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Electronics Production |
Bench's 3Q: up sequentially, down YoY
"We delivered sequential revenue and earnings growth in the third quarter as our business started to recover from second quarter disruptions, enabling earnings to come in above our guidance for the quarter," says CEO and president Jeff Benck.
Third quarter 2020 sales amounted to USD 526 million, up sequentially from USD 491 during the second quarter of 2020, but decreased when compared to USD 555 million during the same quarter last year. Net income amounted to USD 6 million, up compared to a second quarter loss of USD 3 million, but a slight decrease from USD 7 million when compared with the third quarter last year. "The results were driven by a 45% year-over-year improvement in Semi-cap and an 18% sequential improvement in the Aerospace and Defense sector, where demand for defense related products remains strong. In addition, third quarter non-GAAP gross and operating margins improved significantly from the second quarter, reaching 8.7% and 3.0% respectively, as our global network returned to normal operating capacity," CEO and president Benck says in the press release. Overall, the company says that higher-value market revenues during the third quarter were up 7% quarter-over-quarter and down 1% year-over-year. Traditional market revenues were up 9% quarter-over-quarter due to stronger demand for high performance computing and telecommunications products and down 21% year-over-year, primarily from Benchmark’s exit of a legacy Computing contract in 2019, which it decided not to renew. "Entering the fourth quarter, we expect stronger demand and new programs in Defense, Industrials, and Telecommunications to offset declines in Medical as we are completing some of the incremental upside builds for COVID-19 related therapeutic equipment. We continue to make progress on improving gross margins as we expect to achieve our 9% target in the fourth quarter, which will enable us to also improve earnings sequentially." For the fourth quarter of 2020 the EMS provider expects revenues between USD 500 – USD 540 million.