ANGLETON, TX -- Benchmark Electronics today said first quarter net income fell 60% to $6 million, but the electronics manufacturing services provider said recovery continues at its flooded plants in Thailand.

The contract electronics manufacturer reported revenue rose 10% from a year ago to $593 million.

Net income was up 50% and revenue up 6%, respectively, sequentially.

Operating margin for the first quarter was 3%, excluding restructuring and Thailand flood-related charges of $10 million. Flood-related charges are expected to be recovered from insurance in subsequent periods. Cash flows used in operating activities were approximately $24 million.

Inventory was $404 million at March 31, and inventory turns improved to 5.5 times from 5.4 at Dec. 31 and 5.1 at March 31, 2011.

"We are extremely pleased with the improvement in the operating margin this quarter. Our margin increase was achieved through revenue growth driven by new program ramps, the Thailand recovery and the diligent focus of our global operations team," said Gayla J. Delly, the Company's President and CEO. "We have made great progress, consistent with our plans, in the ongoing recovery from the Thailand flood. We are appreciative of the contributions from our global teams in this effort. In the second quarter, the favorable impacts of new program ramps and end market demand stability are expected to continue."

By sector, Computers and related products for business enterprises made up 31%, industrial control equipment 27%, telecommunications equipment 25%, medical devices 9%, and testing and instrumentation products 8%.

The EMS company guided for second quarter revenue of $595 million to $625 million.

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