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NYSEBHE
Benchmark Electronics Reports Results for the Quarter Ended September 30, 2009
PRNewswire-FirstCall
ANGLETON, Texas

Benchmark Electronics, Inc. , 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.

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 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.

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 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 fourth 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. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated.

All forward-looking statements included in this release are based upon information available to Benchmark as of the date of this release, and Benchmark assumes no obligation to update any such forward-looking statements. 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 24 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         Nine Months Ended
                                  September 30,             September 30,
                                 2009       2008           2009      2008
  Income from operations (GAAP) $11,674   $21,857        $34,199   $65,446
  Restructuring charges           3,754       253          5,901       253

  Non-GAAP income from
   operations                   $15,428   $22,110        $40,100   $65,699


  Net income (GAAP)             $16,416   $23,635        $37,209   $68,106
  Restructuring charges, net
   of tax                         3,647       228          5,343       228
  Discrete US tax benefit        (2,668)   (3,440)        (2,668)   (3,440)

  Non-GAAP net income           $17,395   $20,423        $39,884   $64,894


  Earnings per share: (GAAP)
      Basic                       $0.25     $0.36          $0.57     $1.01
      Diluted                     $0.25     $0.35          $0.57     $1.00

  Earnings per share: (Non-GAAP)
      Basic                       $0.27     $0.31          $0.61     $0.96
      Diluted                     $0.27     $0.31          $0.61     $0.95

  Weighted average shares used
   in calculating earnings
   per share:
      Basic                      64,754    66,268         64,955    67,693
      Diluted                    65,194    66,630         65,206    68,251



                   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,
                            2009         2008        2009         2008

  Net sales              $510,461     $641,672   $1,489,030   $2,008,397
  Cost of sales           473,648      597,503    1,386,027    1,873,240

      Gross profit         36,813       44,169      103,003      135,157

  Selling, general and
   administrative expenses 21,385       22,059       62,903       69,458
  Restructuring charges     3,754          253        5,901          253

      Income from
       operations          11,674       21,857       34,199       65,446

  Other income (expense):
    Interest income           382        1,680        1,710        6,909
    Interest expense         (350)        (378)      (1,051)      (1,102)
    Other                    (575)        (790)        (970)       1,547
  Total other income
   (expense), net            (543)         512         (311)       7,354

      Income before income
       taxes               11,131       22,369       33,888       72,800

  Income tax benefit
   (expense)                5,285        1,266        3,321       (4,694)

      Net income          $16,416      $23,635      $37,209      $68,106


  Denominator for basic
   earnings per share - weighted
   average number of common
   shares outstanding during
   the period              64,754       66,268       64,955       67,693
  Incremental common shares
   attributable to restricted
   shares and the assumed
   exercise of outstanding
   equity instruments         440          362          251          558
  Denominator for diluted
   earnings per share      65,194       66,630       65,206       68,251

  Earnings per share:
      Basic                 $0.25        $0.36        $0.57        $1.01
      Diluted               $0.25        $0.35        $0.57        $1.00

  The results for the three and nine months ended September 30, 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
                               September 30, 2009
                             (Amounts in Thousands)
                                  (UNAUDITED)

  Assets

  Current assets:
     Cash and cash-equivalents                              $438,044
     Accounts receivable, net                                378,492
     Inventories, net                                        293,550
     Other current assets                                     47,499

        Total current assets                               1,157,585

  Long-term investments                                       46,306
  Property, plant and equipment, net                         127,867
  Other assets, net                                           61,398
  Goodwill, net                                               37,912

        Total assets                                      $1,431,068


  Liabilities and Shareholders' Equity

  Current liabilities:
     Current installments of capital lease obligations          $285
     Accounts payable                                        239,697
     Accrued liabilities                                      60,396

        Total current liabilities                            300,378

  Capital lease obligations, less current installments        11,459
  Other long-term liabilities                                 24,654
  Shareholders' equity                                     1,094,577


        Total liabilities and shareholders' equity        $1,431,068

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

SOURCE: Benchmark Electronics, Inc.

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

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