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NYSEBHE
Benchmark Electronics Reports Second Quarter Results
PRNewswire
ANGLETON, Texas

Benchmark Electronics, Inc. announced sales revenue of $317 million for the quarter ended June 30, 2001 compared to sales revenue of $407 million for the same quarter in the previous year. Net income excluding restructuring charges was $0.25 million for the quarter compared to net income of $3.61 million in the same period a year earlier. Cash EPS excluding restructuring charges on a fully diluted basis was 12 cents per share for the quarter ended June 30, 2001 compared to 43 cents per share for the same quarter of 2000.

Sales revenue for the six months ended June 30, 2001 were $749 million compared to sales revenue of $756 million for the same period in the prior year. Cash EPS excluding restructuring charges on a fully diluted basis was 53 cents per share for the six months ended June 30, 2001 compared to 56 cents per share for the same period in the prior year.

Cary T. Fu, President of Benchmark Electronics, Inc., commented: "We witnessed high levels of activity in the new product introductions area during the quarter. However, those programs combined with new program wins over the past few quarters have not yet gained the momentum to offset the broadbased decline in demand on existing customer programs. In the midst of the current economic environment, we are aggressively managing our business and maintaining strong customer relationships."

Based on current demand forecasts from our customers for the third quarter, we anticipate revenue to be flat to slightly down as compared to the second quarter and cash earnings per share in the range of 10 to 15 cents, excluding any restructuring charges.

  Quarter Highlights

  * Operating cash flow generated was $37 million in the second quarter and
    $68 million in the six months ended June 30, 2001, reflecting effective
    working capital management.

  * We have been awarded 5 new program commitments since last quarter.

  * Accounts receivable decreased by $43 million over the previous quarter
    to $192 million.  Days sales outstanding in receivables was 54 days.

  * Inventories decreased by $47 million to $263 million.  Inventory turns
    were 4.5 times per year.

  * Non-linearity of demand from customers impacted both the inventory and
    receivable turnover ratios.

  * Percentages of our sales by industry for the quarter:
      35% -- telecommunication equipment
      41% -- computers and related products for business enterprises
      10% -- industrial control equipment
       7% -- medical devices
       4% -- video/audio/entertainment products
       3% -- testing and instrumentation products

  * Our three largest customers represented 20%, 17% and 6% of our sales
    during the quarter.

This news release contains forward-looking statements based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. These risks and uncertainties include the length and severity of the current economic downturn and our ability to manage customer demand through the downturn, the length and severity of current economic downturn in the electronics technology sector, the ability to manage rapid declines in customer demand, component availability and cost, risk of price fluctuation, reliance on major customers, fluctuations in operating results, changes in technology, competition, the ability to manage rapid growth, the ability to manage integration of acquired operations, risks associated with international sales and operations, interest rate risk, environmental regulations, litigation, market risk, segment risk, the ability to retain key personnel and the ability to maintain our technological and manufacturing process expertise. For a further list and description of risks and uncertainties, see the reports filed by Benchmark with the Securities and Exchange Commission, specifically forms 8-K, 10-Q, S-3 and 10-K. Benchmark disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Benchmark Electronics, Inc. is in the business of manufacturing electronics and provides its services to original equipment manufacturers of telecommunication equipment, computers and related products for business enterprises, video/audio/entertainment products, industrial control equipment, testing and instrumentation products, personal computers and medical devices. Benchmark's global operations include 16 facilities in six countries. Benchmark's Common Stock trades on the New York Stock Exchange under the symbol BHE.

A conference call hosted by Benchmark management will be held today at 10:00 am CDT to discuss the financial results of the Company and its future outlook. This call will be broadcast via the Internet and may be accessed by logging on to our website at http://www.bench.com/ .

               Benchmark Electronics, Inc. and Subsidiaries

                    Consolidated Statements of Income
              (Amounts in Thousands, Except Per Share Data)
                               (UNAUDITED)

                          Three Months Ended          Six Months Ended
                                June 30,                   June 30,
                          2001          2000         2001          2000

  Net sales             $317,433       406,572      749,338       755,726
  Cost of sales          295,381       376,868      695,123       702,376

     Gross profit         22,052        29,704       54,215        53,350

  Selling, general and
   administrative
   expenses               14,666        13,432       28,825        26,113
  Restructuring charges    3,347            --        4,613            --
  Amortization of goodwill 3,223         3,100        6,445         6,320

     Operating income        816        13,172       14,332        20,917

  Other income (expense):
    Interest expense      (4,600)       (7,050)     (10,313)      (12,613)
    Other                    794          (648)         294           181
  Total other
   expense, net           (3,806)       (7,698)     (10,019)      (12,432)

     Income (loss) before
      income taxes        (2,990)        5,474        4,313         8,485

  Income tax expense
   (benefit)                (897)        1,869        1,294         2,902

     Net income (loss)   $(2,093)        3,605        3,019         5,583

  Earnings (loss) per share:
     Basic                $(0.11)         0.22         0.15          0.34
     Diluted               (0.11)         0.21         0.15          0.32
     Cash                   0.01          0.43         0.37          0.56

  Earnings per share before restructuring charges:
     Basic                 $0.01          0.22         0.32          0.34
     Diluted                0.01          0.21         0.31          0.32
     Cash                   0.12          0.43         0.53          0.56

  Weighted average number of shares outstanding:
     Basic                19,605        16,297       19,601        16,272
     Diluted              19,605        17,547       20,312        17,330


               Benchmark Electronics, Inc. and Subsidiaries

                   Condensed Consolidated Balance Sheet
                              June 30, 2001
                          (Amounts in Thousands)
                               (UNAUDITED)

  Assets

  Current assets:
     Cash                                                  $25,043
     Accounts receivable, net                              192,034
     Inventories, net                                      262,948
     Other current assets                                   20,052
        Total current assets                               500,077

  Property, plant and equipment, net                       129,667
  Other assets, net                                         17,905
  Goodwill, net                                            159,200

        Total assets                                      $806,849

  Liabilities and Shareholders' Equity

  Current liabilities:
     Current installments of other long-term debt          $32,677
     Accounts payable                                      146,674
     Other current liabilities                              23,867
     Total current liabilities                             203,218

  Revolving line of credit                                  41,000
  Convertible subordinated notes                            80,200
  Other long-term debt, excluding current installments      56,550
  Other long-term liabilities                               17,442
  Shareholders' equity                                     408,439

        Total liabilities and shareholders' equity        $806,849

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SOURCE: Benchmark Electronics, Inc.

Contact: Gayla J. Delly, Chief Financial Officer of Benchmark
Electronics, +1-979-849-6550

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