News Releases

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

Benchmark Electronics, Inc., a leading contract manufacturing provider, announced sales revenue of $505 million for the quarter ended September 30, 2004, compared to $455 million for the same quarter last year. Third quarter net income was $18.0 million, or $0.43 per diluted share. In the comparable period last year, net income was $12.9 million, or $0.32 per diluted share.

"This quarter was once again challenging and it was rewarding to see the performance of the Benchmark team. We have expanded existing relationships, added new customers and ramped programs at a strong pace this year and continued to deliver strong results," commented Cary T. Fu, President and CEO of Benchmark Electronics, Inc.

   Third Quarter 2004 Financial Highlights
   --  Operating margin improved slightly to 4.75%.
   --  Return on invested capital of 14.0%.
   --  Cash balance at September 30, 2004 of $312 million.
   --  No bank debt outstanding as of September 30, 2004.
   --  Accounts receivable were $260 million at September 30, 2004;
       calculated days sales outstanding were 46 days.
   --  Inventories increased by $13 million to $290 million; inventory turns
       were 6.4 times.

   Fourth Quarter 2004 Guidance
   --  Revenue in the fourth quarter of 2004 is expected to be between
       $505 million and $530 million.
   --  Earnings per share for the fourth quarter of 2004 are expected to be
       $0.41 to $0.45 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      Nine Months Ended
                              September 30,           September 30,
                            2004        2003        2004        2003

  Net sales               $504,750    $455,352   $1,477,108  $1,352,770
  Cost of sales            466,232     418,382    1,363,084   1,243,271

      Gross profit          38,518      36,970      114,024     109,499

  Selling, general and
   administrative expenses  14,553      16,330       45,604      49,244
  Contract settlement          ---         ---          ---      (8,108)

      Operating income      23,965      20,640       68,420      68,363

  Other income (expense):
    Interest expense          (392)     (1,976)      (1,551)     (6,895)
    Other                      849         967        2,603       1,635
  Total other income
   (expense), net              457      (1,009)       1,052      (5,260)

      Income before income
       taxes                24,422      19,631       69,472      63,103

  Income tax expense         6,389       6,687       18,688      21,076

      Net income           $18,033     $12,944      $50,784     $42,027

  Numerator for basic
   earnings per share -
   net income              $18,033     $12,944      $50,784     $42,027
  Interest expense on
   6% convertible debt,
   net of tax                  ---         570          ---       2,187
  Numerator for diluted
   earnings per share      $18,033     $13,514      $50,784     $44,214

  Denominator for basic
   earnings per share -
   weighted average number
   of common shares
   outstanding during
   the period               41,123      38,074       41,042      37,273
  Incremental common shares
   attributable to exercise
   of outstanding dilutive
   options                   1,190       1,439        1,345       1,035
  Incremental common shares
   attributable to
   conversion of
   6% convertible debt         ---       2,147          ---       2,706
  Denominator for diluted
   earnings per share       42,313      41,660       42,387      41,014

  Earnings per share:
      Basic                  $0.44       $0.34        $1.24       $1.13
      Diluted                $0.43       $0.32        $1.20       $1.08

               Benchmark Electronics, Inc. and Subsidiaries

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


  Current assets:
    Cash                                                    $311,693
    Accounts receivable, net                                 259,705
    Inventories, net                                         289,800
    Other current assets                                      30,104
      Total current assets                                   891,302

  Property, plant and equipment, net                          71,437
  Other assets, net                                            5,824
  Goodwill, net                                              113,474

      Total assets                                        $1,082,037

  Liabilities and Shareholders' Equity

  Current liabilities:
    Current installments of other long-term debt                 $15
    Accounts payable                                         268,847
    Other current liabilities                                 82,215
      Total current liabilities                              351,077

  Other long-term debt, excluding current installments           ---
  Other long-term liabilities                                  9,114
  Shareholders' equity                                       721,846

      Total liabilities and shareholders' equity          $1,082,037

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