Q3 2024 Benchmark Electronics Inc Earnings Call Transcript
Key Points
- Benchmark Electronics Inc (BHE) exceeded the midpoint of their guidance for revenue, margin, and non-GAAP EPS in the third quarter.
- The company reported a 13% year-over-year increase in semiconductor capital equipment (semicap) revenue, driven by improving demand and new customer wins.
- Non-GAAP gross margin was 10.2%, marking the fourth consecutive quarter of 10% or better margin performance.
- Benchmark Electronics Inc (BHE) delivered $29 million in free cash flow in the quarter, contributing to a trailing 12-month total of $245 million.
- The company has achieved 16 consecutive quarters of year-over-year non-GAAP operating margin expansion.
- Revenue declines were noted in industrial, medical, and advanced computing and communications sectors.
- Medical revenue decreased by 28% year-over-year, primarily due to inventory rebalancing and end-demand weakness in medical devices.
- Advanced computing and communications revenue decreased by 27% year-over-year, impacted by the completion of several large HPC programs and continued weakness in communications.
- Despite some recovery signs, the semiconductor capital equipment sector's cycle has been challenging to predict, with pockets of weakness expected to continue into 2025.
- The company faces ongoing demand challenges in several end markets, impacting their ability to grow revenue year-over-year.
(Operator Instructions)
Good day, everyone and welcome to today's Benchmark third-quarter, 2024 earnings call and webcast. (Operator Instructions)
It is now my pleasure to turn the conference over to Mr Paul Mansky, Benchmark Investor relations. Please go ahead, sir.
Thank you, Jess and thanks everyone for joining us today for benchmark's third quarter fiscal year 2024 earnings call.
Joining me this afternoon are Jeff Banks, CEO and President Brian shoemaker, our CFO and Arvind Kamal VP of finance. After the market closed today, we issued an earnings release pertaining to our financial performance for the third quarter of 2024. And we prepared a presentation that we will reference on this call. Both are available online under the investor relations section of our website at bench dotcom. This call is being webcast live and a replay will be available online following the call.
The company has provided a reconciliation of our GAAP to Non-GAAP measures in the
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