Plexus Delivers, Again

Plexus this week reported December quarter revenues were flat with last year’s, which for this market counts as a huge win, as most top tier EMS firms saw revenues drop 3% or more. The world’s 10th largest EMS company also turned a net profit, making it a rarity among its large publicly traded competitors.

It’s a testament to the company’s wisdom years ago when it decided to forego chasing revenues in favor of concentrating on the higher margin medical, military and aerospace markets. That foresight, coupled with solid execution, has put Plexus at the forefront of its peer group.

All of which justifies Circuits Assembly’s selection of Plexus as its 2008 EMS Company of the Year.

As markets turn down, EMS companies historically reach for any piece of business they can get to keep factories full. This means new competition. This week, for example, Flextronics chief executive Mike McNamara said the company is “very bullish” on the medical end-market, adding “more and more outsourcing opportunities are coming out of this environment. And it is an industry that is very reasonably new in terms of outsourcing. We think that is a big upside.”

Things aren’t going to get easier in Neenah. But we think the company remains the best-positioned to survive this cold winter.

Apple’s Next Bite?

Great piece in Slate on the rise of the netbook craze and its pros and cons for the PC industry.

The reward, especially as companies like Apple reportedly consider a move into the loss-cost, stripped-down PC market, is greater market share and a renewed interest in buying computers at a time when the market could absolutely use some good news.

The risk, however, is the Forrest Gump-like devices (in that their presence outstrips their capability), will suck all the innovation out of the market, leaving little in the way of profits for future R&D.