Benchmark Electronics announces fiscal 2009 third-quarter results

Benchmark Electronics, Inc.Oct 27 2009

Benchmark Electronics, Inc. (NYSE: BHE), a leading contract manufacturing provider, announced sales of $510 million for the quarter ended September 30, 2009, compared to $642 million for the same quarter in the prior year. The Company reported third quarter net income of $16 million, or $0.25 per diluted share. In the comparable period of 2008, net income was $24 million, or $0.35 per diluted share. Excluding restructuring charges and a discrete tax benefit related to a previously closed facility, the Company would have reported net income of $17 million, or $0.27 per diluted share, in the third quarter of 2009 and $20 million, or $0.31 per diluted share, in the third quarter of 2008.

"We are seeing positive signs that the economy is beginning to slowly recover as our customers are more confident," said Cary T. Fu, the Company's Chief Executive Officer. "Our team has done a great job during this downturn. We've expanded our customer base and service capabilities, aggressively reduced our costs, realigned our capacity and improved our efficiencies. These actions have put us in a great position to benefit from the economic recovery."

Third Quarter 2009 Financial Highlights

• Operating margin for the third quarter was 2.3% on a GAAP basis and 3.0%, excluding restructuring charges.
• Cash flows provided by operating activities for the third quarter and the first nine months of 2009 were approximately $41 million and $117 million, respectively.
• Cash and long-term investments balance was $484 million at September 30, 2009. Long-term investments consist of $46 million of auction rate securities.
• Accounts receivable was $378 million at September 30, 2009; calculated days sales outstanding were 67 days.
• Inventory was $294 million at September 30, 2009; inventory turns were 6.5 times.
• Repurchases of common shares for the third quarter totaled $6 million or 0.4 million shares.
• Restructuring charges for the third quarter of 2009 were approximately $3.8 million primarily related to capacity reduction and severance related costs in Europe.
• Income tax benefit includes a $2.4 million ($0.04 per diluted share) discrete tax benefit related to a revaluation loss in Mexico.

Fourth Quarter 2009 Outlook

Sales for the fourth quarter of 2009 are expected to range from $520 million to $560 million. Diluted earnings per share for the fourth quarter, excluding restructuring charges, are expected to be between $0.22 and $0.26.