a $23 million increase from a year ago.
“We experienced an exceptional level of forecast volatility during the quarter as customers broadly lowered their demand for the second half of our fiscal year,” Dean Foate, company president and chief executive officer, said in a statement. “As a consequence, our overall revenue performance in the fiscal third quarter was below the mid-point of our guidance range.”
Foate said new business development activity was “adequate to support our nearer-term growth goals with 25 new programs won in our manufacturing solutions group that we anticipate will generate approximately $124 million in annualized revenue when fully ramped into production.”
Ginger Jones, senior vice president and chief financial officer said the company’s gross margin for the quarter of 9.7 percent exceeded its expectations.
“Relative to our expectations for the quarter, selling and administrative expenses were higher than expected as a result of higher headcount related costs and the delay in the recognition of an expected tax incentive,” she said.
Jones said the company repurchased 2.7 million shares under its previously announced repurchasing program, totaling $92 million at an average price of $34.03 per share, completing the company’s $175 million share repurchase program.
Foate said the company is setting its fourth quarter revenue guidance range between $530 million and $560 million.
“This guidance range suggests that our fiscal fourth quarter revenue will be modestly down sequentially when compared to our fiscal third quarter,” he said.
Foate said while the company projects improvement for its coming fiscal year as additional production capacity becomes available in Asia and Europe, it is uncertain about the future.
“We are confident that we have a winning strategy that delivers long-term growth and shareholder value, yet the continuing economic malaise is unquestionably affecting the performance of our customers’ end markets, resulting in poor forecast visibility into fiscal 2012,” he said. “While we currently anticipate that our fiscal 2012 first quarter revenues will grow sequentially, we are adopting a conservative view on full-year fiscal 2012.”
Plexus employs about 7,500 worldwide and 1,900 throughout its Fox Cities operations.