8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

Date of Report: October 31, 2007

PLEXUS CORP.

(Exact name of registrant as specified in its charter)

Wisconsin	000-14824	39-1344447
(State or other jurisdiction of incorporation)	(Commission File Number	(I.R.S. Employer Identification No.)

55 Jewelers Park Drive, Neenah, Wisconsin	54957-0156
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code:
(920) 722-3451

     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):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition.

On October 31, 2007, Plexus Corp. announced results for the fourth quarter ended September 29, 2007. A copy of Plexus’ related press release is furnished to the Commission by attaching it as Exhibit 99.1 to this report.

2

* * * * *

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: October 31, 2007	PLEXUS CORP. (Registrant)
	By:	/s/ Ginger M. Jones
		Ginger M. Jones
		Chief Financial Officer

3

EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

Plexus Announces Q4 Revenue of $426 Million and EPS of $0.53

Sets Fiscal 2008 Revenue Growth Target of 15% to 18%
Initiates Q1 Revenue Guidance of $440 - $460 Million

NEENAH, WI, October 31, 2007 — Plexus Corp. (Nasdaq: PLXS) today announced:

• Q4 Fiscal 2007 Results: Revenue for the fiscal 4^th quarter ended September 29, 2007 was $426 million with diluted GAAP EPS of $0.53, including $0.03 per share of stock option expense and $0.02 per share of restructuring costs.

• Fiscal 2008 Revenue Growth Target: Consistent with the Company’s strategic objectives, Plexus is targeting revenue growth in the range of 15% to 18% in fiscal 2008.

• Q1 Fiscal 2008 Guidance: The Company established fiscal 1^st quarter revenue guidance of $440 to $460 million with EPS, excluding any restructuring charges, in the range of $0.58 to $0.63, including approximately $0.03 per share of stock option expense.

Dean Foate, President and CEO, commented, “Our return on invested capital (ROIC) for fiscal 2007 of 17.6% was above our weighted average cost of capital (WACC) and consistent with our long-term financial model. Despite being at the low end of our revenue guidance for Q4, we exceeded our earnings expectations, driven primarily by a favorable mix of customer programs, better than expected labor efficiencies and strong performance by our engineering services organization (Technology Group). Relative to our guidance for Q4, our Medical Sector was exceptionally strong while our Defense Sector revenues were lower than expected, as we experienced an approximately $15 million push-out in the production schedule for a significant defense customer to the first quarter of fiscal 2008. Q4 included approximately $44 million of revenue for this customer.”

Ginger Jones, Chief Financial Officer, added “Our operating income for Q4 was favorably impacted by approximately $0.01 as a result of several items: we recognized approximately $2.9 million of pre-tax benefit for shipments of inventory that we had previously written down for a financially distressed customer, which was offset by a $0.9 million pre-tax restructuring charge as we scaled our Mexican operations to match current revenue levels, as well as a $1.3 million pre-tax warranty-related charge. Offsetting the favorable net impact to operating income, we continued to experience losses in our Mexican facility, and our tax rate for fiscal 2007 was higher than expected at approximately 22%, primarily due to the regional mix of production in Q4. This resulted in an effective tax rate of 25% for the fourth quarter, which reduced diluted earnings per share for the quarter by approximately $0.04.”

(continues)

Foate said, “Looking forward, we are expecting a strong start to fiscal 2008, with Q1 revenue in the range of $440 million to $460 million with single digit growth in all of our Market Sectors, with the exception of our Defense Sector where we expect sequential revenue growth to exceed 25%. Including the production push-out from Q4 and a small follow-on order from our large defense customer, we are currently expecting approximately $54 million in revenue from this program in Q1 followed by approximately $26 million in Q2.”

Jones commented, “Due to customer mix, we are also expecting Q1 to be an exceptionally strong earnings quarter, with EPS, excluding any restructuring charges, in the range of $0.58 to $0.63, including approximately $0.03 per share of stock option expense. Looking to future quarters in fiscal 2008, we believe that successfully executing on our strategy to gain market share and grow revenues 15% to 18% will deliver a more consistently sustainable ‘20-10-5’ financial model (20% ROIC target, 10% gross margin target and 5% operating earnings target).”

Foate concluded, “We believe Plexus offers a unique value proposition that creates competitive advantage for OEMs with mid- to low-volume, higher-mix requirements in the market sectors we serve, and that this is the foundation of our goal to double the size of Plexus over a 4- to 5-year horizon. Consistent with this goal we are setting a 15% to 18% revenue growth objective for fiscal 2008. Our strong start to the year suggests that the near-term objective is achievable, yet we are mindful of growing economic uncertainly that could derail end-market demand.”

Plexus provides non-GAAP supplemental information. These non-GAAP income statements exclude transactions that are not expected to have an effect on future operations. Such transactions include restructuring costs, as well as the establishment or reduction of the valuation allowance for deferred tax assets. These non-GAAP financial data are provided to facilitate meaningful period-to-period comparisons of underlying operational performance by eliminating infrequent or unusual charges. Similar non-GAAP financial measures, including ROIC, are used for internal management assessments because such measures provide additional insight into ongoing financial performance. Please refer to the attached accompanying reconciliations of the GAAP net income and EPS to the non-GAAP supplemental data.

MARKET SECTOR BREAKOUT
Plexus reports revenue based on the market sector breakout set forth in the table below, which reflects the Company’s sales and marketing focus.

Market Sector	Q4 — Fiscal 2007	Q3 — Fiscal 2007
Wireline/Networking	42%	46%
Wireless Infrastructure	8%	9%
Medical	21%	24%
Industrial/Commercial	15%	14%
Defense/Security/Aerospace	14%	7%

(continues)

FISCAL Q4 HIGHLIGHTS

• Annual ROIC was 17.6%. The Company defines ROIC as tax-effected operating income, excluding restructuring costs, divided by average capital employed over a rolling five quarter period. Capital employed is defined as equity plus debt, less cash and cash equivalents and short-term investments.

• Cash flow provided by operations was approximately $23.0 million for the quarter.

• Top 10 customers comprised 65% of sales during the quarter, up 1 percentage point from the previous quarter.

• Juniper Networks Inc., with 22% of sales, and an un-named defense sector customer, with 10% of sales, were the only customers representing 10% or more of revenues for the quarter.

• Capital expenditures for the quarter were $10.0 million.

• Cash Conversion Cycle:

Cash Conversion Cycle	Q4 — Fiscal 2007	Q3 — Fiscal 2007
Days in Accounts Receivable	49 Days	48 Days
Days in Inventory	68 Days	68 Days
Days in Accounts Payable	(58) Days	(53) Days
Annualized Cash Cycle	59 Days	63 Days

Conference Call/Webcast and Replay Information

What:	Plexus Corp.’s Fiscal Q4 Earnings Conference Call
When:	Thursday, November 1st at 8:30 a.m. Eastern Time
Where:	888-693-3477 or 973-582-2710 with conference ID: 9261576
	http://www.videonewswire.com/PLXS/110107
	(requires Windows Media Player)
Replay:	The call will be archived until November 8, 2007 at noon Eastern Time
	http://www.videonewswire.com/PLXS/110107
	or via telephone replay at 877-519-4471 or 973-341-3080
	PIN: 9261576

For further information, please contact:
Kristian Talvitie, Vice President — Marketing, Branding and Communications
920-969-6160 or kristian.talvitie@plexus.com

About Plexus Corp. — The Product Realization Company
Plexus ( www.plexus.com ) is an award-winning participant in the Electronics Manufacturing Services (EMS) industry, providing product design, supply chain and materials management, manufacturing, test, fulfillment and aftermarket solutions to branded product companies in the Wireline/Networking, Wireless Infrastructure, Medical, Industrial/Commercial and Defense/Security/Aerospace market sectors.

The Company’s unique Focused Factory manufacturing model and global supply chain solutions are strategically enhanced by value-added product design and engineering services. Plexus specializes in mid- to low-volume, higher-mix customer programs that require flexibility, scalability, technology and quality.

Plexus provides award-winning customer service to more than 100 branded product companies in North America, Europe and Asia.

(continues)

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, including, but not limited to: the economic performance of the electronics, technology and defense industries; the risk of customer delays, changes or cancellations in both ongoing and new programs; the poor visibility of future orders in the defense market sector and the uncertainty of defense appropriations and spending; the Company’s ability to secure new customers and maintain its current customer base; the risks of concentration of work for certain customers; material cost fluctuations and the adequate availability of components and related parts for production; the effect of changes in average selling prices; the effect of start-up costs of new programs and facilities, including our expansions in Asia; the adequacy of restructuring and similar charges as compared to actual expenses; the degree of success and the costs of efforts to improve the financial performance of its Mexican operations; possible unexpected costs and operating disruption in transitioning programs; the costs and inherent uncertainties of pending litigation; the effect of general economic conditions and world events (such as increases 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.

(financial tables follow)

PLEXUS CORP.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)

	Three Months Ended						Twelve Months Ended
	September 29,			September 30,			September 29,			September 30,
	2007			2006			2007			2006
Net sales	$	425,679		$	396,942		$	1,546,264		$	1,460,557
Cost of sales		371,960			352,061			1,382,725			1,301,857
Gross profit		53,719			44,881			163,539			158,700
Operating expenses:
Selling and administrative expenses		21,175			20,354			82,263			78,438
Restructuring and asset impairment costs		906			—			1,838			—
		22,081			20,354			84,101			78,438
Operating income		31,638			24,527			79,438			80,262
Other income (expense):
Interest expense		(742	)		(855	)		(3,168	)		(3,507	)
Interest income		2,371			1,937			9,099			6,163
Miscellaneous income (expense)		(32	)		(223	)		(1,115	)		434
Income before income taxes and cumulative effect of change in accounting principle — net of income tax		33,235			25,386			84,254			83,352
Income tax expense (benefit)		8,332			(17,758	)		18,536			(17,178	)
Income before cumulative effect of change in accounting principle		24,903			43,144			65,718			100,530
Cumulative effect of change in accounting principle — net of income tax		—			505			—			505
Net income	$	24,903		$	42,639		$	65,718		$	100,025
Earnings per share:
Basic:
Income before cumulative effect of change in accounting principle — net of income tax	$	0.54		$	0.93		$	1.42		$	2.23
Cumulative effect of change in accounting principle — net of income tax		—			0.01			—			0.01
	$	0.54		$	0.92		$	1.42		$	2.22
Diluted:
Income before cumulative effect of change in accounting principle — net of income tax	$	0.53		$	0.92		$	1.41		$	2.16
Cumulative effect of change in accounting principle — net of income tax		—			0.01			—			0.01
	$	0.53		$	0.91		$	1.41		$	2.15
Weighted average shares outstanding:
Basic		46,375			46,208			46,312			45,146
Diluted		46,864			46,860			46,739			46,490

PLEXUS CORP.
NON-GAAP SUPPLEMENTAL INFORMATION
(in thousands, except per share data)
(unaudited)

	Three Months Ended					Twelve Months Ended
	September 29,		September 30,			September 29,		September 30,
	2007		2006			2007		2006
Net income — GAAP	$	24,903	$	42,639		$	65,718	$	100,025
Add cumulative effect of change in accounting principle — net of income tax		—		505			—		505
Add income tax expense (benefit)**		8,332		(17,758	)		18,536		(17,178	)
Income before income taxes and cumulative effect of change in accounting principle — net of income tax — GAAP		33,235		25,386			84,254		83,352
Add: Restructuring and impairment costs*		906		—			1,838		—
Income before cumulative effect of change in accounting — net of income taxes and excluding restructuring and impairment costs — Non-GAAP		34,141		25,386			86,092		83,352
Income tax expense (benefit) — Non-GAAP		8,535		(83	)		18,940		496
Net income — Non-GAAP	$	25,606	$	25,469		$	67,152	$	82,856
Earnings per share — Non-GAAP:
Basic	$	0.55	$	0.55		$	1.45	$	1.84
Diluted	$	0.55	$	0.54		$	1.44	$	1.78
Weighted average shares outstanding:
Basic		46,375		46,208			46,312		45,146
Diluted		46,864		46,860			46,739		46,490

* Summary of restructuring and impairment costs

Restructuring and impairment costs:
Severance costs	$	906	$	—	$	1,838	$	—

** Impact related to the reversal of the valuation allowance

Reversal of the valuation allowance to income taxes $ — $ (17,674 ) $ — $ (17,674 )

PLEXUS CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
(unaudited)

	September 29,		September 30,
	2007		2006
ASSETS
Current assets:
Cash and cash equivalents	$	154,109	$	164,912
Short-term investments		55,000		30,000
Accounts receivable		230,826		209,737
Inventories		275,854		224,342
Deferred income taxes		12,932		10,232
Prepaid expenses and other		5,434		6,226
Total current assets		734,155		645,449
Property, plant and equipment, net		159,517		134,437
Goodwill, net		8,062		7,400
Deferred income taxes		2,310		4,542
Other		12,472		9,634
Total assets	$	916,516	$	801,462
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current portion of capital lease obligations	$	1,720	$	997
Accounts payable		237,034		215,332
Customer deposits		10,381		7,091
Accrued liabilities:
Salaries and wages		23,149		33,153
Other		34,755		29,808
Total current liabilities		307,039		286,381
Capital lease obligations, net of current portion		25,082		25,653
Other liabilities		9,372		7,861
Deferred income taxes		1,758		—
Shareholders’ equity:
Common stock, $.01 par value, 200,000 shares authorized, 46,402 and 46,217 shares issued and outstanding, respectively		464		462
Additional paid-in-capital		336,603		312,785
Retained earnings		224,586		158,868
Accumulated other comprehensive income		11,612		9,452
Total shareholders’ equity		573,265		481,567
Total liabilities and shareholders’ equity	$	916,516	$	801,462

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