PLXS Plexus Corp.

Risks

• Our net sales and operating results may vary significantly from period to period.
• Plexus is a multinational corporation and operating in multiple countries exposes us to increased risks, including adverse local developments and currency risks.
• Our customers do not make long-term commitments and may cancel or change their production requirements.
• We have a complex business model, and our failure to properly manage or execute on that model, as well as an inability to maintain our engineering, technological and manufacturing process expertise, could adversely affect our operations, financial results and reputation.
• We experience raw material and component shortages and price fluctuations.
• Our services involve other inventory risk.
• Our products and services are for end markets that require technologically advanced products.
• Challenges associated with the engagement of new customers or programs, or the provision of new services, could affect our operations and financial results.
• Start-up costs and inefficiencies related to new, recent or transferred programs can adversely affect our operating results.
• Failure to manage periods of growth or contraction may seriously harm our business.
• An inability to successfully manage the procurement, development, implementation or execution of information systems, or to adequately maintain these systems and their security, as well as to protect data and other confidential information, may adversely affect our business and reputation.
• Changes in tax laws, potential tax disputes, negative or unforeseen tax consequences or further developments affecting our deferred tax assets could adversely affect our results.
• We and our customers are subject to increasingly extensive government regulations and industry standards; a failure to comply with current and future regulations and standards could have an adverse effect on our business, customer relationships, reputation and profitability.
• A failure to comply with customer-driven policies and standards, and third-party certification requirements or standards, including those related to social responsibility, could adversely affect our business and reputation.
• Changes to financial accounting rules or standards, or challenges to our interpretation or application of the rules by regulators, may have a material adverse effect on our reported financial results or on the way we conduct business.
• There may be problems with the products we design, manufacture or service that could result in liability claims against us, reduced demand for our services and damage to our reputation.
• Intellectual property infringement claims against our customers or us could harm our business.
• Increased competition may result in reduced demand or reduced prices for our services.
• We depend on our workforce, including certain key personnel, and the loss of key personnel or other personnel disruptions, including the inability to hire and retain sufficient personnel, may harm our business.
• Natural disasters, breaches of security and other events outside our control, and the ineffective management of such events, may harm our business.
• We may fail to secure or maintain necessary additional financing or capital.
• We may fail to successfully complete future acquisitions, as well as strategic arrangements, and may not successfully integrate acquired operations or recognize the anticipated benefits, which could adversely affect our operating results.