BENCHMARK REPORTS SECOND QUARTER 2022 RESULTS

Second quarter 2022 results:

• Revenue of $728 million; 34% year-over-year growth
• Computing revenue growth of 73% year-over-year
• Industrials revenue growth of 59% year-over-year
• Medical revenue growth of 53% year-over-year
• Semi-Cap revenue growth of 26% year-over-year
• GAAP operating income up 110% year-over-year
• Non-GAAP operating income up 67% year-over-year
• GAAP diluted EPS of $0.49, up 145% year-over-year
• Non-GAAP diluted EPS of $0.50, up 85% year-over-year

TEMPE, Ariz., Aug. 3, 2022 /PRNewswire/ -- Benchmark Electronics, Inc. (NYSE: BHE) today announced financial results for the second quarter ended June 30, 2022.

"The second quarter continued to demonstrate our ability to execute on our growth strategy despite ongoing supply chain challenges" said Jeff Benck, Benchmark's President and CEO.

"We were pleased with the balanced revenue contribution to our performance in the second quarter, led by the Medical, Industrials, and Computing sectors. Meanwhile, our Semi-Cap sector continues to demonstrate nice growth, with demand signals pointing to strength into 2023."

Benck continued "Our bookings performance and resulting new program introduction efforts over the last two years are leading to the successful launch of many new products. This effort, coupled with our ability to fulfill greater demand from our existing customer base, is fueling our industry leading growth. We believe these demand indicators, along with our under-sized consumer exposure, has us well positioned for continued momentum through the second half of 2022."

Cash Conversion Cycle

Second Quarter 2022 Industry Sector Update
Revenue and percentage of sales by industry sector (in millions) was as follows.

Overall, higher-value market revenues were up 33% year-over-year from strength in the Industrials, Medical and Semi-Cap sectors. Traditional market revenues were up 38% year-over-year from strength in both Computing and Telecommunications sectors.

Third Quarter 2022 Guidance

• Revenue between $715 - $755 million
• Diluted GAAP earnings per share between $0.41 - $0.46
• Diluted non-GAAP earnings per share between $0.49 - $0.55 (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. Guidance also assumes no material impact to our results due to COVID disruptions.

Restructuring charges are expected to range between $1.6 million and $2.4 million in the third quarter and the amortization of intangibles is expected to be $1.6 million in the third quarter.

Second Quarter 2022 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 until Wednesday, August 10, 2022 on the Company's website.

About Benchmark Electronics, Inc.
Benchmark provides comprehensive solutions across the entire product life cycle by leading through its innovative technology and engineering design services, leveraging its optimized global supply chain and delivering world-class manufacturing services in the following industries: commercial aerospace, defense, advanced computing, next generation telecommunications, complex industrials, medical, and semiconductor capital equipment. Benchmark's global operations include facilities in seven countries and its common shares trade on the New York Stock Exchange under the symbol BHE.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are identified as any statement that does not relate strictly to historical or current facts and may include words such as "anticipate," "believe," "intend," "plan," "project," "forecast," "strategy," "position," "continue," "estimate," "expect," "may," "will," "could," "predict," and similar expressions or the negative or other variations thereof.  In particular, statements, express or implied, concerning the estimated financial impact of the COVID-19 pandemic, the company's outlook and guidance for third quarter 2022 results, the company's belief that it is well positioned for continued momentum through the second half of 2022 based on current demand indicators, the company's expectations regarding the strength of the Semi-Cap sector into 2023, the company's anticipated plans and responses to the COVID-19 pandemic, future operating results or margins, the ability to generate sales and income or cash flow, expected revenue mix, the company's business strategy and strategic initiatives, the company's repurchases of shares of its common stock, the company's expectations regarding restructuring charges and amortization of intangibles, and the company's intentions concerning the payment of dividends, among others, are forward-looking statements. Although the company believes these statements are based on and derived from reasonable assumptions, they involve risks, uncertainties and assumptions that are beyond the company's ability to control or predict, relating to operations, markets and the business environment generally, including those discussed under Part I, Item 1A of the company's Annual Report on Form 10-K for the year ended December 31, 2021 and in any of the company's subsequent reports filed with the Securities and Exchange Commission.  In particular, these statements also depend on the duration, severity and evolution of the COVID-19 pandemic and related risks, including the emergence and severity of its variants, the availability of vaccines and potential hesitancy to utilize them, government and other third-party responses to the crisis and the consequences for the global economy, the company's business and the businesses of its suppliers and customers.  Events relating to or resulting from the COVID-19 pandemic, including the possibility of customer demand fluctuations, supply chain constraints, inflationary pressures, the effects of foreign currency fluctuations, or the ability to utilize the company's manufacturing facilities at sufficient levels to cover its fixed operating costs, may have resulting impacts on the company's business, financial condition, results of operations, and the company's ability (or inability) to execute on its plans to respond to the COVID-19 pandemic.  Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes, including the future results of our operations, may vary materially from those indicated. Undue reliance should not be placed on any forward-looking statements. Forward-looking statements are not guarantees of performance. All forward-looking statements included in this document are based upon information available to the company as of the date of this document, and the company assumes no obligation to update.

Non-GAAP Financial Measures
Management discloses non‐GAAP information to provide investors with additional information to analyze the Company's performance and underlying trends. A detailed reconciliation between GAAP results and results excluding certain items ("non-GAAP") is included in the following tables attached to this document. In situations where a non-GAAP reconciliation has not been provided, the Company was unable to provide such a reconciliation without unreasonable effort due to the uncertainty and inherent difficulty predicting the occurrence, the financial impact and the periods in which the non-GAAP adjustments may be recognized. Management uses non‐GAAP measures that exclude certain items in order to better assess operating performance and help investors compare results with our previous guidance.  This document also references "free cash flow", which the Company defines as cash flow from operations less additions to property, plant and equipment and purchased software.  The Company's non‐GAAP information is not necessarily comparable to the non‐GAAP information used by other companies.  Non‐GAAP information should not be viewed as a substitute for, or superior to, net income or other data prepared in accordance with GAAP as a measure of the Company's profitability or liquidity.  Readers should consider the types of events and transactions for which adjustments have been made.

SOURCE Benchmark Electronics, Inc.