News Releases

Benchmark Electronics Reports Third Quarter Results

Benchmark Electronics, Inc. , a leading contract manufacturing provider, announced sales of $770 million for the quarter ended September 30, 2006, compared to $561 million for the same quarter last year. Third quarter net income was $29.3 million, or $0.45 per diluted share. In the comparable period last year, net income was $20.3 million, or $0.32 per diluted share. Excluding restructuring charges and the impact of stock-based compensation expense, the Company had net income before special items of $30.0 million, or $0.46 per diluted share, in the third quarter of 2006. All share and per share data appearing in this press release has been retroactively adjusted for the 3-for- 2 stock split completed on April 3, 2006 to holders of record as of March 27, 2006.

"Our teams continued to deliver solid results during the quarter, while running at record levels. Our focus will be on working capital metric improvements during upcoming quarters in addition to our ongoing focus on volume ramps of programs," stated Benchmark's President and CEO Cary T. Fu.

  Third Quarter 2006 Financial Highlights

  -- Operating margin for the third quarter was 4.5% on a GAAP basis and was
     4.6%, excluding restructuring charges and the impact of stock-based
     compensation expense.
  -- Cash flows used in operating activities for the third quarter were
     $12 million.
  -- Cash and short-term investments balance at September 30, 2006 of
     $265 million.
  -- No debt outstanding.
  -- Accounts receivable balance at September 30, 2006 of $442 million;
     calculated days sales outstanding were 52 days.
  -- Inventory of $532 million at September 30, 2006; inventory turns were
     5.4 times.

  Fourth Quarter 2006 Guidance

Revenues for the fourth quarter of 2006 are expected to be between $710 million and $740 million. Diluted earnings per share for the fourth quarter, excluding restructuring charges and the impact of stock-based compensation expense, are expected to be between $0.41 and $0.44.

Non-GAAP Financial Measures

This press release includes financial measures for earnings and earnings per share that excludes certain items and therefore are not in accordance with generally accepted accounting principles (GAAP). A detailed reconciliation between the GAAP results and results excluding special items (non-GAAP) is included at the end of this press release. By disclosing this non-GAAP information, management intends to provide investors with additional information to further analyze the company's performance and underlying trends. Management utilizes a measure of net income and earnings per share on a non-GAAP basis that excludes certain items to better assess operating performance and to help investors compare our results with our previous guidance.

Non-GAAP information is not necessarily comparable to Non-GAAP information of other companies. Non-GAAP information should not be viewed as a substitute for, or superior to, net income or other data prepared in accordance with GAAP as measures of our profitability or liquidity. Users of this financial information should consider the types of events and transactions for which adjustments have been made.

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 Benchmark 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, 2005 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 seven countries. Benchmark's Common Shares trade 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

               Benchmark Electronics, Inc. and Subsidiaries

                    Consolidated Statements of Income
              (Amounts in Thousands, Except Per Share Data)

                                    Three Months           Nine Months
                                       Ended                 Ended
                                   September 30,         September 30,

                                  2006      2005        2006        2005

  Net sales                    $769,549   $561,452  $2,169,964  $1,631,851
  Cost of sales                 717,290    521,148   2,020,039   1,515,316

     Gross profit                52,259     40,304     149,925     116,535

  Selling, general and
   administrative expenses       17,208     15,617      51,987      46,307
  Restructuring charges             448          -       4,478           -

     Income from operations      34,603     24,687      93,460      70,228

  Other income (expense):
   Interest expense                 (85)       (86)       (268)       (238)
   Other                          1,838      2,062       5,508       4,688
  Total other income, net         1,753      1,976       5,240       4,450

     Income before income taxes  36,356     26,663      98,700      74,678

  Income tax expense              7,020      6,356      15,318      18,744

     Net income                 $29,336    $20,307     $83,382     $55,934

  Denominator for basic
   earnings per share --
   weighted average number of
   common shares outstanding
   during the period             64,585     62,736      64,172      62,580

  Incremental common shares
   attributable to
   exercise of outstanding
   dilutive options                 907      1,419       1,031       1,546
  Denominator for diluted
   earnings per share            65,492     64,155      65,203      64,126

  Earnings per share:
     Basic                     $   0.45   $   0.32    $   1.30    $   0.89
     Diluted                   $   0.45   $   0.32    $   1.28    $   0.87

               Benchmark Electronics, Inc. and Subsidiaries

                   Condensed Consolidated Balance Sheet
                            September 30, 2006
                          (Amounts in Thousands)


  Current assets:
    Cash and cash-equivalents                 $114,040
    Short-term investments                     150,910
    Accounts receivable, net                   441,525
    Inventories, net                           532,110
    Other current assets                        57,019

      Total current assets                   1,295,604

  Property, plant and equipment, net           103,503
  Other assets, net                              7,759
  Goodwill, net                                112,995

      Total assets                          $1,519,861

  Liabilities and Shareholders' Equity

  Current liabilities:
    Accounts payable                          $480,805
    Other current liabilities                   69,355

      Total current liabilities                550,160

  Other long-term liabilities                   15,772

  Shareholders' equity                         953,929

      Total liabilities and
       shareholders' equity                 $1,519,861

               Benchmark Electronics, Inc. and Subsidiaries

           Reconciliation of GAAP to Non-GAAP Financial Results
              Three and Nine Months Ended September 30, 2006
              (Amounts in Thousands, Except Per Share Data)

                                         Three Months         Nine Months
                                            Ended                Ended
                                         September 30,        September 30,
                                            2006                 2006

  Income from operations (GAAP)            $34,603              $93,460
  Stock-based compensation                     621                2,283
  Restructuring charges                        448                4,478

  Non-GAAP income from operations          $35,672             $100,221

  Net income (GAAP)                        $29,336              $83,382
  Stock-based compensation, net of tax         460                1,667
  Restructuring charges, net of tax            259                3,853
  UK investment tax benefit                      -               (4,760)

  Non-GAAP net income                      $30,055              $84,142

  Earnings per share: (GAAP)
    Basic                                    $0.45                $1.30
    Diluted                                  $0.45                $1.28

  Earnings per share: (Non-GAAP)
    Basic                                    $0.47                $1.31
    Diluted                                  $0.46                $1.29

  Weighted average shares used in
   calculating earnings per share:
    Basic                                   64,585               64,172
    Diluted                                 65,492               65,203

First Call Analyst:
FCMN Contact:

SOURCE: Benchmark Electronics, Inc.

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

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