ANGLETON, TX – Benchmark Electronics announced sales of $538 million for the quarter ended Mar. 31, down 6% year-over-year, on weaker demand and inventory adjustments.

The contract electronics manufacturer reported first-quarter net income of $15 million, a drop of nearly 17% compared to the same period last year. 

Computing was down 29% sequentially, medical was off 26% due to inventory adjustments and supply disruptions from Japan, and telecom dropped 8%.  Computing slowed on lower demand, but is expected to rebound as a new program ramps in the current quarter. Gross margins fell 70 basis points to 7.1%.

The company said demand is picking up as the year progresses. “During the quarter, we saw weaker than expected demand primarily due to customer inventory adjustments following strong fourth-quarter demand,” said CEO Cary Fu. “We expect sales in the second quarter to rebound, as our customers achieve balancing of inventory levels to match demand.”

Sales for the second quarter are expected to range from $560 million to $600 million.

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