Benchmark Electronics, Inc., a leading contract manufacturing provider, announced sales of $589 million for the quarter ended June 30, 2010, a 22% increase compared to $482 million for the same quarter in the prior year. The company reported second quarter net income of $21 million, or $0.33 per diluted share. In the comparable period in 2009, the company reported net income of $12 million, or $0.18 per diluted share. The company's net income of $21 million, or $0.33 per diluted share for the second quarter of 2010, represented a 74% increase in earnings per diluted share when compared to $12 million, or $0.19 per diluted share, excluding restructuring charges in the second quarter of 2009. The company did not report any restructuring charges in the second quarter of 2010.

"Throughout the second quarter we have seen increases in customer demand," said Cary T. Fu, Chief Executive Officer. "The supply chain constraints, as well as customer mix changes, adversely impacted both revenue and inventory levels for the second quarter." 

Second Quarter 2010 Financial Highlights 

• Operating margin for the second quarter was 4.0%.
• Cash flows used by operating activities for the second quarter were approximately $24 million.
• Cash and long-term investments balance was $397 million at June 30, 2010. Long-term investments consist of $46 million of auction rate securities.
• Accounts receivable was $413 million at June 30, 2010; calculated days sales outstanding were 63 days.
• Inventory was $389 million at June 30, 2010; inventory turns were 5.6 times.
• Repurchases of common shares for the second quarter totaled $15 million or 0.8 million shares.

Third Quarter 2010 Outlook

Sales for the third quarter of 2010 are expected to range from $590 million to $630 million. Diluted earnings per share for the third quarter, excluding restructuring charges, are expected to be between $0.33 and $0.36.

About Benchmark Electronics

Benchmark Electronics, Inc. provides integrated electronics manufacturing, design and engineering services to OEMs 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 23 facilities in 10 countries. Benchmark's Common Shares trade on the New York Stock Exchange under the symbol "BHE." For more information, visit http://www.bench.com/.