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NYSEBHE
Benchmark Electronics Reports Sequential Quarterly Increases in Revenues and Earnings for First Quarter 2002
PRNewswire-FirstCall
ANGLETON, Texas

Benchmark Electronics, Inc. announced sales revenue of $329.2 million for the quarter ended March 31, 2002 -- compared to $269.6 million in the previous quarter and $431.9 million in the same quarter of the prior year. First quarter net income was $5.3 million on a GAAP basis, a sequential increase of 61% over $3.3 million net income (excluding amortization of goodwill and restructuring charges, net of tax) in the prior quarter and a 36% decrease as compared to net income of $8.3 million (excluding amortization of goodwill and restructuring charges, net of tax) for the same quarter in the previous year. Diluted earnings per share on a GAAP basis was $0.26 for the first quarter of 2002, a 63% increase over $0.16 cash earnings per share (excluding amortization of goodwill and restructuring charges, net of tax) for the previous quarter and $0.41 cash earnings per share (excluding amortization of goodwill and restructuring charges, net of tax) for the same quarter in the previous year. During the quarter ended March 31, 2002, GAAP earnings and cash earnings per share are equal as no restructuring charges were incurred or goodwill amortization was recorded during the period.

"Our team demonstrated excellent execution during the past year of economic downturn and throughout the first quarter of 2002. Focusing on the basics of excellent performance, winning new programs, controlling costs and improving our working capital turns drove the favorable results we experienced in both the December 2001 quarter and this quarter ended March 31, 2002," commented Donald E. Nigbor, Chief Executive Officer of Benchmark Electronics, Inc.

Subsequent to the March 31, 2002 quarter end, Benchmark completed a public offering of 4,312,500 shares of its common stock at a public offering price of $27.00 per share, yielding proceeds of approximately $110 million to be used for general corporate purposes and working capital requirements.

  Quarterly Financial Highlights
  -- Cash generated from operations was $26 million in the first quarter.
  -- First quarter revenue grew by 22% over fourth quarter 2001.
  -- Accounts receivables increased by $5.8 million to $185.8 million in the
      first quarter from $180.0 million in the fourth quarter. Calculated
      days sales outstanding improved to 51 days from 60 days in the
      previous quarter.
  -- Inventories decreased to $196.8 million in the quarter from
      $197.3 million for the fourth quarter 2001.  Inventory turns improved
      to 6.2 for the quarter from 5.1 for the December 2001 quarter.

  Second Quarter 2002 Guidance

Driven by new program wins over the past two years and based on current customer indications, the Company expects second quarter 2002 revenues to range from $330 million to $350 million, with corresponding earnings per share of $0.25 to $0.28.

"This growth, however, doesn't signal our exemption from the challenging economic conditions and lackluster growth in the technology sectors that continue to result in weakened demand levels," stated Cary T. Fu, President of Benchmark Electronics, Inc. "I believe that Benchmark is well positioned to benefit from the growth that will occur when the end markets do recover, but that recovery has not yet come."

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, 2001 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 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 CST 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
                                                         March 31,

                                                      2002         2001

   Net sales                                   $   329,188      431,905
   Cost of sales                                   304,313      399,742

     Gross profit                                   24,875       32,163

   Selling, general and administrative              14,176       14,159
    expenses
   Restructuring charges                                --        1,266
   Amortization of goodwill                             --        3,222

     Operating income                               10,699       13,516

   Other income (expense):
     Interest expense                               (2,914)      (5,713)
     Other                                             572         (500)
   Total other expense, net                         (2,342)      (6,213)

     Income before income taxes                      8,357        7,303

   Income tax expense                                3,009        2,191

     Net income                                $     5,348        5,112

   Earnings per share:
     Basic                                     $      0.27         0.26
     Diluted                                          0.26         0.25

   Earnings per share before restructuring charges:
     Basic                                     $      0.27         0.31
     Diluted                                          0.26         0.30
     Cash                                             0.26         0.41

   Weighted average number of shares outstanding:
     Basic                                          19,763       19,597
     Diluted                                        20,508       20,324


               Benchmark Electronics, Inc. and Subsidiaries

                   Condensed Consolidated Balance Sheet
                              March 31, 2002
                          (Amounts in Thousands)
                               (UNAUDITED)

   Assets

   Current assets:
     Cash                                                     $79,940
     Accounts receivable, net                                 185,818
     Inventories, net                                         196,837
     Other current assets                                      27,892
       Total current assets                                   490,487

   Property, plant and equipment, net                          86,518
   Other assets, net                                           12,238
   Goodwill, net                                              119,249

       Total assets                                          $708,492

   Liabilities and Shareholders' Equity

   Current liabilities:
     Current installments of other long-term debt             $22,873
     Accounts payable                                         162,698
     Other current liabilities                                 28,754
       Total current liabilities                              214,325

   Revolving line of credit                                        --
   Convertible subordinated notes                              80,200
   Other long-term debt, excluding current installments        38,650
   Other long-term liabilities                                 17,462
   Shareholders' equity                                       357,855

       Total liabilities and shareholders' equity            $708,492

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SOURCE: Benchmark Electronics, Inc.

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

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