ANGLETON, TX - Benchmark Electronics' profits rose 1.9% to $22.96 million for its fourth quarter ended Dec. 31.

Revenue fell 11.8% during the period to $625.72 million. The EMS company's acquisition of Secure Technology during the quarter did not significantly impact results. Non-GAAP operating margin was 4.5%, and GAAP operating margin was 3.5%. Cash flow from operations was $28 million. Accounts receivable were $479 million at Dec. 31, and calculated days sales outstanding were 69 days, up two days sequentially. Inventories were $412 million, and inventory turns were 5.6 times, up 0.1 turns sequentially.

The company reported full-year sales fell 9.2% to $2.54 billion. Net income rose 17.3% to $91 million. Operating margin was up 10 basis points to 3.7%, and non-GAAP operating margin rose 30 basis points to 4.2%.

For the year, the industrial, medical, and test and instrumentation sectors made up 55% of overall revenue. The firm has been making a concerted effort to reduce its dependence on the computing sector through targeted acquisitions of Suntron and CTS's EMS unit. New program bookings in the fourth quarter are expected to result in annualized revenue of $115 million to $135 million when fully launched within the next 12 to 18 months. For the year, 85% of new bookings came from Benchmark's targeted growth markets.

"2015 marked a year of continued progress on Benchmark's key strategic initiatives," said Gayla Delly, president and chief executive. "Continued emphasis in these strategic markets, coupled with our focus on operational excellence, is a key driver of our ongoing margin expansion strategy. In the fourth quarter, we delivered a 50 basis point year-over-year and a 20 basis point quarter-over-quarter improvement in operating margin and achieved our target of exiting 2015 with a 4.5% non-GAAP operating margin."

Benchmark guided for first-quarter revenue of $565 million to $590 million.

"The acquisition of Secure Technology in the fourth quarter of 2015 was another key milestone, although it did not significantly impact our results for the quarter," Delly said. "As expected, the transaction is advancing our business transformation and penetration of targeted higher-value markets. Integration is well underway and progressing according to schedule. In the near term, we are focused on customer care and expanding current relationships. Looking forward, we expect to realize the strategic benefits of the acquisition beginning in 2016."

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