EXHIBIT 99.1
PRESS RELEASE
FOR MORE INFORMATION, CALL:
DONALD E. NIGBOR, PRESIDENT
OR
CARY T. FU JULY 24, 2000
EXECUTIVE VICE PRESIDENT
(979) 849-6550
FOR IMMEDIATE RELEASE
BENCHMARK ELECTRONICS REPORTS RECORD SALES
AND RECORD BACKLOG FOR THE QUARTER ENDED
JUNE 30, 2000
ANGLETON, TX, JULY 24, 2000 - Benchmark Electronics, Inc. (NYSE: BHE) announced
earnings of $3.6 million (diluted earnings of 21 cents per share) on record
sales revenue of $407 million for the quarter ended June 30, 2000 - a $57
million sequential quarterly increase in revenue over revenue of $349 million
and earnings of $1.98 million (diluted earnings of 12 cents per share) for the
quarter ended March 31, 2000. Cash earnings per share on a fully diluted basis
were 33 cents per share for the quarter ended June 30, 2000 compared to 24 cents
per share for the prior quarter.
Donald E. Nigbor, president and CEO of Benchmark Electronics, Inc. commented:
"This is a significant quarter for Benchmark in executing our strategy. We have
achieved substantial organic growth in revenue, increased our backlog to a
record position and improved our financial performance overall. With the ramping
up of new programs for the upcoming two quarters, our main focus will be to
maintain strong cost controls during this period. The continued commitment to
providing our customers excellent service as well as strong industry
fundamentals provide Benchmark with excellent growth opportunities. "
QUARTER HIGHLIGHTS
o Backlog increased to approximately $1.5 billion at quarter end. One of
our major computer customers has significantly expanded our partnering
relationship and we have experienced increases from existing customer
and new customer programs. We are seeing continued strength, growth and
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expansion in the computers and related products for business
enterprises and telecommunication equipment sectors of our business.
o Second quarter revenue increased $57 million (16% increase) over the
previous quarter ended March 31, 2000.
o Second quarter net income increased by $1.6 million (82% increase) over
the prior quarter's net income, with gross margin improving to 7.3%
from 6.8% over last quarter, reflecting the increased capacity
utilization and the impact of increased revenues.
o Interest expense increased due to the increased debt load from
expansion of working capital requirements and an increase in interest
rates.
o Accounts receivable increased by $17 million over the previous quarter
to $241 million primarily due to increased revenues. Days sales
outstanding in receivables improved to 53 days from 58 days.
o Inventories increased by $28 million to $278 million. Inventory turns
improved to 5.5 from 5.3 times per year. The primary causes for the
increased inventories continue to be the ramping of new programs and
the increases in hub and component inventories driven by market
conditions.
o Our expansion programs at Dublin, Ireland; Hudson, New Hampshire;
Beaverton, Oregon and Huntsville, Alabama, to accommodate increased
bookings and new program starts, are progressing in line with
expectations.
o We have implemented cost controls to limit the impact of the
significant program ramping in the upcoming quarters.
o We signed a definitive agreement for the previously announced sale of
our Swedish operation's assets. This transaction, which is subject to
customary representations, warranties and conditions precedent to
closing, is expected to close prior to quarter end.
o As highlighted last quarter, the net impact of the recent bookings and
the sale of the Swedish operating assets is not expected to be
significant to the fiscal year 2000 revenue forecasts for Benchmark.
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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, 1999
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 telecommunication equipment, computers and related products for
business enterprises, video/audio/entertainment products, industrial
control equipment, testing and instrumentation products, personal
computers and medical devices. Benchmark's global operations include 14
facilities in eight countries. Benchmark's Common Stock trades on the New
York Stock Exchange under the symbol BHE.
###
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Benchmark Electronics, Inc. and Subsidiaries
Consolidated Statements of Income
(Amounts in Thousands, Except Per Share Data)
(UNAUDITED)
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<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
---------------------- ----------------------
2000 1999 2000 1999
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Net sales .................................... $ 406,572 162,621 755,726 309,167
Cost of sales ................................ 376,868 145,767 702,376 277,623
--------- --------- --------- ---------
Gross profit ............................ 29,704 16,854 53,350 31,544
Selling, general and administrative expenses . 13,432 5,677 26,113 10,628
Amortization of goodwill ..................... 3,100 910 6,320 1,819
--------- --------- --------- ---------
Operating income ........................ 13,172 10,267 20,917 19,097
Other income (expense):
Interest expense .......................... (7,050) (1,190) (12,613) (2,315)
Other ..................................... (648) (266) 181 (50)
--------- --------- --------- ---------
Total other expense, net .................... (7,698) (1,456) (12,432) (2,365)
--------- --------- --------- ---------
Income before income taxes .............. 5,474 8,811 8,485 16,732
Income tax expense ........................... 1,869 3,206 2,902 6,090
--------- --------- --------- ---------
Net income .............................. $ 3,605 5,605 5,583 10,642
========= ========= ========= =========
Earnings per share:
Basic ................................... $ 0.22 0.44 0.34 0.87
========= ========= ========= =========
Diluted ................................. 0.21 0.41 0.32 0.80
========= ========= ========= =========
Weighted average number of shares outstanding:
Basic ................................... 16,297 12,756 16,272 12,209
========= ========= ========= =========
Diluted ................................. 17,547 13,789 17,330 13,256
========= ========= ========= =========
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