NEENAH, Wis., Feb. 17, 2011 (GLOBE NEWSWIRE) -- Plexus Corp. (Nasdaq:PLXS) announced today that its Board of Directors has approved a new stock repurchase program under which the Company is authorized to repurchase up to $200 million of its common stock. The Board has also authorized the Company to fund the stock repurchase program with existing cash and new long-term debt of up to $200 million. This borrowing transaction is expected to close by the end of the Company's fiscal third quarter, subject to entry into definitive lending agreements.
"This new stock repurchase program and related financing reflects our ongoing commitment to our shareholders' total return," stated Ginger Jones, Senior Vice President and Chief Financial Officer. "We successfully completed a repurchase program in 2008, and we believe that conditions are again right for a potential repurchase of our shares. We believe that repurchasing Plexus stock at current market prices is an attractive use of our capital resources, with the opportunity to create significant shareholder value. We remain optimistic about achieving our long-term financial and business goals, and believe that this stock repurchase program will help support those objectives."
The Company does not have a specific schedule or commitment for the repurchase of these shares; however, subject to market factors, the Company expects to complete the authorized repurchases by the end of calendar 2011.
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 Americas, Europe, Middle East and Africa, 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 100 branded product companies in the Wireline/Networking, Wireless Infrastructure, Medical, Industrial/Commercial and Defense/Security/Aerospace market sectors.
The Plexus Corp. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=7065
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. In addition, the long-term debt is subject to the negotiation, execution and consummation of related agreements and the occurrence of conditions that will be included in those agreements, and the terms of the debt will be subject to market conditions.
The other risks and uncertainties affecting the Company also include, but are not limited to: the economic performance of the industries, sectors and customers we serve; the risk of customer delays, changes, cancellations or forecast inaccuracies in both ongoing and new programs; the continuing 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, maintain our current customer base and deliver product on a timely basis; the risk that our revenue and/or profits associated with customers who are acquired by third parties will be negatively affected; the particular risks relative to new customers, including our arrangements with The Coca-Cola Company, 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 successfully manage 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; raw material and component cost fluctuations particularly due to sudden increases in customer demand; 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 customer resulting in an inventory write-off; the weakness of the global economy and the continuing instability of the global financial markets and banking system, including the potential inability of our customers or suppliers to access credit facilities; the effect of changes in the pricing and margins of products; the effect of start-up costs of new programs and facilities, including our recent and planned expansions, such as our new replacement facility in Oradea, Romania, and our plans to further expand in Penang, Malaysia, Darmstadt, Germany and Xiamen, China and other locations; the risks associated with having significant operations and planned growth in countries outside the United States, including the effects of international political developments, economic or political instability or foreign exchange rate fluctuations; the risk of unanticipated costs, unpaid duties and penalties related to an ongoing audit of our import compliance by U.S. Customs and Border Protection; possible unexpected costs and operating disruption in transitioning programs; the potential effect of fluctuations in the value of the currencies in which we transact business; 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 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 I, Item 1A of our annual report on Form 10-K for the fiscal year ended October 2, 2010).
CONTACT: Ginger Jones Senior Vice President and Chief Financial Officer 920-751-5487 or ginger.jones@plexus.com