Plexus Corp. reported unaudited consolidated earnings results for the first quarter ended December 28, 2013. For the quarter, the company reported net sales of $533.905 million compared to $530.532 million a year ago. Operating income was $21.761 million compared to $21.484 million a year ago. Income before income taxes was $19.825 million compared to $17.686 million a year ago. Net income was $17.633 million or $0.51 per diluted share, compared to $16.616 million or $0.47 per diluted share, a year ago. Non-GAAP net income, before special items was $21.268 million or $0.61 per diluted share against $16.616 million or $0.47 per diluted share a year ago. Operating profit, as adjusted was $25.366 million compared to $26.767 million a year ago. Cash flow provided by operations was approximately $4 million less capital expenditures of approximately $22 million, resulting in negative free cash flow of approximately $18 million. Revenues declined approximately 6% from the prior quarter as they were impacted by the full revenue headwind of previously announced disengagement from Juniper Networks. Return on invested capital before special items was 14.5% compared to 12.6% a year ago.

For the second quarter of 2014, the company expects revenue in the range of $535 to $565 million and diluted EPS in the range of $0.57 to $0.63, excluding any restructuring charges and including approximately $0.10 per share of stock-based compensation expense. It expects operating margin of approximately 4.4% to 4.6%. Depreciation and amortization expense is expected to be approximately $12 million in the fiscal second quarter, flat with the $12 million in the fiscal first quarter.

The company is estimating a tax rate for fiscal 2014 of 10%, above fiscal 2013 tax rate of 3.2% and at the high end of previous expectations of 8% to 10%. Capital spending forecast for fiscal 2014 remains at approximately $75 million.