Benchmark Electronics Posts Second Quarter Financial Results
Benchmark Electronics, Inc. (NYSE: BHE) announced financial results for the second quarter ended June 30, 2023.
|
Three Months Ended |
||||||||||||
|
June 30, |
Mar 31, |
June 30, |
||||||||||
|
In millions, except EPS |
2023 |
2023 |
2022 |
|||||||||
|
Sales |
$ |
733 |
$ |
695 |
$ |
728 |
||||||
|
Net income |
$ |
14 |
$ |
12 |
$ |
17 |
||||||
|
Income from operations |
$ |
24 |
$ |
23 |
$ |
22 |
||||||
|
Net income – non-GAAP(1) |
$ |
17 |
$ |
15 |
$ |
18 |
||||||
|
Income from operations – non-GAAP(1) |
$ |
29 |
$ |
26 |
$ |
23 |
||||||
|
Diluted earnings per share |
$ |
0.39 |
$ |
0.35 |
$ |
0.49 |
||||||
|
Diluted EPS – non-GAAP(1) |
$ |
0.48 |
$ |
0.42 |
$ |
0.50 |
||||||
|
Operating margin |
3.3 |
% |
3.3 |
% |
3.1 |
% |
||||||
|
Operating margin – non-GAAP(1) |
4.0 |
% |
3.7 |
% |
3.1 |
% |
||||||
|
(1) A reconciliation of GAAP and non-GAAP results is included below. |
“Benchmark delivered a strong quarter, exceeding the high end of our guidance ranges on revenue and non-GAAP operating income. Our team’s ability to navigate continued supply chain challenges and progress on operational efficiencies enabled us to deliver these results,” said Jeff Benck, Benchmark’s President and CEO.
Benck continued “As we enter the second half, we are confident that our diversified portfolio and investments in future growth position us to both navigate the dynamic near-term macro environment and capture incremental share in tomorrow’s growth markets.”
Cash Conversion Cycle
|
June 30, |
Mar 31, |
June 30, |
||||||||||
|
2023 |
2023 |
2022 |
||||||||||
|
Accounts receivable days |
59 |
60 |
55 |
|||||||||
|
Contract asset days |
23 |
25 |
22 |
|||||||||
|
Inventory days |
102 |
111 |
90 |
|||||||||
|
Accounts payable days |
(56) |
(60) |
(67) |
|||||||||
|
Advance payments from customers days |
(25) |
(27) |
(23) |
|||||||||
|
Cash Conversion Cycle days |
103 |
109 |
77 |
|||||||||
Second Quarter 2023 Industry Sector Update
Revenue and percentage of sales by industry sector (in millions) were as follows.
|
June 30, |
Mar 31, |
June 30, |
||||||||||||||||||||||
|
2023 |
2023 |
2022 |
||||||||||||||||||||||
|
Medical |
$ |
145 |
20 |
% |
$ |
137 |
20 |
% |
$ |
166 |
23 |
% |
||||||||||||
|
Semi-Cap |
164 |
22 |
149 |
21 |
175 |
24 |
||||||||||||||||||
|
A&D |
80 |
11 |
79 |
11 |
90 |
12 |
||||||||||||||||||
|
Industrials |
167 |
23 |
144 |
21 |
159 |
22 |
||||||||||||||||||
|
Advanced Computing |
81 |
11 |
96 |
14 |
69 |
10 |
||||||||||||||||||
|
Next Gen Communications |
96 |
13 |
90 |
13 |
69 |
9 |
||||||||||||||||||
|
Total |
$ |
733 |
100 |
% |
$ |
695 |
100 |
% |
$ |
728 |
100 |
% |
||||||||||||
Overall, revenues were up 1% year-over-year from strength in the Industrials, Advanced Computing and Next Gen Communications sectors.
Third Quarter 2023 Guidance
- Revenue between $680 – $720 million
- Diluted GAAP earnings per share between $0.45 – $0.51
- Diluted non-GAAP earnings per share between $0.51 – $0.59 (excluding restructuring charges and other costs and amortization of intangibles)
- This guidance takes into consideration all known constraints for the quarter and assumes no further significant interruptions to our supply base, operations or customers.
Restructuring charges are expected to range between $1.1 million and $1.5 million in the third quarter and the amortization of intangibles is expected to be $1.6 million in the third quarter.
