Benchmark Reports Q3 Financial Results
TEMPE, Ariz. /PRNewswire/ — Benchmark Electronics, Inc. (NYSE: BHE) announced financial results for the third quarter ended September 30, 2023.
|
Three Months Ended |
||||||||||||
|
September 30, |
June 30, |
September 30, |
||||||||||
|
In millions, except EPS |
2023 |
2023 |
2022 |
|||||||||
|
Sales |
$ |
720 |
$ |
733 |
$ |
772 |
||||||
|
Net income |
$ |
20 |
$ |
14 |
$ |
19 |
||||||
|
Income from operations |
$ |
30 |
$ |
24 |
$ |
25 |
||||||
|
Net income – non-GAAP(1) |
$ |
21 |
$ |
17 |
$ |
20 |
||||||
|
Income from operations – non-GAAP(1) |
$ |
34 |
$ |
29 |
$ |
28 |
||||||
|
Diluted earnings per share |
$ |
0.57 |
$ |
0.39 |
$ |
0.53 |
||||||
|
Diluted EPS – non-GAAP(1) |
$ |
0.57 |
$ |
0.48 |
$ |
0.57 |
||||||
|
Operating margin |
4.2 |
% |
3.3 |
% |
3.3 |
% |
||||||
|
Operating margin – non-GAAP(1) |
4.7 |
% |
4.0 |
% |
3.6 |
% |
||||||
|
(1) A reconciliation of GAAP and non-GAAP results is included below. |
||||||||||||
“Benchmark’s strategy is to serve high-complexity growth opportunities within our targeted sectors. This focus, coupled with the team’s commitment to operational improvement, enabled us to deliver another set of strong results in the third quarter,” said Jeff Benck, Benchmark’s President and CEO.
Benck continued “I am proud of the team’s continued execution despite the dynamic market environment. Looking forward, we remain focused on delivering continued operating leverage and believe we are well positioned to capitalize on the opportunities in front of us.”
Cash Conversion Cycle
|
September 30, |
June 30, |
September 30, |
||||||||||
|
2023 |
2023 |
2022 |
||||||||||
|
Accounts receivable days |
60 |
59 |
56 |
|||||||||
|
Contract asset days |
24 |
23 |
22 |
|||||||||
|
Inventory days |
100 |
102 |
95 |
|||||||||
|
Accounts payable days |
(53) |
(56) |
(67) |
|||||||||
|
Advance payments from customers days |
(26) |
(25) |
(27) |
|||||||||
|
Cash Conversion Cycle days |
105 |
103 |
79 |
|||||||||
Third Quarter 2023 Industry Sector Update
Revenue and percentage of sales by industry sector (in millions) were as follows.
|
September 30, |
June 30, |
September 30, |
||||||||||||||||||||||
|
2023 |
2023 |
2022 |
||||||||||||||||||||||
|
Medical |
$ |
149 |
21 |
% |
$ |
145 |
20 |
% |
$ |
166 |
21 |
% |
||||||||||||
|
Semi-Cap |
165 |
23 |
164 |
22 |
186 |
24 |
||||||||||||||||||
|
A&D |
100 |
14 |
80 |
11 |
86 |
11 |
||||||||||||||||||
|
Industrials |
154 |
21 |
167 |
23 |
155 |
20 |
||||||||||||||||||
|
Advanced Computing |
66 |
9 |
81 |
11 |
95 |
13 |
||||||||||||||||||
|
Next Gen Communications |
86 |
12 |
96 |
13 |
84 |
11 |
||||||||||||||||||
|
Total |
$ |
720 |
100 |
% |
$ |
733 |
100 |
% |
$ |
772 |
100 |
% |
||||||||||||
Revenue decreased quarter over quarter and year over year primarily due to a decrease in Advanced Computing of 19% and 30%, respectively, due to completion of a high performance compute program, partially offset by an increase in A&D of 24% and 16%, respectively.
Fourth Quarter 2023 Guidance
- Revenue between $675 – $725 million
- Diluted GAAP earnings per share between $0.49 – $0.55
- Diluted non-GAAP earnings per share between $0.54 – $0.60 (excluding restructuring charges and other costs and amortization of intangibles)
Restructuring charges are expected to range between $0.8 million and $1.2 million in the fourth quarter and the amortization of intangibles is expected to be $1.2 million in the fourth quarter.
Third Quarter 2023 Earnings Conference Call
The Company will host a conference call to discuss the results today at 5:00 p.m. Eastern Time. The live webcast of the call and accompanying reference materials will be accessible by logging on to the Company’s website at www.bench.com. A replay of the broadcast will also be available on the Company’s website.
