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NYSEBHE
Benchmark Electronics Reports Results for the Quarter Ended March 31, 2009
PRNewswire-FirstCall
ANGLETON, Texas

Benchmark Electronics, Inc. , a leading contract manufacturing provider, announced sales of $497 million for the quarter ended March 31, 2009, compared to $684 million for the same quarter in the prior year. The Company reported first quarter net income of $9 million, or $0.14 per diluted share. In the comparable period of 2008, net income was $22 million, or $0.32 per diluted share. Excluding restructuring charges, the Company would have reported net income of $10 million, or $0.16 per diluted share, in the first quarter of 2009.

"Our diversification has not provided us with immunity from the broad-based economic downturn as end market demand decreased in the first quarter," said Cary T. Fu, the Company's Chief Executive Officer. "We have seen challenging economic cycles before and our teams are focused on serving our customers, generating cash flows and reducing costs. We still see significant outsourcing opportunities, which have resulted in another solid quarter of new program wins. Despite the present challenging environment, we are making long-term investments to position ourselves for continued growth when the recovery occurs."

  First Quarter 2009 Financial Highlights
  --  Operating margin for the first quarter was 2.0% on a GAAP basis and
      2.3%, excluding restructuring charges.
  --  Cash flows provided by operating activities for the first quarter were
      approximately $64 million.
  --  Cash and long-term investments balance was $454 million at March 31,
      2009. Long-term investments consist of $47 million of auction rate
      securities.
  --  Accounts receivable was $338 million at March 31, 2009; calculated
      days sales outstanding were 61 days.

  --  Inventory was $345 million at March 31, 2009; inventory turns were 5.4
      times.


  Second Quarter 2009 Outlook

Sales for the second quarter of 2009 are expected to range from $460 million to $520 million. Diluted earnings per share for the second quarter, excluding restructuring charges, are expected to be between $0.13 and $0.21.

Non-GAAP Financial Measures

This press release includes financial measures for earnings and earnings per share that exclude 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 (loss) and earnings (loss) 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.

The non-GAAP information included in this press release 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 (loss) 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, our sales and diluted earnings per share, excluding restructuring charges, guidance for the second quarter of 2009, as well as other statements, express or implied, concerning: future operating results or the ability to generate sales, income or cash flow; and Benchmark's business and growth strategies, including expected internal growth and performance goals. 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, 2008, in its other filings with the Securities and Exchange Commission and in its press releases.

Additional Information

Benchmark Electronics, Inc. provides electronics manufacturing, design and engineering 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 20 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 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
                                                            March 31,
                                                        2009       2008

  Income from operations (GAAP)                       $10,172     $21,082
  Restructuring charges                                 1,130           -
  Non-GAAP income from operations                     $11,302     $21,082

  Net income (GAAP)                                    $9,238     $22,329
  Restructuring charges, net of tax                     1,056           -
  Non-GAAP net income                                 $10,294     $22,329

  Earnings per share: (GAAP)
    Basic                                               $0.14       $0.32
    Diluted                                             $0.14       $0.32

  Earnings per share: (Non-GAAP)
    Basic                                               $0.16       $0.32
    Diluted                                             $0.16       $0.32

  Weighted average shares used in calculating
   earnings per share:
    Basic                                              65,097      69,330
    Diluted                                            65,261      69,462



               Benchmark Electronics, Inc. and Subsidiaries

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

                                                       Three Months Ended
                                                            March 31,
                                                        2009       2008

  Net sales                                          $496,767    $684,309
  Cost of sales                                       465,131     639,221
      Gross profit                                     31,636      45,088

  Selling, general and administrative expenses         19,891      23,559
  Amortization of intangibles                             443         447
  Restructuring charges and integration costs           1,130           -
      Income from operations                           10,172      21,082

  Other income (expense):
    Interest income                                       839       3,243
    Interest expense                                     (351)       (365)
    Other                                                (396)      1,628
  Total other income, net                                  92       4,506

      Income before income taxes                       10,264      25,588

  Income tax expense                                    1,026       3,259

       Net income                                      $9,238     $22,329

  Denominator for basic earnings per share -
   weighted average number of common shares
   outstanding during the period                       65,097      69,330
  Incremental common shares attributable to
   restricted shares and the exercise of outstanding
   equity instruments                                     164         132
  Denominator for diluted earnings per share           65,261      69,462

  Earnings per share:
      Basic                                             $0.14       $0.32
      Diluted                                           $0.14       $0.32


  The results for the three months ended March 31, 2008 reflect an
  immaterial correction of the Company's prior period financial statements
  related to stock-based compensation expense.



               Benchmark Electronics, Inc. and Subsidiaries

                   Condensed Consolidated Balance Sheet
                             March 31, 2009
                         (Amounts in Thousands)
                               (UNAUDITED)

  Assets

  Current assets:
    Cash and cash-equivalents                                    $406,939
    Accounts receivable, net                                      337,601
    Inventories, net                                              344,975
    Other current assets                                           35,077

      Total current assets                                      1,124,592

  Long-term investments                                            47,371
  Property, plant and equipment, net                              130,166
  Other assets, net                                                64,534
  Goodwill, net                                                    37,912

      Total assets                                             $1,404,575


  Liabilities and Shareholders' Equity

  Current liabilities:
    Current installments of capital lease obligations                $265
    Accounts payable                                              255,924
    Accrued liabilities                                            44,465

      Total current liabilities                                   300,654

  Capital lease obligations, less current installments             11,614
  Other long-term liabilities                                      29,528
  Shareholders' equity                                          1,062,779

      Total liabilities and shareholders' equity               $1,404,575

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

SOURCE: Benchmark Electronics, Inc.

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

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