ANGLETON, Texas, Feb. 5 /PRNewswire-FirstCall/ -- Benchmark Electronics, Inc. (NYSE: BHE), a leading contract manufacturing provider, announced sales of $582 million for the quarter ended December 31, 2008, compared to $735 million for the same quarter in the prior year. The Company reported a fourth quarter 2008 net loss of $204 million, or $3.13 per diluted share. In the comparable period of 2007, net income was $21 million, or $0.29 per diluted share.

During the fourth quarter of 2008, the Company recorded a non-cash goodwill impairment charge of $247 million ($219 million, net of tax). The Company's annual goodwill impairment analysis indicated there was an impairment of goodwill in two of its reporting segments, the Americas and Europe, primarily due to a decline in the Company's market capitalization and recent market turmoil. The impairment charge did not result in any cash expenditures and did not affect the Company's cash position, cash flows from operating activities or availability under its credit facility.

Excluding goodwill impairment and restructuring charges, the Company would have reported net income of $17 million, or $0.27 per diluted share, in the fourth quarter of 2008. Excluding restructuring charges and integration costs, the Company would have reported net income of $24 million, or $0.33 per diluted share, in the fourth quarter of 2007.

Sales for the year ended December 31, 2008 were $2.6 billion, compared to $2.9 billion in 2007. The net loss for the year ended December 31, 2008 was $136 million, or $2.02 per diluted share. In the prior year, net income was $93 million, or $1.27 per diluted share.

Excluding goodwill impairment, restructuring charges and a discrete tax benefit related to a previously closed facility, the Company would have reported net income of $82 million, or $1.22 per diluted share, in 2008. Excluding restructuring charges, integration costs and a discrete tax benefit related to a previously closed facility, the Company would have reported net income of $94 million, or $1.29 per diluted share, in 2007.

'The deterioration in end markets which began earlier in the year accelerated in the fourth quarter,' said Cary T. Fu, the Company's Chief Executive Officer. 'While 2009 will present significant challenges and uncertainties, we are confident that our customer centric business model, our focus on cost controls and our strong cash position will keep us in an excellent competitive position to manage through this downturn and subsequently benefit from its recovery.'

Fourth Quarter 2008 Financial Highlights

• Operating margin, excluding goodwill impairment and restructuring charges for the fourth quarter was 3.1%.
• Cash flows provided by operating activities for the fourth quarter were approximately $39 million and for the year were approximately $164 million.
• Cash and long-term investments totaled $408 million at December 31, 2008. Long-term investments consist of $48 million of auction rate securities.
• Accounts receivable was $422 million at December 31, 2008; calculated days sales outstanding were 65 days.
• Inventory was $343 million at December 31, 2008; inventory turns were 6.3 times.
• Repurchases of common shares for the fourth quarter totaled $7 million or 0.6 million shares.

First Quarter 2009 Outlook

Sales for the first quarter of 2009 are expected to range from $525 million to $570 million. Diluted earnings per share for the first quarter, excluding restructuring charges, are expected to be between $0.16 and $0.26.

Non-GAAP Financial Measures

This press release includes financial measures for earnings and earnings per share that exclude certain items and therefore are not in accordance with generally accepted accounting principles (GAAP). A detailed reconciliation between the GAAP results and results excluding special items (non-GAAP) is included at the end of this press release. By disclosing this non-GAAP information, management intends to provide investors with additional information to further analyze the company's performance and underlying trends.