8-K - BHE - Equibles

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM

8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):

October 28, 2020

BENCHMARK ELECTRONICS, INC.

(Exact name of registrant as specified

in its charter)

Texas

(State or other jurisdiction

of incorporation)

1-10560

(Commission

File Number)

74-2211011

(I.R.S. Employer

Identification No.)

56 South Rockford Drive

Tempe

Arizona

85281

(Address of Principal Executive

Offices)

(Zip Code)

Registrant’s telephone number,

including area code:

(

623

)

300-7000

Not Applicable

(Former

name or

former

address,

if changed

since

last report)

Check the appropriate box below

if the Form 8-K filing is intended

to simultaneously satisfy

the filing obligation of the

registrant under any of the following

provisions (see General Instruction

A.2. below):

☐

Written communications pursuant to Rule 425

under the Securities Act

(17 CFR 230.425)

☐

Soliciting material pursuant to Rule 14a-12

under the Exchange Act (17 CFR

240.14a-12)

☐

Pre-commencement communications pursuant

to Rule 14d-2(b) under the

Exchange Act (17 CFR

240.14d-2(b))

☐

Pre-commencement

communications pursuant to

Rule 13e-4(c) under the Exchange

Act (17 CFR 240.13e-4(c))

Securities

registered

pursuant

to Section

12(b) of the

Act:

Title of each class

Trading Symbol

Name of each exchange

on which registered

Common Stock, par value $0.10 per share

BHE

New York Stock Exchange

, Inc.

Indicate by check mark whether

the registrant is an emerging

growth company as defined in Rule

405 of the Securities

Act of 1933 (§230.405 of this

chapter) or Rule 12b-2 of the Securities

Exchange Act of 1934 (§240.12b-2

of this chapter).

Emerging growth company

☐

If an emerging growth company, indicate by check

mark if the registrant has

elected not to use the extended

transition

period for complying with any new

or revised financial accounting

standards provided pursuant to

Section 13(a) of the

Exchange Act.

☐

-1-

Item 2.02.

Results of Operations and

Financial Condition.

On October 28, 2020, Benchmark Electronics,

Inc. (the “Company”) issued a press

release announcing its

results of

operations for the quarter ended September

30, 2020.

A copy of the press release and

accompanying investor

presentation are attached hereto as

Exhibits 99.1 and 99.2, respectively, and incorporated

by reference herein.

The

information disclosed under this

Item 2.02, including Exhibits

99.1 and 99.2 hereto, shall not be deemed

“filed” for

purposes of Section 18 of the Securities

Exchange Act of 1934,

as amended (the “Exchange Act”),

or deemed

incorporated by reference in any filing

under the Securities Act of 1933,

as amended, 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.

(d)

Exhibits

Exhibit

No.

Description

99.1

Press release, dated October 28, 2020

99.2

Investor presentation, dated October 28, 2020

104

Cover Page Interactive Data File

(embedded within the Inline XBRL

document)

-2-

SIGNATURES

Pursuant to the requirements of

the Securities Exchange Act of 1934,

the registrant has duly caused this

report to be

signed on its behalf by the undersigned

hereunto duly authorized.

BENCHMARK ELECTRONICS, INC.

Date: October 28, 2020

By: /s/ Stephen J. Beaver

Stephen J. Beaver, Esq.

Vice President General Counsel

earningsrelease

Exhibit 99.1

FOR IMMEDIATE RELEASE

BENCHMARK REPORTS THIRD QUARTER 2020 RESULTS

●

Quarterly revenue of $526 million

●

Semi-Cap revenue growth of 45% year-over-year

●

Medical revenue growth of 5% year-over-year

●

Quarterly GAAP diluted EPS of $0.16 and non-GAAP diluted EPS of $0.32

TEMPE, AZ, October 28, 2020 – Benchmark Electronics, Inc. (NYSE: BHE) today announced financial

results for the third quarter ended September 30, 2020.

Three Months Ended

Sep 30,

Jun 30,

Sep 30,

In millions, except EPS

2020

2019

Sales

$526

$491

$555

Net income (loss)

(2)

$(3)

Net income – non-GAAP

(1)(2)

$12

$14

Diluted earnings (loss) per share

(2)

$0.16

$(0.09)

$0.19

Diluted EPS – non-GAAP

(1)(2)

$0.32

$0.07

$0.36

Operating margin

(2)

1.6%

(0.4)%

1.8%

Operating margin – non-GAAP

(1)(2)

3.0%

1.2%

3.2%

(1)

A reconciliation of GAAP and non

-GAAP results is included below.

(2)

Results for the third

quarter ended September 30, 2020 and second

quarter ended June 30, 2020 include the

impact of approximately $1.3 million

and $3.4 million of COVID-19 related

costs,

respectively.

“We delivered sequential revenue and earnings growth in the third quarter as our business started to

recover from second quarter disruptions, enabling earnings to come in above our guidance for the

quarter,”

said CEO and President Jeff Benck. “The results were driven by a 45% year-over-year

improvement in Semi-cap and an 18% sequential improvement in the Aerospace and Defense sector,

where demand for defense related products remains strong.

In addition, third quarter non-GAAP gross

and operating margins improved significantly from the second quarter,

reaching 8.7% and 3.0%

respectively, as our global network returned to normal operating capacity.”

“Entering the fourth quarter,

we expect stronger demand and new programs in Defense, Industrials, and

Telecommunications to

offset declines in Medical as we are completing some of the incremental upside

builds for COVID-19 related therapeutic equipment.

We continue to make progress on improving gross

margins as we expect to achieve our 9% target in the fourth quarter,

which will enable us to also

improve earnings sequentially.”

Cash Conversion Cycle

Sep 30,

Jun 30,

Sep 30,

2020

2019

Accounts receivable days

Contract asset days

Inventory days

Accounts payable days

(54)

(61)

(52)

Customer deposits

(11)

(10)

(7)

Cash Conversion Cycle days

Third Quarter 2020 Industry Sector Update

Revenue and percentage of sales by industry sector (in millions) was as follows.

Sep 30,

Jun 30,

Sep 30,

Higher-Value Markets

2020

2019

Medical

134

135

128

Semi-Cap

A&D

105

115

Industrials

115

424

397

426

Sep 30,

Jun 30,

Sep 30,

Traditional Markets

2020

2019

Computing

Telecommunications

102

129

Total

526

100

491

100

555

100

Overall, higher-value market revenues during the third quarter were up 7% quarter-over-quarter and

down 1% year-over-year.

Traditional market

revenues were up 9% quarter-over-quarter due to stronger

demand for high performance computing and telecommunications products and down 21% year-over-

year primarily from the Company’s exit of a legacy Computing contract

in 2019, which it decided not to

renew.

Fourth Quarter 2020 Outlook

●

Revenue between $500 - $540 million

●

Diluted GAAP earnings per share between $0.20

$0.24

●

Diluted non-GAAP earnings per share between $0.32 - $0.36 (excluding restructuring charges

and other costs and amortization of intangibles)

●

Our guidance includes known constraints due to COVID-19 and assumes no further significant

interruptions occur to our supply base, operations, or customers.

Guidance also assumes no

material changes to market conditions due to COVID-19.

Restructuring charges are expected to range between $2.8 million to $3.2 million in the fourth quarter

and the amortization of intangibles is expected to be $2.4 million in the fourth quarter.

Third Quarter 2020 Earnings Conference Call

The Company will host a conference call to discuss the results today at 5:00 p.m. Eastern Time.

The live

webcast of the call and accompanying reference materials will be accessible by logging on to the

Company's website at

www.bench.com

. A replay of the broadcast will

also be available until Wednesday,

November 4, 2020 on the Company's website.

About Benchmark Electronics, Inc.

Benchmark provides comprehensive solutions across the entire product life cycle by leading through its

innovative technology and engineering design services, leveraging its optimized global supply chain and

delivering world-class manufacturing services in the following industries: commercial aerospace,

defense, advanced computing, next generation telecommunications, complex industrials, medical, and

semiconductor capital equipment. Benchmark's global operations include facilities in seven countries

and its common shares trade on the New York Stock Exchange under the symbol BHE.

For More Information, Please Contact:

Lisa K. Weeks, VP of Strategy & Investor

Relations

623-300-7052 or lisa.weeks@bench.com

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the

Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The words "expect,"

"estimate," "anticipate," "could",

"predict" and similar expressions, and the negatives thereof, often

identify forward-looking statements, which are not limited to historical facts. Forward

-looking

statements include, among other things, the estimated financial impact of the COVID-19 pandemic, our

outlook and guidance for fourth quarter 2020 results, the company’s anticipated plans and responses to

the COVID-19 pandemic, statements (express or implied) concerning future operating results or margins,

the ability to generate sales and income or cash flow,

and expected revenue mix, and Benchmark’s

business and growth strategies. Although the company believes these statements are based on and

derived from reasonable assumptions, they involve risks and uncertainties relating to operations,

markets and the business environment generally.

These statements also depend on the duration and

severity of the COVID-19 pandemic and related risks, including government and other third-party

responses to the crisis and the consequences for the global economy,

our business and the businesses

of our suppliers and customers.

Events relating to or resulting from the COVID-19 pandemic,

including

the possibility of customer demand fluctuations, supply chain constraints, or the ability to utilize our

manufacturing facilities at sufficient levels to cover our fixed operating costs, may

have resulting impacts

on the company’s business, financial condition, results of operations, and the company’s ability (or

inability) to execute on its plans to respond to the COVID-19 pandemic.

If one or more of these risks or

uncertainties materializes, or underlying assumptions prove incorrect, actual outcomes may vary

materially from those indicated. Readers are advised to consult further disclosures on these risks and

uncertainties, particularly in Part 1, Item 1A, "Risk Factors" of the Company's Annual Report on Form 10-

K for the year ended December 31, 2019 and in its subsequent filings with the Securities and Exchange

Commission. All forward-looking statements included in this document are based upon information

available to the company as of the date of this document, and it assumes no obligation to update them.

Non-GAAP Financial Measures

Management discloses non‐GAAP information to provide investors with additional information to

analyze the Company

’

s performance and underlying trends. A detailed reconciliation between GAAP

results and results excluding special items (

“

non-GAAP

”

) is included in the following tables attached to

this document. In situations where a non-GAAP reconciliation has not been provided, the Company was

unable to provide such a reconciliation without unreasonable effort due to the uncertainty and inherent

difficulty predicting the occurrence, the financial impact and the periods in which the non-GAAP

adjustments may be recognized. Management uses non‐GAAP measures that exclude certain items in

order to better assess operating performance and help investors

compare results with our previous

guidance.

This document also references

“

free cash flow

”

, which the Company defines as cash flow from

operations less additions to property, plant and equipment and purchased software.

The Company

’

non‐GAAP information is not necessarily comparable to the non‐GAAP information used by 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 a measure of the Company

’

s profitability or

liquidity.

Readers should consider the types of events and transactions for which adjustments have

been made.

Benchmark Electronics, Inc. and Subsidiaries

Condensed Consolidated Statements of Income

(Amounts in Thousands, Except Per Share Data)

(UNAUDITED)

Three Months Ended

Nine Months Ended

September 30,

2020

2019

2020

2019

Sales

525,951

555,229

1,531,881

1,759,651

Cost of sales

479,597

506,274

1,407,494

1,611,436

Gross profit

46,354

48,955

124,387

148,215

Selling, general and administrative expenses

29,724

30,947

89,815

92,461

Amortization of intangible assets

2,368

2,367

7,120

7,095

Restructuring charges and other costs

7,161

5,843

15,480

10,833

Ransomware incident related costs (recovery), net

(1,558)

—

(1,305)

—

Income from operations

8,659

9,798

13,277

37,826

Interest expense

(2,136)

(1,687)

(6,189)

(5,014)

Interest income

154

734

1,040

3,084

Other income (expense), net

439

(136)

(191)

2,276

Income before income taxes

7,116

8,709

7,937

38,172

Income tax expense

1,201

1,573

1,577

7,816

Net income

5,915

7,136

6,360

30,356

Earnings per share:

Basic

0.16

0.19

0.17

0.78

Diluted

0.16

0.19

0.17

0.77

Weighted-average number of shares used in calculating

earnings per share:

Basic

36,467

37,419

36,565

38,813

Diluted

36,544

37,645

36,821

39,184

For comparative purposes, certain prior year amounts have been reclassified to conform to the current

year presentation.

Benchmark Electronics, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(UNAUDITED)

(in thousands)

September 30,

December 31,

2020

2019

Assets

Current assets:

Cash and cash equivalents

334,810

363,956

Accounts receivable, net

306,242

324,424

Contract assets

161,396

161,061

Inventories

352,851

314,956

Other current assets

29,928

30,685

Total

current assets

1,185,227

1,195,082

Property, plant and equipment, net

190,610

205,819

Operating lease right-of-use assets

82,849

76,859

Goodwill and other, net

275,821

282,114

Total

assets

1,734,507

1,759,874

Liabilities and Shareholders’ Equity

Current liabilities:

Current installments of long-term debt and finance lease obligations

8,956

8,825

Accounts payable

282,591

302,994

Accrued liabilities

157,938

147,426

Total

current liabilities

449,485

459,245

Long-term debt and finance lease obligations, less current installments

147,522

138,912

Operating lease liabilities

74,407

67,898

Other long-term liabilities

72,766

78,987

Shareholders’ equity

990,327

1,014,832

Total

liabilities and shareholders’ equity

1,734,507

1,759,874

Benchmark Electronics, Inc. and Subsidiaries

Condensed Consolidated Statement of Cash Flows

(in thousands)

(UNAUDITED)

Nine Months Ended

September 30,

2020

2019

Cash flows from operating activities:

Net income

6,360

30,356

Depreciation and amortization

36,939

36,389

Stock-based compensation expense

9,464

8,461

Accounts receivable, net

16,410

121,171

Contract assets

(335)

(20,986)

Inventories

(37,131)

(6,557)

Accounts payable

(18,260)

(122,156)

Other changes in working capital and other, net

12,168

10,636

Net cash provided by operations

25,615

57,314

Cash flows from investing activities:

Additions to property, plant and equipment and software

(29,102)

(25,942)

Other investing activities, net

2,586

252

Net cash used in investing activities

(26,516)

(25,690)

Cash flows from financing activities:

Share repurchases

(19,329)

(118,350)

Net debt activity

8,395

(4,614)

Other financing activities, net

(18,747)

(17,699)

Net cash used in financing activities

(29,681)

(140,663)

Effect of exchange rate

changes

1,436

(1,021)

Net decrease in cash and cash equivalents

(29,146)

(110,060)

Cash and cash equivalents at beginning of year

363,956

458,102

Cash and cash equivalents at end of period

334,810

348,042

Benchmark Electronics, Inc. and Subsidiaries

Reconciliation of GAAP to Non-GAAP Financial Results

(Amounts in Thousands, Except Per Share Data)

(UNAUDITED)

Three Months Ended

Nine Months Ended

Sep 30,

Jun 30,

Sep 30,

2020

2019

2020

2019

Income (loss) from operations (GAAP)

8,659

(1,872)

9,798

13,277

37,826

Restructuring charges and other costs

1,425

5,574

5,843

8,737

10,833

Ransomware incident related costs (recovery), net

(1,558)

—

(1,305)

—

Settlement

—

773

Impairment

5,736

—

6,743

—

Customer insolvency (recovery)

(796)

(353)

—

(1,149)

(2,758)

Amortization of intangible assets

2,368

2,371

2,367

7,120

7,095

Non-GAAP income from operations

15,834

5,803

18,008

33,423

53,769

Gross Profit (GAAP)

46,354

34,672

48,955

124,387

148,215

Settlement

—

773

Customer insolvency (recovery)

(796)

(353)

—

(1,149)

(1,040)

Non-GAAP gross profit

45,558

34,319

48,955

123,238

147,948

Net income (loss) (GAAP)

5,915

(3,407)

7,136

6,360

30,356

Restructuring charges and other costs

1,425

5,574

6,168

8,737

11,158

Ransomware incident related costs (recovery), net

(1,558)

—

(1,305)

—

Customer insolvency (recovery)

(796)

(353)

—

(1,149)

(2,758)

Amortization of intangible assets

2,368

2,371

2,367

7,120

7,095

Settlements

—

(83)

—

(2,248)

Impairment

5,736

—

6,743

—

Income tax adjustments

(1)

(1,458)

(1,584)

(1,879)

(4,123)

(2,711)

Non-GAAP net income

11,632

2,684

13,709

22,383

40,892

Diluted earnings (loss) per share:

Diluted (GAAP)

0.16

(0.09)

0.19

0.17

0.77

Diluted (Non-GAAP)

0.32

0.07

0.36

0.61

1.04

Weighted-average number of shares used in

calculating diluted earnings (loss) per share:

Diluted (GAAP)

36,544

36,439

37,645

36,821

39,184

Diluted (Non-GAAP)

36,544

36,689

37,645

36,821

39,184

(1)

This amount represents the tax impact of the non-GAAP adjustments using the applicable effective

tax rates.

ex992

Exhibit 99.2

Benchmark Q3-20 Earnings Call October 28, 2020 Benchmark 1 2020 Benchmark

Electronics, Inc. 1

Forward-Looking Statements This press release contains forward-looking

statements within the meaning of Section 27A of the Securities Act

of 1933 and Section 21E of the Securities Exchange Act of 1934. The

words "expect," "estimate," "anticipate," "could" "predict" and

similar expressions, and the negatives thereof, often identify forward

-looking statements, which are not limited to historical facts. Forward

-looking statements include, among other things, the estimated

financial impact of the COVID-19 pandemic, the outlook and guidance

for fourth quarter 2020 results, the company’s anticipated plans

and responses to the COVID-19 pandemic, statements (express or implied)

concerning future operating results or margins, the ability to

generate sales and income or cash flow, and expected revenue

mix; and Benchmark’s business and growth strategies. Although the

company believes these statements are based upon reasonable assumptions,

they involve risks and uncertainties relating to operations, markets

and the business environment generally. These statements

also depend on the duration and severity of the COVID-19 pandemic

and related risks, including government and other third-party responses

to it and the consequences for the global economy, our business

and the businesses of our suppliers and customers. Events relating

to or resulting from the COVID-19 pandemic, including the possibility

of customer demand fluctuations, supply chain constraints, or

the ability to utilize our manufacturing facilities at sufficient levels

to cover our fixed operating costs, may have resulting impacts on

the company’s business, financial condition, results of operations,

and the company’s ability (or inability) to execute on its plans

to respond to the COVID-19 pandemic. If one

or more of these risks or uncertainties materializes, or underlying assumptions

prove incorrect, actual outcomes may vary materially from those

indicated. Readers are advised to consult further disclosures on these

risks and uncertainties, particularly in Part 1, Item 1A, "Risk Factors"

of the company's Annual Report on Form 10-K for the year

ended December 31, 2019 and in its subsequent filings with the Securities

and Exchange Commission. All forward-looking statements included

in this document are based upon information available to the company

as of the date of this document, and it assumes no obligation

to update them. Non-GAAP Financial Information This document

includes certain financial measures that exclude items and therefore

are not in accordance with U.S. generally accepted accounting principles

(“GAAP”). A detailed reconciliation between GAAP results and

results excluding special items (“non-GAAP”) is included in the

Appendix of this document. In situations where a non-GAAP reconciliation

has not been provided, the company was unable to provide such

a reconciliation without unreasonable effort due to the uncertainty

and inherent difficulty predicting the occurrence,

the financial impact and the periods in which the non-GAAP adjustments

may be recognized. Management discloses non‐GAAP information to

provide investors with additional information to analyze the Company’s

performance and underlying trends. Management uses non‐GAAP measures

that exclude certain items in order to better assess operating performance

and help investors compare results with our previous guidance. This document

also references “free cash flow”, which the Company defines as

cash flow from operations less additions to property, plant and

equipment and purchased software. The Company’s non‐GAAP

information is not necessarily comparable to the non‐GAAP information

used by 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 a measure

of the Company’s profitability or liquidity. Readers should consider

the types of events and transactions for which adjustments have been

made. Benchmark 2 2020 Benchmark Electronics, Inc. 2

Third Quarter 2020 Overview Achieved revenue of $526 million Realized

Non-GAAP gross margin of 8.7% and Non-GAAP operating margin

of 3.0% Global facilities returned to normal operating capacity; employee

safety remains a priority Non-GAAP earnings per share of $0.32

Cash conversion cycle of 81 days Benchmark 3 2020 Benchmark

Electronics, Inc. 3

New Business Wins Continue Medical Rapid COVID-19 diagnostic

device manufacturing (mfg) Pulmonary pharmaceutical device

(process design, & mfg) Optical diagnostic product for renal applications

(design) Semi-Cap Control box for Semi-Cap tools (design)

Lithography device (manufacturing) Aerospace & Defense

Secure communication radio modules (design solutions & mfg) Fighter

aircraft electronics (mfg) Industrials Lidar electronics and full system

build (mfg) Oscilloscopes (design and mfg) Computing & Telco

Hyper Scale Computing (mfg prototyping) Network control

and monitoring electronics (mfg) dnanudge DNANUDGE selects

benchmark for volume manufacturing of rapid, lab-free

covid-19 testing system Awarded to Benchmark’s engineering and

manufacturing facility in The Netherlands Partnering with DnaNudge

to provide design for excellence and high reliability manufacturing

for rapid launch in the European market ZOLL Benchmark helpED

zoll meet heightened demand for ventilator production created

by covid-19 pandemic Awarded to Benchmark’s engineering

and manufacturing facility in New Hampshire Benchmark established

production Line for the ZOLL EMV+ Ventilators and

ramped to full capacity in nearly six weeks Benchmark 4 2020 Benchmark

Electronics, Inc. 4

Roop Lakkaraju Chief Financial Officer Benchmark 5 2020 Benchmark

Electronics, Inc. 5

Revenue by Mix and Market Sector For the Three Months Ended Sept.

30, 2020 June 30, 2020 Sept. 30, 2019 Higher-Value Markets

Mix % Revenue Mix % Revenue Q/Q Mix % Revenue Y/Y

Medical 26% $134 27% $135 0% 23% $128 5% Semi-Cap 19%

$99 18% $87 14% 12% $68 45% Aerospace & Defense 20%

$105 18% $88 18% 21% $115 (9%) Industrials 16% $86 18% $87 (1%)

21% $115 (25%) Total Mix and Revenue 81% $424 81% $397

7% 77% $426 (1%) Traditional Markets Mix % Revenue Mix

% Revenue Q/Q Mix % Revenue Y/Y Computing 8% $44 9%

$44 1% 11% $59 (26%) Telecommunications 11% $58 10%

$50 16% 12% $70 (17%) Total Mix and Revenue 19% $102 19%

$94 9% 23% $129 (21%) Dollars in millions Benchmark 6 2020

Benchmark Electronics, Inc. 6

Third Quarter 2020 Financial Summary (GAAP) For the Three Months

Ended (In millions, except EPS) Sept. 30, 2020 June 30, 2020 Q/Q

Sept. 30, 2019 Y/Y Net Sales $526 $491 7% $555 (5%) GAAP Gross

Margin 8.8% 7.1% 170 bps 8.8% -- GAAP SG&A $29.7 $28.5 4%

$30.9 (4%) GAAP Operating Margin 1.6% (0.4%) 200 bps 1.8%

(20 bps) GAAP Diluted EPS $0.16 ($0.09) 278% $0.19 (16%) GAAP

ROIC 0.6% 0.7% (10 bps) 5.2% (460 bps) See APPENDIX 1 for a reconciliation

of GAAP to non-GAAP Financial Results GAAP ROIC = (GAAP

TTM income from operations – GAAP Tax Impact)

÷ (Average Invested Capital for last 5 quarters)

Benchmark 7 2020 Benchmark Electronics, Inc. 7

Third Quarter 2020 Financial Summary (Non-GAAP) For the Three

Months Ended (In millions, except EPS) Sept. 30, 2020 June 30,

2020 Q/Q Sept. 30, 2019 Y/Y Net Sales $526 $491 7% $555 (5%)

Non-GAAP Gross Margin 8.7% 7.0% 170 bps 8.8% (10 bps) Non-GAAP

SG&A $29.7 $28.5 4% $30.9 (4%) Non-GAAP Operating Margin

3.0% 1.2% 180 bps 3.2% (20 bps) Non-GAAP Diluted EPS

$0.32 $0.07 357% $0.36 (11%) Non-GAAP ROIC 5.8% 5.9% (10 bps)

8.2% (240 bps) See APPENDIX 1 for a reconciliation of GAAP

to non-GAAP Financial Results Non-GAAP ROIC = (Non-GAAP

TTM income from operations + Stock-based compensation –

Non-GAAP Tax Impact) ÷ [Average Invested Capital for

last 5 quarters] Benchmark 8 2020 Benchmark Electronics, Inc.

Cash Flow / Balance Sheet Summary For the Three Months Ended Cash

(In millions) Sept. 30, 2020 June 30, 2020 Sept. 30, 2019 Cash Flows

from (used in) Operations $6 $23 ($11) FCF (1) $0 $13 ($22) Cash

$335 $356 $348 International $174 $162 $180 US $161 $194 $168

(1) Free cash flow (FCF) defined as net cash provided by (used

in) operations less capex Debt Structure (In millions) Senior Secured

Term Loan $139 Revolving Credit Facility Drawn Amount $15

* Leverage ratio is Net debt/LTM adjusted EBITDA, as defined

in the credit facility, which are non-GAAP measures Flexible

and conservative capital structure CARES Act implementation;

deferral of social security tax payments until 2021/2022 Credit

facility matures July 2023

Current leverage ratio* in compliance with debt covenants Benchmark

9 2020 Benchmark Electronics, Inc. 9

Working Capital Update Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20

Accounts Receivable Days 54 56 57 56 55 52 Contract Asset

Days 23 26 29 28 28 28 Inventory Days 52 56 60 65 72 66 Deposits

3 7 7 7 10 11 Accounts Payable Days 60 52 58 61 61 54 Cash

Conversion Cycle 66 79 81 81 84 81 The updated CCC target is 78 to

83 days; excluding the legacy computing contract Continued Focused

Efforts on Demand Management Benchmark 10 2020 Benchmark

Electronics, Inc. 10

Capital Allocation Update Dividends Quarterly dividend of $0.16 per

share totaling $5.8 million paid in October 2020 Recurring quarterly

dividends to continue until further notice Share Repurchases

Remaining authorization to repurchase shares of $210 million as

of September 30, 2020 Will opportunistically consider share

repurchases going forward Benchmark 11 2020 Benchmark Electronics,

Inc. 11

Fourth Quarter 2020 Guidance Guidance Net Sales (in millions) $500

– $540 Diluted EPS – non-GAAP* $0.32 – $0.36 Q4-20 Model

Inputs Operating Margin - non-GAAP* 3.3 – 3.5% Other

Expenses, Net (in millions) $2.7 Effective Tax Rate 18 - 20%

Weighted Average Shares (in millions) ~36.5* The

above guidance excludes the impact of amortization of intangible assets

and estimated restructuring charges and other costs. Our guidance

includes known constraints due to COVID-19 and assumes no further

significant interruptions occur to our supply base, operations, or customers.

Guidance also assumes no material changes to market conditions due

to COVID-19. Benchmark 12 2020 Benchmark Electronics, Inc.

Jeff Benck President & Chief Executive Officer Benchmark 13 2020 Benchmark

Electronics, Inc. 13

Revenue Trends by Market Sector Sector Q4-20 Market Demand

Q4-20 Revenue Outlook Comments Medical Softer demand as COVID-19

product build out abates Non-COVID devices recovering in first

half 2021 Semi-Cap Demand outlook for Q4 remains strong Expect

demand to remain strong through next year Defense Continued strong demand

in defense (~70% of sector revenues) Security, munitions, aircraft,

and satellite demand remains strong Aerospace Significant decline

in commercial aircraft related revenues No recovery expected

in Q4 and not anticipated in 2021 Industrial Limited recovery for

oil & gas, commercial building & transportation markets Higher revenue

in Q4 from engineering services projects Computing/ Telco High

performance computing strength; enterprise demand muted Network

infrastructure demand remains strong; commercial satellites stable

Benchmark 14 2020 Benchmark Electronics, Inc. 14

Key Strategic Initiatives Remain on Track Focus on the Customer

Optimize customer experience; customer satisfaction remains high Aligning

Benchmark capabilities to customer technology roadmaps Grow Our

Business Expand and scale strategic customers in target markets

Investing in technology innovations to increase win rates

Selling the full breadth of services and capabilities Drive Enterprise

Efficiencies Optimizing footprint around customer needs and for

greater efficiency Right sizing SG&A expenses Engage Talent

and Shift Culture Continuing to invest in critical skills, tools, and talent

development Advancing Diversity and Inclusion efforts as part

of ESG focus Benchmark 15 2020 Benchmark Electronics, Inc. 15

Mid-Term Target Model (through 2022) ~5% Annual Revenue

Growth 9.3 – 9.7% Expand Non-GAAP Gross Margins < 6% Manage

SG&A Expenses 3.4 – 3.8% Increase Non-GAAP Operating Margins

Highly selective and targeted customer base for strategic account

growth Effective management of SG&A expenses Expect to

grow earnings faster than revenue Resulting improvements to ROIC

Benchmark 16 2020 Benchmark Electronics, Inc. 16

Appendix Benchmark 17 2020 Benchmark Electronics, Inc. 17

APPENDIX 1 - Reconciliation of GAAP to non-GAAP Financial

Results (Amounts in Thousands, Except Per Share Data)

– (UNAUDITED) Three Months Ended Sep 30, Jun 30, Sep 30, 2020 2020

2019 Income (loss) from operations (GAAP) $ 8,659 $ (1,872)$

9,798 Restructuring charges and other costs 1,425 5,574 5,843 Ransomware

incident related costs (recovery), net (1,558) 83 — Settlement — —

— Impairment 5,736 — — Customer insolvency (recovery)

(796) (353) — Amortization of intangible assets 2,368 2,371 2,367 Non-GAAP

income from operations $ 15,834 $ 5,803 $ 18,008 Gross Profit

(GAAP) $ 46,354 $ 34,672 $ 48,955 Settlement — — — Customer

insolvency (recovery) (796) (353) — Non-GAAP gross profit

$ 45,558 $ 34,319 $ 48,955 Net income (loss) (GAAP) $ 5,915 $

(3,407)$ 7,136 Restructuring charges and other costs 1,425 5,574

6,168 Ransomware incident related costs (recovery),

net (1,558) 83 — Customer insolvency (recovery) (796) (353) — Amortization

of intangible assets 2,368 2,371 2,367 Settlements — — (83) Impairment

5,736 — — Income tax adjustments(1) (1,458) (1,584) (1,879)

Non-GAAP net income $ 11,632 $ 2,684 $ 13,709 Diluted earnings

(loss) per share: Diluted (GAAP) $ 0.16 $ (0.09)$ 0.19 Diluted

(Non-GAAP) $ 0.32 $ 0.07 $ 0.36 Weighted-average

number of shares used in calculating diluted earnings (loss) per share:

Diluted (GAAP) 36,544 36,439 37,645 Diluted (Non-GAAP)

36,544 36,689 37,645 (1) This amount represents the tax impact

of the non-GAAP adjustments using the applicable effective

tax rates. Benchmark 18 2020 Benchmark Electronics, Inc. 18

APPENDIX 2 - Reconciliation of GAAP to Non-GAAP Financial Measures

(Amounts in Thousands) – (UNAUDITED) Three Months Ended

Sep 30, 2020 June 30, 2020 Sep 30, 2019 GAAP Gross Profit $46,354

$34,672 $48,955 Customer insolvency (recovery) (796)

(353) - Non-GAAP Gross Profit $45,558 $34,319 $48,955 Benchmark 19 2020

Benchmark Electronics, Inc. 19

APPENDIX 3 - Reconciliation of Free Cash Flow (Amounts in Thousands)

– (UNAUDITED) Three Months Ended Sep 30, 2020 June

30, 2020 Sep 30, 2019 Net Cash Provided by (Used in) Operations

$5,697 $23,027 ($11,458) Additions to property, plant

and equipment and software (5,812) (10,394) (10,447) Free

Cash Flow (Free Cash Flow Used) ($115) $12,633 ($21,905) Benchmark

20 2020 Benchmark Electronics, Inc. 20