TEMPE, AZ – Benchmark Electronics reported fourth quarter sales of $521 million, an increase of 2.6% year-over-year, down 0.95% sequentially.

Net income for the period was $8 million, compared to a net loss of $7 million in the fourth quarter of 2019. Net income was up 33.3% sequentially.

Results for the fourth and third quarters included the impact of approximately $1.6 million and $1.3 million of net Covid-19-related costs, respectively.

Benchmark Electronics posted 2020 net sales of $2.05 billion, a decrease of 9.5% year-over-year. Net income for the year was $14 million, down 39.1% compared to 2019.

Results for the year ended Dec. 31 included the impact of approximately $7.1 million of net Covid-19-related costs.

"We closed out a very challenging year, delivering fourth quarter results that not only met our expectations, but demonstrated sequential improvement in both non-GAAP gross margins at 9.6% and higher non-GAAP earnings at $0.34, enabled by higher-value sector mix and improved utilization across the company,” said Jeff Benck, president and CEO. “I am very proud of our team, which has proven to be very resourceful and resilient in the face of this pandemic and continues to deliver for our customers.

“Our focused efforts on improving working capital management are also bearing fruit, as we generated $95 million of operating cash flow in the quarter and over $120 million for the year, which exceeded our forecast.  I look forward to 2021 with optimism knowing our strategic investments in the business to drive differentiated value and sustainability have solidified a path to achieve revenue, margin, and earnings growth in 2021 aligned with our midterm financial goals."

Overall, higher-value market revenues were up 6% year-over-year from strength in the semi-cap, medical, and A&D sectors. Traditional market revenues were down from program transitions.

The EMS firm expects first quarter revenue between $480 million and $520 million. This guidance takes into consideration all known constraints for the quarter and assumes no further significant interruptions to the supply base, operations or customers. Guidance also assumes no material changes to end market conditions due to Covid-19.

Restructuring charges are expected to range between $1 million and $2 million in the first quarter.

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