ANGLETON, TX -- Benchmark Electronics today reported third quarter net income of $24 million, up 200% sequentially and 26% from a year ago. The contract manufacturing provider said sales for the period ended Sept. 30 were $600 million, down 1.3% from the June quarter and 1.8% from last year.

"We are pleased with the results for the quarter with revenues and earnings in line with our expectations," said president and CEO Gayla J. Delly. "In the third quarter, we experienced revenue growth in three of our five industries that we serve and expect growth in all industry sectors next quarter. Expected strong fourth quarter revenue growth is reflective of the new program ramps and are further diversified with revenue contribution from our recent acquisitions."

Benchmark's top customer, widely thought to be IBM, made up 15% of the EMS company's sales in the quarter. The firm took $1 million in restructuring and integration and acquisition-related costs, primarily related to the acquisition of CTS' EMS unit. Cash flow from operating activities was $39 million, which included approximately $10 million of Thailand flood insurance recoveries. Days sales outstanding were 64 days, down from 69 days at June 30 and 67 days at Sept. 30, 2012.

Inventory was $395 million as of Sept. 30, 2013; inventory turns were 5.6 times compared to 6.4 at June 30, 2013 and 6.0 in 2012. The company said it overcame late quarter order reductions and headwinds associated with new product ramps to maintain operating margins of 3.5%.

Benchmark gave fourth quarter guidance of $685 million to $715 million in revenue.