Plexus Systems, Inc. Marks Substantial Growth in 2007
Key technology and business strategies implemented for future acceleration
AUBURN HILLS, Mich., Jan. 23 -- Plexus Systems, Inc., provider of Plexus Online, the on-demand software for the manufacturing enterprise, today announced 2007 year-end results, including substantial customer growth and successful implementation of key programs for acceleration of the company's Software as a Service (SaaS) business strategy.
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Last year, Plexus Systems welcomed 39 new customers, including companies headquartered in North America, Europe and Asia. Several new customers in precision manufacturing have contributed to continued growth in strategic vertical industries outside of automotive, which historically has been the primary industry for Plexus. Examples of new customers in new industries include Cuisine Solutions (food processing), STAT Medical X-Ray Tubes (medical devices) and Touch International (electronics). Plexus Systems also continues to grow existing key automotive accounts, as automotive remains an attractive industry that benefits from the increased efficiencies offered by Plexus Online.
Plexus Systems made a strategic transition to a subscription-based pricing model in 2007. Under the new pricing model, customers no longer pay a large lump sum to "purchase" software, but instead pay a standard monthly fee throughout the life of the contract. The new pricing model better accommodates customers who wish to conserve cash and account for software as an operational expense, rather than a capital expense.
"This fundamental change for leading-edge SaaS companies takes the industry away from an older software pricing model based on per-user licenses and large upfront payments," said Plexus Systems CEO Mark Symonds. "Cash is king. Our customers would rather use capital to buy production equipment and facilities. They love being able to pay as they go. Salesforce.com and NetSuite have fueled the subscription-based price war, but companies like ours will certainly fan the flames," he added.
In other notable achievements, Plexus Systems increased its staff to 108 employees and hired key industry leaders in marketing and sales positions. The company established new U.S. regional offices in Chicago and Atlanta. Plexus Systems also earned many industry awards, including Ernst & Young Entrepreneur of the Year for company founder Robert Beatty (www.ey.com/us/eoy), the CODIE Award from the Software & Information Industry Association (www.siia.net), and Southeastern Michigan's 2007 Technology Company of the Year Award from Automation Alley (www.automationalley.com).
Plexus Online offers over 350 functional modules, providing companies instant access to vital information and management functions using a simple web browser. The on-demand solution features enterprise resource planning (ERP) functions such as accounting and finance modules, customer relationship management (CRM) features such as order entry and tracking, manufacturing execution systems (MES) functions such as production scheduling and machine integration, and supply chain management (SCM) functions such as supplier quality and traceability.
About Plexus Systems, Inc.
Since 1995, Plexus Systems, Inc. (Auburn Hills, Mich.) has maintained a singular vision -- to drive significant cost, quality and productivity improvements for manufacturers, from the shop floor to the top floor. Plexus Online(TM) is an on-demand software for the manufacturing enterprise, delivering a powerful, real-time interface. Plexus Systems originated internally at a manufacturing company, and was designed to resolve quality challenges, including production, distribution and global supply chains management issues. Today, Plexus Online also enables businesses to manage accounting, financials, compliance and human resources and other top priorities. Plexus Systems serves a cross section of manufacturing industries (OEM and suppliers), particularly automotive, defense, medical device and aerospace companies headquartered in the Americas, Asia, and Europe.
Plexus Systems has partnered with Apax Partners (www.apax.com), one of the world's leading global private equity groups, to drive global expansion and further strengthen the company's products, services and market position. Apax Partners operates across the US, Europe and Asia and has more than $20 billion in funds under management and advice. In 2006, funds advised by Apax made a strategic investment in Plexus Systems, joining the founding investment group as stakeholders in Plexus. Visit www.plex.com for more information.
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