Benchmark Electronics, Inc.
In response to the continued economic deterioration, Benchmark is announcing the consolidation and downsizing of certain of its facilities. As a result of these capacity reductions, the Company expects to record a charge of $50 - $60 million. The greatest portion of this charge is expected to be associated with goodwill and asset alignment.
"Our attentiveness to the market conditions has positioned us well to efficiently and effectively operate in this unprecedented recessionary period for technology spending. Our new product introductions are progressing well with two major programs being recently released to production and expected to ramp during the next two quarters. We will stay the course with our strategic focus and we continue to believe that the long-term fundamentals for the electronic manufacturing services industry remain healthy as the trend towards outsourcing continues," stated Cary T. Fu, President.
This news release contains certain forward-looking statements within the scope of the Securities Act of 1933 and the Securities Exchange Act of 1934. The words "expect," "estimate," "anticipate," "predict," and similar expressions, and the negatives of such expressions, are intended to identify forward-looking statements. Although the Company believes that these statements are based upon reasonable assumptions, such statements involve risks, uncertainties and assumptions, including but not limited to industry and economic conditions, customer actions and the other factors discussed in Benchmark's Form 10-K for the year ended December 31, 2000 and its other filings with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated.
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 facilities in six countries. Benchmark's Common Stock trades on the New York Stock Exchange under the symbol BHE.
SOURCE: Benchmark Electronics, Inc.
Contact: Cary T. Fu, President, or Gayla J. Delly, Chief Financial
Officer, both of Benchmark Electronics, Inc., +1-979-849-6550