Benchmark Electronics Inc. (NYSE:BHE) Q4 2014 Earnings Conference Call - Final Transcript

Feb 03, 2015 • 11:00 am ET

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Benchmark Electronics Inc. (NYSE:BHE) Q4 2014 Earnings Conference Call - Final Transcript

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Operator
Operator

Good day ladies and gentlemen and welcome to your Benchmark Electronics Fourth Quarter and 2014 Earnings Call. At this time all participants are in a listen-only mode. Later, we'll have a question-and-answer session and instructions will be given at that time. [Operator Instructions] As a reminder, this conference call is being recorded.

And I would now like to introduce your host for today, Lisa Weeks. You may begin.

Executive
Lisa Weeks

Good morning, everyone. I'd like to welcome you to the Benchmark Electronics earnings call for the fourth quarter of 2014. I am Lisa Weeks, VP of Strategy and Investor Relations, and thank you for joining us. Earlier today, we issued a press release highlighting our financial performance for the fourth quarter. If you did not receive a copy, you may obtain it from the Investor Relations section of our website at www.bench.com.

This call is being webcast live, and a replay will be available on our website following the call. Gayla Delly, our President and CEO; and Don Adam, our CFO, are with me this morning. After their prepared remarks, we will open the call for your questions.

For your information, Gayla and Don will be using a slide presentation, which also is available on our website. The company has provided a reconciliation of our GAAP to non-GAAP measures in the press release as well as in the appendix of the presentation slides.

During our call, we will discuss forward-looking information. As a reminder, any of today's remarks that are not statements of historical facts are forward-looking statements, which involve risks and uncertainties disclosed in the safe harbor section of our earnings release and SEC filings.

Actual results may differ materially from these statements, and Benchmark undertakes no obligation to update any forward-looking statements. If you would, please turn to slide three, and I will turn the call over to Gayla Delly, Benchmark's CEO.

Executive
Gayla Delly

Thank you, Lisa. Good morning, everyone, and thank you all for joining our call. Before Don goes through our financial results for the quarter in detail, I want to thank our teams for their strong performance. All-in-all, 2014 was an excellent year with 12% year-over-year revenue growth, 31% EPS growth, $137 million in operating cash flow and $575 million in new bookings.

As you noted in our earnings release this morning, our fourth quarter results reflected softness in revenues primarily associated with computing and telcom and our first quarter guidance continues to reflect weakness in these segments as well as seasonal impacts from other industries.

Our strong level of bookings throughout 2014 fuels the opportunity for growth as our new programs move into production and with these ramps occurring in the latter position of 2015 and approaching their expected revenue run rates in 2016, we believe we're well positioned for a solid platform for growth following the Q1 levels.

Now, let me turn it over to Don. Don?

Executive
Donald F. Adam

Thank you, Gayla, and good morning to everyone. In the fourth quarter, we generated revenues of $710 million, which was at