leading contract manufacturing provider, announced sales revenue of $448 million for the
quarter ended March 31, 2003, compared to $468 million in the previous quarter and
$329 million in the same quarter of the prior year. First quarter net income was $17.3
million, compared to $12.7 million in the previous quarter and $5.3 million in the same
quarter of the prior year. Diluted earnings per share was $0.66 for the first quarter of
2003, compared to $0.50 per share for the previous quarter and $0.26 for the first quarter
of 2002.
During the first quarter, we settled and released various claims arising out of customer
manufacturing agreements. In connection with the settlement of these claims, we
recorded a non-cash gain totaling $8.1 million. There were no production revenues in
connection with these manufacturing agreements during recent quarters.
�The first quarter results reflect the continued commitment and focus of the Benchmark
team. We are reaping the benefits of our higher levels of capacity utilization, having one
of the highest levels of utilization in the industry. Also, our continued cost and efficiency
improvement programs over the past 18 months have significantly reduced our overhead
costs. We continue to earn the confidence of new and existing customers by our
consistent and excellent execution in this competitive environment,� commented Cary T.
Fu, President of Benchmark Electronics, Inc.
First Quarter 2003 Financial Highlights
� Cash balance at March 31, 2003 of $322 million.
� Cash generated from operations was $14 million in the first quarter of 2003.
� Accounts receivables increased by $16 million to $195 million at the end of the
first quarter of 2003 from $179 million at the end of the fourth quarter of 2002. Calculated days sales outstanding increased to 39 days from 34 days in the
previous quarter.
� Inventories increased to $197 million at the end of the first quarter of 2003 from
$196 million at the end of the fourth quarter of 2002. Inventory turns decreased to
8.4 from 8.8 in the previous quarter.
Second Quarter 2003 Guidance
� Revenue in the second quarter of 2003 is expected to be between $430 million
and $450 million.
� We expect gross margins to be relatively flat in the second quarter of 2003
compared with the first quarter of 2003.
� Earnings per share for the second quarter of 2003 are expected to be $0.42 to
$0.46 per diluted share.
� The tax rate for the remainder of 2003 is expected to be approximately 32%.
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, 2002 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, video/audio/entertainment products, 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 10:00am CDT
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.