Benchmark's Profits Rise Despite Lower Industrial Demand
ANGLETON, TX -- Benchmark Electronics today reported third-quarter sales fell 13.8% year-over-year to $630 million.
For the period ended Sept. 30, net income rose 23.5% to $21 million.
Operating margin rose 110 basis points to 4.1% on a GAAP basis and 30 basis points to 4.3% on a non-GAAP basis.
Cash flow from operating activities was $78 million, and cash and cash equivalents were $462 million as of Sept. 30. Inventories were $422 million at Sept. 30, 2015; inventory turns were 5.5 times for both the second and third quarters.
For the quarter, industrial controls made up 31% of sales, telecommunications 24%, computing 22%, medical 14%, and test & instrumentation 9%.
Commenting on the results, chief executive and president Gayla Delly said: "Benchmark's solid profitability results, evidenced by our 4.3% non-GAAP operating margin, were achieved despite lower-than-expected revenues. Notwithstanding our excellent operational achievements, headwinds in the industries we serve challenged our top line. Greater-than-expected demand from Computing customers partially offset end-market demand weakness in the Industrial, Test & Instrumentation and Telecom sectors. Medical revenues were pushed into the fourth quarter due to the timing of program qualifications."
New program bookings in the third quarter were $110 million to $130 million, and the company maintained its goal for a non-GAAP operating margin of 4.5%.
The company expects fourth-quarter revenue of $620 million to $640 million.
