Benchmark Electronics, Inc.
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
Website: http://www.bench.com/
