Plexus CEO Discusses F4Q2010 Results - Earnings Call Transcript
Importantly, our teams are disciplined and consistently focused not just on growth, but on delivering profitable revenue growth. As a consequence, we delivered full year EPS of $2.19, an 87% improvement over the prior year, while improving our return on invested capital performance to 19.5%. We remain committed to ROIC as a key variable and compensation incentive metric for the company. One of our enduring financial goals is to deliver ROIC at least 500 basis points above our weighted average cost of capital, a fundamental delivering economic profit and shareholder value.
Turning now to some additional insight into our sector [ph] performance by market sector and our current expectations for early fiscal 2011. Our Wireline/Networking sector was down 1% in Q4, in line with our expectations when we established guidance for the quarter. While we experienced growth with the majority of our significant customers in this sector, and market challenges with a couple of customers held this sector to overall lackluster performance.
Our Wireline/Networking sector, our biggest sector, grew a robust 18% in fiscal 2010. Looking ahead to Q1, we currently expect our Wireline/Networking sector to grow in the mid-single digit percentage range, although the performance among the top 10 customers is a mixed bag and ups and downs.
Our Wireless Infrastructure sector grew approximately 5% in Q4, a weaker performance than the 10% growth we had anticipated, as a couple of customers experienced weaker than anticipated end market demand. While a smaller and volatile sector in our overall portfolio, our Wireless Infrastructure sector grew 43% in fiscal 2010. In Q1, our Wireless Infrastructure revenues are expected to decline about 10% as the wind down production of this Cisco Starent program.As previously disclosed, Cisco acquired Starent earlier in the calendar year, and informed us early on that they intend to consolidate the Starent program into one of their preferred EMS partners. As we communicated earlier, we had modeled an aggressive ramp down of the Starent business in fiscal 2011 forecast. The latest plan is even more aggressive as we currently anticipate largely completing the Starent transition during fiscal Q1.Read the rest of this transcript for free on seekingalpha.com
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