EX-99.1 2 a05-7149_1ex99d1.htm EX-99.1

Exhibit 99.1

 

Press Release

For More Information, Call:

 

GAYLA J. DELLY
CHIEF FINANCIAL OFFICER
(979) 849-6550

 


April 21, 2005

 

 

FOR IMMEDIATE RELEASE

 

BENCHMARK ELECTRONICS REPORTS SALES

AND EARNINGS FOR FIRST QUARTER 2005

 

ANGLETON, TX, APRIL 21, 2005 – Benchmark Electronics, Inc., (NYSE: BHE) a leading contract manufacturing provider, announced sales revenue of $510 million for the quarter ended March 31, 2005, compared to $481 million for the same quarter last year.  First quarter net income was $16.9 million, or $0.40 per diluted share. In the comparable period last year, net income was $15.2 million, or $0.36 per diluted share.

 

“Our first quarter results reflect revenue growth of 6% and net income growth of 11% year over year,” commented Cary T. Fu, President and CEO of Benchmark Electronics, Inc.  “The first quarter results were excellent in light of the soft economic conditions seen recently in the technology marketplace.  Our focus for the remainder of 2005 is on efficiently ramping our new programs in this challenging environment.”

 

First Quarter 2005 Financial Highlights

 

•                  Operating margin for the first quarter was 4.4%.

•                  Return on invested capital of 13.8%.

•                  Cash and short-term investments balance at March 31, 2005 of $344 million.

•                  No debt outstanding as of March 31, 2005.

•                  Accounts receivable were $267 million at March 31, 2005; calculated days sales outstanding were 47 days.

•                  Inventories increased by $39 million to $295 million; inventory turns were 6.4 times.

 

Second Quarter 2005 Guidance

 

•                  Revenue in the second quarter of 2005 is expected to be between $525 million and $550 million.

•                  Earnings per share for the second quarter of 2005 are expected to be $0.41 to $0.45 per diluted share.

 


 

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.  Although the Company 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, customer actions and the other factors discussed in Benchmark’s Form 10-K for the year ended December 31, 2004 and its other filings with the Securities and Exchange Commission.  Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated.

 

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 facilities in eight countries. Benchmark’s Common Stock trades 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

 

Consolidated Statements of Income

(Amounts in Thousands, Except Per Share Data)

(UNAUDITED)

 

 

 

Three Months Ended
March 31,

 

 

 

2005

 

2004

 

 

 

 

 

 

 

Net sales

 

$

509,582

 

$

480,966

 

Cost of sales

 

472,097

 

443,809

 

Gross profit

 

37,485

 

37,157

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

15,212

 

15,721

 

Operating income

 

22,273

 

21,436

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

Interest expense

 

(67

)

(765

)

Other

 

670

 

433

 

Total other income (expense), net

 

603

 

(332

)

 

 

 

 

 

 

Income before income taxes

 

22,876

 

21,104

 

 

 

 

 

 

 

Income tax expense

 

5,947

 

5,909

 

 

 

 

 

 

 

Net income

 

$

16,929

 

$

15,195

 

 

 

 

 

 

 

Denominator for basic earnings per share - weighted average number of common shares outstanding during the period

 

41,627

 

40,954

 

Incremental common shares attributable to exercise of outstanding dilutive options

 

1,081

 

1,399

 

Denominator for diluted earnings per share

 

42,708

 

42,353

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

Basic

 

$

0.41

 

$

0.37

 

Diluted

 

$

0.40

 

$

0.36

 

 


 

Benchmark Electronics, Inc. and Subsidiaries

 

Condensed Consolidated Balance Sheet

March 31, 2005

(Amounts in Thousands)

(UNAUDITED)

 

Assets

 

 

 

 

 

 

 

Current assets:

 

 

 

Cash and cash-equivalents

 

$

90,225

 

Short-term investments

 

253,335

 

Accounts receivable, net

 

267,491

 

Inventories, net

 

295,479

 

Other current assets

 

28,552

 

 

 

 

 

Total current assets

 

935,082

 

 

 

 

 

Property, plant and equipment, net

 

80,433

 

Other assets, net

 

6,623

 

Goodwill, net

 

112,947

 

 

 

 

 

Total assets

 

$

1,135,085

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

 

 

Current liabilities:

 

 

 

Accounts payable

 

$

281,068

 

Other current liabilities

 

74,582

 

 

 

 

 

Total current liabilities

 

355,650

 

 

 

 

 

Other long-term liabilities

 

8,887

 

 

 

 

 

Shareholders’ equity

 

770,548

 

 

 

 

 

Total liabilities and shareholders’ equity

 

$

1,135,085