BHE - Earnings call transcript Q4 2019 | Benchmark Electronics, Inc.

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Operator

Good day, and welcome to the Benchmark Electronics, Inc. Fourth Quarter 2019 Earnings Conference Call. [Operator Instructions]. Please note, this event is being recorded.

I would now like to turn the conference over to Lisa Weeks, Vice President of Strategy and Investor Relations. ahead. go Please

Lisa Weeks

and provide XXXX thoughts on and introductory Benchmark's first operator, Call. for us an for Benck, results Roop and year, the our of quarter joining me Lakkaraju, and detailed Thank the a Quarter thanks, and for provide CEO Jeff provide have review Fourth afternoon, comments of Earnings fourth and Full will today Roop this CFO. you, I everyone, President; coming and Year Jeff With will quarter XXXX. and outlook XXXX

session. our We today will conclude call with a Q&A

online After an prepared The financial of our the reference live presentation and the replay today, online market fourth and presentation Investor at call. release XXXX, the website closed will we call. our available a earnings are Relations release quarter this the for a webcast This issued of press call being following www.bench.com. that highlighting have available we we under will performance be is section on and

Please moment the Slide on presentation. forward-looking X the take statements to in a advice review

we information. discuss forward-looking our call, During will

of SEC any may materially reminder, uncertainties statements, no undertakes from any statements. in not statements, update and forward-looking that releases involve remarks fact results are a As forward-looking statements of which press our Benchmark and described filings. risks are Actual and historical today's these differ obligation to

reconciliation well provided our to in GAAP a has of the the in as as The appendix presentation. earnings company release non-GAAP measures of the

call Benck. turn With that, Jeff I will over to CEO, the our now

Jeffrey Benck

joining welcome afternoon's and call. everyone to this for Lisa, Thanks, us

close wins, Roop for and a and financial and review XXXX our through expectations key you overview brief provide will then initiatives. some quarter then I of with I the updates full key fourth call, take review today's During first quarter. will guidance our a will year XXXX first our and results, business the of

to Slide turn Please X.

than new and were in and up we XXXX, revenues semi-cap annually. In targeted Medical expected markets. customer results start continued progress. higher up Aerospace the results grow continue Defense our over and order X% During These year-over-year. this continued in our was a the Semi-cap market quarter, higher-value signaling as were go-to-market across XX%, to up recovery. our load XX% to were reflect fourth to see momentum results XX% has sector sequentially base,

driving wins Our with reflect key and Benchmark strategies of sector the breadth and new are full disciplined our customers selection, engaging customer capabilities. for our program

operational efficiencies, We site continue rationalizing footprint. which our on to make global progress includes

California The we process. on result, customer a last Jose, San planned Mexico Guaymas, the San closure announced As plan Jose locations. of transitions and summer remains our in closure with track

For sold Guaymas, the announce location, which this services will location continue to to Libra provide their successfully are we customers. we that to Industries, of and pleased assets operations Mexico

jobs it significant, during avoid really the well not transaction dedication financially severance to locations us transitions. this both support was costs. save I mitigate as as While of and appreciate allow employees does at our other these and shutdown

the from production Phoenix. Lark a In pivotal quarter, successfully and reached the first facility we microelectronic milestone units our delivered in fourth

These in and with and quarterly year to share proposition differentiated our with and location liquid market. expertise through $XXX production year. greenfield of strong a to RF the critical crystal cash million a in free was over continued capital look in we the is scale in shareholders returned to location this discussed, the have forward We generation, coming XXXX polymer this a value capabilities, dividends. flow repurchases manufacturing we SMT substrates, Micro-E. provide assembly, As in and advanced combined

testing close were Also, win awarded collaboration with a and with quarter. Medical platform our awards deals X in includes programs Please our customer. we of new critical existing advanced during a this program. defibrillator engineering turn and I'm Defense, an aircraft received engineering of Slide to of to number operations Aerospace these were services, the electronics pleased customers satellite these in DNA Each and we teams extremely product vertical. new sector, an go-to-market to organization monitoring with new we X. crucial electronics In In for the communication global program and for additional a fetal a and progress wins role our device, with awarded the a closing cockpit Benchmark. which played F-XX an munitions

Rohde leader & instrumentation complex technical a announce are partner. manufacturing customers & pivotal Schwarz The products this the services a into their to by internal this that all Rohde has for in be by strategic In excellent able manufacturing the new and with building their manufacturing provided from leverage were work excellent relationship new own design Industrial, expertise same engineering industrial Schwarz, around pleased product and were sector, been quality to services the global high were to received in the we trusting customer, and to and their engineering instrument. we this Also team with organization, customer space footprint Schwarz work team along agreement. Benchmark with our test global first sector our win. Benchmark selected their progress making secure were deliver expect electronics to our facial Industrial new imaging awards an long-time provider, Rohde & outsourced to we and international by externally a we

tool awarded sensor a In were electronic with an precision word machining manufacturing semi-cap, program device. for for a we along a next-generation in-chamber

program momentum high-performance new holographic QX, in future display a forward bringing were progress support which the manufacturing and is reporting in for Lastly, industry of solid I in that design look programs manufacturing we most to who on some revenue program, win had computing awarded will the on and features computing a of continued We second device. and new the growth. XD customer a our and electronics phase a the complicated telco, design in developing

for express incident and partnership the who just our QX, Before from to I turn operations. to to and call their restore quickly discuss customers I work Roop incredible ransomware the in teams over want results the our to diligently to financial impacts our thanks

hardware As us, spend you spending third-party full might software we execute incident customers including in is guided looking behind With increased SG&A reflected security, number of our forward additional and both better new investments growth IT strategy build further This serve on by Benchmark. and a existing expect, continuing the to initiatives ramp year our have our our consultants. to guidance. in a we're customers, this to and corresponding

With over me to pass that, Roop. let it

Roop Lakkaraju

then everyone. X. guidance. by afternoon, good We'll and begin then the QX of fourth Jeff, overview to I'll you, quarter move start providing an year. the I'll the discuss XXXX full Slide on results, Thank

and million of of orders $XX orders first profits million to demand last the week, rescheduling fourth $XX adversely were year. quarter restored work operations As and though and revenue we XXXX and to orders connectivity QX and into we half We were fourth critical ransomware the XXXX resumed reduced GAAP incident. XXXX company's affected we by the fulfill of approximately quarter. we of The first the updated in customer did this quickly, EPS. with reported all QX customers the unable Even our to our half associated in certain other and rescheduled prioritize into non-GAAP diluted

discrete the are included certain the been purposes Given unique expenses excluded the diluted event, reporting insurance related non-GAAP ransomware for company's incident incident and Nonrecurring recoveries expenses of a was related EPS. expenses have fees, and GAAP consulting include in results, results. expenses. to non-GAAP but legal addition advisers, third-party professional in labor service our from our These from certain hourly fees experts IT direct employee-related excluded expenses, to

$X date, process. with least from the non-GAAP We This at To carriers which that in million insurance working results our including receive been we excluded expenses, from cyber high are believe is certainty will a we offset against results. GAAP has insurance been diligently carriers. do have included through amount our our degree our coverage, insurance, this and there have nonrecurring that and of

additional due the to our continue carriers to incident. recover for incurred to with will the We monies work expenses

insurance We be ongoing for will recovery expect months the follow. to that process

Our gross inefficiencies operating compensating profit inefficiencies. time, and employees non-GAAP our nonproductive expenses, profit other these our operating as employee-related range. margins original profit incurrence included for overtime, and of gross and margins guidance or income expenses expenses The and incremental salaried below operational reduced our and certain such

that our impact such, as the us, was we standpoint, reiterate expected with data behind to and business we no is and found employee that from is or like as From ransomware a incident forward the moving basis. operational customer not customers, I'd are company an on exfiltrated significant network. our go-forward Finally, a usual, incident evidence have on on focused the to

of $XXX was $XXX million turning financial range outlook the XXXX updated within million results. to of Now fourth our $XXX million. quarter Revenues the of to

Our GAAP share $X.XX. for was loss quarter the per

A is previously announced. associated QX now with of around million related incident-related ransomware results costs, Our GAAP other settlement was our of favorably to an restructuring not a $X.X to former net CEO, and mentioned. certain customer, to accrual for $XX reversal ransomware our with related was the as million which related as a and previously customer restructuring nonrecurring due situation incident. of a resolved that various costs Customer million to charge network certain expenses insolvency of activities $X.X costs completed, in accrued insurance insolvency. recoveries, a included

of work we what continue off. was recover can We what to written to

$X.XX decrease of impacts our to Our fourth due QX was the of to $X.XX incident. $X.XX. in related lower-than-expected was XXXX financial updated non-GAAP outlook range from the operating to revenue a X.X% of and EPS X.X%, margin primarily quarter the QX, within Non-GAAP

For XX the quarter, our X.X%, an basis point QX. from was ROIC decrease

market out months our sectors in the revenue turn for by each market point sector incident. by revenue X degree avoid that sector, to ransomware Please XX. of ended some X Slide the to like our affected I'd to discussing market by repetitiveness were the To for December

which and products longer Medical in typically A&D affected significantly completed were have these sectors not most production were quarter. since the cycles, Our

A&D were quarter for the increased down year-over-year X% semi-cap increased were and XX% the year-over-year fourth Semi-cap quarter sequentially. XX% from and XX% customers. year-over-year. revenues sequentially. fourth the XX% all up revenues decreased relatively flat fourth X% and down orders from revenues year-over-year were for revenues were sequentially up in and X% quarter Industrial Medical

the of is do in of fourth recovery. Overall, result the our the a revenue. show As QX, of that sector represented to increased strength XX% signs beginning higher-value we orders in markets believe quarter

down now sequentially, X% year-over-year. expected the XXXX. down computing Telco completion from Turning as XX% and of XX% down our quarter was third XX% the year-over-year of market. contract and the sequentially in quarter-to-quarter, to traditional was legacy Computing

traditional represented Our fourth XX% markets revenues. quarter of

customers XX% XX top fourth quarter. of represented the sales for Our

Slide margin discussion points. sequential in was the quarter key Gross non-GAAP Please basis business decline of XX point and XX basis fourth year-over-year X%, XXX turn of trends. a to for decline

our ransomware incident As negatively were previously results by QX. in noted, impacted the

sequentially QX a reduction to than primarily compensation and XXXX margin was year-over-year. non-GAAP guidance $XX.X Non-GAAP due and down million, was points was in Our XX SG&A operating lower our which X.X%, from down variable basis QX original expenses.

basis the our and Revenues XX Please turn customers decreased for were customer. compared basis billion increased of as decline XX in Non-GAAP $X.X gross $XXX billion income in $X.X XXXX, decrease primarily the computing points reduced revenue. points other XXXX the including basis and EPS to XX increased our to customers, Slide to year-over-year. year-over-year margin from operating lower to 'XX. declined financial XXXX from million SG&A exit telco legacy the X% XXX computing basis a primarily of for points. compared non-GAAP summary insolvent and ROIC certain due contract, revenues Non-GAAP points, declined as XX

XX by December XX. sector for Slide to turn Please year ended the revenue full market our for

in which year, For annually higher-value markets was primarily the to semi-cap, down down industrial XX% full X% due the were sector.

increased on an will defense sector. The and continued change changes telco The from leader our legacy existing improvements you programs. are in strength of from Medical A&D made and and benefit legacy that customer down sector for to demand XXXX seeing contract XX% Revenues the markets traditional exit demand in our we computing sector increased and and of base. new spending midyear the from programs grew programs. new from were If primarily sector customers recall, the Industrial in

fiscal For XX% customers no revenue. year XXXX, of than that were greater there were

operations million free $XX of will we quarter had updates flow cash few Please on cash capital to where from the provide of approximately capital flow cash million million. quarter and expenditures after for working for highlights. We Slide and in XX, $XX generated $X the turn fourth a

$XX generated flow we ended, and operations cash year the flow of million. cash from in free $XX million For

December available $XXX was $XXX at in cash with balance the XX Our million U.S. million

XX million $XXX million, decrease $X Our million September were million assets accounts $XXX at quarter-over-quarter. a at balance December was $X from $XXX quarter-over-quarter. was Contract XX. of Inventory receivable Payables million, XX. were down September $XX December million and XX up

review cycle. Turning to our Slide cash XX conversion to

sequentially increased cash the the from cycle our Inventory quarter. XX. quarter, was fourth the For days conversion delayed days revenue in

and cash earnings to computing contract, the future be As of version is QX noted legacy days. to the between our in XX our release, cycle due expected completion XX

to XXXX. $X.X our we turn were fiscal for repurchased million per X, dividends share, QX an paid Slide in $X -- On shares. X.X XXXX. we Cumulatively, X.X% XXXX, paid $X.XX or $XXX We our $XXX Please million million a shares and share million QX quarterly shares in February or XXXX, million our allocation increase XX repurchased in during dividends. capital in $XX.X from update. million announced dividend in QX increase. Total repurchases have approximately XXX,XXX cash XX We million or out quarterly since to

open-market to repurchases through continue repurchase evaluate further share our will We program.

$XX the end million the available share under program. repurchase had of we XXXX, current As of approximately December

guidance of chain reflect review the coronavirus. does our quarter turn Please guidance. from that our impacts XX first to a Note supply not XXXX possible for Slide

the reflects the certain following XXXX that closely. to into continue first XXXX. actively We orders guidance monitor rescheduled half The of evolving QX were situation

to revenue million. million expect $XXX to from We range $XXX

the on $XX and diluted million share million million, to per for non-GAAP will $XX be Our first $XX $XX flow use program higher to XXXX operations is the will between to cash the of that in earnings QX. $X.XX with million approximately $XX from range or midpoint estimate new revenue of be during to quarter $X.XX between sequential CapEx a support the in of We we ramps. in $X.XX. a to million year additional to $XX million expected basis

space greater the in for to and QX revenues expect the demand turn from improvement information be industrial associated XX. please Patrol and A&D For be programs is expected from with Slide quarter, up up sequential program [indiscernible] legacy new than we U.S. ramps. Border first Overall, modeling program to for XX% ramps new to applications. with

increases volume up In low expect up demand from greater to expect Medical existing be with single revenues we We than customers. semi-cap, XX% digits. be to revenues

increased an and are see working actively to beginning schedules. with determine are We to customers order flow ramp

now to markets. traditional the Turning

to exclude than a revenues Computing estimated of X.X% range and telco expect operating XX% impact be programs. We down of intangible our purposes. guidance amortization costs. for to customer The Implying existing is number X% restructuring modeling margin flat guidance assets does be and other the across to a greater of provided and

rate XX.X $X.X Other nonrecurring $X.X The other and for in is costs of the XXXX million million. tax expected between to XX% XX%. net, average and is restructuring incur be $X.X to QX be approximately million, expected expect We are expenses, shares to million. to to effective expected weighted QX

call will I turn Jeff? initiatives. Jeff to look now for a detailed strategic the our back at

Jeffrey Benck

Roop. Thanks,

Let's new us. I where in of thoughts XX, about the will Slide share front to go year some

results. XXXX, XXXX As we growth we enter over expect revenue

QX. higher-value We lesser demand overcoming markets not a legacy are over growth contract to the in and, computing degree, renewing by the from rolled

semi-cap Defense, led Our XXXX's new higher-value markets Medical our results, demand and are from and Aerospace by over than ramps expected to markets. XX% program and increasing grow greater

markets For XX% represent our of to XXXX, we approximately expect total the revenue. higher-value

margins to between excellence for ramps X.X% new from our as headwinds X.X% to operational program year we of the expect a range full programs. offset number benefits with We gross from

are million also targeting to $XXX $XXX between We and expenses range SG&A million.

week, cash earlier we Roop mentioned. dividend to expect to in free sharing to operations. generate between quarterly a We by fact, increased our $XX And of this million $XX X.X%, shareholders. portion in We with committed remain flow as our cash million from

situation for Before to want I China I discuss the our the strategic coronavirus acknowledge the outbreak. to themes year, in due difficult

time. is and their in team with full and Our at support safety our priority Suzhou, well-being this our is China

our situation As for team, and our our suppliers. of customers Roop monitoring the continue valued earlier, we stated daily

I'll to summary themes the turn X XX, our strategic Slide a If you will year. conclude of with for please

we spend where Benchmark. underpin our and priorities better year we're Our time will this how a building

customer. First our and starts the with all it foremost, focus on

for continuing changing through are solutions This outsourcing technology. delivering partner the customers potential from EMS incremental bring to become of to a But partnership. average pace. an broad more a are opportunity at where mindset value set and as by We services not a set we unique differentiated relationships relationship an The any these trend with trusted markets our of distinctive customers in we expanded looking industry transactional capabilities and that an just stronger, high-value a is us of exciting towards our provides partner. accelerating our

Our the we margin profile is right for that who with opportunity to funnel growth the customers, revenue new growing Benchmark. at we outsourcing alignment customers their in strategic as a partner, for attract is us business. like are result for looking value recognize bring us and reward target The

off the drive actions organization to driving Second, of at kicked have business. set project across and aimed we entire are streamlining efficiencies our teams specific several a enterprise

mantra best our customers to the need be to is team at be to be. very what within us Our and the and functions do where we all

We engineering and strategy to to investments site global customers' maps our to and our will utilization. road continue asset evaluate optimize and manufacturing align plans

is aim customers standardization to operational centralization operating of invest the work focus better we teams, tools to across legal the will and in utilization to our human as is the IT beyond and Every ensure to expand the our our efficiency them at objective and to in Benchmark margins. delivery. to of and consistency company finance, of into customers. offer assets This of customer is experience Ultimately, continue seamlessly and we role internal to support our continue teams. resources, our organization services across And Our initiative allow new services and shared network. excellence this of aimed external operations one factories our and process within goes critical to extends our best

by and business in our growing solutions. people, Next, we remain investing focused on process

of most over ramping facility the technical capabilities our bringing challenging sophisticated the Aerospace that are across such large to customers market most production size, quarters, to weight or and the designs challenges. reduce With cutting-edge discussed to to our medical customers' rich technology in have past in in designs. we power have applications, RF device continued our and in the we here solve network enable can Phoenix, Arizona, Defense our their we complex the markets as As invest

investing are increasing give advantage addressing critical Benchmark. Asia in we sectors value and and U.S. customers by and that technology investments both margin our microelectronics an will for in pursue our revenue the choose problems. to facilities. continue the we assembly to expansion customers' We technologies in will capability, challenging us to Further, to targeted invest in in most These our accelerating future are further

talent Finally, working engage Benchmark. the of to better we're and shift culture

believe We support people are place and infrastructure have ownership empowerment, priorities organization is leadership drive the for aligned organization, in executive work. these an the and to great a in our to and as and and the are make engaged these across right tools great are we accountability high-functioning team putting place a and Benchmark initiatives team to driving We throughout the year. where

over that, turn Q&A. the with to call the I'll And operator our to manage

Operator

Instructions]. [Operator

Our from first question Sidoti. Anja with comes Soderstrom

Anja Soderstrom

me? hear you Can

Jeffrey Benck

Yes, you. hear we can

Anja Soderstrom

to the this especially I that more the incurred? want Will insurance. the that some is and get impact of it cover on expenses just just and -- So loss? any revenue ransomware information that also Or was

Roop Lakkaraju

of a sort take and these to recoveries things, bit sort obviously, we we're of additional I time really costs that that and million little expenses. mentioned lost legal will to time productivity the the for are things. the of have the And of $X around these in Anja. of the we've the recoveries additional terms and obtain, date expenses which fees of it's that Yes, accrued and forensics There include some around that -- incurrence trying

Anja Soderstrom

of half. then pushed the first was the to And Okay. some orders out

about lack for So the that Is do how then you half? efficiencies? going first the that think that? creating affect in to Or margin is gross

Roop Lakkaraju

of the our that is revenue and No. to X.X% if million about, rollover will, of the margins I we ranges gained Jeff that you rollover spoke our quarter in and the that reflected from reflected range, think the obviously, gross So mean, terms you into X.X%, given we've million -- right? first and I -- the contemplate productivity potential those. the $XX is that $XX to guidance

Jeffrey Benck

But fourth saw add to the we that. that of amount team or and able fourth revenue. a in We're really quarter, the half to expect, we demand We as as of overcoming bulk work job into there closely in original was pick they estimates with been the quarter to that perishable There could shift in and first were were our demand we bit doing and customers first to We weren't fortunate of that year. came the capture time the that and below reason where that that just rolls folks of our and able Yes, year. to you great critical demand the to fill. could little the the And did contain not revenue. we're just large if what for we cases a have up have to needed a revenue did able in out prioritize might fulfill few half we recover were this of upside we some had might built we that a recover that source. the you this

Anja Soderstrom

Medical Okay. And this, I maybe the if what you don't for but drove that? segment, know weakness, sequential also, mentioned

Roop Lakkaraju

I QX's is that guide there's really, think so growing It's if we not Anja. about weakness It's gave sequential that mean, than XX%. -- you much greater

the was because couldn't runs kind of incident Medical it therefore, results. to skewed production the quarter to tend to cycles, runs really It's yes, just the that the we as XXXX -- it related the within complete the fact production have longer and really So incident. and of of much

Anja Soderstrom

It's more okay. of matter push up, a a

Roop Lakkaraju

to contributor as and blip, basis revenue Medical overall a still be sequential pointed a on Jeff our expect, Yes, guidance, a QX throughout XXXX. and we out in in growth the in will that strong it's

Jeffrey Benck

to performer in to for look I Yes, XXXX, a we mentioned. strong Medical and contribute as growth was it in the 'XX,

Anja Soderstrom

also know New Or happening closure virus? you extend in China, I for did there? due you close Year? you to have down that Yes. the do But small of what's then And have to terms a And the there. footprint

Jeffrey Benck

complying with any been regulations or we've the government regarding Well, outbreak. operations Yes.

their kind been of there. So we've following guideline

safety folks. could our has You the our and on appreciate well-being focus been of

said, in the being province But happening medical -- for was said, virus the all market. products same the the or there. We outage bit make China China a being here. what's of is are We and that disrupted, where given epicenter some we the do given that

received exceptions some outbreak the during efforts. shipments the for -- with We've help to actually these recovery

guidance, is here, we're news. fact there's more So it -- that more anything But of and new There's provide kind I we going updates staying to point, kind close at And real-time just activity we're China of about we solution chain, I we're of every didn't that the here, to the overall We're staying through trend. different this our that. why are as way day say developing some attention we'll it's of part this than the about close there lot China. to here. to mean, that, paying is specifically think and supply components a because which we from the given network come come across or close unknowns our know

Anja Soderstrom

bit Okay. may terms components, be? should it Or more it how an prolonged you issue, have a become if inventory And badly affected in and be of any buildup? do

Jeffrey Benck

coming Anja, really QX, have about we that So, the it, we in QX. for if materials procure and the we you demand runs production think that would into have

chain customers actively date, when supply into So with QX expect you at start could we're our continuity supply to be more largely, working materials. really some chain But There have and subsequent and not have is still extended us beyond. the supply QX It considerations as of would look I to ensure to chasing. materials we're we to but support just as to potentially. periods our well

Operator

with Needham Our next Jim Co. question comes Ricchiuti from &

Unidentified Analyst

Cikos, Jim. Mike on for is This

to to were semi-cap, based had half ask about you a you more better the of It XXXX wanted some expect and of in to time customer it of the we're half conversations in spoken, still in obviously, this like figure second happening I would seeing a and Or ramp year? guys growth sounds on to back like that forecasting than should look different we But markets. now? out, growth be XXXX, should seemed and QX throughout end recovery that we know guys more strength So last expected, on trying I'm the QX. expect the sequential continue I we

Roop Lakkaraju

Yes, maybe Jeff as I'll jump have in well. start and

have think I and strength noted. saw in sequential reflected growth do numbers. that's fourth some quarter we've we We that our in the

Mike, increase that, I'll in comment in and that how terms an I we're think is need we be And point working customers our we seeing of as out orders other The to understanding are continue orders, fulfilled. with currently actively have throughout call the QX XXXX. think the through much from for QX how does looks in our it I April more QX by results, that we'll second linearity into as lot pull the rest a visibility and to how half of those

we So expected those it to come seeing signals. We're back.

standpoint. our from positive very that's So

Jeffrey Benck

the we and ramp where what bit work through see Roop second other But and on load much of to we're But QX, in could new seem as that anticipation that how said, we half beginning quarter reflect. from we lead probably fourth a order some it's -- say, a really and nice building at little to of coming saw. time that more ahead ramp Not than like here does add with will encouraging the to associated it came our are that there's we and and but be just recovery. the

Unidentified Analyst

these budget? you have you the of driving the now. you market, and what conversations interested hear. strengths were the guess, engineering the know that a wins that strength is because And parse you, design good frame customer seeing then Again, builds the over nice and wanted Whether us and Aerospace jumping out to ask defense in regarding that that to fact out offering the a guys to just I'm strengths? and strength it's guys for there, from it's there. I And you the better for market while program services, just more the That's to coming that the are can just I Defense tied guys services segment. you're I you help could been the if driver

Roop Lakkaraju

everything Yes. is was change you knew signal and up are takes bill an the No, We certainly, see in and and and appropriation and that and to spending. time, Congress we a for we're But our announcing a defense question. that did leadership very strong have a of pass demand. Yes. customers spending there, in fact then and uptick, even when there see we it the lot good long domestic

a to lot number to of across and suppliers nice a others. -- defense enjoy strategic we government So footprint our a of

And so that. we're certainly going participate in to

winning we where we're and really see that is do skills. I we have think design very business new strong why that

We've a the in of of the with And are of been energy that technology and RF lot for a interest peaked number investment Lark capability. that. us certainly engaging that the spending customers

become We the to with meet stringent well. a requirements the located customers worked domestic certification for SMT as do geographically the and has, right the do with assembly footprint a microelectronic But to design footprint quite able and our for able we but where and work, U.S. substrate been here fully of customers. the then strong being advantage strong of are A&D be our and and one-stop-shop integrated number capability sophisticated had to eye having the think, these it's only it. the much We've really to like not a about beyond capability also in a strong position just some to I also

solid, mix only and through market great of the see through we also so... beyond, even but being a XXXX and 'XX that just with it's not think and capabilities, our continuing I So

Unidentified Analyst

just if then I more And items, may. two Okay.

and the Chief The first Officer. on strategy new your Revenue go-to-market

know the Just to on are have you the the leadership an then stages we new update could get that guys and item. Industrial your second building I see in the sector, of for wanted if you being, pipeline. And

you the give prepared any be on headway, if like more sounded color you would of of but remarks are guys making either items, could Some us that helpful. those

Jeffrey Benck

what's looking bringing very sell sales I into you're to experience Yes. discipline specifically that's as an our really knows of Rob And bear. much the solution our now, aligned experience been of a a the joined EMS newbie anymore, that But sure just months. he's X an had that to as business also of frankly, Engineering of pipeline how development the here we're and rate I he's guess, win well what's need quite the so strategies target accounts. EMS like lot Rob much where are making marketing both Vice fact that not sort I OEM am President aligning operational a the to role -- with over brought development and then, well at engineering business sector as he's organization, doing, and as us so my to that leaders handle I it. side everything by

that a those So some charts the his with far. very the highlighted his on and so design of engineering team the with -- We both EMS. for engagement number pleased well it. strong with we as wins included script We've as seen in

of business. been So winning our in in general, a I been feel say, would certainly sales. like, stronger. growing. just the the like it's pipeline share bit we've little wind And It's I is of

quite and frankly, So he's team, out he's reinforced folks really been it's worked And positive then and a well. were building that strong the his there, all he's add.

leader, -- Certainly focus terms ground the Industrial that which some runs that running. hit In here. segment, of the she's needed

side do It's that fourth win bringing leveraging big that real had liked. we and quarter is of is after an we like felt XXXX. was didn't was are is half, A&D as kind important. The in I long-term think relationship and kind want don't those have engineering in good share feel strategic I Rohde XXXX them area it. things & that we've we as multi-quarter of 'XX. the In activity more see not and with on Schwarz to Industrial, would we happened of we as as the super in And home, we But I get fair we fast feel like cycle. market that Medical, win the momentum got to second growing getting a this our the in better while that with the because there started

we market. now will that win to take stuff the time get to So

be So But like of get team a kind little building why lag there. which it can bit inpatient. -- unfortunately, is there's there, of I we're we the

it's closer to customers. our think us I bringing

we're some we've go-to-market skill we're this team to added business I and little sure selling addressing that the And the out set, or the we're our talent operating make customer make that I between great teams development wants, the organization. think Benchmark. and like sure in everything building tension

So that's us I themes that. on put see X one to continue the this is us. makes that it and I customer focus initiatives into year, key And the for for you'll energy well think whole it year, bodes the why of the started top last but

Operator

Instructions]. [Operator

no As for back remarks. our will closing questions, I'm this session. Lisa the like turn I to conference to over showing any conclude would question-and-answer further Weeks

Lisa Weeks

our to Thanks for call Yes. today. everyone joining

Earnings great contact have any questions, you please all I now hesitate afternoon. the 'XX have don't If to a Benchmark's QX this hope conclude and and Call, will follow-up you me,

Operator

The concluded. Thank conference you attending for has today's now presentation.

now may disconnect. You

Benchmark Electronics (BHE) 6 Feb 202019 Q4 Earnings call transcript