Benchmark Electronics, Inc. (BHE) has reported a 25.73 percent fall in profit for the quarter ended Mar. 31, 2015. The company has earned $14.20 million, or $0.27 a share in the quarter, compared with $19.12 million, or $0.35 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $18 million, or $0.34 a share compared with $19 million or $0.35 a share, a year ago. Revenue during the quarter went down marginally by 2.88 percent to $620.92 million from $639.34 million in the previous year period. Gross margin for the quarter expanded 34 basis points over the previous year period to 8.34 percent. Total expenses were 96.99 percent of quarterly revenues, up from 96.49 percent for the same period last year. That has resulted in a contraction of 50 basis points in operating margin to 3.01 percent.
Operating income for the quarter was $18.71 million, compared with $22.43 million in the previous year period.
However, the adjusted operating income for the quarter stood at $23.58 million compared to $22.97 million in the prior year period. At the same time, adjusted operating margin improved 20 basis points in the quarter to 3.80 percent from 3.59 percent in the last year period.
"I am pleased with the performance of our team in a challenging quarter," said Gayla J. Delly, Benchmark's president and chief executive officer .The team delivered first quarter revenues and earnings within our expectations even though industrial control demand headwinds were stronger than expected. Our operating margin improved 20 basis points year over year, driven by our ongoing focus on operational excellence and increased revenues from our growth markets. We believe we are well positioned to continue expanding operating margins throughout the year."
For the second-quarter, Benchmark Electronics, Inc. expects revenue to be in the range of $635 million to $665 million and diluted earnings per share to be in the range of $0.37 to $0.41.
Working capital increases
Benchmark Electronics, Inc. has recorded an increase in the working capital over the last year. It stood at $1,029.86 million as at Mar. 31, 2015, up 6.56 percent or $63.42 million from $966.44 million on Mar. 31, 2014. Current ratio was at 4.29 as on Mar. 31, 2015, up from 3.57 on Mar. 31, 2014.
Cash conversion cycle (CCC) has increased to 96 days for the quarter from 89 days for the last year period. Days sales outstanding were almost stable at 73 days for the quarter, when compared with the last year period.
Days inventory outstanding has increased to 65 days for the quarter compared with 64 days for the previous year period. At the same time, days payable outstanding went down to 43 days for the quarter from 47 for the same period last year.
Debt comes down
Benchmark Electronics, Inc. has recorded a decline in total debt over the last one year. It stood at $9.37 million as on Mar. 31, 2015, down 6.07 percent or $0.61 million from $9.97 million on Mar. 31, 2014. Total debt was 0.57 percent of total assets as on Mar. 31, 2015, compared with 0.60 percent on Mar. 31, 2014. Debt to equity ratio was almost stable at 0.01 as on Mar. 31, 2015, when compared with the last year. Interest coverage ratio deteriorated to 43.01 for the quarter from 47.13 for the same period last year.
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