ANGLETON, TX – Benchmark Electronics reported sales fell 4.6% to $642 million in the September quarter from the prior year. Net income was $24 million, up 9% over last year.

“The recent deterioration and unprecedented volatility in end market demands, which began in late September, resulted in revenue softness that began to materialize in the third quarter,” said Cary T. Fu, chief executive, in a press release.

For the quarter, operating margin was 3.5% on a GAAP basis. Cash flow from operations was $76 million. Accounts receivable was $415 million as of Sept. 30, with day’s sales outstanding at 58. Inventory was $363 million; inventory turns were 6.6 times.

Benchmark guided for fourth-quarter sales of $600 million to $640 million. “Recent demand weakness is expected to continue into the fourth quarter. While it is not possible to forecast with precision the specific impacts to each of the industries we serve, it is anticipated that the slowdown in technology spending will continue,” the company said. 

Benchmark reported sales of $735 million for its fourth quarter 2007.