Benchmark Electronics Reports Results for the Quarter Ended September 30, 2008

ANGLETON, Texas, Oct. 23 /PRNewswire-FirstCall/ -- Benchmark Electronics, Inc.
(NYSE: BHE), a leading contract manufacturing provider, announced sales of
$642 million for the quarter ended September 30, 2008, compared to $673
million for the same quarter in the prior year. Third quarter net income was
$24 million, or $0.36 per diluted share. In the comparable period of 2007, net
income was $22 million, or $0.30 per diluted share.

Excluding restructuring charges, amortization of intangibles, the impact of
stock-based compensation costs and a discrete tax benefit relating to a
previously closed facility, the Company would have reported net income of $21
million, or $0.32 per diluted share, in the third quarter of 2008. Excluding
restructuring charges, integration costs, amortization of intangibles, the
impact of stock-based compensation costs and a discrete tax benefit relating
to a previously closed facility, the Company would have reported net income of
$17 million, or $0.24 per diluted share, in the third quarter of 2007.

"The recent deterioration and unprecedented volatility in end market demands
which began in late September resulted in revenue softness that began to
materialize in the third quarter," said Cary T. Fu, the Company's Chief
Executive Officer. "Generally, I am pleased with our overall operating
performance during the quarter and am confident in the ability of our
organization to manage through, and take advantage of, the additional
outsourcing opportunities that this environment may bring. Our revenue
diversification and new program wins have been strong, but not strong enough
to allow us to sidestep the current macro downturn."

Third Quarter 2008 Financial Highlights
-- Operating margin for the third quarter was 3.5% on a GAAP basis and
was
3.6%, excluding restructuring charges, amortization of intangibles and
the impact of stock-based compensation expense.
-- Cash flows provided by operating activities for the third quarter were
approximately $76 million.
-- Cash and long-term investments totaled $389 million at September 30,
2008. Long-term investments consist of $48 million of auction rate
securities.
-- Accounts receivable was $415 million at September 30, 2008; calculated
days sales outstanding were 58 days.
-- Inventory was $363 million at September 30, 2008; inventory turns were
6.6 times.
-- Repurchases of common shares for the third quarter totaled $20 million
or 1.3 million shares.

Fourth Quarter 2008 Outlook
Recent demand weakness is expected to continue into the fourth quarter of
2008. While it is not possible to forecast with precision the specific impacts
to each of the industries we serve, it is anticipated that the slowdown in
technology spending will continue. Sales for the fourth quarter of 2008 are
expected to range from $600 million to $640 million. To maintain consistency
with published analysts' reports, earnings guidance going forward will only
exclude restructuring charges and will no longer exclude the impact of
stock-based compensation and amortization of intangibles. Diluted earnings per
share for the fourth quarter, excluding restructuring charges, are expected to
be between $0.25 and $0.32.

Non-GAAP Financial Measures
This press release includes financial measures for earnings and earnings per
share that exclude certain items and therefore are not in accordance with
generally accepted accounting principles (GAAP). A detailed reconciliation
between the GAAP results and results excluding special items (non-GAAP) is
included at the end of this press release. By disclosing this non-GAAP
information, management intends to provide investors with additional
information to further analyze the company's performance and underlying
trends. Management utilizes a measure of net income and earnings per share on
a non-GAAP basis that excludes certain items to better assess operating
performance and to help investors compare our results with our previous
guidance.

The non-GAAP information included in this press release is not necessarily
comparable to non-GAAP information of 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 measures of our profitability or
liquidity. Users of this financial information should consider the types of
events and transactions for which adjustments have been made.

Forward-Looking Statements
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. Our forward-looking statements may be deemed to
include, among other things, the statement that "it is anticipated that the
slowdown in technology spending will continue", that we are "confident in the
ability of our organization to not only manage through, but to take advantage
of, the additional outsourcing opportunities that this environment may bring",
and our sales and diluted earnings per share, excluding restructuring charges,
guidance for the fourth quarter of 2008, as well as other statements, express
or implied, concerning: future operating results or the ability to generate
sales, income or cash flow; and Benchmark's business and growth strategies,
including expected internal growth and performance goals. Although Benchmark
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, and customer actions.

All forward-looking statements included in this release are based upon
information available to Benchmark as of the date of the release, and
Benchmark assumes no obligation to update any such forward-looking statements.
Should one or more of these risks or uncertainties materialize, or should
underlying assumptions prove incorrect, actual outcomes may vary materially
from those indicated. Persons are advised to consult further disclosures on
related subjects in Benchmark's Form 10-K for the year ended December 31,
2007, in its other filings with the Securities and Exchange Commission and in
its press releases.

Additional Information
Benchmark Electronics, Inc. provides electronics manufacturing, design and
engineering services to original equipment manufacturers 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 20 facilities in ten
countries. Benchmark's Common Shares trade on the New York Stock Exchange
under the symbol BHE.

A conference call hosted by Benchmark management will be held today at 10:00
am (Central time) to discuss the financial results of the Company and its
future outlook. This call will be broadcast via the Internet and may be
accessed by logging on to our website at www.bench.com.

Benchmark Electronics, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Financial Results
(Amounts in Thousands, Except Per Share Data)
(UNAUDITED)

Three Months Ended Nine Months Ended
September 30, September 30,
2008 2007 2008 2007

Income from operations
(GAAP) $22,267 $14,880 $ 66,678 $ 69,952
Stock-based
compensation 384 628 2,432 2,440
Restructuring charges
and integration costs 253 1,451 253 7,001
Amortization of
intangibles 446 447 1,340 1,341

Non-GAAP income from
operations $23,350 $17,406 $ 70,703 $ 80,734

Net income (GAAP) $23,925 $22,009 $ 68,976 $ 72,406
Stock-based
compensation, net
of tax 306 443 1,740 1,688
Restructuring charges
and integration
costs, net of tax 228 1,043 228 5,211
Amortization of
intangibles, net of
tax 284 291 854 905
Income tax benefit (3,440) (6,481) (3,440) (6,481)

Non-GAAP net income $21,303 $17,305 $ 68,358 $ 73,729

Numerator for basic
earnings per share
- net income (GAAP) $23,925 $22,009 $ 68,976 $ 72,406
Interest expense on
convertible debt, net
of tax -- -- -- 147

Numerator for diluted
earnings per share
(GAAP) $23,925 $22,009 $ 68,976 $ 72,553

Earnings per share:
(GAAP)
Basic $ 0.36 $ 0.30 $ 1.02 $ 1.00
Diluted $ 0.36 $ 0.30 $ 1.01 $ 0.99

Numerator for basic
earnings per share -
net income (Non-GAAP) $21,303 $17,305 $ 68,358 $ 73,729
Interest expense on
convertible debt, net
of tax -- -- -- 147

Numerator for diluted
earnings per share
(Non-GAAP) $21,303 $17,305 $ 68,358 $ 73,876

Earnings per share:
(Non-GAAP)
Basic $ 0.32 $ 0.24 $ 1.01 $ 1.02
Diluted $ 0.32 $ 0.24 $ 1.00 $ 1.01

Weighted average
shares used in
calculating
earnings per share:
Basic 66,268 72,951 67,693 72,314
Diluted 66,630 73,626 68,251 73,313

Benchmark Electronics, Inc. and Subsidiaries

Consolidated Statements of Income
(Amounts in Thousands, Except Per Share Data)
(UNAUDITED)

Three Months Ended Nine Months Ended
September 30, September 30,
2008 2007 2008 2007

Net sales $ 641,672 $ 672,595 $ 2,008,397 $ 2,181,372
Cost of sales 597,376 633,818 1,872,859 2,033,612

Gross profit 44,296 38,777 135,538 147,760

Selling, general
and administrative
expenses 21,329 21,999 67,266 69,466
Amortization of
intangibles 446 447 1,340 1,341
Restructuring
charges and
integration costs 253 1,451 253 7,001

Income from
operations 22,268 14,880 66,679 69,952

Other income
(expense):
Interest income 1,680 3,106 6,909 7,555
Interest expense (378) (411) (1,102) (1,786)
Other income
(expense) (790) 725 1,547 1,578
Total other income,
net 512 3,420 7,354 7,347

Income before
income taxes 22,780 18,300 74,033 77,299

Income tax expense
(benefit) (1,145) (3,709) 5,057 4,893

Net income $ 23,925 $ 22,009 $ 68,976 $ 72,406

Numerator for basic
earnings per
share - net
income $ 23,925 $ 22,009 $ 68,976 $ 72,406
Interest expense
on convertible
debt, net of tax -- -- -- 147
Numerator for
diluted earnings
per share $ 23,925 $ 22,009 $ 68,976 $ 72,553

Denominator for
basic earnings
per share -
weighted average
number of common
shares outstanding
during the period 66,268 72,951 67,693 72,314
Incremental common
shares attributable
to restricted shares
and the exercise of
outstanding equity
instruments 362 675 558 999
Denominator for
diluted earnings
per share 66,630 73,626 68,251 73,313

Earnings per share:
Basic $ 0.36 $ 0.30 $ 1.02 $ 1.00
Diluted $ 0.36 $ 0.30 $ 1.01 $ 0.99

Benchmark Electronics, Inc. and Subsidiaries

Condensed Consolidated Balance Sheet
September 30, 2008
(Amounts in Thousands)
(UNAUDITED)

Assets

Current assets:
Cash and cash-equivalents $ 341,361
Accounts receivable, net 415,455
Inventories, net 362,692
Other current assets 51,204

Total current assets 1,170,712

Long-term investments 47,907
Property, plant and equipment, net 141,745
Other assets, net 25,810
Goodwill, net 283,194

Total assets $1,669,368

Liabilities and Shareholders' Equity
Current liabilities:
Current installments of long-term
debt and capital lease obligations $ 273
Accounts payable 289,725
Accrued liabilities 58,697

Total current liabilities 348,695

Long-term debt and capital lease obligations,
less current installments 11,749
Other long-term liabilities 41,501

Shareholders' equity 1,267,423

Total liabilities and shareholders' equity $1,669,368

SOURCE Benchmark Electronics, Inc.

Ellen M. Dylla, Investor Relations of Benchmark Electronics, Inc.,
+1-979-849-6550