ANGLETON, TX -- Benchmark Electronics reported June quarter sales of $482 million, down 29.3% from last year on lower demand for computing products.

For the ended June 30, the contract electronics manufacturer reported net income of $12 million, down46% from a year ago.

In a press release, the company said market demand stabilized during the quarter, except for the computing sector. Cary T. Fu, chief executive, said, "We improved profitability from the first quarter, reduced inventories and generated operating cash flows and, at the same time, aligned our capacity with customer demand. In recent weeks we have seen the pipeline of opportunities increase, but we remain guarded about the overall economy."

Operating margin was 2.6% on a GAAP basis and 2.8%, excluding restructuring charges. Cash flow from operations was approximately $13 million. Accounts receivable was $350 million, with days sales outstanding of 66 days. Inventory was $322 million at June 30, and inventory turns were 5.6 times during the quarter.

At quarter's end, the company had cash and long-term investments of $452 million.

Benchmark guided for third-quarter sales of $470 million to $520 million.

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