Plexus Corp. F2Q08 (Qtr End 03/29/08) Earnings Call Transcript

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2008-05-05 11:38:08.0

Tags: Plexus

Question-and-Answer Session

Operator

(Operator Instructions)

Our first question comes from Shawn Harrison with Longbow research. Please go ahead.

Shawn Harrison - Longbow Research

Hi. Good morning.

Dean Foate

Good morning, Shawn.

Shawn Harrison - Longbow Research

First question, just dealing with what you're seeing within the end markets, maybe if we could delve in a little bit more into the wireline as well as the medical, and then also what end markets were represented by the 13 program wins this quarter?

Dean Foate

Certainly. Let me talk first about the kind of overall kind of what we're seeing in end markets and kind of our feeling about the current economic turbulence. At this point, we see economic turbulence directly impacting only our customers, what we call, in semi-cap equipment. Beyond that we're not seeing any significant longer-term reductions in performance from our customers.

If you look at the medical sector, I don't think that the issues that we're facing with those customers today and the challenges that they're having could directly be attributed to the current economic turbulence. It's more related to regulatory issues and perhaps the positioning of their products in the marketplace.

And I would say just a general overall change in the competitive profile of their markets where you're seeing more larger healthcare organizations making purchases of equipment and the way purchases of equipment is changing in that marketplace, which is making it more competitive.

Beyond that, I don't think that we're seeing anything that's extraordinarily directional related to the overall economic issues.

Now, related to the new customers, I think you asked about -- another part of your question was what sectors were the new business in. And let me see if I can grab that quickly for you.

As we look at it, we had it actually pretty well-balanced out across the market sectors. A couple of the wins were in the wireline sector, a couple in wireless, four in the medical sector and then two of them were in the industrial/commercial, three in the defense, security and aerospace sector.

Shawn Harrison - Longbow Research

What's the FDA-related issues in the medical sector? Is there a sign that those are going to be resolved and shipments will normalize to those customers any time soon? Just maybe just a little bit of visibility there.

Dean Foate

Yes, I want to be careful not to overplay this, because the FDA issues that are affecting one of our customers today, so there is one facility that we ship product into. We have actually been cleared to ship product into that customer as we talked about on the last conference call.

 

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