ANGLETON, Texas, July 23, 2015 /PRNewswire/ -- Benchmark Electronics, Inc. (NYSE: BHE) today announced financial results for the quarter ended June 30, 2015.
Three Months Ended | |||||||||
Jun 30, | Mar 31, | Jun 30, | |||||||
2015 | 2015 | 2014 | |||||||
Net sales (in millions) | $664 | $621 | $717 | ||||||
Net income (in millions) | $21 | $14 | $22 | ||||||
Net income non-GAAP (in millions) | $22 | $18 | $23 | ||||||
Diluted EPS | $0.40 | $0.27 | $0.41 | ||||||
Diluted EPS non-GAAP | $0.42 | $0.34 | $0.43 | ||||||
Operating margin (%) | 3.9% | 3.0% | 3.8% | ||||||
Operating margin non-GAAP (%) | 4.2% | 3.8% | 4.1% | ||||||
“Benchmark performed well, as evidenced by our 4.2% non-GAAP operating margin and revenue at the high end of our previously announced guidance range,” said Gayla Delly, Benchmark’s President and CEO. “Despite broad variability in end-market demand, consistent execution resulted in year-over-year revenue increases in the medical and test & instrumentation sectors where we have had strong new program bookings in the last 12 months. We also experienced higher demand during the quarter from computing and telecom customers.”
“Second quarter new program bookings should result in annualized revenue of $110-130 million when fully launched within the next 12-18 months. Bookings again aligned well with our focus on early engineering engagement and long-term manufacturing solutions for customers in both higher growth and traditional markets.”
“Benchmark returned $19 million to shareholders through share repurchases during the second quarter, and a total of $66 million over the last 12 months. We continue to have a strong balance sheet and the financial flexibility to simultaneously repurchase shares, reinvest in the business, and support strategic growth initiatives.”
Delly concluded, “We remain focused on our key strategic priorities that drive value for our customers and shareholders, including diversification of our portfolio towards higher margin programs, strong execution linked to lean and operational initiatives, and working capital management. Our results this quarter show continued progress in each of these long-term objectives.”
Second Quarter 2015 Financial Highlights
- Cash flows from operating activities were $52 million
- Cash and cash equivalents were $409 million at June 30, 2015
- Accounts receivable were $501 million at June 30, 2015; calculated days sales outstanding were 68 days compared to 71 days at March 31, 2015
- Inventories were $445 million at June 30, 2015; inventory turns were 5.5 times compared to 5.3 at March 31, 2015
- Restructuring charges and integration costs totaled $2 million
The cash conversion cycle improved by eight days from the previous quarter driven by improvements in receivables, payables and inventory. Benchmark expects further improvements throughout the year.
Second Quarter 2015 Industry Sector Update
The following table sets forth revenue by industry sector for the referenced quarters.
Jun 30, | Mar 31, | Jun 30, | |||||
2015 | 2015 | 2014 | |||||
Industrial Controls | 30 | % | 32 | % | 29 | % | |
Telecommunications | 27 | 27 | 29 | ||||
Computing | 20 | 19 | 21 | ||||
