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NYSEBHE
Benchmark Electronics Reports Results for the Quarter Ended March 31, 2007
PRNewswire-FirstCall
ANGLETON, Texas

Benchmark Electronics, Inc. , a leading contract manufacturing provider, announced sales of $752 million for the quarter ended March 31, 2007, compared to $651 million for the same quarter in the prior year. First quarter net income was $24.5 million, or $0.34 per diluted share. In the comparable period of 2006, net income was $26.5 million, or $0.41 per diluted share. Excluding restructuring charges, integration costs, amortization of intangibles and the impact of stock-based compensation costs, the Company would have reported net income of $27.9 million, or $0.39 per diluted share, in the first quarter of 2007. Excluding restructuring charges, the impact of stock-based compensation costs and a tax benefit resulting from the closure of our UK facility, the Company would have reported net income of $24.7 million, or $0.38 per diluted share, in the first quarter of 2006.

"Benchmark Electronics, Inc. continues to have solid performance," said Cary T. Fu, the Company's Chief Executive Officer. "We saw strong booking performance in the first quarter derived from both existing and new customers. Challenges during the first half of 2007 are seen with the softer market conditions and the ongoing customer initiatives focused on reducing inventory levels. However, we have seen excellent growth opportunities with our new bookings and new product initiatives with several customers and are optimistic that we will see steady improvement in business conditions as the year progresses."

  First Quarter 2007 Financial Highlights
  -- Operating margin for the first quarter was 3.6% on a GAAP basis and was
     4.2%, excluding restructuring charges, integration costs, amortization
     of intangibles and the impact of stock-based compensation expense.
  -- Cash flows provided by operating activities for the first quarter were
     approximately $95 million.
  -- Cash and short-term investments balance at March 31, 2007 of $257
     million.
  -- Total debt outstanding of $23 million.
  -- Accounts receivable balance at March 31, 2007 of $512 million;
     calculated days sales outstanding were 61 days.
  -- Inventory of $464 million at March 31, 2007; inventory turns were 6.0
     times.

  Second Quarter 2007 Guidance

Sales for the second quarter of 2007 are expected to be between $740 million and $775 million. Diluted earnings per share for the second quarter, excluding restructuring charges, integration costs, amortization of intangibles and the impact of stock-based compensation expense, are expected to be between $0.36 and $0.41.

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. Such forward-looking statements may be deemed to include, among other things, statements, express or implied, concerning: future operating results or the ability to generate sales, income or cash flow; Benchmark's business and growth strategies, including expected internal growth and performance goals; and the anticipated effects of any developments or events on financial results. 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, and customer actions.

All forward-looking statements included in this release are based upon information available to Benchmark as of the date of the release, and Benchmark assumes no obligation to update any such forward-looking statements. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated. Persons are advised to consult further disclosures on related subjects in Benchmark's Form 10-K for the year ended December 31, 2006, in its other filings with the Securities and Exchange Commission and in its press releases.

Additional Information

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 24 facilities in nine 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 http://www.bench.com/.

               Benchmark Electronics, Inc. and Subsidiaries

           Reconciliation of GAAP to Non-GAAP Financial Results
                Three Months Ended March 31, 2007 and 2006
              (Amounts in Thousands, Except Per Share Data)
                               (UNAUDITED)

                                                    Three Months Ended
                                                           March 31,
                                                      2007           2006

  Income from operations (GAAP)                    $27,448        $26,227
  Stock-based compensation                             628            486
  Restructuring charges and integration costs        3,345          2,769
  Amortization of intangibles                          447             --

  Non-GAAP income from operations                  $31,868        $29,482


  Net income (GAAP)                                $24,476        $26,522
  Stock-based compensation, net of tax                 442            372
  Restructuring charges and integration costs,
    net of tax                                       2,617          2,553
  Amortization of intangibles, net of tax              322             --
  UK investment tax benefit                             --         (4,760)

  Non-GAAP net income                              $27,857        $24,687


  Numerator for basic earnings per share -- net
    income (GAAP)                                  $24,476        $26,522
  Interest expense on convertible debt,
     net of tax                                        115             --

  Numerator for diluted earnings per share (GAAP)  $24,591        $26,522


  Earnings per share: (GAAP)
    Basic                                            $0.34          $0.42
    Diluted                                          $0.34          $0.41

  Numerator for basic earnings per share -- net
    income (Non-GAAP)                              $27,857        $24,687
  Interest expense on convertible debt, net of tax     115             --

  Numerator for diluted earnings per share
    (Non-GAAP)                                     $27,972        $24,687


  Earnings per share: (Non-GAAP)
    Basic                                            $0.39          $0.39
    Diluted                                          $0.39          $0.38

  Weighted average shares used in calculating
    earnings per share:
      Basic                                         71,435         63,601
      Diluted                                       72,465         64,825


               Benchmark Electronics, Inc. and Subsidiaries

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

                                                  Three Months Ended
                                                        March 31,
                                                   2007         2006

  Net sales                                 $   752,482    $ 651,244
  Cost of sales                                 697,994      605,878

  Gross profit                                   54,488       45,366

  Selling, general and administrative
   expenses                                      23,248       16,370
  Amortization of intangibles                       447           --
  Restructuring charges and integration
   costs                                          3,345        2,769

  Income from operations                         27,448       26,227

  Other income (expense):
    Interest expense                               (811)         (86)
    Other                                         1,715        1,689
  Total other income, net                           904        1,603

      Income before income taxes                 28,352       27,830

  Income tax expense                              3,876        1,308

      Net income                              $  24,476    $  26,522


  Numerator for basic earnings
    per share -- net income                   $  24,476       26,522

  Interest expense on convertible debt,
    net of tax                                      115           --
  Numerator for diluted earnings per share    $  24,591    $  26,522


  Denominator for basic earnings per
    share -- weighted average number of common
    shares outstanding during the period         71,435       63,601
  Incremental common shares attributable to
    exercise of outstanding equity instruments    1,030        1,224
  Denominator for diluted earnings per share     72,465       64,825

  Earnings per share:
        Basic                                 $    0.34    $    0.42
        Diluted                               $    0.34    $    0.41


               Benchmark Electronics, Inc. and Subsidiaries

                   Condensed Consolidated Balance Sheet
                              March 31, 2007
                          (Amounts in Thousands)
                               (UNAUDITED)

  Assets

  Current assets:
      Cash and cash-equivalents                   $151,570
      Short-term investments                       105,660
      Accounts receivable, net                     512,464
      Inventories, net                             463,528
      Other current assets                          91,851

          Total current assets                   1,325,073

  Property, plant and equipment, net               163,073
  Other assets, net                                 28,292
  Goodwill, net                                    297,778

          Total assets                          $1,814,216

  Liabilities and Shareholders' Equity

  Current liabilities:
      Current installments of long-term debt
        and capital lease obligations               $5,816
      Convertible debt                               5,000
      Accounts payable                             416,873
      Other current liabilities                    111,913

          Total current liabilities                539,602

  Long-term debt and capital lease obligations,
    less current installments                       12,581
  Other long-term liabilities                       14,167
  Shareholders' equity                           1,247,866

          Total liabilities and
            shareholders' equity                $1,814,216

First Call Analyst:
FCMN Contact: james.walker@bench.com

SOURCE: Benchmark Electronics, Inc.

CONTACT: Ellen M. Sykora, Investor Relations of Benchmark Electronics,
Inc. +1-979-849-6550

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