ANGLETON, TX -- Benchmark Electronics today announced fourth quarter revenue fell 2.9% to $607.5 million. 

Net income was $18.6 million, down from $39.4 million a year ago.  GAAP income from operations was $23.6 million, up from $21.9 million last year. Benchmark took $2.66 million in one-time charges related to restructuring in the quarter.

For the period ended Dec. 31, operating margin was 3.9%, and cash flows from operations was $44 million, bringing the annual total to $273 million. Cash conversion cycle improved six days sequentially to 74 days. At quarter's end, the EMS company had $681 million in cash on hand, of which $626 million was held outside the US.

"I am pleased by the company's performance in the fourth quarter, which met or exceeded each of our commitments. Revenue and margins were at the top end of our guidance, and non-GAAP EPS of $0.45 exceeded by two cents. We generated operating cash flow of $273 million for the year and ended 2016 with cash conversion days of 74, one day lower than our target and a twenty-day improvement from the year ago period," said Paul Tufano, Benchmark's CEO and president, in a statement.

For the year, revenue fell 9% to $2.3 billion. Net income fell 33% to $64 million. Revenue decline in both of Benchmark's traditional markets -- approximately $100 million in computing due to lower demand for mature products and $200 million in telecommunications. The company's higher value segment, which now makes up 62% of overall sales, grew $70 million. Gross margins rose 60 basis points to 9.2% for the year.

"During 2017, we will be realigning and invigorating the organization with three priorities critical to our success," Tufano added. "First, the optimization of our global network coupled with a relentless focus on execution excellence. Within our global teams, we are driving greater ownership and accountability and a heightened sense of urgency. Second, the investment in a market segment organization tasked with driving appropriate customer acquisition, revenue and margin growth. Third, the expansion of our engineering capabilities to provide our customers with the design services and technology building blocks that will allow them to go to market faster and more economically."

New program bookings during the period will total a projected $115 million to $140 million when fully launched in the next 12 to 18 months.

Benchmark guided for first quarter revenue of $530 million to $550 million.