ANGLETON, TX -- Benchmark Electronics today reported third-quarter sales of $510 million, down 18.3% from a year ago.

For the quarter ended Sept., 30, the net income was $16 million, down 33% year-over-year.The results include restructuring charges of $3.8 million, primarily related to capacity reduction and severance costs in Europe, partially offset by an income tax benefit of $2.4 million related to a revaluation loss in Mexico.

Excluding restructuring charges and a discrete tax benefit related to a previously closed facility, the company would have reported net income of $17 million.

Sales for the fourth quarter are expected to range from $520 million to $560 million.

"We are seeing positive signs that the economy is beginning to slowly recover as our customers are more confident," said Cary T. Fu, chief executive officer, in a statement. "We've expanded our customer base and service capabilities, aggressively reduced costs, realigned capacity and improved efficiencies. These actions have put us in a great position to benefit from the economic recovery."

For the quarter, operating margin was 2.3% on a GAAP basis and 3%, excluding restructuring charge. Cash flow from operations was approximately $41 million. At quarter's end, the company had cash and long-term investments of $484 million. Accounts receivable was $378 million and calculated days sales outstanding were 67 days.

Inventory was $294 million as of Sept.; inventory turns were 6.5 times.

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