Benchmark Electronics Reports Q4 and FY 2016 Results

Estimated reading time: 2 minutes

Benchmark Electronics Inc. has announced financial results for the fourth quarter and year ended December 31, 2016. Net sales reached $608 million and net income totaled $19 million for the fourth quarter, while net sales for 2016 was $2.31 billion, with net income of $64 million.

"I am pleased by the company's performance in the fourth quarter, which met or exceeded each of our commitments. Revenue and margins were at the top end of our guidance, and non-GAAP EPS of $0.45 exceeded by two cents. We generated operating cash flow of $273 million for the year and ended 2016 with cash conversion days of 74, one day lower than our target and a twenty-day improvement from the year ago period," said Paul Tufano, Benchmark's CEO and President.

"During 2017, we will be realigning and invigorating the organization with three priorities critical to our success," Tufano added. "First, the optimization of our global network coupled with a relentless focus on execution excellence. Within our global teams, we are driving greater ownership and accountability and a heightened sense of urgency. Second, the investment in a market segment organization tasked with driving appropriate customer acquisition, revenue and margin growth. Third, the expansion of our engineering capabilities to provide our customers with the design services and technology building blocks that will allow them to go to market faster and more economically."

Tufano concluded, "I remain excited by our opportunities going forward and the enthusiasm and support of our customers and employees. Looking ahead, our objective is to meet our commitments to customers, shareholders and employees while we reposition Benchmark for long-term growth."

Fourth Quarter 2016 Industry Sector Update

Fourth quarter revenues from higher-value markets were in line with expectations. Test & Instrumentation revenues from semi-capital equipment customers remained strong, and new Industrial programs ramped as expected. Medical revenues were slightly lower than anticipated due to regulatory delays. Traditional revenues in Computing and Telecommunications were up on stronger computing demand and the completion of Telecommunications qualifications.

Fourth Quarter 2016 Bookings Update

• New program bookings of $115 to $140 million.
• 12 engineering awards supporting early engagement opportunities.
• 19 manufacturing wins across all market sectors.

The company projects that new program bookings for the fourth quarter will result in annualized revenue of $115 to $140 million when fully launched in the next 12-18 months. The new program bookings align with Benchmark's strategic focus on higher-value markets.

First Quarter 2017 Outlook

• Revenue between $530-$550 million.
• Diluted GAAP earnings per share between $0.19-$0.23.
• Diluted non-GAAP earnings per share between $0.24-$0.28 (excluding restructuring charges and amortization of intangibles expected to approximate $0.05 per share). The income tax impact of the non-GAAP adjustments using the applicable effective tax rates is $0.02 per share.

About Benchmark Electronics Inc.

Benchmark provides worldwide integrated electronics manufacturing services (EMS), engineering and design services, and precision machine services to original equipment manufacturers of industrial equipment (including equipment for the aerospace and defense industries), telecommunication equipment, computers and related products for business enterprises, medical devices, and test and instrumentation products. Benchmark's global operations include facilities in seven countries, and its common shares trade on the New York Stock Exchange under the symbol BHE.