Plexus Reports Fiscal Second Quarter Revenue of $389 Million

Initiates Q3 Revenue Guidance of $355 - $385 Million

NEENAH, Wis., April 29 /PRNewswire-FirstCall/ -- Plexus Corp. (Nasdaq: PLXS)
today announced:

Q2 Fiscal 2009 Results (quarter ended April 4, 2009):
-- Revenue: $389 million, relative to guidance of $375 to $405 million.
-- Diluted EPS: $0.13, including $0.05 per share of stock-based
compensation expense.
-- Restructuring and goodwill impairment charges of approximately $8.0
million.

-- Non-GAAP diluted EPS: $0.28, including $0.05 per share of stock-based
compensation expense, relative to guidance of non-GAAP diluted EPS of
$0.17 to $0.24.

Q3 Fiscal 2009 Guidance:
-- Revenue: $355 to $385 million.

-- Diluted EPS: $0.18 to $0.25, excluding any restructuring charges and
including approximately $0.04 per share of stock-based compensation
expense.

Dean Foate, President and CEO, commented, "We are pleased to have delivered
revenues at the mid-point of our guidance range and non-GAAP diluted EPS above
the high end of our guidance range. As expected, overall revenues declined
15% sequentially from the fiscal first quarter with all sectors declining
sequentially. While our fiscal second quarter was as challenging as expected,
we have cause for cautious optimism. During our monthly forecast cycle in
April we experienced a modest uptick in our full-year fiscal 2009 forecast for
the first time in eight months. This improvement was due in part to forecast
stabilization with some of our legacy customer programs, as well as the
revenue forecasted with our many recent program wins. While it would be a
stretch to call the results of one forecast cycle a trend, we are encouraged
that we may be experiencing the demand trough. Additionally, our business
development teams continue to leverage the strength of our brand in the EMS
market, turning in another exceptional quarter with 21 new program wins that
we currently anticipate will generate approximately $220 million in annualized
revenue when the programs are fully ramped in production over the coming
quarters, subject to risks around the timing and ultimate realization of the
forecasted revenues. We believe we are gaining market share."

Mr. Foate continued, "We are establishing fiscal third quarter 2009 revenue
guidance of $355 to $385 million with diluted EPS of $0.18 to $0.25, excluding
any restructuring charges and including approximately $0.04 per share of
stock-based compensation expense. Our guidance suggests that we will likely
see another quarter with a sequential decline in revenue, although we
currently expect the percentage decline to be moderate when compared to the
decline in the fiscal second quarter. Despite this relative optimism, the
fiscal third quarter could still be quite challenging and we are not immune to
the difficulties our customers may experience in their end markets as well as
the overall economic conditions."

Ginger Jones, Vice President and CFO, commented, "Our diluted EPS was impacted
by four significant items. As previously announced, we recognized
approximately $8.0 million of pre-tax restructuring and non-cash goodwill
impairment charges resulting in a negative $0.18 EPS impact. Offsetting these
charges were three positive impacts to diluted EPS. First, we recognized a
$1.4 million benefit from a discrete tax adjustment during the quarter
delivering a $0.03 benefit. Second, as a consequence of aggressive cost
reductions, our selling & administrative ("S&A") expenses were $2.0 million
lower than earlier expectations, delivering a $0.05 benefit. Third, our tax
rate for fiscal 2009 is now estimated to be 7%, before the discrete tax
adjustment, due to lower forecasted earnings in higher tax jurisdictions.
This is lower than the 10% tax rate used when we established our guidance for
this quarter; consequently, diluted EPS for the quarter reflects a $0.02
benefit. The total of these three positive items reflects a net increase of
$0.10 per share. As compared to our fiscal second quarter non-GAAP diluted
EPS guidance, excluding the $0.15 associated with the restructuring and
non-cash goodwill impairment charges as well as the discrete tax adjustment,
we achieved non-GAAP diluted EPS of $0.28, which is above the high end of our
guidance range."

Ms. Jones continued, "We have moved aggressively to remove costs from the
business over the quarter. We ceased operations as planned at our Ayer,
Massachusetts facility in March 2009. We also reduced our workforce in our
North American manufacturing operations, which includes our site in Juarez,
Mexico, totaling approximately 17 percent of North American operations
headcount. Turning to S&A expense, we have completed reductions in workforce
totaling approximately 10 percent of that headcount."

Ms. Jones concluded, "Looking forward to the fiscal third quarter, we do not
currently anticipate any further significant restructuring. We have
identified other cost-cutting measures that could be implemented quickly if
forecasted revenues decline further or market conditions worsen. We feel we
have struck the proper balance of cost management and modest investments to
support our many new program wins as well as our long-term growth strategy."

Plexus provides non-GAAP supplemental information. Non-GAAP income statements
exclude transactions such as restructuring costs, goodwill impairment and
discrete tax adjustments, that are not expected to have an effect on future
operations. These non-GAAP financial data are provided to facilitate
meaningful period-to-period comparisons of underlying operational performance
by eliminating infrequent or unusual charges. Similar non-GAAP financial
measures, including return on invested capital ("ROIC"), are used for internal
management assessments because such measures provide additional insight into
ongoing financial performance. In particular, we provide ROIC because we
believe it offers insight into the metrics that are driving management
decisions as well as management's performance under the tests which it sets
for itself. Please refer to the attached reconciliations of non-GAAP
supplemental data.

MARKET SECTOR BREAKOUT
Plexus reports revenue based on the market sector breakout set forth in the
table below, which reflects the Company's sales and marketing focus.

Market Sector Q2 - F09 Q1 - F09
Wireline/Networking $176 M 45% $200 M 44%
Wireless Infrastructure $35 M 9% $48 M 10%
Medical $93 M 24% $109 M 24%
Industrial/Commercial $48 M 12% $57 M 13%
Defense/Security/Aerospace* $37 M 10% $42 M 9%
Total Revenue $389 M $456 M

* The Defense/Security/Aerospace sector includes revenue from an un-named
defense program of $12 million in Q1 F09 and $10 million in Q2 F09.

FISCAL Q2 SUPPLEMENTAL INFORMATION
-- ROIC for the second fiscal quarter was 13.8%. The Company defines
ROIC
as tax-effected annualized operating income divided by average capital
employed over a rolling three-quarter period. Capital employed is
defined as equity plus debt, less cash and cash equivalents and
short-term investments. In periods including restructuring charges or
non-cash goodwill impairment charges, such as the fiscal second
quarter
of 2009, we compute adjusted ROIC excluding these costs to better
compare ongoing operations.
-- Cash flow provided by operations was approximately $33.3 million for
the
quarter. Capital expenditures for the quarter were $6.8 million.
Free
cash flow was approximately $26.5 million for the quarter. The
Company
defines free cash flow as cash flow provided for (or used by)
operations
less capital expenditures.
-- Top 10 customers comprised 58% of revenue during the quarter, down 3
percentage points from the previous quarter.
-- Juniper Networks, Inc., with 23% of revenue, was the only customer
representing 10% or more of revenue for the quarter.

-- Cash Conversion Cycle:

Cash Conversion Cycle Q2 - F09 Q1 - F09
Days in Accounts Receivable 47 Days 45 Days
Days in Inventory 87 Days 77 Days
Days in Accounts Payable (56) Days (54) Days
Annualized Cash Cycle 78 Days 68 Days

Conference Call/Webcast and Replay Information:

What: Plexus Corp.'s Fiscal Q2 Earnings Conference Call

When: Thursday, April 30th at 8:30 a.m. Eastern Time

Where: 888-693-3477 or 973-582-2710 with conference ID: 93143957
http://www.videonewswire.com/PLXS/043009
(requires Windows Media Player)

Replay: The call will be archived until May 7, 2009 at midnight Eastern
Time http://www.videonewswire.com/PLXS/043009
or via telephone replay at 800-642-1687 or 706-645-9291
PIN: 93143957

About Plexus Corp. - The Product Realization Company
Plexus (www.plexus.com) is an award-winning participant in the Electronic
Manufacturing Services (EMS) industry, providing product design, supply chain
and materials management, manufacturing, test, fulfillment and aftermarket
solutions to branded product companies in the Wireline/Networking, Wireless
Infrastructure, Medical, Industrial/Commercial and Defense/Security/Aerospace
market sectors.

The Company's unique Focused Factory manufacturing model and global supply
chain solutions are strategically enhanced by value-added product design and
engineering services. Plexus specializes in mid- to low-volume, higher-mix
customer programs that require flexibility, scalability, technology and
quality.

Plexus provides award-winning customer service to more than 100 branded
product companies in North America, Europe and Asia.

Safe Harbor and Fair Disclosure Statement
The statements contained in this release which are guidance or which are not
historical facts (such as statements in the future tense and statements
including "believe," "expect," "intend," "plan," "anticipate," "goal,"
"target" and similar terms and concepts), including all discussions of periods
which are not yet completed, are forward-looking statements that involve risks
and uncertainties. These factors include the risks that new program wins or
customer forecasts may not result in the expected revenues and profitability
or result in long-term customer arrangements, and that the restructuring
charges may be insufficient, depending upon future developments. In addition,
other risks and uncertainties affecting our business and our ability to grow
and prosper in the future include, but are not limited to: the economic
performance of the electronics, technology and defense industries; the risk of
customer delays, changes or cancellations in both ongoing and new programs;
the poor visibility of future orders, particularly in view of current economic
conditions; the effects of the volume of revenue from certain sectors or
programs on our margins in particular periods; our ability to secure new
customers and maintain our current customer base and deliver product on a
timely basis; the risks relative to new customers, including a new
confidential customer in the Industrial/Commercial sector, which risks include
customer delays, start-up costs, our potential inability to execute and lack
of a track record of order volume and timing; the risks of concentration of
work for certain customers; the weakness of the global economy and the
continuing instability of the global financial markets and banking system,
including the potential inability on our part or that of our customers or
suppliers to access cash investments and credit facilities; 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, including our recent and
planned expansions, such as our new facility in Oradea, Romania; the adequacy
of restructuring and similar charges as compared to actual expenses, including
the recently completed closure of our Ayer, Massachusetts facility and
workforce reductions at our Juarez, Mexico facility and other North American
facilities; the degree of success and the costs of efforts to improve the
financial performance of our Mexican operations; possible unexpected costs
and operating disruption in transitioning programs; the potential effect of
world events (such as changes in oil prices, terrorism and war in the Middle
East); the impact of increased competition; and other risks detailed in the
Company's Securities and Exchange Commission filings (particularly in Part II,
Item 1A of our quarterly report on Form 10-Q for the quarter ended January 3,
2009).

(financial tables follow)

PLEXUS CORP.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)

Three Months Ended Six Months Ended
------------------ ----------------
April 4, March 29, April 4, March 29,
2009 2008 2009 2008
---- ---- ---- ----

Net sales $388,895 $451,049 $845,004 $909,300
Cost of sales 353,097 399,497 762,656 802,194
------- ------- ------- -------

Gross profit 35,798 51,552 82,348 107,106

Operating expenses:
Selling and
administrative
expenses 22,344 23,989 47,613 47,615
Goodwill
impairment costs 5,748 - 5,748 -
Restructuring
costs 2,273 - 2,823 -
----- ----- ----- -----
30,365 23,989 56,184 47,615
------ ------ ------ ------

Operating income 5,433 27,563 26,164 59,491

Other income
(expense):
Interest expense (2,733) (723) (5,663) (1,458)
Interest income 472 1,991 1,403 4,538
Miscellaneous
income (expense) 144 (362) 342 (827)
--- ----- --- -----

Income before
income taxes 3,316 28,469 22,246 61,744

Income tax
(benefit) expense (1,712) 6,359 180 12,349
------- ----- --- ------

Net income $5,028 $22,110 $22,066 $49,395
====== ======= ======= =======

Earnings per
share:
Basic $0.13 $0.48 $0.56 $1.07
===== ===== ===== =====
Diluted $0.13 $0.48 $0.56 $1.06
===== ===== ===== =====

Weighted average
shares
outstanding:
Basic 39,366 45,611 39,351 46,030
====== ====== ====== ======
Diluted 39,463 46,030 39,464 46,546
====== ====== ====== ======

PLEXUS CORP.
NON-GAAP SUPPLEMENTAL INFORMATION
(in thousands, except per share data)
(unaudited)

Statements of Operation

Three Months Ended Six Months Ended
------------------ ----------------
April 4, March 29, April 4, March 29,
2009 2008 2009 2008
---- ---- ---- ----

Net income - GAAP $5,028 $22,110 $22,066 $49,395

Add: Income tax
(benefit) expense (1,712) 6,359 180 12,349
------- ----- --- ------

Income before income
taxes - GAAP 3,316 28,469 22,246 61,744

Add: Goodwill
impairment costs 5,748 - 5,748 -
Restructuring
costs* 2,273 - 2,823 -
----- ----- ----- -----

Income before income
taxes and excluding
restructuring and
impairment costs
- Non-GAAP 11,337 28,469 30,817 61,744

Income tax expense
- Non-GAAP** 468 6,359 2,415 12,349
--- ----- ----- ------

Net income - Non-GAAP $10,869 $22,110 $28,402 $49,395
======= ======= ======= =======

Earnings per share
- Non-GAAP:
Basic $0.28 $0.48 $0.72 $1.07
===== ===== ===== =====
Diluted $0.28 $0.48 $0.72 $1.06
===== ===== ===== =====

Weighted average shares
outstanding:
Basic 39,366 45,611 39,351 46,030
====== ====== ====== ======
Diluted 39,463 46,030 39,464 46,546
====== ====== ====== ======

* Summary of restructuring costs

Restructuring costs:
Severance costs $1,398 $- 419 $1,948 $-

Other exit costs 875 - 875 -
--- - --- -
Total restructuring costs $2,273 $- $2,823 $-
====== ====== ====== ======

** Impact to provision related to finalization of audit and change in laws

Impact to provision
related to the
finalization of
federal and state
income tax audits
and changes in
state income tax laws $ 1,377 $ - $1,377 $ -

PLEXUS CORP.
NON-GAAP SUPPLEMENTAL INFORMATION
(in thousands, except per share data)
(unaudited)

Operating Margin Three Months Six Months
Calculation Ended Operating Ended Operating
April 4, 2009 Margin % April 4, 2009 Margin %
----------- ---------- ------------- ---------
Operating income $5,433 1.4% $26,164 3.1%

Goodwill impairment 5,748 5,748
Restructuring costs 2,273 2,823
---- -----
Operating income
excluding
restructuring costs $13,454 3.5% $34,735 4.1%
======= =======

ROIC Calculation Six Months
Ended
April 4, 2009
-------------
Operating income $26,164
Add: Unusual
(restructuring and
impairment)
charges 8,571
-----
Operating income
(excluding unusual
charges) 34,735
x 2
----
Annualized operating
income 69,470
Tax rate (excluding x 7%
unusual charges)
--------
Tax impact -
4,863
----
Operating income
(tax effected) $64,607
========

Average capital
employed $466,690

ROIC 13.8%
=====

Average
Apr 4, Jan 3, Sept 27, Capital
2008 2009 2008 Employed
------- -------- ------- --------
Equity $494,046 $485,716 $473,945
Plus:
Debt - current 16,921 17,014 16,694
Debt - non-current 141,376 145,517 154,532
Less:
Cash and cash
Equivalents (201,330) (178,391) (165,970)

Short-term
investments - - -
$451,013 $469,856 $479,201 $466,690
======== ======== ======== ========

PLEXUS CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
(unaudited)
April 4, September 27,
2009 2008
---- ----
ASSETS
Current assets:
Cash and cash equivalents $201,330 $165,970
Accounts receivable 200,665 253,496
Inventories 336,243 340,244
Deferred income taxes 14,973 15,517
Prepaid expenses and other 13,517 11,742
------ ------
Total current assets 766,728 786,969

Property, plant and equipment, net 192,788 179,123
Goodwill, net - 7,275
Deferred income taxes 9,947 2,620
Other 15,227 16,243
------ ------
Total assets $984,690 $992,230
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt
and capital lease obligations $16,921 $16,694
Accounts payable 218,064 231,638
Customer deposits 31,600 26,863
Accrued liabilities:
Salaries and wages 28,058 41,086
Other 35,422 31,611
------ ------
Total current liabilities 330,065 347,892

Long-term debt and capital lease
obligations, net of current portion 141,376 154,532
Other liabilities 19,203 15,861

Shareholders' equity:
Common stock, $.01 par value,
200,000 shares authorized,
46,819 and 46,772 shares issued,
respectively, and 39,373 and
39,326 shares outstanding,
respectively 468 468
Additional paid-in-capital 359,163 353,105
Common stock held in treasury, at cost,
7,446 shares for both periods (200,110) (200,110)
Retained earnings 331,774 309,708
Accumulated other comprehensive income 2,751 10,774
----- ------
Total shareholders' equity 494,046 473,945
------- -------
Total liabilities and shareholders'
equity $984,690 $992,230
======== ========

SOURCE Plexus Corp.

Ginger Jones, VP and Chief Financial Officer of Plexus Corp., +1-920-751-5487,
ginger.jones@plexus.com