ANGLETON, TX -- Contract manufacturer Benchmark Electronics Inc. today reported sales of $510 million for the March quarter, up 6% from $481 million last year.

First-quarter net income was $16.9 million, up 11% from $15.2 million a year ago.

Cary T. Fu, president and chief executive, called the results "excellent in light of the soft economic conditions seen recently in the technology marketplace."

For the quarter, operating margin was 4.4%, and return on invested capital was 13.8%.

As of March 31 Benchmark had cash and short-term investments of $344 million and no outstanding debt. 

Inventories increased by $39 million to $295 million; inventory turns were 6.4 times.

Benchmark guided for second quarter revenue of $525 million to $550 million.