News Releases

Benchmark Electronics Reports Third Quarter and Nine Month Results

Benchmark Electronics, Inc. announced its financial results for the third quarter and nine months ended September 30, 2001.

For the quarter ended September 30, 2001 sales revenue was $258 million as compared to $460 million for the same period in the prior year. Cash net income excluding restructuring charges was $2.2 million for the quarter compared to cash net income of $8.4 million in the same period a year earlier. Cash EPS excluding restructuring charges on a fully diluted basis was 11 cents per share for the quarter ended September 30, 2001 compared to 42 cents per share for the same quarter in the year earlier.

For the nine-month period ended September 30, 2001, revenue was $1.01 billion, compared to $1.21 billion for the same period in the prior year, a 17 percent decrease. Cash EPS excluding restructuring charges on a fully diluted basis was 64 cents per share for the nine months ended September 30, 2001 compared to $1.00 per share for the same period in the prior year. Cash provided from operations for the nine months ended September 30, 2001 was $101 million.

During the third quarter the company recorded a one-time pre-tax restructuring charge of $62.2 million associated with the previously announced consolidation and downsizing of certain of its facilities. These non-cash charges included the re-valuation of certain assets, including goodwill. The company anticipates additional pre-tax restructuring charges of approximately $3 million during the fourth quarter of 2001 related to the consolidation efforts.

"The weakness in end-market demand over the past nine months has dramatically changed the challenges that we face in the technology marketplace," stated Cary T. Fu, President. "Our team has shown excellent abilities to rapidly respond to market conditions, both in the fast paced uptick in demands experienced during the last calendar year and in the equally fast downturn in demands in the recent quarters. We have further reduced our cost structure through the recently announced consolidation and downsizing of facilities. Concurrently we are investing in and expanding our strengths in providing engineering support to our customers. We believe that these steps allow us to effectively compete in the current economic environment and position ourselves to be a leading electronic manufacturing services provider."

The economic uncertainties in today's marketplace make it challenging to provide guidance. However, the company expects revenues for the fourth quarter of 2001 in the range of $245 -- 275 million, and cash earnings per share, excluding restructuring charges of approximately $.09 -- .13 as the company starts to benefit from its restructuring activities, and ramping of new programs to production.

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.

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 .

               Benchmark Electronics, Inc. and Subsidiaries

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

                            Three Months Ended         Nine Months Ended
                               September 30,              September 30,
                            2001          2000         2001          2000

  Net sales             $257,969       459,540    1,007,307     1,215,266
  Cost of sales          239,071       425,640      934,194     1,128,016

    Gross profit          18,898        33,900       73,113        87,250

  Selling, general and
   expenses               12,581        15,523       41,406        41,636
  Restructuring charges   62,201            --       66,814            --
  Amortization of goodwill 3,222         3,096        9,667         9,416

  Operating income
   (loss)                (59,106)       15,281      (44,774)       36,198

  Other income (expense):
    Interest expense      (3,862)       (5,638)     (14,175)      (18,251)
    Other                    719          (540)       1,013          (359)
  Total other expense,
   net                    (3,143)       (6,178)     (13,162)      (18,610)

  Income (loss) before
   income taxes          (62,249)        9,103      (57,936)       17,588

  Income tax expense
   (benefit)              (5,234)        2,867       (3,940)        5,769

  Net income (loss)     $(57,015)        6,236      (53,996)       11,819

  Earnings (loss) per share:
    Basic                 $(2.90)         0.34        (2.75)         0.70
    Diluted                (2.90)         0.32        (2.75)         0.65

  Earnings per share before restructuring charges:
    Basic                  $0.00          0.34         0.32          0.70
    Diluted                 0.00          0.32         0.31          0.65
    Cash                    0.11          0.42         0.64          1.00

  Weighted average number of shares outstanding:
    Basic                 19,645        18,189       19,616        16,914
    Diluted               19,645        19,770       19,616        18,148

               Benchmark Electronics, Inc. and Subsidiaries

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

  Current assets:
   Cash                                              $   24,008
   Accounts receivable, net                             176,629
  Inventories, net                                      237,219
  Other current assets                                   24,113
   Total current assets                                 461,969

  Property, plant and equipment, net                    100,272
  Other assets, net                                      13,206
  Goodwill, net                                         122,820

    Total assets                                     $  698,267

  Liabilities and Shareholders' Equity

  Current liabilities:
   Current installments of other long-term debt      $   22,119
   Accounts payable                                     130,529
   Other current liabilities                             20,349
    Total current liabilities                           172,997

  Revolving line of credit                               28,000
  Convertible subordinated notes                         80,200
  Other long-term debt, excluding current installments   50,476
  Other long-term liabilities                            17,481
  Shareholders' equity                                  349,113

    Total liabilities and shareholders' equity      $   698,267


SOURCE: Benchmark Electronics, Inc.

Contact: Cary T. Fu, President, or Gayla J. Delly, Chief Financial
Officer, both of Benchmark Electronics, +1-979-849-6550

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