QuickLinks -- Click here to rapidly navigate through this documentExhibit 99.1
Press Release
For More Information, Call:
July 22, 2004
GAYLA J. DELLY
CHIEF FINANCIAL OFFICER
(979) 849-6550
FOR IMMEDIATE RELEASE
BENCHMARK ELECTRONICS REPORTS RECORD SALES
AND RECORD EARNINGS FOR SECOND QUARTER 2004
ANGLETON, TX, JULY 22, 2004—Benchmark Electronics, Inc., (NYSE: BHE) a leading contract manufacturing provider, announced sales revenue of $491 million for the quarter ended June 30, 2004, compared to $449 million for the same quarter last year. Second quarter net income was $17.6 million, or $0.42 per diluted share. In the comparable period last year, net income was $11.8 million, or $0.31 per diluted share.
"The Benchmark team has once again delivered solid performance and results. Our flexibility and execution have enabled us to continue to perform well and attract additional opportunities, amidst a technology marketplace that has recently shown mixed indicators," commented Cary T. Fu, President of Benchmark Electronics, Inc.
Second Quarter 2004 Financial Highlights
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- Operating margin of 4.7%.
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- Return on invested capital of 14%.
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- Revenues from top customer represented 32% of total revenues.
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- Cash balance at June 30, 2004 of $312 million.
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- No bank debt outstanding as of June 30, 2004.
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- Accounts receivable remained consistent during the quarter at $231 million.
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- Calculated days sales outstanding decreased to 42 days for the quarter.
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- Inventories increased by $7 million during the quarter to $277 million.
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- Inventory turns decreased to 6.5 times.
Third Quarter 2004 Guidance
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- Revenue in the third quarter of 2004 is expected to be between $485 million and $505 million.
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- Earnings per share for the third quarter of 2004 are expected to be $0.38 to $0.43 per diluted share.
Forward-Looking Statements
This news release contains certain forward-looking statements within the scope of the Securities Act of 1933 and the Securities Exchange Act of 1934. The words "expect," "estimate," "anticipate," "predict," and similar expressions, and the negatives of such expressions, are intended to identify forward-looking statements. Although the Company believes that these statements are based upon reasonable
assumptions, such statements involve risks, uncertainties and assumptions, including but not limited to industry and economic conditions, customer actions and the other factors discussed in Benchmark's Form 10-K for the year ended December 31, 2003 and its other filings with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated.
Benchmark Electronics, Inc. is in the business of manufacturing electronics and provides its services to original equipment manufacturers of computers and related products for business enterprises, medical devices, industrial control equipment, testing and instrumentation products, and telecommunication equipment. Benchmark's global operations include facilities in eight countries. Benchmark's Common Stock trades on the New York Stock Exchange under the symbol BHE.
A conference call hosted by Benchmark management will be held today at 10:00 am CDT 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 www.bench.com.
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Benchmark Electronics, Inc. and Subsidiaries
Consolidated Statements of Income
(Amounts in Thousands, Except Per Share Data)
(UNAUDITED)
| | Three Months Ended
June 30,
| | Six Months Ended
June 30,
| |
|---|
| | 2004
| | 2003
| | 2004
| | 2003
| |
|---|
| Net sales | | $ | 491,392 | | 448,948 | | 972,358 | | 897,418 | |
| Cost of sales | | | 453,043 | | 412,024 | | 896,852 | | 824,889 | |
| | |
| |
| |
| |
| |
| | | Gross profit | | | 38,349 | | 36,924 | | 75,506 | | 72,529 | |
| Selling, general and administrative expenses | | | 15,330 | | 16,442 | | 31,051 | | 32,914 | |
| Contract settlement | | | — | | — | | — | | (8,108 | ) |
| | |
| |
| |
| |
| |
| | | Operating income | | | 23,019 | | 20,482 | | 44,455 | | 47,723 | |
| Other income (expense): | | | | | | | | | | |
| | Interest expense | | | (394 | ) | (2,349 | ) | (1,159 | ) | (4,919 | ) |
| | Other | | | 1,321 | | (148 | ) | 1,754 | | 668 | |
| | |
| |
| |
| |
| |
| Total other income (expense), net | | | 927 | | (2,497 | ) | 595 | | (4,251 | ) |
| | |
| |
| |
| |
| |
| | | Income before income taxes | | | 23,946 | | 17,985 | | 45,050 | | 43,472 | |
| Income tax expense | | | 6,390 | | 6,233 | | 12,299 | | 14,389 | |
| | |
| |
| |
| |
| |
| | | Net income | | $ | 17,556 | | 11,752 | | 32,751 | | 29,083 | |
| | |
| |
| |
| |
| |
| Numerator for basic earnings per share — net income | | $ | 17,556 | | 11,752 | | 32,751 | | 29,083 | |
| Interest expense on 6% convertible debt, net of tax | | | — | | 786 | | — | | 1,610 | |
| | |
| |
| |
| |
| |
| Numerator for diluted earnings per share | | $ | 17,556 | | 12,538 | | 32,751 | | 30,693 | |
| | |
| |
| |
| |
| |
| Denominator for basic earnings per share — weighted average number of common shares outstanding during the period | | | 41,047 | | 36,966 | | 41,001 | | 36,866 | |
| Incremental common shares attributable to exercise of outstanding dilutive options | | | 1,121 | | 1,179 | | 1,325 | | 1,302 | |
| Incremental common shares attributable to conversion of 6% convertible debt | | | — | | 2,993 | | — | | 2,993 | |
| | |
| |
| |
| |
| |
| Denominator for diluted earnings per share | | | 42,168 | | 41,138 | | 42,326 | | 41,161 | |
| | |
| |
| |
| |
| |
| Earnings per share: | | | | | | | | | | |
| | | Basic | | $ | 0.43 | | 0.32 | | 0.80 | | 0.79 | |
| | |
| |
| |
| |
| |
| | | Diluted | | $ | 0.42 | | 0.31 | | 0.77 | | 0.75 | |
| | |
| |
| |
| |
| |
Benchmark Electronics, Inc. and Subsidiaries
Condensed Consolidated Balance Sheet
June 30, 2004
(Amounts in Thousands)
(UNAUDITED)
| Assets | | | |
| Current assets: | | | |
| | Cash | | $ | 311,748 |
| | Accounts receivable, net | | | 230,754 |
| | Inventories, net | | | 277,105 |
| | Other current assets | | | 30,229 |
| | |
|
| | | Total current assets | | | 849,836 |
| Property, plant and equipment, net | | | 74,240 |
| Other assets, net | | | 5,928 |
| Goodwill, net | | | 113,490 |
| | |
|
| | | Total assets | | $ | 1,043,494 |
| | |
|
| Liabilities and Shareholders' Equity | | | |
| Current liabilities: | | | |
| | Current installments of other long-term debt | | $ | 18 |
| | Accounts payable | | | 252,956 |
| | Other current liabilities | | | 81,758 |
| | |
|
| | | Total current liabilities | | | 334,732 |
| Other long-term debt, excluding current installments | | | 2 |
| Other long-term liabilities | | | 8,244 |
| Shareholders' equity | | | 700,516 |
| | |
|
| | | Total liabilities and shareholders' equity | | $ | 1,043,494 |
| | |
|
QuickLinks
BENCHMARK ELECTRONICS REPORTS RECORD SALES AND RECORD EARNINGS FOR SECOND QUARTER 2004Benchmark Electronics, Inc. and Subsidiaries Consolidated Statements of Income (Amounts in Thousands, Except Per Share Data) (UNAUDITED)Benchmark Electronics, Inc. and Subsidiaries Condensed Consolidated Balance Sheet June 30, 2004 (Amounts in Thousands) (UNAUDITED)
