Sales Performance - Complex Industrials sales increased by 1%, A&D by 4%, Medical decreased by 6%, Semi-Cap by 11%, Advanced Computing by 9%, and Next-Generation Communications by 6%[238] - Total sales for 2023 were $2,838,976, a decrease of 1.6% from $2,886,331 in 2022[350] - Sales to the ten largest customers represented 52% of total sales in both 2023 and 2022, with Applied Materials, Inc. accounting for 12% of total sales in 2023 and 15% in 2022[238] Financial Position - Total current assets decreased from $1,652,149 thousand in 2022 to $1,635,747 thousand in 2023, while total assets increased from $2,227,331 thousand in 2022 to $2,274,755 thousand in 2023[348] - Cash and cash equivalents increased from $207,430 thousand in 2022 to $277,391 thousand in 2023[348] - Accounts receivable decreased from $491,957 thousand in 2022 to $449,404 thousand in 2023[348] - Total current liabilities decreased from $749,136 thousand in 2022 to $713,547 thousand in 2023[348] - Long-term debt increased from $320,675 thousand in 2022 to $326,674 thousand in 2023[348] - Shareholders' equity increased from $1,026,416 thousand in 2022 to $1,079,085 thousand in 2023[348] Profitability - Gross profit increased to $271,070 in 2023, up 6.2% from $255,235 in 2022[350] - Net income for 2023 was $64,315, down 5.6% from $68,229 in 2022[352] - Basic earnings per share decreased to $1.81 in 2023 from $1.94 in 2022, a decline of 6.7%[350] - Income from operations rose to $109,664 in 2023, an increase of 21.8% compared to $90,069 in 2022[350] - Comprehensive income for 2023 was $66,688, slightly down from $69,154 in 2022[352] Cash Flow and Investments - Net cash provided by operating activities increased significantly to $174,294,000 from a cash outflow of $(177,467,000) in 2022[355] - Total cash, cash equivalents, and restricted cash at the end of 2023 was $283,213,000, up from $207,430,000 at the end of 2022, representing a 36.5% increase[355] - Additions to property, plant, and equipment were $(73,479,000) in 2023, an increase from $(43,357,000) in 2022, reflecting ongoing investment in infrastructure[355] Debt Management - The company had borrowings under credit agreements totaling $749,500,000 in 2023, down from $828,000,000 in 2022[355] - Principal payments on credit agreements increased to $(743,602,000) in 2023 from $(633,000,000) in 2022, indicating a focus on debt reduction[355] - Interest expense increased significantly to $(31,875) in 2023 from $(12,894) in 2022, reflecting a rise in borrowing costs[350] Risk Management - The company is assessing the potential impact of foreign currency exchange risks and interest rate risks on its financial performance, particularly related to its floating rate term loan facility[370] - The company is undergoing certification for the U.S. Cybersecurity Maturity Model Certification (CMMC) program to enhance its cybersecurity posture[246] - The company expects to report the potential impact of the Pillar Two model rules on its provision for income taxes in its interim financial statements for the quarterly period ending March 31, 2024[362] Credit Management - The company reported a provision for doubtful accounts of $1,321,000 in 2023, compared to $489,000 in 2022, indicating a significant increase in expected credit losses[355] - The allowance for doubtful accounts decreased to $470,000 at the end of 2023 from $514,000 at the end of 2022, suggesting improved credit management[359] Material Constraints - The company has seen a general easing of material constraints across commodity categories, except for older technologies where capacity remains limited[238]

Benchmark Electronics, Inc. (NYSE:BHE) Q4 2023 Earnings Conference Call January 31, 2024 5:00 PM ET Company Participants Paul Mansky - IR Jeffrey Benck - President & CEO Roop Lakkaraju - EVP & CFO Conference Call Participants Jim Ricchiuti - Needham & Co. Steven Fox - Fox Advisors Jaeson Schmidt - Lake Street Capital Markets, LLC Operator Good afternoon, and welcome to the Benchmark Electronics Inc. Fourth Quarter 2023 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instruc ...

Benchmark | 1 Benchmark Electronics Fourth Quarter and Fiscal Year 2023 Financial Results January 31, 2024 Benchmark. Forward-Looking 2024 Statements | 2 This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are identified as any statement that does not relate strictly to historical or current facts and may include words such as "anticip ...

TEMPE, Ariz., Jan. 17, 2024 /PRNewswire/ -- Benchmark Electronics, Inc. (NYSE: BHE) will announce fourth quarter 2023 results on Wednesday, January 31, 2024 after the market close. The Company will host a conference call to discuss these results at 5:00 p.m. Eastern Time that day.A live audio webcast of the call along with supporting materials will be available on the Benchmark Investor Relations website at ir.bench.com or on the webcast link provided below.  Following the call, a webcast replay will be ava ...

On May 20, 2022, the Company entered into Amendment No. 1 (the Amendment) to the Amended and Restated Credit Agreement (as amended, the Credit Agreement). The Amendment increased the Revolving Credit Facility commitments from $250 million to $450 million. The Amendment also established that the interest on outstanding borrowings starting on the next reset date and any new borrowings under the Amendment (other than swingline loans) will accrue, at the Company's option, at (a) BSBY plus the Applicable Rate (a ...

Financial Data and Key Metrics Changes - Total revenue for Q3 2023 was $720 million, down year-over-year, but non-GAAP operating income increased by 22% year-over-year [6][7] - Non-GAAP EPS was $0.57, exceeding the high end of GAAP guidance and 10% above non-GAAP consensus [7][10] - Non-GAAP gross margin was 9.6%, a 50 basis point sequential increase and a 100 basis point improvement year-over-year [24][10] Business Line Data and Key Metrics Changes - Medical revenue increased by 8% year-over-year, driven by existing programs and improved supply availability [9] - Semi-cap revenue decreased by 10% year-over-year, aligning with expectations, but outperformed industry estimates [9] - A&D revenue rose by 20% year-over-year due to strength in commercial aerospace defense programs [9] Market Data and Key Metrics Changes - Industrials revenue increased by 9% year-over-year, supported by existing customers and new programs in energy efficiency [47] - Advanced computing revenue decreased by 30% year-over-year due to the completion of high-performance computing programs [47] - Next-generation communications revenue was up 20% year-over-year, driven by growth in broadband infrastructure programs [47] Company Strategy and Development Direction - The company is focusing on complex and highly regulated markets, emphasizing operational execution [6] - Plans to maintain a trajectory of greater than $70 million in annualized free cash flow, supported by inventory reductions [22] - The company expects to continue outperforming broader market growth rates in semi-cap due to unique customer exposure and new program wins [14] Management's Comments on Operating Environment and Future Outlook - Management noted that while some customers are moderating forecasts, others, particularly in A&D, are seeing incremental strength [32] - The company is cautious about investments and managing expenses closely due to an uncertain economic environment [33] - Management remains confident in the diversified portfolio's ability to weather economic challenges and capitalize on future growth opportunities [33] Other Important Information - The company generated $38 million in cash from operations and $18 million in free cash flow in Q3 [49] - CapEx spending for Q4 2023 is expected to be between $10 million and $15 million, with full-year CapEx projected at $70 million to $75 million [49] - The company has a cash balance of $261 million as of September 30, 2023 [49] Q&A Session Summary Question: Expected revenue flatness through the first half of 2024 - Management confirmed that revenue is expected to remain flat through the first half of 2024, with solid demand but cautious customer behavior [34][102] Question: Any decommits or cancellations in the pipeline backlog - Management indicated that there are always some adjustments in demand, but nothing unusual has been observed in the current environment [37][38] Question: Impact of economic environment on outsourcing decisions - Management noted that OEMs are reevaluating their manufacturing strategies, leading to increased willingness to consider outsourcing [93] Question: Semi-cap margins and growth expectations - Management stated that semi-cap margins are among the strongest and expect significant growth when the market rebounds [75][76] Question: Currency headwinds from the Mexican footprint - Management confirmed a significant footprint in Mexico and mentioned effective hedging programs to manage currency risks [96][81]

FORM 10-Q Acceleratedfiler Smallerreporting UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 | --- | --- | |-----------------------------------------------------------------------------------|---------------------| | | | | | | | Commission File Number: 1-10560 | | | BENCHMARK ELECTRONICS, (Exact name of registrant as specified in its charter) | INC. | | Texas | 74-2211011 | | (State or other jurisdiction | (I.R.S. Employer | | of incorporation or organization) | Identification No.) | ...

Benchmark Electronics, Inc. (NYSE:BHE) Q2 2023 Earnings Conference Call July 31, 2023 5:00 PM ET Company Participants Paul Mansky - IR Jeff Benck - President & CEO Roop Lakkaraju - EVP & CFO Conference Call Participants Jim Ricchiuti - Needham & Company Jaeson Schmidt - Lake Street Capital Markets Steven Fox - Fox Advisors Anja Soderstrom - Sidoti & Co. Operator Good day, and welcome to Benchmark Electronics Inc. Second Quarter 2023 Earnings Conference Call. All participants will be in a listen-only mode. [ ...

Benchmark Benchmark Electronics Second Quarter 2023 Earnings July 31, 2023 | 1 Copyright © 2023 by original author Benchmark Electronics, Inc. Not to be reprotuced, distributed, or used in any means without written permission by Benchmark. Forward-Looking 2023 Statements | 2 This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are ident ...

Financial Data and Key Metrics Changes - The company's GAAP earnings per share for Q1 2023 was $0.35, representing a 13% year-over-year growth [20] - Non-GAAP gross margin was 9.2%, a decrease of 40 basis points sequentially, primarily due to lower revenue in the semi-cap sector [20] - Non-GAAP effective tax rate for Q1 2023 was 19.2% [20] - Non-GAAP EPS was $0.42, in line with the midpoint of Q1 guidance [20] - Total revenue for Q1 was $695 million, a 9% year-over-year increase [48] Business Line Data and Key Metrics Changes - Medical revenue increased by 26% year-over-year, driven by existing and new programs [25] - Semi-cap revenue decreased by 16% year-over-year, aligning with expectations [25] - Advanced computing revenue grew by 81% year-over-year, benefiting from high-performance computing programs [25] - Next-gen communications revenue increased by 53% year-over-year, supported by 5G infrastructure and satellite communications [25] - A&D revenue was down 2% year-over-year, with defense facing supply constraints [25] Market Data and Key Metrics Changes - The cash conversion cycle days increased to 109 in Q1 2023 from 96 days in Q4 2022, primarily due to inventory investment [26] - Total inventory increased by $50 million sequentially in Q1 [26] - The company had a cash balance of $212 million as of March 31, with $130 million outstanding on its term loan [27] Company Strategy and Development Direction - The company is focused on operational discipline and expense controls to protect profitability while investing in future growth [24] - Continued commitment to semi-cap despite a challenging environment, with expectations for improved performance in the second half of 2023 [32] - The company is actively investing in new technologies and facilities to capture long-term growth opportunities [24] Management's Comments on Operating Environment and Future Outlook - Management noted that the supply chain environment is improving but still has constraints [4] - There is cautious optimism regarding the semi-cap sector, with expectations for a stronger second half of 2023 and 2024 [32] - The company anticipates continued growth in medical and industrial sectors, driven by strong demand and improving supply conditions [31] Other Important Information - The company plans to present at two conferences in June 2023 [8] - The company has published its second annual sustainability report, establishing specific intensity targets for greenhouse gases [19] Q&A Session Summary Question: What are the biggest risks to achieving the 2023 guidance? - Management acknowledged potential supply chain hiccups and noted that while the environment is improving, there are still constraints to navigate [4] Question: How should inventory levels be managed going forward? - Management emphasized efforts to align inventory with customer demand and mentioned initiatives like advanced deposits to manage inventory effectively [5] Question: What is the outlook for the semi-cap sector? - Management expressed cautious optimism, noting that while there was a decline in Q1, they expect stability and potential growth in the second half of the year [54]