Benchmark Electronics, Inc. (BHE) has reported a 52.90 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $18.57 million, or $0.37 a share in the quarter, compared with $39.42 million, or $0.77 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $22.34 million, or $0.45 a share compared with $24.24 million or $0.48 a share, a year ago.
Revenue during the quarter went down marginally by 2.91 percent to $607.51 million from $625.72 million in the previous year period. Gross margin for the quarter expanded 36 basis points over the previous year period to 9.46 percent. Total expenses were 96.12 percent of quarterly revenues, down from 96.50 percent for the same period last year. This has led to an improvement of 38 basis points in operating margin to 3.88 percent.
Operating income for the quarter was $23.55 million, compared with $21.90 million in the previous year period.
However, the adjusted operating income for the quarter stood at $29.10 million compared to $30.14 million in the prior year period. At the same time, adjusted operating margin contracted 3 basis points in the quarter to 4.79 percent from 4.82 percent in the last year period.
"I am pleased by the Company's performance in the fourth quarter, which met or exceeded each of our commitments. Revenue and margins were at the top end of our guidance, and non-GAAP EPS of $0.45 exceeded by two cents. We generated operating cash flow of $273 million for the year and ended 2016 with cash conversion days of 74, one day lower than our target and a twenty-day improvement from the year ago period," said Paul Tufano, Benchmark's chief executive officer and president.
For the first-quarter, Benchmark Electronics, Inc. projects revenue to be in the range of $530 million to $550 million. It forecasts diluted earnings per share to be in the range of $0.19 to $0.23 . It forecasts diluted earnings per share to be in the range of $0.24 to $0.28 on an adjusted basis for the same period.
Operating cash flow improves significantly
Benchmark Electronics, Inc. has generated cash of $272.52 million from operating activities during the year, up 85.64 percent or $125.72 million, when compared with the last year.
The company has spent $21.24 million cash to meet investing activities during the year as against cash outgo of $266.80 million in the last year.
The company has spent $34.74 million cash to carry out financing activities during the year as against cash inflow of $159.64 million in the last year period.
Cash and cash equivalents stood at $681.43 million as on Dec. 31, 2016, up 46.23 percent or $215.44 million from $466 million on Dec. 31, 2015.
Working capital increases
Benchmark Electronics, Inc. has recorded an increase in the working capital over the last year. It stood at $1,119.28 million as at Dec. 31, 2016, up 6.04 percent or $63.75 million from $1,055.53 million on Dec. 31, 2015. Current ratio was at 3.71 as on Dec. 31, 2016, down from 4.17 on Dec. 31, 2015.
Debt comes down marginally
Benchmark Electronics, Inc. has recorded a decline in total debt over the last one year. It stood at $223.65 million as on Dec. 31, 2016, down 4.91 percent or $11.55 million from $235.19 million on Dec. 31, 2015. Total debt was 11.19 percent of total assets as on Dec. 31, 2016, compared with 12.42 percent on Dec. 31, 2015. Debt to equity ratio was at 0.16 as on Dec. 31, 2016, down from 0.18 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 9.94 for the quarter from 13.96 for the same period last year.
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