Plexus share plunge after being dropped by Juniper Networks as a supplier
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Shares of supply chain provider Plexus Corp. plunged Wednesday after it announced that it had been dropped as a supplier to Juniper Networks Inc., a data network equipment maker.
Shares were down $7.70, or 27.6 percent, at $20.26 in afternoon trading Wednesday after falling as low as $19.63 earlier in the day, its lowest level since July 2009.
CEO Dean Foate said the company was informed of the decision on Monday, calling it "very surprising news."
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"Plexus has been an important strategic supplier to Juniper for more than a decade. While this is a significant event for us in the near term, our new business wins of $956 million during fiscal 2012, including in the networking/communications sector, provides us continued optimism in our strategy," he said in a statement.
Plexus said in a news release that the timing of the separation of Plexus as a supplier to Juniper wasn't known but is expected to be by the end of its fiscal year.
Plexus is based in Neenah, Wis. Juniper is based in Sunnyvale, Calif.