News Releases

Benchmark Electronics Reports Record Sales and Record Earnings for Second Quarter 2004

Benchmark Electronics, Inc., a leading contract manufacturing provider, announced sales revenue of $491 million for the quarter ended June 30, 2004, compared to $449 million for the same quarter last year. Second quarter net income was $17.6 million, or $0.42 per diluted share. In the comparable period last year, net income was $11.8 million, or $0.31 per diluted share.

"The Benchmark team has once again delivered solid performance and results. Our flexibility and execution have enabled us to continue to perform well and attract additional opportunities, amidst a technology marketplace that has recently shown mixed indicators," commented Cary T. Fu, President of Benchmark Electronics, Inc.

   Second Quarter 2004 Financial Highlights

   --  Operating margin of 4.7%.
   --  Return on invested capital of 14%.
   --  Revenues from top customer represented 32% of total revenues.
   --  Cash balance at June 30, 2004 of $312 million.
   --  No bank debt outstanding as of June 30, 2004.
   --  Accounts receivable remained consistent during the quarter at
       $231 million.
   --  Calculated days sales outstanding decreased to 42 days for the
   --  Inventories increased by $7 million during the quarter to
       $277 million.
   --  Inventory turns decreased to 6.5 times.

   Third Quarter 2004 Guidance

   --  Revenue in the third quarter of 2004 is expected to be between
       $485 million and $505 million.
   --  Earnings per share for the third quarter of 2004 are expected to be
       $0.38 to $0.43 per diluted share.

  Forward-Looking Statements

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, 2003 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, 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       Six Months Ended
                                   June 30,                June 30,
                               2004        2003        2004        2003

  Net sales                 $491,392     448,948     972,358     897,418
  Cost of sales              453,043     412,024     896,852     824,889

      Gross profit            38,349      36,924      75,506      72,529

  Selling, general and
   administrative expenses    15,330      16,442      31,051      32,914
  Contract settlement            ---         ---         ---      (8,108)

      Operating income        23,019      20,482      44,455      47,723

  Other income (expense):
    Interest expense            (394)     (2,349)     (1,159)     (4,919)
    Other                      1,321        (148)      1,754         668
  Total other income
   (expense), net                927      (2,497)        595      (4,251)

      Income before income
       taxes                  23,946      17,985      45,050      43,472

  Income tax expense           6,390       6,233      12,299      14,389

      Net income             $17,556      11,752      32,751      29,083

  Numerator for basic
   earnings per share -
   net income                $17,556      11,752      32,751      29,083
  Interest expense on 6%
   convertible debt, net
   of tax                        ---         786         ---       1,610
  Numerator for diluted
   earnings per share        $17,556      12,538      32,751      30,693

  Denominator for basic
   earnings per share -
   weighted average number
   of common shares
   outstanding during
   the period                 41,047      36,966      41,001      36,866
  Incremental common shares
   attributable to exercise
   of outstanding dilutive
   options                     1,121       1,179       1,325       1,302
  Incremental common shares
   attributable to
   conversion of 6%
   convertible debt              ---       2,993         ---       2,993
  Denominator for diluted
   earnings per share         42,168      41,138      42,326      41,161

  Earnings per share:
      Basic                    $0.43        0.32        0.80        0.79
      Diluted                  $0.42        0.31        0.77        0.75

               Benchmark Electronics, Inc. and Subsidiaries

                   Condensed Consolidated Balance Sheet
                              June 30, 2004
                          (Amounts in Thousands)


  Current assets:
    Cash                                                  $311,748
    Accounts receivable, net                               230,754
    Inventories, net                                       277,105
    Other current assets                                    30,229

      Total current assets                                 849,836

  Property, plant and equipment, net                        74,240
  Other assets, net                                          5,928
  Goodwill, net                                            113,490

      Total assets                                      $1,043,494

  Liabilities and Shareholders' Equity

  Current liabilities:
    Current installments of other long-term debt               $18
    Accounts payable                                       252,956
    Other current liabilities                               81,758

      Total current liabilities                            334,732

  Other long-term debt, excluding current installments           2
  Other long-term liabilities                                8,244

  Shareholders' equity                                     700,516

      Total liabilities and shareholders' equity        $1,043,494

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