TEMPE, AZ – Benchmark Electronics reported second quarter sales of $491 million, a decrease of 18.4% year-over-year and 4.7% sequentially.
The firm posted a net loss for the quarter of $3 million, compared to net income of $9 million in the second quarter of 2019 and $4 million in the first quarter this year.
Results for the second quarter include the impact of approximately $4.1 million of Covid-19-related costs.
"Thanks to the commitment and tireless work of our global Benchmark team, we continue to successfully navigate this challenging pandemic environment,” said CEO and president Jeff Benck. “Protecting our people remains our highest priority, and we will continue our vigilance to keep people safe and our locations operational.
"Despite the current macro conditions, our team has focused on delivering products to meet the needs of our customers. Our diversified portfolio remains a strength at this time, as we saw strong second quarter growth in our medical and semi-cap sectors. Moving into the third quarter, we expect sequential improvements in revenue, profit and utilization, underpinned by stronger demand from our semi-cap and defense customers, where we have industry-leading positions."
Higher-value market revenues during the second quarter were flat year-over-year and down 6% sequentially. Demand strength in medical supporting Covid-19 solutions and new product ramps, as well as the continued semi-cap recovery, were offset by weakness in commercial aerospace and industrial markets. Traditional market revenues were up 2% sequentially due to stronger demand for high-performance computing products and down 54% year-over-year primarily from the company's exit of a legacy computing contract in 2019.
Benchmark expects third quarter revenue between $490 million and $530 million. Guidance includes known constraints due to Covid-19 and assumes no further significant interruptions to the 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 $800,000 and $1.2 million in the third quarter.