SAN FRANCISCO -- In a move that has taken most observers completely by surprise, Carly Fiorina has resigned as chairman and chief executive of Hewlett-Packard Co.

Fiorina, who managed the massive merger of HP with one of its chief rivals, Compaq Computer, cited differences with the board over executing its strategy.

In a statement, Fiorina suggested she was fired, "While I regret the board and I have differences about how to execute HP's strategy, I respect their decision. HP is a great company and I wish all the people of HP much success in the future."

The HP board has suggested or initiated several changes of late, from restructuring Fiorina's responsibilities to bringing on a new director whose influence is felt industry wide.

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ANGLETON, TX -- Benchmark Electronics reported fourth-quarter net income of $20.2 million on sales of $524 million.

The contract manufacturer outdid last year's performance, when it reported $487 million in sales and net income of $13.4 million, including charges.

For the year ended Dec. 31, the company reported sales of $2 billion, up 8.8%. Net income rose 28% to $71 million.

"2004 was another good year for Benchmark," said Cary T. Fu, president and CEO. "We enhanced our customer base, reduced customer concentration, expanded our low-cost manufacturing capacities, realigned our resources, increased our technical capabilities and delivered solid financial performance.

For the quarter, operating margin was 4.6%, and return on invested capital was 14%.

Inventories decreased by $33 million to $257 million; inventory turns were 7.5 times.

As of Dec. 31, Benchmark had $367 million in cash and no outstanding debt. 
Accounts receivable were $251 million. 

Benchmark guided for first quarter 2005 revenue of $510 million and $530 million.
For the year the company anticipates revenue and earnings growth of 10 to 15%.

"Our 2004 new program bookings provide good momentum for a strong 2005," Fu said.

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TEMPE, AZ -- Three-Five Systems Inc. has promoted David A. Prunier to vice president, general manager for the company's Redmond, WA, manufacturing operation.

The position is a newly created post.

Prunier, 43, joined TFS in September 2003 as senior director for the company's medical products business. He is a former general manager at Plexus, and director of manufacturing for SCI Systems.

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