Benchmark Electronics Inc. (NYSE:BHE) Q1 2019 Earnings Conference Call Transcript

Apr 24, 2019 • 05:00 pm ET

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Benchmark Electronics Inc. (NYSE:BHE) Q1 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good day. And welcome to the Benchmark Electronics Incorporated First Quarter 2019 Earnings Conference Call. All participants will be in listen-only mode. (Operator Instructions) After today's presentation there will be an opportunity to ask questions. (Operator Instructions) Please note this event is being recorded.

I would now like to turn the conference over to Lisa Weeks, Vice President of Strategy and Investor Relations. Please go ahead.

Executive
Lisa Weeks

Thank you, operator, and thanks, everyone, for joining us today for Benchmark's first quarter 2019 earnings call. With me this afternoon, I have Jeff Benck, CEO and President; and Roop Lakkaraju, CFO. Jeff will provide an overview of our first quarter results and introductory comments, and Roop will provide a detailed review of our first quarter results and second quarter outlook. We will conclude our call today with a Q&A session.

After the market closed today, we issued an earnings release highlighting our financial performance for the first quarter 2019. And we have prepared a presentation that we will reference on this call. The press release and presentation are available online under the Investor Relations section of our website at www.bench.com. This call is being webcast live and a replay will be available online following the call.

Please take a moment to review the forward-looking statements advice on Slide 2 in the presentation. During our call, we will discuss forward-looking information. As a reminder, any of today's remarks that are not statements of historical fact are forward-looking statements, which involve risks and uncertainties described in our press releases and SEC filings. Actual results may differ materially from these statements, and Benchmark undertakes no obligation to update any forward-looking statements. The Company has provided a reconciliation of our GAAP to non-GAAP measures in the earnings release, as well as in the appendix of the presentation.

If you please turn the Slide 4 in the presentation, I will now turn the call over to our CEO, Jeff Benck.

Executive
Jeff Benck

Thank you, Lisa, and welcome to everyone joining us for this afternoon's call. I'm excited to be here and it's been a great first month working with the extended Benchmark team. I had the privilege of leading a number of great technology companies before joining Benchmark, and with my product and engineering background I bring a set of experiences that can help the Company navigate through the business transformation underway. As we deliver richer offerings to increase the value that we provide to our customers. Before I share my initial observations and areas of focus, I'll provide a brief overview of our first quarter 2019 results.

Please turn to Slide 5. In the quarter ending March 31, 2019, we delivered revenue of $603 million and non-GAAP EPS of $0.33, both at or above the midpoint of our guidance range. Revenue was driven by year-over-year increases in the higher value A&D and Medical markets, assisted by increased traditional demand in Telco and legacy Computing. Even with semi-cap headwinds revenue was comparable to the first quarter of 2018.

Our non-GAAP gross