Q4 2024 Benchmark Electronics Inc Earnings Call Transcript
Key Points
- Benchmark Electronics Inc (BHE) achieved a significant reduction in inventory by over $130 million, or 20%, which contributed to generating over $156 million in free cash flow for the year.
- The company reported strong performance in the Semi-Cap and A&D sectors, with Semi-Cap revenue increasing by 18% year over year and A&D revenue up by 15% year over year.
- Benchmark Electronics Inc (BHE) maintained a non-GAAP operating margin of over 5% for the fourth quarter, despite slight sequential declines.
- The company is planning to expand its capacity by breaking ground on a fourth building in Penang, Malaysia, to support Semi-Cap customers, indicating confidence in future growth.
- Benchmark Electronics Inc (BHE) reported a strong bookings quarter in the Complex Industrial sector, including competitive wins in commercial gaming and audio control systems.
- Overall revenue for the fourth quarter was flat sequentially and down 5% year over year, indicating challenges in maintaining growth.
- The Medical sector experienced a 7% decline in revenue year over year, attributed to inventory rebalancing and demand weakness in medical devices.
- AC&C revenue decreased by 48% year over year, driven by the completion of large HPC programs and continued weakness in the communications business.
- Non-GAAP SG&A expenses increased by 9% sequentially and 6% year over year, primarily due to higher variable compensation.
- The company anticipates continued sector pressures in AC&C, expecting declines to persist at least through the first half of 2025.
Good afternoon, ladies and gentlemen. and welcome to the Benchmark fourth-quarter and fiscal year 2024 earnings call and webcast. (Operator Instructions) This call is being recorded on Wednesday, January 29, 2025.
I would now like to turn the conference over to Paul Mansky, Investor Relations and Corporate Development. Please go ahead.
Thank you, John, and thanks everyone for joining us today for Benchmark's fourth-quarter and fiscal year end 2024 earnings call. Joining us today are Jeff Benck, our CEO and President; Bryan Schumaker, our CFO.
After the market closed, we issued an earnings release pertaining to our financial performance for the fourth-quarter and fiscal year end 2024, and have prepared a presentation which we'll reference on this call. Both the press release and presentation are available under the investor relations section of our website at bench.com.
This call is being webcast live and a replay will be available online. After we
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