Plexus (PLXS) has reported 95.04 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $28.18 million, or $0.82 a share in the quarter, compared with $14.45 million, or $0.42 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $28.18 million, or $0.82 a share compared with $15.96 million or $0.47 a share, a year ago. Revenue during the quarter went up marginally by 2.98 percent to $635.02 million from $616.66 million in the previous year period. Gross margin for the quarter expanded 202 basis points over the previous year period to 10.13 percent. Total expenses were 94.66 percent of quarterly revenues, down from 96.51 percent for the same period last year. This has led to an improvement of 185 basis points in operating margin to 5.34 percent.
Operating income for the quarter was $33.90 million, compared with $21.52 million in the previous year period.
However, the adjusted operating income for the quarter stood at $33.90 million compared to $23.03 million in the prior year period. At the same time, adjusted operating margin improved 160 basis points in the quarter to 5.34 percent from 3.73 percent in the last year period.
Todd Kelsey, President and Chief executive officer, commented, “Late in the fiscal first quarter we fulfilled a broad-based pull-in of demand from customers within our Communications market sector that offset weaker than anticipated revenue from the Defense/Security/Aerospace market sector. Consequently, fiscal first quarter revenue of $635 million was at the midpoint of our guidance range. Strong operating performance enabled us to achieve GAAP diluted EPS of $0.82, at the top of our guidance range.”
For the second-quarter, Plexus Corp forecasts revenue to be in the range of $620 million to $650 million. The company expects diluted earnings per share to be in the range of $0.71 to $0.79 for the second-quarter.
Working capital increases marginally
Plexus has recorded an increase in the working capital over the last year. It stood at $801.49 million as at Dec. 31, 2016, up 2.79 percent or $21.75 million from $779.74 million on Jan. 02, 2016. Current ratio was at 2.27 as on Dec. 31, 2016, down from 2.50 on Jan. 02, 2016. Cash conversion cycle (CCC) has decreased to 35 days for the quarter from 83 days for the last year period. Days sales outstanding went down to 52 days for the quarter compared with 55 days for the same period last year.
Days inventory outstanding has decreased to 45 days for the quarter compared with 90 days for the previous year period. At the same time, days payable outstanding was almost stable at 62 days for the quarter, when compared with the previous year period.
Debt remains almost stable
Total debt of Plexus remained almost stable for the quarter at $263.02 million, when compared with the last year period. Total debt was 14.98 percent of total assets as on Dec. 31, 2016, compared with 15.87 percent on Jan. 02, 2016. Debt to equity ratio was at 0.28 as on Dec. 31, 2016, down from 0.31 as on Jan. 02, 2016. Interest coverage ratio improved to 10.36 for the quarter from 6.09 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
