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

Benchmark Electronics, Inc. announced sales revenue of $404.4 million for the quarter ended June 30, 2002 compared to $329.2 million in the previous quarter and $317.4 million in the same quarter of the prior year. Second quarter net income was $8.3 million on a GAAP basis, compared to $5.3 million net income in the prior quarter and to net income, excluding amortization of goodwill and restructuring charges, net of tax, of $2.4 million for the same quarter in the previous year. Diluted earnings per share on a GAAP basis was $0.33 for the second quarter of 2002, compared to $0.26 per share for the previous quarter and $0.12 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 June 30, 2002, GAAP earnings and cash earnings per share are equal as no restructuring charges were incurred or goodwill amortization was recorded during the period.

"Over the past year we remained focused on one of our key business strategies, expansion in Asia. Our team is excited about our recently announced acquisition of the ACT Thailand and UK operations. We are also pleased to announce our greenfield operation in Suzhou, China which we expect to commence production in the fourth quarter this year," commented Donald E. Nigbor, Chief Executive Officer of Benchmark Electronics, Inc.

  Quarterly Financial Highlights
  --  Cash generated from operations was $47 million in the second quarter
      and $73 million for the six month period ended June 30th.
  --  Second quarter revenue grew by 23% over first quarter 2002.
  --  Accounts receivables increased by $5.8 million to $191.6 million in
      the second quarter from $185.8 million in the first quarter.
      Calculated days sales outstanding improved to 43 days from 51 days in
      the previous quarter.
  --  Inventories decreased to $195.7 million in the quarter from
      $196.8 million for the first quarter 2002.  Inventory turns improved
      to 7.6 for the quarter from 6.2 for the first quarter.

  Third Quarter 2002 Guidance

We expect to close the acquisition of the ACT Thailand and UK operations in the middle of the third quarter. Based on current customer indications and including contributions for part of the quarter from the ACT Thailand and UK operations, the Company expects third quarter 2002 revenues to range from $420 million to $430 million, with corresponding earnings per share of $0.34 to $0.37, excluding any one-time transaction and related charges associated with the acquisition.

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 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,
                          2002          2001         2002          2001

  Net sales             $404,375       317,433      733,563       749,338
  Cost of sales          373,573       295,381      677,886       695,123

    Gross profit          30,802        22,052       55,677        54,215

  Selling, general and
   administrative
   expenses               16,122        14,666       30,298        28,825
  Asset write-offs         1,608           ---        1,608           ---
  Restructuring charges      ---         3,347          ---         4,613
  Amortization of
   goodwill                  ---         3,223          ---         6,445

    Operating income      13,072           816       23,771        14,332

  Other income (expense):
    Interest expense      (2,777)       (4,600)      (5,691)      (10,313)
    Other                  2,607           794        3,179           294
  Total other expense,
   net                      (170)       (3,806)      (2,512)      (10,019)

    Income (loss) before
     income taxes         12,902        (2,990)      21,259         4,313

  Income tax expense
   (benefit)               4,644          (897)       7,653         1,294

    Net income (loss)     $8,258        (2,093)      13,606         3,019

  Earnings (loss)
   per share:
    Basic                  $0.35         (0.11)        0.63          0.15
    Diluted                 0.33         (0.11)        0.60          0.15
    Cash                    0.33          0.01         0.60          0.37

  Earnings per share
   before restructuring
   charges:
    Basic                  $0.35          0.01         0.63          0.32
    Diluted                 0.33          0.01         0.60          0.31
    Cash                    0.33          0.12         0.60          0.53

  Weighted average
   number of shares
   outstanding:
    Basic                 23,654        19,605       21,719        19,601
    Diluted               24,691        19,605       22,585        20,312


               Benchmark Electronics, Inc. and Subsidiaries

                   Condensed Consolidated Balance Sheet
                              June 30, 2002
                          (Amounts in Thousands)
                               (UNAUDITED)

  Assets

  Current assets:
    Cash                                            $225,976
    Accounts receivable, net                         191,585
    Inventories, net                                 195,682
    Other current assets                              29,849
      Total current assets                           643,092

  Property, plant and equipment, net                  80,733
  Other assets, net                                   15,031
  Goodwill, net                                      119,506

      Total assets                                  $858,362

  Liabilities and Shareholders' Equity

  Current liabilities:
    Current installments of other long-term debt     $23,415
    Accounts payable                                 188,988
    Other current liabilities                         37,836
      Total current liabilities                      250,239

  Revolving line of credit                               ---
  Convertible subordinated notes                      80,200
  Other long-term debt, excluding current
   installments                                       32,514
  Other long-term liabilities                         18,702

  Shareholders' equity                               476,707

      Total liabilities and shareholders' equity    $858,362

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SOURCE: Benchmark Electronics, Inc.

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

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