News Releases

Benchmark Electronics Reports Earnings for First Quarter 2003

Benchmark Electronics, Inc., a leading contract manufacturing provider, announced sales revenue of $448 million for the quarter ended March 31, 2003, compared to $468 million in the previous quarter and $329 million in the same quarter of the prior year. First quarter net income was $17.3 million, compared to $12.7 million in the previous quarter and $5.3 million in the same quarter of the prior year. Diluted earnings per share was $0.66 for the first quarter of 2003, compared to $0.50 per share for the previous quarter and $0.26 for the first quarter of 2002.

During the first quarter, we settled and released various claims arising out of customer manufacturing agreements. In connection with the settlement of these claims, we recorded a non-cash gain totaling $8.1 million. There were no production revenues in connection with these manufacturing agreements during recent quarters.

"The first quarter results reflect the continued commitment and focus of the Benchmark team. We are reaping the benefits of our higher levels of capacity utilization, having one of the highest levels of utilization in the industry. Also, our continued cost and efficiency improvement programs over the past 18 months have significantly reduced our overhead costs. We continue to earn the confidence of new and existing customers by our consistent and excellent execution in this competitive environment," commented Cary T. Fu, President of Benchmark Electronics, Inc.

  First Quarter 2003 Financial Highlights
  -- Cash balance at March 31, 2003 of $322 million.
  -- Cash generated from operations was $14 million in the first quarter of
  -- Accounts receivables increased by $16 million to $195 million at the
     end of the first quarter of 2003 from $179 million at the end of the
     fourth quarter of 2002.  Calculated days sales outstanding increased to
     39 days from 34 days in the previous quarter.
  -- Inventories increased to $197 million at the end of the first quarter
     of 2003 from $196 million at the end of the fourth quarter of 2002.
     Inventory turns decreased to 8.4 from 8.8 in the previous quarter.

  Second Quarter 2003 Guidance
  -- Revenue in the second quarter of 2003 is expected to be between
     $430 million and $450 million.
  -- We expect gross margins to be relatively flat in the second quarter of
     2003 compared with the first quarter of 2003.
  -- Earnings per share for the second quarter of 2003 are expected to be
     $0.42 to $0.46 per diluted share.
  -- The tax rate for the remainder of 2003 is expected to be approximately

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, 2002 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 computers and related products for business enterprises, medical devices, video/audio/entertainment products, industrial control equipment, testing and instrumentation products, and telecommunication equipment. Benchmark's global operations include facilities in eight 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
                                                  March 31,

                                              2003        2002

      Net sales                          $ 448,470        329,188
      Cost of sales                        412,865        304,313

          Gross profit                      35,605         24,875

      Selling, general and
       administrative expenses              16,472         14,176
      Contract settlement                   (8,108)           ---

          Operating income                  27,241         10,699

      Other income (expense):
        Interest expense                    (2,570)        (2,914)
        Other                                  816            572
      Total other expense, net              (1,754)        (2,342)

          Income before income taxes        25,487          8,357

      Income tax expense                     8,156          3,009

          Net income                     $  17,331          5,348

      Earnings per share:
          Basic                          $    0.71           0.27
          Diluted                             0.66           0.26

      Weighted average number of
       shares outstanding:
          Basic                             24,509         19,763
          Diluted                           27,457 (A)     20,508

  (A) Includes add back of dilutive shares of 1,995 and dilutive interest
      expense on convertible subordinated notes, net of tax, of $818.

                 Benchmark Electronics, Inc. and Subsidiaries

                     Condensed Consolidated Balance Sheet
                                March 31, 2003
                            (Amounts in Thousands)


  Current assets:
      Cash                               $ 322,023
      Accounts receivable, net             195,440
      Inventories, net                     197,270
      Other current assets                  21,124
          Total current assets             735,857

  Property, plant and equipment, net        89,107
  Other assets, net                          9,302
  Goodwill, net                            116,670

          Total assets                   $ 950,936

  Liabilities and Shareholders' Equity

  Current liabilities:
      Current installments of other
       long-term debt                    $  29,518
      Accounts payable                     230,422
      Other current liabilities             60,046
          Total current liabilities        319,986

  Convertible subordinated notes            80,200
  Other long-term debt, excluding
   current installments                     20,089
  Other long-term liabilities                7,825
  Shareholders' equity                     522,836

          Total liabilities and
           shareholders' equity          $ 950,936

SOURCE: Benchmark Electronics, Inc.

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

Connect with Us


Please direct investor queries to:



* Required Fields