Benchmark Electronics, Inc. reported a decline in financial performance for the second quarter of 2025, with sales totaling $642.3 million, a decrease of 4% from $665.9 million in the same period last year. The company's net income fell sharply to $972,000, or $0.03 per diluted share, compared to $15.5 million, or $0.43 per diluted share, in the prior year. For the first half of 2025, total revenue was $1.27 billion, down from $1.34 billion in the first half of 2024, while net income decreased to $4.6 million from $29.5 million.
The decline in revenue was attributed primarily to a significant drop in sales within the Advanced Computing and Communications (AC&C) sector, which fell by 44% year-over-year. This was partially offset by increases in the Semiconductor Capital Equipment (Semi-Cap) and Aerospace and Defense (A&D) sectors, which saw growth of 11% and 16%, respectively. The company noted that sales to its ten largest customers accounted for 53% of total sales, highlighting the concentration risk in its customer base.
Operationally, Benchmark Electronics has been undergoing restructuring initiatives aimed at improving efficiency and reducing costs. The company recognized $3.3 million in restructuring charges during the first half of 2025, primarily related to workforce reductions in the Americas. Additionally, the company incurred $10.7 million in settlement costs related to a tax assessment. Selling, general, and administrative expenses increased to $79.4 million for the first half of 2025, up from $75.4 million in the same period last year, driven by higher stock-based compensation and professional services.
In terms of liquidity, Benchmark reported cash and cash equivalents of $264.6 million as of June 30, 2025, down from $315.2 million at the end of 2024. The company has a $700 million credit agreement, which includes a $550 million revolving credit facility and a $150 million term loan, both maturing in June 2030. As of the end of the second quarter, Benchmark had $150 million in borrowings under the term loan and $60 million under the revolving credit facility. The company anticipates that its existing cash balances and cash flows from operations will be sufficient to meet its liquidity needs over the next 12 months.
Looking ahead, Benchmark Electronics remains cautious about market conditions, particularly in light of ongoing supply chain challenges and fluctuating customer demand. The company plans to continue focusing on its core markets while managing costs and capital resources effectively. The Board of Directors has expressed its intention to maintain quarterly dividends, although future payments will depend on the company's financial performance and compliance with applicable laws.
About BENCHMARK ELECTRONICS INC
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