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

Benchmark Electronics, Inc. , a leading contract manufacturing provider, announced sales of $673 million for the quarter ended September 30, 2007, compared to $770 million for the same quarter in the prior year. Third quarter net income was $22 million, or $0.30 per diluted share. Net income for the period included a discrete tax benefit of $6 million relating to a previously closed facility. In the comparable period of 2006, net income was $29 million, or $0.45 per diluted share.

Excluding restructuring charges, integration costs, amortization of intangibles, the impact of stock-based compensation costs and the tax benefit, the Company would have reported net income of $17 million, or $0.24 per diluted share, in the third quarter of 2007. Excluding restructuring charges and the impact of stock-based compensation costs, the Company would have reported net income of $30 million, or $0.46 per diluted share, in the third quarter of 2006.

"We are clearly disappointed with our revenue performance for the third quarter," said Cary T. Fu, the Company's Chief Executive Officer. "However, as our fourth quarter guidance reflects, we continue to believe that Benchmark is well positioned for the future based on our operating focus and execution, new program bookings and continued strong cash flows from operations."

  Third Quarter 2007 Financial Highlights
  -- Operating margin for the third quarter was 2.2% on a GAAP basis and was
     2.6%, excluding restructuring charges, integration costs, amortization
     of intangibles and the impact of stock-based compensation expense.
  -- Selling, general and administrative expenses for the third quarter were
     $22 million, a decrease of 9.2% from the second quarter of 2007.
  -- Cash flows provided by operating activities for the third quarter were
     approximately $66 million.
  -- Cash and short-term investments balance was $379 million at September
     30, 2007.
  -- Total debt outstanding was $13 million.
  -- Accounts receivable was $451 million at September 30, 2007; calculated
     days sales outstanding were 60 days.
  -- Inventory was $382 million at September 30, 2007; inventory turns were
     6.6 times.
  -- Repurchases of common shares through October 24, 2007 were $30 million.


  Fourth Quarter 2007 Guidance

Looking forward, sales for the fourth quarter of 2007 are expected to be between $700 million and $740 million. Diluted earnings per share for the fourth quarter, excluding restructuring charges, integration costs, amortization of intangibles and the impact of stock-based compensation expense, are expected to be between $0.32 and $0.38.

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 "we continue to believe that Benchmark is well positioned for the future based on our operating focus and execution, new program bookings and continued strong cash flows from operations", and our sales and earnings per share guidance for the fourth quarter 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  Nine Months Ended
                                        September 30,       September 30,
                                        2007     2006      2007     2006

  Income from operations (GAAP)       $14,880  $34,603   $69,952  $93,460
  Stock-based compensation                628      621     2,440    2,283
  Restructuring charges and
   integration costs                    1,451      448     7,001    4,478
  Amortization of intangibles             447       --     1,341        -

  Non-GAAP income from operations     $17,406  $35,672   $80,734  $100,221

  Net income (GAAP)                   $22,009  $29,336   $72,406  $83,382
  Stock-based compensation, net of tax    443      460     1,688    1,667
  Restructuring charges and
   integration costs, net of tax        1,043      259     5,211    3,853
  Amortization of intangibles,
   net of tax                             291       --       905       --
  Income tax benefit                   (6,481)      --    (6,481)  (4,760)

  Non-GAAP net income                 $17,305  $30,055   $73,729  $84,142

  Numerator for basic earnings
   per share - net income (GAAP)      $22,009  $29,336   $72,406  $83,382
  Interest expense on convertible
   debt, net of tax                        --       --       147       --

  Numerator for diluted earnings
   per share (GAAP)                   $22,009  $29,336   $72,553  $83,382

  Earnings per share: (GAAP)
    Basic                               $0.30    $0.45     $1.00    $1.30
    Diluted                             $0.30    $0.45     $0.99    $1.28

  Numerator for basic earnings
   per share - net income (Non-GAAP)  $17,305  $30,055   $73,729  $84,142
  Interest expense on convertible
   debt, net of tax                        --       --       147       --

  Numerator for diluted earnings
   per share (Non-GAAP)               $17,305  $30,055   $73,876  $84,142


  Earnings per share: (Non-GAAP)
    Basic                               $0.24    $0.47     $1.02    $1.31
    Diluted                             $0.24    $0.46     $1.01    $1.29

  Weighted average shares used in
   calculating earnings per share:
    Basic                              72,951   64,585    72,314   64,172
    Diluted                            73,626   65,492    73,313   65,203



               Benchmark Electronics, Inc. and Subsidiaries

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

                                 Three Months Ended     Nine Months Ended
                                    September 30,         September 30,
                                    2007     2006        2007       2006

  Net sales                      $672,595 $769,549  $2,181,372 $2,169,964
  Cost of sales                   633,818  717,290   2,033,612  2,020,039

      Gross profit                 38,777   52,259     147,760    149,925

  Selling, general and
   administrative expenses         21,999   17,208      69,466     51,987
  Amortization of intangibles         447       --       1,341         --
  Restructuring charges and
   integration costs                1,451      448       7,001      4,478

      Income from operations       14,880   34,603      69,952     93,460

  Other income (expense):
    Interest expense                 (411)     (85)     (1,786)      (268)
    Other                           3,831    1,838       9,133      5,508
  Total other income, net           3,420    1,753       7,347      5,240

      Income before income taxes   18,300   36,356      77,299     98,700

  Income tax expense (benefit)     (3,709)   7,020       4,893     15,318

      Net income                  $22,009  $29,336     $72,406    $83,382

  Numerator for basic earnings
   per share - net income         $22,009  $29,336     $72,406    $83,382
  Interest expense on convertible
   debt, net of tax                    --       --         147         --
  Numerator for diluted earnings
   per share                      $22,009  $29,336     $72,553    $83,382

  Denominator for basic earnings
   per share - weighted-average
   number of common shares
   outstanding during the period   72,951   64,585      72,314     64,172
  Incremental common shares
   attributable to exercise of
   outstanding equity instruments     675      907         999      1,031
  Denominator for diluted earnings
   per share                       73,626   65,492      73,313     65,203

  Earnings per share:
    Basic                           $0.30    $0.45       $1.00      $1.30
    Diluted                         $0.30    $0.45       $0.99      $1.28



               Benchmark Electronics, Inc. and Subsidiaries

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

  Assets

  Current assets:
    Cash and cash-equivalents                                 $163,581
    Short-term investments                                     215,440
    Accounts receivable, net                                   450,703
    Inventories, net                                           382,474
    Other current assets                                        99,728

       Total current assets                                  1,311,926

  Property, plant and equipment, net                           150,905
  Other assets, net                                             29,138
  Goodwill, net                                                283,386

       Total assets                                         $1,775,355

  Liabilities and Shareholders' Equity

  Current liabilities:
      Current installments of long-term debt
       and capital lease obligations                              $600
      Accounts payable                                         344,676
      Accrued liabilities                                       57,930

       Total current liabilities                               403,206

  Long-term debt and capital lease obligations,
   less current installments                                    12,179
  Other long-term liabilities                                   44,718
  Shareholders' equity                                       1,315,252

       Total liabilities and shareholders' equity           $1,775,355

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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