Benchmark Electronics, Inc., a leading integrated contract manufacturing provider, today announced financial results for the second quarter which ended June 30, 2013.
|Three Months Ended|
|June 30,||March 31,||June 30,|
|Net sales (in millions)||$608||$542||$630|
|Net income (in millions)||$8||$11||$14|
|Net income – non-GAAP (in millions)||$17||$12||$18|
|Diluted EPS – non-GAAP||$0.31||$0.22||$0.32|
|Operating margin (%)||2.1||%||2.6||%||2.9||%|
|Operating margin – non-GAAP (%)||3.5||%||2.7||%||3.7||%|
"In the second quarter, we delivered strong performance with revenue and operating margins (non-GAAP) up sequentially from the first quarter of this year," said President and CEO Gayla J. Delly. "While the current macro environment provides limited visibility, we continue to see good long-term opportunities with new and existing customers. Our business development efforts resulted in another quarter of robust bookings, providing a solid foundation for continued growth."
Second Quarter 2013 Highlights
- Revenue of $608 million increased 12% from Q1 2013.
- Revenue bookings in Q2 2013 were $135 million to $155 million.
- During the quarter, we acquired Suntron Corporation for $19 million which includes two sites: Tijuana, Mexico and Phoenix, Arizona.
- Non-GAAP diluted earnings per share of $0.31 was above our expectations primarily impacted by Q2 revenue strength.
- Restructuring and integration costs of $6 million are primarily related to severance and asset impairment charges related to the closure of our Brazil manufacturing operations.
- Asset impairment charge and other of $3 million primarily relates to the impairment of a building classified as "Held for Sale".
- Cash flows provided by operating activities for Q2 2013 were approximately $11 million. There were no Thailand flood insurance recoveries during Q2 2013 and the recovery process with our insurance carriers is ongoing.
- Cash and long-term investments balance was $409 million at June 30, 2013.
- Accounts receivable was $464 million at June 30, 2013; calculated days sales outstanding were 69 days compared to 69 days at March 31, 2013 and 65 days at June 30, 2012.
- Inventory was $350 million at June 30, 2013; inventory turns were 6.4 times compared to 6.3 at March 31, 2013 and 6.0 at June 30, 2012.
- Repurchases of common shares for the second quarter totaled $9 million or 520 thousand shares.
Second Quarter Industry Sector Update
The following table sets forth revenue by industry sector for the quarters ended June 30, 2013, March 31, 2013 and June 30, 2012.
|June 30,||March 31,||June 30,|
|Computers and related products for business|
|Industrial control equipment||30||30||26|
|Testing and instrumentation products||6||6||8|
Third Quarter 2013 Outlook
- Revenue between $590 and $620 million.
- Diluted earnings per share between $0.28 and $0.32 (excluding restructuring and Thailand flood related items).
Conference Call Details
A conference call hosted by Benchmark management will be held today at 10:00 am (Central time) to discuss the financial results of the Company and its future outlook. This call will be broadcast via the Internet and may be accessed by logging on to our website at http://www.bench.com/.