Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Plexus Corporation (PLXS on NASDAQ) -- Ignore unavailable to you. Want to Upgrade?

To: rich evans who wrote (95)	7/15/1998 8:27:00 PM
From: rich evans	Read Replies (1) \| Respond to of 128

Earnings released with a good quarter considering the enviroment and others in the industry. CC was upbeat. Margins increased to 13.4 percent gross and should be stable or better in the future. Have some new 10% customers on the horizon. Company concentrating on the high tech value added area with their design and engineering capability. Good asset management ratios. Moving into more telcom and datacom customers and away from low margin automotive. See Q4 as flat with year to year at around 100 mill plus. Thereafter 15% growth seems doable with more if get some new programs or hit a homerun with a product. Have a 75% cap utilization based on equipment but only 50% based on bricks becasue of Oneida partnership.Sees more outsourcing trends. For the ACTM shareholders I asked if they were interested in the cable harness area and they said no-too low tech. For the Solectron shareholders, I asked if they saw a threat if a program grew into higher volumes and dollars and said no that they concentrated on high dollar/unit products and didn't see the 100 million contracts global players as a problem. They have a plan and a niche as announced at their San Francisco conference and reported by Paul K and are sticking to it. They have a new M and A facilitator and are looking at accretive fits but not just companys giving them greater capacity which they don't need. No plans to go Global at this time.Only 13% of business is overflow characterized. Conclusion: Good report and performance, good management, stock should grow but not a FLEXF type growth in results. Their future is tied right now to ASCEND and UNISYS . I am going to keep this stock and wish they would use their strong balance sheet to grow by Mand A faster but they are conservative with lots of experience and want to do it right. Rich