News
The company took $31.9 million in restructuring charges during the quarter.
The results were in line with Jan. 27 revenue guidance of $2 billion to $2.23 billion.
Net income dropped to $600,000, versus $3.3 million a year ago, on cost overruns and new program launches.
The results met company expectations.
In a press statement, Jeffrey T. Gill, president and chief executive, said, "Revenue continued to climb while the costs associated with the increase in manufacturing capacity, launch of new programs and disruption of material deliveries began to abate from the levels experienced during the fourth quarter. We expect these cost overruns to continue during the second quarter at a declining rate as the new manufacturing cells are completed and new programs enter full production, after which we expect margins to gradually return to historical levels."
For the quarter, backlogs rose 22% to a record $261.7 million. it was the ninth consecutive quarter of
year-on-year growth in bookings.
Sales of electronics declined to $35.6 million, compared to $40.9 million for the prior year and were down 23% sequentially from the fourth quarter. The compay said the drop was normal and cited seasonality in government's procurement cycles. Gross profit for the quarter was $5 million, down from $7.9 million, due to continued decline in shipments for data systems products.
First-quarter net income was $16.9 million, up 11% from $15.2 million a year ago.
Cary T. Fu, president and chief executive, called the results "excellent in
light of the soft economic conditions seen recently in the technology
marketplace."
For the quarter, operating margin was 4.4%, and return on invested capital was 13.8%.
As of March 31 Benchmark had cash and short-term investments of $344 million and no outstanding debt.
Inventories increased by $39 million to $295 million; inventory turns were 6.4 times.
Benchmark guided for second quarter revenue of $525 million to $550 million.
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