Benchmark Electronics Revises First and Second Quarter Guidance Due to Slowdown in Technology Marketplace

Apr 02, 2001, 01:00 ET from Benchmark Electronics, Inc.

    ANGLETON, Texas, April 2 /PRNewswire/ --
 Benchmark Electronics, Inc. (NYSE:   BHE) revised the earnings outlook for the
 first and second quarters of 2001, due to the slowdown in the technology
 marketplace.  Delayed delivery dates and cancellations from customers have
 continued to mount as a result of the weaker demand and high levels of
 inventory for end products.  Additionally, the pace of new program rampings
 has been slower than anticipated because of the reduced levels of demand for
 customers' products.  The new program revenues have not grown at a pace
 sufficient to offset the downturn experienced in the existing customer
 programs.
     Sales for the first quarter ending March 31, 2001 will be in the range of
 $440 million to $445 million.  Diluted earnings per share, excluding
 restructuring charges are expected to be in a range of $0.30 - $0.32.  Second
 quarter earnings, excluding restructuring charges are currently expected to be
 in the range of $0.16 - $0.20 based on revenues in the range of $400 million
 to $420 million.
     The Company has recently begun undertaking steps to align its cost
 structure with the current revenue outlook provided by customers.  The Company
 estimates the restructuring charges, which will be recognized as a result of
 re-aligning the cost structure to be in the range of $4 million to $6 million.
     Donald E. Nigbor, president and CEO of Benchmark Electronics, Inc.
 commented:  "Over the last 20 years we have successfully managed through
 several business cycles by remaining focused on customer satisfaction, cost
 controls, and expanding our customer base.  Our team is very experienced and
 well prepared to manage the challenges and opportunities we face in the
 current business environment.  We continue to believe that the trend towards
 outsourcing will grow and that our customer base of leading players in the
 technology marketplace will drive the technology trends."
 
     This news release contains certain forward-looking statements within the
 scope of the Securities Act of 1933 and the Securities Exchange Act of 1934.
 The words "expect," "estimate," "anticipate," "predict," and similar
 expressions, and the negatives of such expressions, are intended to identify
 forward-looking statements.  Although the Company believes that these
 statements are based upon reasonable assumptions, such statements involve
 risks, uncertainties and assumptions, including but not limited to industry
 and economic conditions, customer actions and the other factors discussed in
 Benchmark's Form 10-K for the year ended December 31, 2000 and its other
 filings with the Securities and Exchange Commission.  Should one or more of
 these risks or uncertainties materialize, or should underlying assumptions
 prove incorrect, actual outcomes may vary materially from those indicated.
 
     Benchmark Electronics, Inc. is in the business of manufacturing
 electronics and provides its services to original equipment manufacturers of
 telecommunication equipment, computers and related products for business
 enterprises, video/audio/entertainment products, industrial control equipment,
 testing and instrumentation products, personal computers and medical devices.
 Benchmark's global operations include 16 facilities in six countries.
 Benchmark's Common Stock trades on the New York Stock Exchange under the
 symbol BHE.
 
 

SOURCE Benchmark Electronics, Inc.
    ANGLETON, Texas, April 2 /PRNewswire/ --
 Benchmark Electronics, Inc. (NYSE:   BHE) revised the earnings outlook for the
 first and second quarters of 2001, due to the slowdown in the technology
 marketplace.  Delayed delivery dates and cancellations from customers have
 continued to mount as a result of the weaker demand and high levels of
 inventory for end products.  Additionally, the pace of new program rampings
 has been slower than anticipated because of the reduced levels of demand for
 customers' products.  The new program revenues have not grown at a pace
 sufficient to offset the downturn experienced in the existing customer
 programs.
     Sales for the first quarter ending March 31, 2001 will be in the range of
 $440 million to $445 million.  Diluted earnings per share, excluding
 restructuring charges are expected to be in a range of $0.30 - $0.32.  Second
 quarter earnings, excluding restructuring charges are currently expected to be
 in the range of $0.16 - $0.20 based on revenues in the range of $400 million
 to $420 million.
     The Company has recently begun undertaking steps to align its cost
 structure with the current revenue outlook provided by customers.  The Company
 estimates the restructuring charges, which will be recognized as a result of
 re-aligning the cost structure to be in the range of $4 million to $6 million.
     Donald E. Nigbor, president and CEO of Benchmark Electronics, Inc.
 commented:  "Over the last 20 years we have successfully managed through
 several business cycles by remaining focused on customer satisfaction, cost
 controls, and expanding our customer base.  Our team is very experienced and
 well prepared to manage the challenges and opportunities we face in the
 current business environment.  We continue to believe that the trend towards
 outsourcing will grow and that our customer base of leading players in the
 technology marketplace will drive the technology trends."
 
     This news release contains certain forward-looking statements within the
 scope of the Securities Act of 1933 and the Securities Exchange Act of 1934.
 The words "expect," "estimate," "anticipate," "predict," and similar
 expressions, and the negatives of such expressions, are intended to identify
 forward-looking statements.  Although the Company believes that these
 statements are based upon reasonable assumptions, such statements involve
 risks, uncertainties and assumptions, including but not limited to industry
 and economic conditions, customer actions and the other factors discussed in
 Benchmark's Form 10-K for the year ended December 31, 2000 and its other
 filings with the Securities and Exchange Commission.  Should one or more of
 these risks or uncertainties materialize, or should underlying assumptions
 prove incorrect, actual outcomes may vary materially from those indicated.
 
     Benchmark Electronics, Inc. is in the business of manufacturing
 electronics and provides its services to original equipment manufacturers of
 telecommunication equipment, computers and related products for business
 enterprises, video/audio/entertainment products, industrial control equipment,
 testing and instrumentation products, personal computers and medical devices.
 Benchmark's global operations include 16 facilities in six countries.
 Benchmark's Common Stock trades on the New York Stock Exchange under the
 symbol BHE.
 
 SOURCE  Benchmark Electronics, Inc.