Benchmark reports results for the quarter ended June 30, 2007

Benchmark Electronics, Inc. (NYSE: BHE) announced sales of $756 million for the quarter ended June 30, 2007, compared to $749 million for the same quarter in the prior year. Second quarter net income was $25.9 million, or $0.35 per diluted share. In the comparable period of 2006, net income was $27.5 million, or $0.42 per diluted share. Excluding restructuring charges, integration costs, amortization of intangibles and the impact of stock-based compensation costs, the Company would have reported net income of $28.6 million, or $0.39 per diluted share, in the second quarter of 2007. Excluding restructuring charges and the impact of stock-based compensation costs, the Company would have reported net income of $29.4 million, or $0.45 per diluted share, in the second quarter of 2006. 

"We are pleased with our operating results for the second quarter," said Cary T. Fu, the Company's Chief Executive Officer. "We saw a number of highlights this quarter, notably continued strength in new program bookings, solid performance across our teams and improvements in cash flow management."

"The EMS industry is undergoing change and continues to evolve," Fu continued. "Benchmark anticipated the market evolution years ago, and today, we are seeing the changes take place. We believe Benchmark remains well positioned for profitable growth as the industry is redefined."

Second Quarter 2007 Financial Highlights
-- Operating margin for the second quarter was 3.7% on a GAAP basis and
was 4.2%, excluding restructuring charges, integration costs,
amortization of intangibles and the impact of stock-based compensation
expense.
-- Cash flows provided by operating activities for the second quarter were
approximately $66 million.
-- Cash and short-term investments balance was $318 million at June 30,
2007.
-- Total debt outstanding was $13 million.
-- Accounts receivable was $501 million at June 30, 2007; calculated days
sales outstanding were 60 days.
-- Inventory was $385 million at June 30, 2007; inventory turns were
7.3 times.

Third Quarter and Full Year 2007 Guidance
We now expect a more moderate demand environment in the third quarter than previously anticipated. It will likely be a transitional quarter for several of the programs we are ramping. Looking forward, we anticipate new bookings and new program ramps to provide very strong growth for the fourth quarter. The softer demand environment during the third quarter should result in only a slight overall impact to our full year revenue and earnings guidance.

Sales for the third quarter of 2007 are expected to be between $730 million and $770 million. Diluted earnings per share for the third quarter, excluding restructuring charges, integration costs, amortization of intangibles and the impact of stock-based compensation expense, are expected to be between $0.38 and $0.42.

Sales for the full year are expected to be between $3.0 billion and $3.1 billion. Diluted earnings per share for 2007, excluding restructuring charges, integration costs, amortization of intangibles and the impact of stock-based compensation expense, are expected to be between $1.58 and $1.66.