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Benchmark Electronics, Inc. has announced financial results for the fourth quarter and year ended December 31, 2020.
Fourth quarter 2020 results:
- Revenue of $521 million
- GAAP gross margin of 9.7% and non-GAAP gross margin of 9.6%
- Cash flow generated from operations of $95 million
- GAAP diluted EPS of $0.21 and non-GAAP diluted EPS of $0.34
Full year 2020 results:
- Revenue of $2.1 billion
- Semi-Cap revenue growth of 33% year-over-year
- Medical revenue growth of 11% year-over-year
- Higher-value markets revenue mix greater than 80%
Results for the year ended December 31, 2020 include the impact of approximately $7.1 million of net COVID-19 related costs.
Jeff Benck, Benchmark's President and CEO stated, "We closed out a very challenging year, delivering fourth quarter results that not only met our expectations, but demonstrated sequential improvement in both non-GAAP gross margins at 9.6% and higher non-GAAP earnings at $0.34 enabled by higher-value sector mix and improved utilization across the company. I am very proud of our team, which has proven to be very resourceful and resilient in the face of this pandemic and continues to deliver for our customers."
Benck continued, "Our focused efforts on improving working capital management are also bearing fruit as we generated $95 million of operating cash flow in the quarter and over $120 million for the year, which exceeded our forecast. I look forward to 2021 with optimism knowing that our strategic investments in the business to drive differentiated value and sustainability have solidified a path to achieve revenue, margin, and earnings growth in 2021 aligned with our mid-term financial goals."
Overall, higher-value market revenues were up 6% year-over-year from strength in the Semi-Cap, Medical, and A&D sectors. Traditional market revenues were down from program transitions.
First Quarter 2021 Outlook:
- Revenue between $480 - $520 million
- Diluted GAAP earnings per share between $0.11 - $0.14
- Diluted non-GAAP earnings per share between $0.18 - $0.22 (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 changes to end market conditions due to COVID-19.
- Restructuring charges are expected to range between $1.0 million and $2.0 million in the first quarter and the amortization of intangibles is expected to be $2.0 million in the first quarter.