Financial Data and Key Metrics Changes - Revenue for Q2 2022 was $728 million, exceeding guidance by nearly $100 million and increasing by over $180 million year-over-year, representing a 34% growth [9][17] - Non-GAAP gross margin was 8.1%, impacted by supply chain premiums, with an adjusted gross margin of 9.2% if excluding these effects [11][12] - Non-GAAP earnings per share (EPS) was $0.50, an 85% increase from $0.27 in the same period last year [13][27] - The company expects full-year revenue growth of 20% or greater and non-GAAP EPS of $2 or better, which would be a record for the company [16][64] Business Line Data and Key Metrics Changes - Medical revenues increased 42% sequentially and 53% year-over-year, driven by growth with existing customers and new program ramps [17][53] - Industrial revenues rose 16% sequentially and 59% year-over-year, fueled by demand for energy-related products [19] - Computing revenues grew 25% sequentially and 73% year-over-year, supported by high-performance computing program ramps [20] - Aerospace and Defense (A&D) revenues increased 11% sequentially but decreased 7% year-over-year due to supply chain constraints [18] Market Data and Key Metrics Changes - The top 10 customers represented 53% of sales in Q2 2022 [21] - Approximately $91 million of revenue was attributed to pass-through revenue from supply chain premiums, which is expected to normalize in 2023 [22][28] - The company anticipates strong demand indicators across most market sectors, with over $200 million of demand unfulfilled due to supply constraints [14][35] Company Strategy and Development Direction - The company is focusing on higher value markets with complex programs, which has resulted in a more diversified portfolio and stronger long-term growth potential [49][61] - Significant investments in capital and operational efficiency are expected to support growth in the semi-cap sector, with revenues projected to grow over 25% for the full year [52] - The company aims to achieve all performance metrics of its midterm target model by the end of 2022, with expectations for improved gross and operating margins [59][60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning within resilient industrial and enterprise markets despite potential recession risks [15][48] - The company is optimistic about demand trends, with no significant slowdown observed from customers, and expects to grow greater than 20% for the full year [63][64] - Management highlighted the importance of navigating supply chain challenges and maintaining operational efficiency to meet customer demand [63] Other Important Information - The company plans to host an Analyst Day on November 8, commemorating its 25th year listed on the NYSE [72] - Cash balance was $264 million as of June 30, with expectations to generate cash flow from operations in fiscal year 2023 [33][32] Q&A Session Summary Question: Which end market is least resistant to an economic slowdown? - Management indicated that the compute and telco markets might be more sensitive to a slowdown, but high-performance computing and next-gen broadband solutions are expected to remain resilient [67] Question: How are new program wins balanced between new logos and existing customers? - Management noted a balanced approach, with incremental wins from existing blue-chip customers and organic growth from new clients, particularly in the semi-cap sector [68]

[PART I—FINANCIAL INFORMATION](index=2&type=section&id=PART%20I%E2%80%94FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for the quarterly period ended June 30, 2022, covering balance sheets, income, equity, and cash flow statements with explanatory notes [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$2.17 billion** by June 30, 2022, driven by inventories and receivables, with liabilities and equity also rising Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | **Total current assets** | $1,601,272 | $1,348,144 | | Inventories | $666,742 | $523,240 | | **Total Assets** | **$2,166,785** | **$1,903,880** | | **Total current liabilities** | $785,078 | $654,382 | | Long-term debt, less current installments | $262,185 | $129,289 | | **Total Liabilities** | $1,180,928 | $925,074 | | **Total shareholders' equity** | **$985,773** | **$973,802** | [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) The company reported significant year-over-year growth in Q2 2022 sales, up **33.7%** to **$728.0 million**, with net income more than doubling to **$17.2 million** Financial Performance Summary (in thousands, except per share data) | Metric | Q2 2022 | Q2 2021 | YoY Change | Six Months 2022 | Six Months 2021 | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Sales | $728,029 | $544,662 | +33.7% | $1,364,112 | $1,050,383 | +29.9% | | Gross Profit | $58,756 | $47,913 | +22.6% | $116,358 | $90,140 | +29.1% | | Income from Operations | $22,432 | $10,699 | +109.7% | $37,839 | $22,633 | +67.2% | | Net Income | $17,221 | $7,369 | +133.7% | $28,181 | $15,286 | +84.3% | | Diluted EPS | $0.49 | $0.20 | +145.0% | $0.79 | $0.42 | +88.1% | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash outflow from operations reached **$93.5 million** in H1 2022, driven by working capital investments, while financing activities provided **$110.8 million** Cash Flow Summary for Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2022 | 2021 | | :--- | :--- | :--- | | Net cash (used in) provided by operations | $(93,510) | $40,273 | | Net cash used in investing activities | $(19,314) | $(18,431) | | Net cash provided by (used in) financing activities | $110,789 | $(49,066) | | **Net decrease in cash** | **$(7,830)** | **$(25,547)** | - The significant use of cash in operations was mainly due to changes in operating assets and liabilities, including a **$146.2 million increase in inventories** and a **$91.2 million increase in accounts receivable**, reflecting investments to support growth amid supply chain challenges[14](index=14&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Detailed notes cover revenue recognition, credit agreement amendments, share repurchases, dividend payments, restructuring charges, and segment performance, highlighting Asia's growth - In May 2022, the company amended its credit agreement, increasing the Revolving Credit Facility from **$250 million to $450 million**. As of June 30, 2022, **$135.0 million was outstanding** under the revolver, with **$311.1 million available** for future borrowings[29](index=29&type=chunk)[35](index=35&type=chunk) - During the first six months of 2022, the company repurchased **0.4 million common shares** for **$9.4 million** and paid cash dividends totaling **$11.6 million**[43](index=43&type=chunk)[44](index=44&type=chunk) - Restructuring charges of **$3.6 million** were recognized in the first half of 2022, primarily related to the closures of sites in San Jose, Angleton, and Moorpark, California[80](index=80&type=chunk) Revenue by Reportable Segment for Six Months Ended June 30 (in thousands) | Segment | 2022 | 2021 | YoY Change | | :--- | :--- | :--- | :--- | | Americas | $665,855 | $569,108 | +17.0% | | Asia | $607,708 | $410,843 | +47.9% | | Europe | $140,191 | $112,500 | +24.6% | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 2022's strong **34%** revenue growth, driven by robust demand across sectors, while addressing supply chain challenges, liquidity, and capital return programs [Second Quarter 2022 Highlights](index=26&type=section&id=Second%20Quarter%202022%20Highlights) Q2 2022 sales surged **34%** year-over-year to **$728.0 million**, driven by broad-based growth across Higher-Value and Traditional markets, with Industrials, Medical, and Computing leading Q2 2022 Sales Growth by Market Sector (YoY) | Market Sector | YoY Growth | | :--- | :--- | | **Higher-Value Markets** | **+33%** | | Industrials | +59% | | A&D | -7% | | Medical | +53% | | Semi-Cap | +26% | | **Traditional Markets** | **+38%** | | Computing | +73% | | Telecommunications | +15% | - Component supply chain constraints continue to limit the company's ability to meet full customer demand, leading to operational inefficiencies and increased inventory levels[131](index=131&type=chunk) [Results of Operations](index=26&type=section&id=Results%20of%20Operations) Q2 2022 sales increased **34%**, driving gross profit up **23%** to **$58.8 million**, despite gross margin contraction, leading to a **110%** rise in operating income to **$22.4 million** - Gross margin decreased in Q2 2022 primarily due to the mix of revenue, operational inefficiencies from supply chain challenges, and the dilutive impact of passing through supply chain premium costs with no margin[148](index=148&type=chunk) - Operating income for Q2 2022 increased by **110%** to **$22.4 million** from **$10.7 million** in Q2 2021, driven by higher revenue and gross profit[149](index=149&type=chunk) - Net income for Q2 2022 was **$17.2 million** (**$0.49 per diluted share**), a significant increase from **$7.4 million** (**$0.20 per diluted share**) in Q2 2021[163](index=163&type=chunk) [Liquidity and Capital Resources](index=31&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintained strong liquidity with **$263.9 million** cash and **$311.1 million** credit facility availability, despite **$93.5 million** negative operating cash flow due to inventory investment - Working capital increased from **$0.7 billion** at year-end 2021 to **$0.8 billion** at June 30, 2022, reflecting proactive investment in inventory to support revenue growth[166](index=166&type=chunk) - The company's credit facility was amended to increase the revolving credit commitment to **$450 million**. As of June 30, 2022, total debt outstanding was **$266.3 million**[170](index=170&type=chunk) - As of June 30, 2022, **$154.6 million** remained under the share repurchase authorization[176](index=176&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=33&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages market risks from foreign currency and interest rate fluctuations through hedging strategies, including forward contracts and an interest rate swap - The company uses forward currency contracts to hedge transactional exposure in currencies other than the functional currency of its operating entities[184](index=184&type=chunk) - An interest rate swap with a notional amount of **$125.6 million** is in place to convert a portion of floating-rate interest expense on the term loan to a fixed rate[188](index=188&type=chunk) [Item 4. Controls and Procedures](index=33&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of June 30, 2022, with no material changes to internal controls, while an ERP system upgrade continues - The CEO and CFO concluded that as of June 30, 2022, the company's disclosure controls and procedures were effective at a reasonable assurance level[190](index=190&type=chunk) - The company is in the process of a phased, multi-year upgrade of its enterprise resource planning (ERP) system, which has been completed at certain locations[194](index=194&type=chunk) [PART II—OTHER INFORMATION](index=35&type=section&id=PART%20II%E2%80%94OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=35&type=section&id=Item%201.%20Legal%20Proceedings) No material changes to legal proceedings were reported from the 2021 10-K, with ongoing actions not expected to materially affect financial position or results - There have been no material changes to the legal proceedings previously reported, and management does not expect the outcomes to have a material adverse effect on the company[197](index=197&type=chunk) [Item 1A. Risk Factors](index=35&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the company's 2021 Annual Report on Form 10-K were reported - No material changes to the risk factors previously disclosed in the 2021 10-K were reported[198](index=198&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=35&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q2 2022, the company repurchased **162,000 shares** for **$3.9 million**, with **$154.6 million** remaining under its share repurchase authorization Share Repurchases for Quarter Ended June 30, 2022 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2022 | 147,000 | $24.14 | | May 2022 | 15,000 | $24.14 | | June 2022 | — | — | | **Total** | **162,000** | **$24.11** | - As of June 30, 2022, the company had **$154.6 million** remaining under its stock repurchase authorization[199](index=199&type=chunk) [Item 6. Exhibits](index=36&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including corporate governance documents, credit agreement amendments, and CEO/CFO certifications - Key exhibits filed include Amendment No. 1 to the Amended and Restated Credit Agreement, and the Section 302 and 1350 certifications by the Chief Executive Officer and Chief Financial Officer[201](index=201&type=chunk)

PART I—FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements for Q1 2022, including balance sheets, income, comprehensive income, equity, and cash flow statements with explanatory notes [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$2.00 billion** from **$1.90 billion** at year-end 2021, driven by higher inventories and long-term debt growth Condensed Consolidated Balance Sheets Highlights (in thousands) | Account | March 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $244,935 | $271,749 | | Inventories | $608,347 | $523,240 | | Total current assets | $1,451,018 | $1,348,144 | | **Total assets** | **$2,002,556** | **$1,903,880** | | **Liabilities & Equity** | | | | Accounts payable | $457,252 | $426,555 | | Long-term debt, less current installments | $201,510 | $129,289 | | Total current liabilities | $684,465 | $654,382 | | **Total shareholders' equity** | **$976,405** | **$973,802** | [Condensed Consolidated Statements of Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Sales rose **25.8%** year-over-year to **$636.1 million**, net income grew **38.4%** to **$11.0 million**, and diluted EPS reached **$0.31** Condensed Consolidated Statements of Income (in thousands, except per share data) | Metric | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :--- | :--- | :--- | | Sales | $636,083 | $505,721 | | Gross profit | $57,602 | $42,227 | | Income from operations | $15,407 | $11,934 | | Net income | $10,960 | $7,917 | | Diluted EPS | $0.31 | $0.22 | [Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive income for Q1 2022 significantly increased to **$12.2 million** from **$6.6 million** in Q1 2021, driven by higher net income and unrealized derivative gains Comprehensive Income Summary (in thousands) | Component | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :--- | :--- | :--- | | Net income | $10,960 | $7,917 | | Other comprehensive income (loss) | $1,271 | $(1,336) | | **Comprehensive income** | **$12,231** | **$6,581** | [Condensed Consolidated Statements of Shareholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Shareholders%27%20Equity) Shareholders' equity increased to **$976.4 million**, driven by net income, partially offset by share repurchases and dividend payments - Key changes in shareholders' equity for Q1 2022 included: - Net income: +**$11.0 million** - Dividends declared: -**$5.8 million** - Shares repurchased and retired: -**$5.5 million**[11](index=11&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating activities used **$68.0 million** cash, driven by an **$85.8 million** inventory increase, with financing providing **$59.1 million** from credit borrowings Cash Flow Summary (in thousands) | Activity | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :--- | :--- | :--- | | Net cash (used in) provided by operations | $(68,025) | $36,613 | | Net cash used in investing activities | $(16,645) | $(6,409) | | Net cash provided by (used in) financing activities | $59,134 | $(23,760) | | **Net (decrease) increase in cash** | **$(26,814)** | **$4,438** | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, revenue by sector and geography, debt, leases, stock compensation, restructuring, and segment performance Revenue by Market Sector (in thousands) | Market Sector | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | Industrials | $137,146 | $95,452 | | A&D | $81,187 | $89,381 | | Medical | $116,873 | $108,190 | | Semi-Cap | $183,437 | $113,110 | | Computing | $55,056 | $43,686 | | Telecommunications | $62,384 | $55,902 | | **Total** | **$636,083** | **$505,721** | - The company recognized **$2.3 million** in restructuring charges in Q1 2022, primarily related to site closures in the Americas, and recorded an additional **$2.0 million** loss on assets held for sale[78](index=78&type=chunk)[82](index=82&type=chunk) Segment Performance (in thousands) | Segment | Net Sales Q1 2022 | Income from Operations Q1 2022 | Net Sales Q1 2021 | Income from Operations Q1 2021 | | :--- | :--- | :--- | :--- | :--- | | Americas | $305,580 | $10,365 | $276,838 | $8,234 | | Asia | $287,246 | $27,806 | $188,304 | $17,352 | | Europe | $70,341 | $4,638 | $60,880 | $5,238 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2022 financial results, including a **26%** revenue increase, COVID-19 impacts, supply chain constraints, segment performance, and liquidity [COVID Pandemic Update](index=24&type=section&id=COVID%20Pandemic%20Update) The COVID-19 pandemic continues to negatively impact operations through supply chain constraints and inefficiencies, limiting customer demand fulfillment, while the company utilized CARES Act provisions - Revenue in 2021 and Q1 2022 was negatively impacted by operational inefficiencies and supply chain constraints, affecting the ability to support customer demand[121](index=121&type=chunk) - The company deferred employer social security tax payments under the CARES Act and determined it was entitled to employee retention credits for 2020[123](index=123&type=chunk) [First Quarter 2022 Highlights](index=26&type=section&id=First%20Quarter%202022%20Highlights) Q1 2022 sales grew **26%** to **$636.1 million**, driven by strong performance in Higher-Value markets, despite ongoing supply chain constraints Year-over-Year Sales Growth by Sector (Q1 2022) | Sector | Growth Rate | | :--- | :--- | | **Higher-Value Markets** | **+28%** | | Industrials | +44% | | A&D | -9% | | Medical | +8% | | Semi-Cap | +62% | | **Traditional Markets** | **+18%** | | Computing | +26% | | Telecommunications | +12% | - Sales to the ten largest customers represented **51%** of total sales in Q1 2022, up from **44%** in Q1 2021[128](index=128&type=chunk) [Results of Operations](index=26&type=section&id=Results%20of%20Operations) Gross profit increased **36%** to **$57.6 million**, operating income rose **29%** to **$15.4 million**, and SG&A expenses grew due to compensation and IT investments - Gross profit increased **36%** to **$57.6 million** in Q1 2022 from **$42.2 million** in Q1 2021, with gross margin improving due to higher revenues[143](index=143&type=chunk) - SG&A expenses increased to **$36.3 million** in Q1 2022 from **$30.5 million** in Q1 2021, driven by higher variable compensation, medical claims, and IT infrastructure investments[148](index=148&type=chunk) - The effective tax rate for Q1 2022 was **18.8%**, slightly higher than **18.2%** in Q1 2021, mainly due to the expiration of the Malaysia tax holiday[154](index=154&type=chunk) [Liquidity and Capital Resources](index=30&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity is supported by cash and credit facility, with **$68.0 million** cash used in operations, and **$5.5 million** repurchases and **$5.8 million** dividends - Cash used in operating activities was **$68.0 million** in Q1 2022, primarily due to an **$85.8 million** increase in inventories and a **$26.4 million** increase in accounts receivable[159](index=159&type=chunk) - During Q1 2022, the company repurchased **0.2 million** common shares for **$5.5 million**, with **$158.5 million** remaining under authorization as of March 31, 2022[169](index=169&type=chunk) - Cash dividends paid totaled **$5.8 million** in Q1 2022, with a quarterly dividend of **$0.165** per share declared on March 15, 2022[170](index=170&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=32&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages market risks from foreign currency fluctuations and variable-rate debt using forward currency exchange contracts and an interest rate swap agreement - The company uses forward currency exchange contracts to hedge transactional exposure related to foreign currency fluctuations[177](index=177&type=chunk) - An interest rate swap agreement with a notional amount of **$127.5 million** is used to convert a portion of floating-rate interest expense to a fixed rate, hedging against interest rate risk on borrowings[181](index=181&type=chunk) [Item 4. Controls and Procedures](index=32&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including CEO and CFO, concluded disclosure controls were effective as of March 31, 2022, with no material changes to internal financial reporting controls - Based on an evaluation as of the end of the period, the CEO and CFO concluded that the company's disclosure controls and procedures were effective[183](index=183&type=chunk) - No changes occurred in the company's internal control over financial reporting during the last fiscal quarter that materially affected, or are reasonably likely to materially affect, these controls[186](index=186&type=chunk) PART II—OTHER INFORMATION [Item 1. Legal Proceedings](index=34&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ordinary legal actions, which management believes will not materially adversely affect its financial position or operations - There have been no material changes to legal proceedings, and management does not expect them to have a material adverse effect[190](index=190&type=chunk) [Item 1A. Risk Factors](index=34&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the company's 2021 Annual Report on Form 10-K were reported - No material changes to the risk factors previously disclosed in the 2021 10-K were reported[191](index=191&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=34&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **214,000** shares for **$5.5 million** in Q1 2022, with **$158.5 million** remaining under authorization Share Repurchases for Q1 2022 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | January 2022 | 0 | $— | | February 2022 | 91,000 | $25.24 | | March 2022 | 123,000 | $25.88 | - As of March 31, 2022, the total remaining authorization for share repurchases was **$158.5 million**[192](index=192&type=chunk) [Item 6. Exhibits](index=35&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with Form 10-Q, including corporate documents and CEO/CFO certifications under Sarbanes-Oxley Act - Exhibits filed include Section 302 and Section 1350 certifications from the CEO and CFO, along with Inline XBRL documents[194](index=194&type=chunk)

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Benchmark Electronics, Inc. (NYSE:BHE) Q1 2022 Earnings Conference Call April 26, 2022 5:00 PM ET Company Participants Paul Mansky – Investor Relations Jeff Benck – Chief Executive Officer and President Roop Lakkaraju – Chief Financial Officer Conference Call Participants Jim Ricchiuti – Needham and Company Jaeson Schmidt – Lake Street Anja Soderstrom – Sidoti Operator Good afternoon and welcome to the Benchmark Electronics Incorporated First Quarter Earnings Conference Call. All participants will be in lis ...

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☑ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended December 31, 2021 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission File Number 1-10560 BENCHMARK ELECTRONICS, INC. (Exact name of registrant as specified in its charter) Texas 74-2211011 (State or other jurisdiction ...

Benchmark Benchmark Electronics Q4-21 and CY2021 Earnings Results February 3, 2022 | 1 Copyright © 2022 by original author Benchmark Electronics, Inc. Not to be reproduced, distributed, or used in any means without written permission by Benchmark. Forward-Looking 2022 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 a ...

Financial Data and Key Metrics Changes - The company reported Q4 2021 revenue of $633 million, which was $48 million above the midpoint of guidance and represented a 21% year-over-year increase [10] - Non-GAAP gross margins were 9.8%, and operating margins were 3.8%, with earnings per share (EPS) of $0.48, reflecting a 41% increase from the previous year [11][12] - The cash conversion cycle improved to 69 days, a 2-day improvement over Q3 [12][44] Business Line Data and Key Metrics Changes - Medical revenues increased by 14% year-over-year, driven by demand in cardiac and respiratory care markets [30] - Semi-Cap revenues surged by 62% year-over-year, indicating strong demand for precision machining and electromechanical assembly services [31] - A&D revenues decreased by 15% year-over-year due to program transitions and lower demand in commercial aerospace [31] - Industrial revenues rose by 29% year-over-year, supported by demand improvements in oil and gas and building infrastructure [32] - Computing revenues increased by 28% year-over-year, while telco revenues grew by 16% year-over-year [33] Market Data and Key Metrics Changes - Higher-value markets accounted for 81% of Q4 revenue, while traditional markets represented 19% [32][40] - The top 10 customers contributed 49% of sales in Q4, with one customer, Applied Materials, exceeding 10% of total revenue for the year [33][41] Company Strategy and Development Direction - The company aims to grow revenue by securing new bookings exceeding $900 million for 2022, focusing on complex manufacturing and engineering capabilities [71] - Investments in sustainable infrastructure and talent are ongoing, with a commitment to ESG initiatives [26][66] - The company plans to increase the engineering attach rate from 50% to over 70% for 2022, reflecting a strategic focus on engineering alongside manufacturing [25][91] Management's Comments on Operating Environment and Future Outlook - Management indicated that demand continues to outpace supply, with over $100 million of unfulfilled demand expected to roll into future quarters [51][76] - The supply chain environment remains constrained, with no broad recovery anticipated in 2022 [15][101] - The company expects strong growth in the Medical sector, with Semi-Cap and Industrial revenues also projected to remain robust [58][60] Other Important Information - The company invested $42 million in capital expenditures in 2021 and plans to increase CapEx spending to between $50 million and $60 million in 2022 [47] - The cash balance at the end of Q4 was $272 million, with a positive cash net of debt of $141 million [46] Q&A Session Summary Question: What is the shelf life of the $100 million unfulfilled demand? - Management believes that most of the unfulfilled demand will roll into Q2, Q3, and the second half of the year [76][77] Question: Is the unfulfilled demand spread across verticals? - The unfulfilled demand is spread across various sectors, with no specific concentration [78] Question: How much of the unfulfilled demand relates to new bookings in Q4? - A mix of new bookings and unfulfilled demand from previous quarters contributes to the unfulfilled demand [86][87] Question: What pressures are being faced regarding labor and costs? - The company is experiencing a "war on talent" and is investing more in recruitment and managing inflationary costs [81][83] Question: Are customers more prone to increase outsourcing due to supply chain constraints? - Customers are seeking help with supply chain issues, but it is unclear if this will lead to increased outsourcing [96] Question: What needs to happen for supply chain improvements? - Additional capacity needs to be put in place to support the strong demand environment [102][106]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________________ to________________ | --- | --- | |---------------------------------------------------------------------------------|-------------------- ...