NEENAH, WI, August 18, 2014 - Plexus Corp. (NASDAQ: PLXS) today announced that its Board of Directors has approved a new share repurchase program under which the Company is authorized to repurchase up to $30 million of its common stock during fiscal 2015.
Patrick Jermain, Vice President and CFO, commented, "As part of our annual strategy planning process, we continue to evaluate cash flows for the potential of returning cash to shareholders. The repurchase amount of $30 million for fiscal 2015 is based on our current available cash in the United States and expected free cash flow for the coming fiscal year. This repurchase program continues our disciplined approach of returning cash to shareholders and our commitment to total shareholder return. We believe that repurchasing Plexus stock at current market prices is an attractive use of our capital resources, with the opportunity to create shareholder value."
The authorized repurchases represent approximately 2% of current market capitalization. The Company expects to fund the majority of the repurchases with existing cash. Plexus does not have a specific schedule or commitment for the repurchase of these shares; however, subject to market factors, it expects to complete the authorized repurchases on a relatively consistent basis over fiscal 2015.
For further information, please contact:
Patrick Jermain, Vice President and CFO
920-725-7139 or email@example.com
About Plexus Corp. – The Product Realization Company
Plexus (www.plexus.com) delivers optimized Product Realization solutions through a unique Product Realization Value Stream service model. This customer-focused services model seamlessly integrates innovative product conceptualization, design, commercialization, manufacturing, fulfillment and sustaining services to deliver comprehensive end-to-end solutions for customers in the America, European and Asia-Pacific regions.
Plexus is the industry leader in servicing mid-to-low volume, higher complexity customer programs characterized by unique flexibility, technology, quality and regulatory requirements. Award-winning customer service is provided to over 140 branded product companies in the Networking/Communications, Healthcare/Life Sciences, Industrial/Commercial and Defense/Security/Aerospace market sectors.
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. In particular, we cannot assure any particular market reaction to share repurchases, or related effects on the value of our shares or our ability to repurchase shares on acceptable terms, because that reaction is not under our control and is subject to changes in the market unrelated to Plexus. Market conditions may also affect whether the repurchases are in fact accretive. The other risks and uncertainties include, but are not limited to: the risk of customer delays, changes, cancellations or forecast inaccuracies in both ongoing and new programs; the poor visibility of future orders, particularly in view of changing economic conditions; the adequacy of restructuring and similar charges as compared to actual expenses; the economic performance of the industries, sectors and customers we serve; the effects of the volume of revenue from certain sectors or programs on our margins in particular periods; our ability to secure new customers, maintain our current customer base and deliver product on a timely basis; the particular risks relative to new or recent customers or programs, which risks include customer and other delays, start-up costs, potential inability to execute, the establishment of appropriate terms of agreements, and the lack of a track record of order volume and timing; the risks of concentration of work for certain customers; our ability to manage successfully a complex business model characterized by high customer and product mix, low volumes and demanding quality, regulatory, and other requirements; the risk that new program wins and/or customer demand may not result in the expected revenue or profitability; the fact that customer orders may not lead to long-term relationships; the effects of shortages and delays in obtaining components as a result of economic cycles or natural disasters; the risks associated with excess and obsolete inventory, including the risk that inventory purchased on behalf of our customers may not be consumed or otherwise paid for by the customer, resulting in an inventory write-off; the weakness of areas of the global economy; the effect of changes in the pricing and margins of products; the effect of start-up costs of new programs and facilities, such as our announced plans to replace a facility in Mexico and our other recent, planned and potential future expansions, closures or replacements; increasing regulatory and compliance requirements; possible unexpected costs and operating disruption in transitioning programs; raw materials and component cost fluctuations; the potential effect of fluctuations in the value of the currencies in which we transact business; the potential effects of regional results on our taxes and ability to use deferred tax assets; the potential effect of world or local events or other events outside our control (such as drug cartel-related violence in Mexico, changes in oil prices, terrorism and weather events); the impact of increased competition; and other risks detailed in our Securities and Exchange Commission filings (particularly in "Risk Factors" in our fiscal 2013 Form 10-K).
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