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NYSEBHE
Benchmark Electronics Reports Results for the Quarter Ended March 31, 2010
PRNewswire-FirstCall
ANGLETON, Texas

Benchmark Electronics, Inc. , a leading contract manufacturing provider, announced sales of $572 million for the quarter ended March 31, 2010, a 15% increase compared to $497 million for the same quarter in the prior year. The Company reported first quarter net income of $18 million, or $0.29 per diluted share. In the comparable period in 2009, the Company reported net income of $9 million, or $0.14 per diluted share. Excluding restructuring charges, the Company would have reported net income of $19 million, or $0.30 per diluted share for the first quarter of 2010, which represented an 88% increase in earnings per diluted share when compared to $10 million, or $0.16 per diluted share, in the first quarter of 2009.

"We delivered yet another quarter of strong performance despite continued component constraints in the supply chain, which impacted our revenues and inventory levels in the first quarter," said Cary T. Fu, the Company's Chief Executive Officer. "We achieved record new program bookings during the quarter which are expected to provide a solid foundation for future growth, generating estimated annual revenue at full production of $300 million to $375 million."

  First Quarter 2010 Financial Highlights
  --  Operating margin for the first quarter was 3.7% on a GAAP basis and
      4.0%, excluding restructuring charges.
  --  Cash flows provided by operating activities for the first quarter were
      approximately $6 million.
  --  Cash and long-term investments balance was $446 million at March 31,
      2010. Long-term investments consist of $45 million of auction rate
      securities.
  --  Accounts receivable was $408 million at March 31, 2010; calculated
      days sales outstanding were 64 days.
  --  Inventory was $362 million at March 31, 2010; inventory turns were 5.8
      times.
  --  Repurchases of common shares for the first quarter totaled $18 million
      or 0.9 million shares.
  --  Previously announced restructuring initiatives in the Americas were
      completed during the first quarter and resulted in restructuring
      charges of approximately $1.7 million related to capacity reduction
      and severance costs.


  Second Quarter 2010 Outlook

Sales for the second quarter of 2010 are expected to range from $600 million to $630 million. Diluted earnings per share for the second quarter, excluding restructuring charges, are expected to be between $0.31 and $0.34.

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, the statement "we achieved record new program bookings during the quarter which are expected to provide a solid foundation for future growth, generating estimated annual revenue at full production of $300 million to $375 million", and our sales and diluted earnings per share (excluding restructuring charges) guidance for the second quarter of 2010, 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, 2009, in its other filings with the Securities and Exchange Commission and in its press releases.

Additional Information

Benchmark Electronics, Inc. provides integrated 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 23 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,
                                                          2010       2009
                                                          ----       ----

  Income from operations (GAAP)                        $21,132    $10,172
  Restructuring charges                                  1,697      1,130
  Non-GAAP income from operations                      $22,829    $11,302
                                                       =======    =======


  Net income (GAAP)                                    $18,250     $9,238
  Restructuring charges, net of tax                        847      1,056
  Non-GAAP net income                                  $19,097    $10,294
                                                       =======    =======


  Earnings per share: (GAAP)
     Basic                                               $0.29      $0.14
     Diluted                                             $0.29      $0.14

  Earnings per share: (Non-GAAP)
     Basic                                               $0.30      $0.16
     Diluted                                             $0.30      $0.16

  Weighted average shares used in calculating earnings
   per share:
     Basic                                              63,403     65,097
     Diluted                                            63,957     65,261



                  Benchmark Electronics, Inc. and Subsidiaries

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

                                              Three Months Ended
                                                 March 31,
                                                   2010           2009
                                                   ----           ----

  Net sales                                    $571,905       $496,767
  Cost of sales                                 526,560        465,131
                                                -------        -------
       Gross profit                              45,345         31,636

  Selling, general and administrative
   expenses                                      22,516         20,334
  Restructuring charges and integration costs     1,697          1,130
                                                  -----          -----
       Income from operations                    21,132         10,172

  Other income (expense):
     Interest income                                367            839
     Interest expense                              (339)          (351)
     Other                                         (371)          (396)
                                                   ----           ----
  Total other income (expense), net                (343)            92
                                                   ----            ---
       Income before income taxes                20,789         10,264

  Income tax expense                              2,539          1,026
       Net income                               $18,250         $9,238
                                                =======         ======


  Denominator for basic earnings per share -
   weighted average number of common shares
   outstanding during the period                 63,403         65,097
  Incremental common shares attributable to
   restricted shares and the exercise of
   outstanding equity instruments                   554            164
                                                    ---            ---
  Denominator for diluted earnings per share     63,957         65,261
                                                 ======         ======
  Earnings per share:
             Basic                                $0.29          $0.14
                                                  =====          =====
             Diluted                              $0.29          $0.14
                                                  =====          =====



           Benchmark Electronics, Inc. and Subsidiaries

               Condensed Consolidated Balance Sheet
                          March 31, 2010
                      (Amounts in Thousands)
                            (UNAUDITED)

  Assets
  ------

  Current assets:
     Cash and cash-equivalents                              $400,568
     Accounts receivable, net                                407,717
     Inventories, net                                        361,962
     Other current assets                                     46,505
                                                              ------
        Total current assets                               1,216,752

  Long-term investments                                       45,209
  Property, plant and equipment, net                         126,763
  Other assets, net                                           57,495
  Goodwill, net                                               37,912
                                                              ------
        Total assets                                      $1,484,131
                                                          ==========


  Liabilities and Shareholders' Equity

  Current liabilities:
     Current installments of capital lease obligations          $314
     Accounts payable                                        296,664
     Accrued liabilities                                      59,717
                                                              ------
        Total current liabilities                            356,695

  Capital lease obligations, less current installments        11,302
  Other long-term liabilities                                 24,230
  Shareholders' equity                                     1,091,904
                                                           ---------
        Total liabilities and shareholders' equity        $1,484,131
                                                          ==========

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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