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NYSEBHE
Benchmark Electronics Reports Results for the Quarter Ended June 30, 2007
PRNewswire-FirstCall
ANGLETON, Texas

Benchmark Electronics, Inc. , a leading contract manufacturing provider, announced sales of $756 million for the quarter ended June 30, 2007, compared to $749 million for the same quarter in the prior year. Second quarter net income was $25.9 million, or $0.35 per diluted share. In the comparable period of 2006, net income was $27.5 million, or $0.42 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 $28.6 million, or $0.39 per diluted share, in the second quarter of 2007. Excluding restructuring charges and the impact of stock-based compensation costs, the Company would have reported net income of $29.4 million, or $0.45 per diluted share, in the second quarter of 2006.

"We are pleased with our operating results for the second quarter," said Cary T. Fu, the Company's Chief Executive Officer. "We saw a number of highlights this quarter, notably continued strength in new program bookings, solid performance across our teams and improvements in cash flow management."

"The EMS industry is undergoing change and continues to evolve," Fu continued. "Benchmark anticipated the market evolution years ago, and today, we are seeing the changes take place. We believe Benchmark remains well positioned for profitable growth as the industry is redefined."

  Second Quarter 2007 Financial Highlights
  -- Operating margin for the second quarter was 3.7% 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 second quarter were
     approximately $66 million.
  -- Cash and short-term investments balance was $318 million at June 30,
     2007.
  -- Total debt outstanding was $13 million.
  -- Accounts receivable was $501 million at June 30, 2007; calculated days
     sales outstanding were 60 days.
  -- Inventory was $385 million at June 30, 2007; inventory turns were
     7.3 times.


  Third Quarter and Full Year 2007 Guidance

We now expect a more moderate demand environment in the third quarter than previously anticipated. It will likely be a transitional quarter for several of the programs we are ramping. Looking forward, we anticipate new bookings and new program ramps to provide very strong growth for the fourth quarter. The softer demand environment during the third quarter should result in only a slight overall impact to our full year revenue and earnings guidance.

Sales for the third quarter of 2007 are expected to be between $730 million and $770 million. Diluted earnings per share for the third quarter, excluding restructuring charges, integration costs, amortization of intangibles and the impact of stock-based compensation expense, are expected to be between $0.38 and $0.42.

Sales for the full year are expected to be between $3.0 billion and $3.1 billion. Diluted earnings per share for 2007, excluding restructuring charges, integration costs, amortization of intangibles and the impact of stock-based compensation expense, are expected to be between $1.58 and $1.66.

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. Our forward-looking statements may be deemed to include, among other things, the statement that "The EMS industry is undergoing change and continues to evolve ... We believe Benchmark remains well positioned for profitable growth as the industry is redefined.", and our sales and earnings per share guidance for the third quarter and full year of 2007, as well as other 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 25 facilities in ten 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
              (Amounts in Thousands, Except Per Share Data)
                               (UNAUDITED)

                          Three Months Ended         Six Months Ended
                                June 30,                  June 30,
                           2007         2006         2007         2006

  Income from operations
   (GAAP)                $27,624      $32,630      $55,072      $58,857
  Stock-based
   compensation            1,184        1,177        1,812        1,662
  Restructuring charges
   and integration costs   2,205        1,261        5,550        4,030
  Amortization of
   intangibles               447            -          894            -

  Non-GAAP income from
   operations            $31,460      $35,068      $63,328      $64,549


  Net income (GAAP)      $25,921      $27,524      $50,397      $54,046
  Stock-based
   compensation, net
   of tax                    803          835        1,245        1,207
  Restructuring charges
   and integration costs,
   net of tax              1,551        1,041        4,168        3,594
  Amortization of
   intangibles,
   net of tax                292            -          614            -
  UK investment tax
   benefit                     -            -            -       (4,760)

  Non-GAAP net income    $28,567      $29,400      $56,424      $54,087


  Numerator for basic
   earnings per share -
   net income (GAAP)     $25,921      $27,524      $50,397      $54,046
  Interest expense on
   convertible debt,
   net of tax                 32            -          147            -

  Numerator for diluted
   earnings per share
   (GAAP)                $25,953      $27,524      $50,544      $54,046


  Earnings per share:
  (GAAP)
    Basic                  $0.36        $0.43        $0.70        $0.84
    Diluted                $0.35        $0.42        $0.69        $0.83

  Numerator for basic
   earnings per share -
   net income (Non-GAAP) $28,567      $29,400      $56,424      $54,087
  Interest expense on
   convertible debt,
   net of tax                 32            -          147            -

  Numerator for diluted
   earnings per share
   (Non-GAAP)            $28,599      $29,400      $56,571      $54,087


  Earnings per share:
   (Non-GAAP)
    Basic                  $0.39        $0.46        $0.78        $0.85
    Diluted                $0.39        $0.45        $0.77        $0.83

  Weighted average shares
   used in calculating
   earnings per share:
    Basic                 72,540       64,320       71,991       63,963
    Diluted               73,346       65,273       73,026       65,041



               Benchmark Electronics, Inc. and Subsidiaries

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

                          Three Months Ended        Six Months Ended
                               June 30,                  June 30,
                           2007        2006         2007         2006

  Net sales             $756,295     $749,171   $1,508,777   $1,400,415
  Cost of sales          701,800      696,871    1,399,794    1,302,749

    Gross profit          54,495       52,300      108,983       97,666

  Selling, general and
   administrative
   expenses               24,219       18,409       47,467       34,779
  Amortization of
   intangibles               447            -          894            -
  Restructuring charges
   and integration costs   2,205        1,261        5,550        4,030

    Income from
     operations           27,624       32,630       55,072       58,857

  Other income (expense):
    Interest expense        (564)         (97)      (1,375)        (183)
    Other                  3,587        1,981        5,302        3,670
  Total other income, net  3,023        1,884        3,927        3,487

    Income before
     income taxes         30,647       34,514       58,999       62,344

  Income tax expense       4,726        6,990        8,602        8,298

    Net income           $25,921      $27,524      $50,397      $54,046


  Numerator for basic
   earnings per share -
   net income            $25,921      $27,524      $50,397      $54,046
  Interest expense on
   convertible debt,
   net of tax                 32            -          147            -
  Numerator for diluted
   earnings per share    $25,953      $27,524      $50,544      $54,046


  Denominator for basic
   earnings per share -
   weighted average
   number of common
   shares outstanding
   during the period      72,540       64,320       71,991       63,963
  Incremental common
   shares attributable
   to exercise of
   outstanding equity
   instruments               806          953        1,035        1,078
  Denominator for
   diluted earnings
   per share              73,346       65,273       73,026       65,041

  Earnings per share:
    Basic                  $0.36        $0.43        $0.70        $0.84
    Diluted                $0.35        $0.42        $0.69        $0.83



               Benchmark Electronics, Inc. and Subsidiaries

                   Condensed Consolidated Balance Sheet
                              June 30, 2007
                          (Amounts in Thousands)
                               (UNAUDITED)

  Assets

  Current assets:
    Cash and cash-equivalents                  $161,331
    Short-term investments                      157,135
    Accounts receivable, net                    500,859
    Inventories, net                            384,557
    Other current assets                        103,020

      Total current assets                    1,306,902

  Property, plant and equipment, net            154,111
  Other assets, net                              28,233
  Goodwill, net                                 288,875

      Total assets                           $1,778,121


  Liabilities and Shareholders' Equity

  Current liabilities:
    Current installments of long-term
     debt and capital lease obligations            $619
    Convertible debt                                  -
    Accounts payable                            369,105
    Other current liabilities                    65,902

      Total current liabilities                 435,626

  Long-term debt and capital lease
   obligations, less current installments        12,350
  Other long-term liabilities                    42,128
  Shareholders' equity                        1,288,017


      Total liabilities and shareholders'
       equity                                $1,778,121

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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