Benchmark Electronics, Inc.,
"Our first quarter results reflect revenue growth of 6% and net income growth of 11% year over year," commented Cary T. Fu, President and CEO of Benchmark Electronics, Inc. "The first quarter results were excellent in light of the soft economic conditions seen recently in the technology marketplace. Our focus for the remainder of 2005 is on efficiently ramping our new programs in this challenging environment."
First Quarter 2005 Financial Highlights
* Operating margin for the first quarter was 4.4%.
* Return on invested capital of 13.8%.
* Cash and short-term investments balance at March 31, 2005 of
$344 million.
* No debt outstanding as of March 31, 2005.
* Accounts receivable were $267 million at March 31, 2005; calculated
days sales outstanding were 47 days.
* Inventories increased by $39 million to $295 million; inventory turns
were 6.4 times.
Second Quarter 2005 Guidance
* Revenue in the second quarter of 2005 is expected to be between
$525 million and $550 million.
* Earnings per share for the second quarter of 2005 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, 2004 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 (Central time) 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,
2005 2004
Net sales $ 509,582 $ 480,966
Cost of sales 472,097 443,809
Gross profit 37,485 37,157
Selling, general and administrative expenses 15,212 15,721
Operating income 22,273 21,436
Other income (expense):
Interest expense (67) (765)
Other 670 433
Total other income (expense), net 603 (332)
Income before income taxes 22,876 21,104
Income tax expense 5,947 5,909
Net income $ 16,929 $ 15,195
Denominator for basic earnings
per share - weighted average
number of common shares
outstanding during the period 41,627 40,954
Incremental common shares
attributable to exercise
of outstanding dilutive options 1,081 1,399
Denominator for diluted earnings per share 42,708 42,353
Earnings per share:
Basic $ 0.41 $ 0.37
Diluted $ 0.40 $ 0.36
Benchmark Electronics, Inc. and Subsidiaries
Condensed Consolidated Balance Sheet
March 31, 2005
(Amounts in Thousands)
(UNAUDITED)
Assets
Current assets:
Cash and cash-equivalents $ 90,225
Short-term investments 253,335
Accounts receivable, net 267,491
Inventories, net 295,479
Other current assets 28,552
Total current assets 935,082
Property, plant and equipment, net 80,433
Other assets, net 6,623
Goodwill, net 112,947
Total assets $ 1,135,085
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $ 281,068
Other current liabilities 74,582
Total current liabilities 355,650
Other long-term liabilities 8,887
Shareholders' equity 770,548
Total liabilities
and shareholders' equity $ 1,135,085
SOURCE: Benchmark Electronics, Inc.
CONTACT: Gayla J. Delly, Chief Financial Officer of Benchmark
Electronics, Inc., +1-979-849-6550
Web site: http://www.bench.com/
