Press Release

For More Information, Call:

ELLEN M. DYLLA

INVESTOR RELATIONS

(979) 849-6550

July 29, 2009

FOR IMMEDIATE RELEASE

BENCHMARK ELECTRONICS REPORTS RESULTS FOR THE

QUARTER ENDED JUNE 30, 2009

ANGLETON, TX, JULY 29, 2009 – Benchmark Electronics, Inc. (NYSE: BHE), a leading contract manufacturing provider, announced sales of $482 million for the quarter ended June 30, 2009, compared to $682 million for the same quarter in the prior year. The Company reported second quarter net income of $12 million, or $0.18 per diluted share. In the comparable period of 2008, net income was $22 million, or $0.33 per diluted share. Excluding restructuring charges, the Company would have reported net income of $12 million, or $0.19 per diluted share, in the second quarter of 2009.

“End market demand stabilized during the quarter, except for the computing sector, which saw declines from the first quarter. These declines were offset by increased sales in all the other sectors we serve,” said Cary T. Fu, the Company’s Chief Executive Officer. “We improved profitability from the first quarter, reduced inventories and generated operating cash flows and, at the same time, aligned our capacity with customer demand. In recent weeks we have seen the pipeline of opportunities increase, but we remain guarded about the overall economy.”

Second Quarter 2009 Financial Highlights

·	Operating margin for the second quarter was 2.6% on a GAAP basis and 2.8%, excluding restructuring charges.

·	Cash flows provided by operating activities for the second quarter and first half were approximately $13 million and $77 million, respectively.

·	Cash and long-term investments balance was $452 million at June 30, 2009. Long-term investments consist of $48 million of auction rate securities.

·	Accounts receivable was $350 million at June 30, 2009; calculated days sales outstanding were 66 days.

·	Inventory was $322 million at June 30, 2009; inventory turns were 5.6 times.

·	Repurchases of common shares for the second quarter totaled $4 million or 0.3 million shares.

Third Quarter 2009 Outlook

Sales for the third quarter of 2009 are expected to range from $470 million to $520 million. Diluted earnings per share for the third quarter, excluding restructuring charges, are expected to be between $0.17 and $0.22.

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, our sales and diluted earnings per share (excluding restructuring charges), guidance for the third quarter of 2009, 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, 2008, 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 24 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				Six Months Ended
	June 30,				June 30,
	2009		2008		2009		2008

Income from operations (GAAP)	$	12,353	$	22,507	$	22,525	$	43,589
Restructuring charges		1,017		—		2,147		—
Non-GAAP income from operations	$	13,370	$	22,507	$	24,672	$	43,589


Net income (GAAP)	$	11,555	$	22,142	$	20,793	$	44,471
Restructuring charges, net of tax		641		—		1,696		—
Non-GAAP net income	$	12,196	$	22,142	$	22,489	$	44,471


Earnings per share: (GAAP)
Basic	$	0.18	$	0.33	$	0.32	$	0.65
Diluted	$	0.18	$	0.33	$	0.32	$	0.65


Earnings per share: (Non-GAAP)
Basic	$	0.19	$	0.33	$	0.35	$	0.65
Diluted	$	0.19	$	0.33	$	0.34	$	0.65


Weighted average shares used in calculating
earnings per share:
Basic		65,018		67,541		65,057		68,436
Diluted		65,197		67,714		65,315		68,672

Benchmark Electronics, Inc. and Subsidiaries

Consolidated Statements of Income

(Amounts in Thousands, Except Per Share Data)

(UNAUDITED)

	Three Months Ended June 30,						Six Months Ended June 30,
	2009			2008			2009			2008

Net sales	$	481,802		$	682,416		$	978,569		$	1,366,725
Cost of sales		447,248			636,516			912,379			1,275,737

Gross profit		34,554			45,900			66,190			90,988

Selling, general and administrative expenses		21,184			23,393			41,518			47,399
Restructuring charges		1,017			—			2,147			—

Income from operations		12,353			22,507			22,525			43,589

Other income (expense):
Interest income		489			1,986			1,328			5,229
Interest expense		(350	)		(359	)		(701	)		(724	)
Other		1			709			(395	)		2,337
Total other income, net		140			2,336			232			6,842

Income before income taxes		12,493			24,843			22,757			50,431

Income tax expense		938			2,701			1,964			5,960

Net income	$	11,555		$	22,142		$	20,793		$	44,471


Denominator for basic earnings per share - weighted average number of common shares outstanding during the period		65,018			67,541			65,057			68,436
Incremental common shares attributable to restricted shares and the exercise of outstanding equity instruments		179			173			258			236
Denominator for diluted earnings per share		65,197			67,714			65,315			68,672
Earnings per share:
Basic	$	0.18		$	0.33		$	0.32		$	0.65
Diluted	$	0.18		$	0.33		$	0.32		$	0.65

The results for the three and six months ended June 30, 2008 reflect an immaterial correction of the Company’s prior period financial statements related to stock-based compensation expense.

Texas	1-10560	74-2211011
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

3000 Technology Drive, Angleton, Texas		77515
(Address of principal executive offices)		(Zip code)

Item 2.02.	Results of Operations and Financial Condition.

	On July 29, 2009, Benchmark Electronics, Inc. issued a press release announcing results for the quarter ended June 30, 2009. 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.

	BENCHMARK ELECTRONICS, INC.



Dated: July 29, 2009	By:	/s/ CARY T. FU
		Cary T. Fu
		Chief Executive Officer

Exhibit		Description
Number

Exhibit 99.1		Press release dated July 29, 2009

Assets

Current assets:
Cash and cash-equivalents	$	403,760
Accounts receivable, net		350,474
Inventories, net		322,220
Other current assets		44,717
Total current assets		1,121,171
Long-term investments		48,394
Property, plant and equipment, net		132,517
Other assets, net		63,099
Goodwill, net		37,912
Total assets	$	1,403,093


Liabilities and Shareholders’ Equity

Current liabilities:
Current installments of capital lease obligations	$	273
Accounts payable		229,164
Accrued liabilities		53,210
Total current liabilities		282,647

Capital lease obligations, less current installments		11,537
Other long-term liabilities		29,956
Shareholders’ equity		1,078,953
Total liabilities and shareholders’ equity	$	1,403,093