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NYSEBHE
Benchmark Electronics Reports Results for the Quarter Ended June 30, 2010
PRNewswire-FirstCall
ANGLETON, Texas

Benchmark Electronics, Inc. , a leading contract manufacturing provider, announced sales of $589 million for the quarter ended June 30, 2010, a 22% increase compared to $482 million for the same quarter in the prior year. The Company reported second quarter net income of $21 million, or $0.33 per diluted share. In the comparable period in 2009, the Company reported net income of $12 million, or $0.18 per diluted share. The Company's net income of $21 million, or $0.33 per diluted share for the second quarter of 2010, represented a 74% increase in earnings per diluted share when compared to $12 million, or $0.19 per diluted share, excluding restructuring charges in the second quarter of 2009. The Company did not report any restructuring charges in the second quarter of 2010.

"Throughout the second quarter we have seen increases in customer demand," said Cary T. Fu, the Company's Chief Executive Officer. "The supply chain constraints as well as customer mix changes adversely impacted both revenue and inventory levels for the second quarter."

  Second Quarter 2010 Financial Highlights
  --  Operating margin for the second quarter was 4.0%.
  --  Cash flows used by operating activities for the second quarter were
      approximately $24 million.
  --  Cash and long-term investments balance was $397 million at June 30,
      2010. Long-term investments consist of $46 million of auction rate
      securities.
  --  Accounts receivable was $413 million at June 30, 2010; calculated days
      sales outstanding were 63 days.
  --  Inventory was $389 million at June 30, 2010; inventory turns were 5.6
      times.
  --  Repurchases of common shares for the second quarter totaled $15
      million or 0.8 million shares.


  Industry Sectors

The following table sets forth sales by industry sector for the quarter ended June 30, 2010 and March 31, 2010.

                                              June 30,       March 31,
                                                       2010          2010
                                                       ----          ----
  Computers and related products for business
   enterprises                                           31%           32%
  Telecommunications equipment                           23%           23%
  Industrial control equipment                           25%           24%
  Medical devices                                        10%           12%
  Testing and instrumentation products                   11%            9%


  Third Quarter 2010 Outlook

Sales for the third quarter of 2010 are expected to range from $590 million to $630 million. Diluted earnings per share for the third quarter, excluding restructuring charges, are expected to be between $0.33 and $0.36.

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 third 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         Six Months
                                   Ended               Ended
                                 June 30,            June 30,
                               2010     2009     2010     2009
                               ----     ----     ----     ----

  Income from operations
   (GAAP)                   $23,862  $12,353  $44,994  $22,525
  Restructuring charges           -    1,017    1,697    2,147
                                ---    -----    -----    -----
  Non-GAAP income from
   operations               $23,862  $13,370  $46,691  $24,672
                            =======  =======  =======  =======


  Net income (GAAP)         $20,777  $11,555  $39,027  $20,793
  Restructuring charges,
   net of tax                     -      641      847    1,696
                                ---      ---      ---    -----

  Non-GAAP net income       $20,777  $12,196  $39,874  $22,489
                            =======  =======  =======  =======


  Earnings per share:
   (GAAP)
      Basic                   $0.33    $0.18    $0.62    $0.32
      Diluted                 $0.33    $0.18    $0.61    $0.32

  Earnings per share:
   (Non-GAAP)
      Basic                   $0.33    $0.19    $0.63    $0.35
      Diluted                 $0.33    $0.19    $0.63    $0.34

  Weighted average
   shares used in
   calculating
       earnings per share:
      Basic                  62,695   65,018   63,047   65,057
      Diluted                63,243   65,197   63,598   65,315


                   Benchmark Electronics, Inc. and Subsidiaries
                        Consolidated Statements of Income
                  (Amounts in Thousands, Except Per Share Data)
                                   (UNAUDITED)

                       Three Months
                           Ended              Six Months Ended
                         June 30,                 June 30,

                          2010          2009          2010         2009
                          ----          ----          ----         ----

  Net sales           $589,449      $481,802    $1,161,354     $978,569
  Cost of sales        542,555       447,248     1,069,115      912,379
                       -------       -------     ---------      -------

       Gross profit     46,894        34,554        92,239       66,190

  Selling, general
   and administrative
   expenses             23,032        21,184        45,548       41,518
  Restructuring
   charges                   -         1,017         1,697        2,147
                           ---         -----         -----        -----

       Income from
        operations      23,862        12,353        44,994       22,525

  Other income
   (expense):
     Interest income       447           489           814        1,328
     Interest expense     (340)         (350)         (679)        (701)
     Other                (679)            1        (1,050)        (395)
                          ----           ---        ------         ----
   Total other income
    (expense), net        (572)          140          (915)         232
                          ----           ---          ----          ---

       Income before
        income taxes    23,290        12,493        44,079       22,757

  Income tax expense     2,513           938         5,052        1,964
                         -----           ---         -----        -----

       Net income      $20,777       $11,555       $39,027      $20,793
                       =======       =======       =======      =======


  Denominator for
   basic earnings per
   share -              62,695        65,018        63,047       65,057
  weighted average
   number of common
   shares
   outstanding during
    the period
  Incremental common
   shares
   attributable to         548           179           551          258
  restricted shares
   and the exercise
   of outstanding          ---           ---           ---          ---
   equity instruments
  Denominator for
   diluted earnings
   per share            63,243        65,197        63,598       65,315
                        ======        ======        ======       ======

  Earnings per share:
             Basic       $0.33         $0.18         $0.62        $0.32
                         =====         =====         =====        =====
             Diluted     $0.33         $0.18         $0.61        $0.32
                         =====         =====         =====        =====



            Benchmark Electronics, Inc. and Subsidiaries
                Condensed Consolidated Balance Sheet
                           June 30, 2010
                       (Amounts in Thousands)
                            (UNAUDITED)



  Assets
  ------

  Current assets:
       Cash and cash-equivalents                          $351,477
       Accounts receivable, net                            413,448
       Inventories, net                                    389,023
       Other current assets                                 48,672
                                                            ------

            Total current assets                         1,202,620

  Long-term investments                                     45,559
  Property, plant and equipment, net                       127,105
  Other assets, net                                         57,820
  Goodwill, net                                             37,912
                                                            ------

            Total assets                                $1,471,016
                                                        ==========



  Liabilities and Shareholders' Equity

  Current liabilities:
       Current installments of capital lease
        obligations                                           $333
       Accounts payable                                    281,494
       Accrued liabilities                                  57,397
                                                            ------

            Total current liabilities                      339,224

  Capital lease obligations, less current
   installments                                             11,202
  Other long-term liabilities                               25,168
  Shareholders' equity                                   1,095,422
                                                         ---------


            Total liabilities and shareholders' equity  $1,471,016
                                                        ==========

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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