UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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Date of Report (Date of earliest event reported): May 18, 2023
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(Exact name of registrant as specified in its charter)
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| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
(Address of principal executive offices) (Zip Code)
Telephone Number (920 ) 969-6000
(Registrant’s telephone number, including Area Code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Securities registered pursuant to Section 12(b) of the Act:
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
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Item 7.01 Regulation FD Disclosure
On April 26, 2023, Plexus Corp. (the “Company”) released guidance for its fiscal third quarter ending July 1, 2023. The Company is today reaffirming its non-GAAP guidance for its fiscal third quarter ending July 1, 2023, and updating its GAAP guidance for the quarter as discussed below.
The original quarterly GAAP guidance as issued by the Company on April 26, 2023 included assumptions relating to anticipated restructuring and other charges of approximately $9.0 million that represented an impact of approximately 90 bps on operating margin and $0.29 on diluted EPS. These assumptions have since changed because of an additional one-time, non-recurring charge of approximately $14.4 million to be taken in the fiscal third quarter relating to an arbitration decision in Norway regarding a contractual matter. The Company disagrees with the arbitration outcome, which outcome it understands is without precedent under Norwegian law. The Company does not expect further charges relating to this matter and does not believe that any other known and existing legal proceedings, individually or in the aggregate, will have a material positive or adverse effect on the Company’s consolidated financial position, results of operations or cash flows.
Three Months Ended | ||||||||||||||
Jul 1, 2023 | ||||||||||||||
Q3F23 Guidance | ||||||||||||||
Summary GAAP Items | ||||||||||||||
Revenue (in billions) | $1.000 to $1.050 | |||||||||||||
Operating margin (1) | 2.3% to 2.8% | |||||||||||||
Diluted EPS (2) | $0.28 to $0.46 | |||||||||||||
Summary Non-GAAP Items | ||||||||||||||
Adjusted operating margin (3) | 4.5% to 5.0% | |||||||||||||
Adjusted diluted EPS (4) | $1.05 to $1.23 | |||||||||||||
(1) Includes restructuring and other non-recurring charges of approximately 220 bps in operating margin for Q3F23 guidance. | ||||||||||||||
(2) Includes restructuring and other non-recurring charges of approximately $0.77 for Q3F23 guidance. | ||||||||||||||
(3) Excludes restructuring and other non-recurring charges of approximately 220 bps. | ||||||||||||||
(4) Excludes restructuring and other non-recurring charges of approximately $0.77. | ||||||||||||||
The information contained in this Current Report shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Safe Harbor and Fair Disclosure Statement
The statements contained in this press release that 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 risks and uncertainties include the effect of inflationary pressures on our costs of production, profitability, and on the economic outlook of our markets; the effects of shortages and delays in obtaining components as a result of economic cycles, natural disasters or otherwise; the risk of customer delays, changes, cancellations or forecast inaccuracies in both ongoing and new programs; the ability to realize anticipated savings from restructuring or similar actions, as well as the adequacy of related charges as compared to actual expenses; the lack of visibility of future orders, particularly in view of changing economic conditions; the economic performance of the industries, sectors and customers we serve; the outcome of litigation and regulatory investigations and proceedings, including the results of any challenges with regard to such outcomes;
the effects of tariffs, trade disputes, trade agreements and other trade protection measures; 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 risks of concentration of work for certain customers; the particular risks relative to new or recent customers, programs or services, 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 effects of start-up costs of new programs and facilities or the costs associated with the closure or consolidation of facilities; possible unexpected costs and operating disruption in transitioning programs, including transitions between Company facilities; 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; our ability to manage successfully and execute a complex business model characterized by high product mix and demanding quality, regulatory, and other requirements; 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; risks related to information technology systems and data security; increasing regulatory and compliance requirements; any tax law changes and related foreign jurisdiction tax developments; current or potential future barriers to the repatriation of funds that are currently held outside of the United States as a result of actions taken by other countries or otherwise; the potential effects of jurisdictional results on our taxes, tax rates, and our ability to use deferred tax assets and net operating losses; the weakness of areas of the global economy; the effect of changes in the pricing and margins of products; raw materials and component cost fluctuations; the potential effect of fluctuations in the value of the currencies in which we transact business; the effects of changes in economic conditions, political conditions and tax matters in the United States and in the other countries in which we do business; the potential effect of other world or local events or other events outside our control (such as the conflict between Russia and Ukraine, escalating tensions between China and Taiwan or China and the United States, changes in energy prices, terrorism, global health epidemics and weather events); the impact of increased competition; an inability to successfully manage human capital; changes in financial accounting standards; and other risks detailed herein and in our other Securities and Exchange Commission filings, particularly in Risk Factors contained in our fiscal 2022 Form 10-K.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Date: May 18, 2023 | PLEXUS CORP. | |||||||
| (Registrant) | ||||||||
By: /s/ Patrick J. Jermain | ||||||||
| Patrick J. Jermain | ||||||||
| Executive Vice President and Chief Financial Officer | ||||||||