8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):    April 20, 2006

BENCHMARK ELECTRONICS, INC.

(Exact name of registrant as specified in its charter)

Texas	1-10560	74-2211011
(State or other jurisdiction	(Commission	(I.R.S. Employer
of incorporation)	File Number)	Identification No.)
3000 Technology Drive, Angleton, Texas		77515
(Address of principal executive offices)		(Zip code)
Registrant’s telephone number, including area code:  (979) 849-6550

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12(b) under the Exchange Act (17 CFR 240.14a-12(b))

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition.

On April 20, 2006, Benchmark Electronics, Inc. issued a press release announcing first quarter results for the quarter ended March 31, 2006. A copy of the press release is attached as Exhibit 99.1 hereto and is hereby incorporated herein by reference. The information in this Form 8-K is being furnished under Item 2.02 and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities and Exchange Act of 1934 (the “Exchange Act”), or otherwise subject to the liabilities of such section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01. Financial Statements and Exhibits.

(d)Exhibits

Exhibit 99.1Press release dated April 20, 2006

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	BENCHMARK ELECTRONICS, INC.
Dated: April 20, 2006	By:	/s/  CARY T. FU
	Cary T. Fu
	Chief Executive Officer

2

EXHIBITS INDEX

Exhibit
Number	Description
Exhibit 99.1	Press release dated April 20, 2006

3

EX-99.1

Exhibit 99.1

Press Release

For More Information, Call:

GAYLA J. DELLY
CHIEF FINANCIAL OFFICER	April 20, 2006
(979) 849-6550

FOR IMMEDIATE RELEASE

BENCHMARK ELECTRONICS REPORTS SALES

AND EARNINGS FOR FIRST QUARTER 2006

AND RAISES FULL YEAR 2006 GUIDANCE

ANGLETON, TX, APRIL 20, 2006 – Benchmark Electronics, Inc. (NYSE: BHE), a leading contract manufacturing provider, announced sales of $651 million for the quarter ended March 31, 2006, compared to $510 million for the same quarter last year. First quarter net income was $26.5 million, or $0.41 per diluted share. In the comparable period last year, net income was $16.9 million, or $0.26 per diluted share. Excluding restructuring charges, the impact of stock-based compensation costs and a tax benefit resulting from the closure of our UK facility, the Company had net income before special items of $24.7 million, or $0.38 per diluted share, in the first quarter of 2006. All share and per share data appearing in this press release has been retroactively adjusted for the 3-for-2 stock split completed on April 3, 2006 to holders of record as of March 27, 2006.

“These results reflect the overall strength of our business model. With overall improvements in the marketplace, our primary challenge is to properly manage our growth and maintain our execution levels,” stated Benchmark’s President and CEO Cary T. Fu.

First Quarter 2006 Financial Highlights

•Operating margin for the first quarter was 4.0% on a GAAP basis and was 4.5%, excluding restructuring charges and the impact of stock-based compensation expenses.

•Cash flows used by operating activities for the first quarter was $42.7 million.

•Cash and short-term investments balance at March 31, 2006 of $288 million.

•No debt outstanding.

•Accounts receivable balance at March 31, 2006 of $447 million; calculated days sales outstanding were 62 days.

•Inventory of $403 million at March 31, 2006; inventory turns were 6.0 times.

Second Quarter 2006 Guidance

Revenues for the second quarter of 2006 are expected to be between $630 million and $660 million. Diluted earnings per share for the second quarter, excluding restructuring charges and the impact of stock-based compensation expenses, are expected to be between $0.36 and $0.39 ($0.33 and $0.36 on a GAAP basis).

Full Year 2006 Guidance

We are raising our full year guidance. Revenues for 2006 are now expected to be between $2.55 billion and $2.60 billion. The corresponding diluted earnings per share for 2006, excluding restructuring charges, the impact of stock-based compensation expenses and the first quarter tax benefit, are expected to be between $1.48 and $1.53 ($1.46 and $1.51 on a GAAP basis).

Non-GAAP Financial Measures

This press release includes financial measures for earnings and earnings per share that excludes 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.

Non-GAAP information 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. 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, customer actions and the other factors discussed in Benchmark’s Form 10-K for the year ended December 31, 2005 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 computers and related products for business enterprises, medical devices, industrial control equipment, testing and instrumentation products, and telecommunication equipment. Benchmark’s global operations include facilities in seven 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

Consolidated Statements of Income

(Amounts in Thousands, Except Per Share Data)

(UNAUDITED)

	Three Months Ended March 31,
	2006			2005
Net sales	$	651,244		$	509,582
Cost of sales	605,878			472,097
Gross profit	45,366			37,485
Restructuring charges	2,769			—
Selling, general and administrative expenses	16,370			15,212
Income from operations	26,227			22,273
Other income (expense):
Interest expense	(86		)	(67		)
Other	1,689			670
Total other income, net	1,603			603
Income before income taxes	27,830			22,876
Income tax expense	1,308			5,947
Net income	$	26,522		$	16,929
Denominator for basic earnings per share - weighted average number of common shares outstanding during the period	63,601			62,440
Incremental common shares attributable to exercise of outstanding dilutive options	1,224			1,621
Denominator for diluted earnings per share	64,825			64,061
Earnings per share:
Basic	$	0.42		$	0.27
Diluted	$	0.41		$	0.26

Benchmark Electronics, Inc. and Subsidiaries

Condensed Consolidated Balance Sheet

March 31, 2006

(Amounts in Thousands)

(UNAUDITED)

Assets
Current assets:
Cash and cash-equivalents	$	115,645
Short-term investments	172,135
Accounts receivable, net	446,622
Inventories, net	403,161
Other current assets	29,541
Total current assets	1,167,104
Property, plant and equipment, net	97,694
Other assets, net	6,392
Goodwill, net	112,991
Total assets	$	1,384,181
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$	406,342
Other current liabilities	76,404
Total current liabilities	482,746
Other long-term liabilities	14,805
Shareholders’ equity	886,630
Total liabilities and shareholders’ equity	$	1,384,181

Benchmark Electronics, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Financial Results

Three Months Ended March 31, 2006

(Amounts in Thousands)

(UNAUDITED)

Operating income (GAAP)	$	26,227
Stock-based compensation	486
Restructuring charges	2,769
Non-GAAP operating income	$	29,482
Net income (GAAP)	$	26,522
Stock-based compensation, net of tax	372
Restructuring charges, net of tax	2,553
UK investment tax benefit	(4,760		)
Non-GAAP net income	$	24,687
Earnings per share: (GAAP)
Basic	$	0.42
Diluted	$	0.41
Earnings per share: (Non-GAAP)
Basic	$	0.39
Diluted	$	0.38
Weighted average shares used in calculating earnings per share:
Basic	63,601
Diluted	64,825