Benchmark Electronics(US:BHE)2025-04-30 22:33Sales Performance - Sales for Q1 2025 were $631.8 million, a 6% decrease from $675.6 million in Q1 2024[109] - Total sales for Q1 2025 were $631.8 million, a decrease of 6.5% from $675.6 million in Q1 2024[121] - Semiconductor Capital Equipment sales increased by 18% to $195.1 million from $165.9 million in Q1 2024[117] - Aerospace and Defense sales increased by 15% to $121.9 million from $105.8 million in Q1 2024[118] - Medical sales decreased by 10% to $103.6 million from $114.7 million in Q1 2024[119] - Advanced Computing and Communications sales decreased by 50% to $74.5 million from $148.0 million in Q1 2024[119] - Sales in the Americas decreased by 24% to $284.3 million, primarily due to softness in AC&C and semi-cap sectors[121] - Sales in Asia increased by 10% to $284.0 million, driven by higher demand in the semi-cap sector[122] - Sales in Europe increased by 7% to $86.3 million, attributed to higher demand in the A&D and industrial sectors[123] - Sales to the top ten customers represented 54% of total sales for both Q1 2025 and Q1 2024[110] Financial Metrics - Gross profit margin for Q1 2025 was 10.0%, unchanged from Q1 2024[115] - Gross profit decreased by 6% to $63.2 million, with a gross profit margin remaining flat at 10.0%[124] - Net income for Q1 2025 was 0.6%, down from 2.0% in Q1 2024[115] - Income from operations decreased by 54% to $11.8 million, with a significant loss of $4.4 million reported in the Americas[125] Expenses - Selling, general and administrative expenses increased to 6.1% of sales in Q1 2025 from 5.5% in Q1 2024[115] - SG&A expenses increased to $38.8 million, primarily due to higher stock-based compensation and professional services[127] Cash and Capital Expenditures - Cash provided from operating activities was $31.5 million, with working capital reported at $0.9 billion[138] - As of March 31, 2025, the company had $355.3 million in cash and cash equivalents, including $344.0 million held outside the U.S.[136] - The company plans capital expenditures of approximately $60 million to $70 million over the next 12 months to increase production capacity[144] Debt and Interest Rate Management - As of March 31, 2025, the company had $121.4 million outstanding on the floating rate term loan facility[155] - The company has an interest rate swap agreement with a notional amount of $121.4 million and a fixed interest rate of 4.039%[155] - The interest rate swap agreement is designated as a cash flow hedge, converting floating rate interest expense to fixed interest rate expense[155] - The company is exposed to market risk for changes in interest rates on its financial instruments, particularly related to invested cash balances[154] - The company is also exposed to interest rate risk on borrowings under its Credit Agreement[155] Risk Management - The company mitigates default risk by generally investing in investment grade securities[154] - The company does not use derivative financial instruments in its investing activities[154] - The company places cash and cash equivalents and investments with various major financial institutions to protect invested principal funds[154] - Additional information regarding forward currency exchange contracts and interest rate swap agreements can be found in the financial statements[156]