TEMPE, Ariz. - Benchmark Electronics, Inc. (NYSE: NYSE:BHE), a global provider of engineering, design, and manufacturing services, has named Bryan Schumaker as its new chief financial officer (CFO), effective tomorrow. Schumaker, with over two decades of financial leadership experience, is expected to oversee the company’s financial operations and contribute to its strategic growth.
Schumaker's financial expertise spans various sectors, including manufacturing and renewable energy. He has been credited with significant achievements in his previous roles, such as enhancing financial operations and revenue growth at SOURCE Global, where he served as CFO. Under his financial guidance, the company reportedly saw a fourfold increase in revenue. He also held CFO positions at TPI Composites (NASDAQ:TPIC), Inc. and 8point3 Energy Partners, and served as SVP and Chief Accounting Officer for First Solar Inc (NASDAQ:FSLR).
Benchmark's President and CEO, Jeff Benck, expressed confidence in Schumaker's ability to drive the company's strategic direction and operational excellence. Schumaker's responsibilities will include strategic financial planning, capital structure management, and investor relations.
The appointment comes at a time when Benchmark is looking to capitalize on growth opportunities in its served markets, which span from aerospace to semiconductor capital equipment. Schumaker, who holds a Bachelor of Business Administration in Accounting from the University of New Mexico and is a Certified Public Accountant, shared his enthusiasm for joining Benchmark and contributing to its ongoing success.
Benchmark continues to focus on expanding its leadership team as part of its commitment to operational excellence and growth. The company operates globally with facilities in seven countries and is publicly traded on the New York Stock Exchange. This news is based on a press release statement from Benchmark Electronics, Inc.
In other recent news, Benchmark Electronics has reported a strong performance for Q2 2024, with revenues reaching $666 million, exceeding the company's high-end guidance. This success was largely driven by the Aerospace & Defense and Semiconductor Capital Equipment sectors. Despite a decline in other sectors, Benchmark's non-GAAP gross margins surpassed 10%, marking the sixth consecutive quarter of year-over-year margin expansion. Additionally, the company reported non-GAAP earnings per share of $0.57, above their guidance, and generated over $230 million in free cash flow over the past four quarters.
Looking ahead, Benchmark Electronics expects Q3 2024 revenues to range between $630 million and $670 million, with non-GAAP gross margins around 10%. The company is also forecasting new program wins to contribute to revenue growth in 2025 and is investing in capacity expansion in low-cost regions, Semi-Cap, and precision technology. However, declines were observed in the Medical, Complex Industrials, and Advanced Computing & Communications sectors, with the Medical sector affected by soft end demand and OEM inventory consumption.
CEO Jeff Benck highlighted the company's expansion in Romania, focusing on industrial and EMS for complex assemblies, and the growth potential in the Semi-Cap business and the Aerospace & Defense segment. Benchmark Electronics also sees potential in AI-related technologies within the semiconductor industry and aims to improve cash flow, targeting at least $120 million in free cash flow. These are among the recent developments in the company's strategic focus on sectors that show promise for future growth.
InvestingPro Insights
As Benchmark Electronics welcomes Bryan Schumaker as its new CFO, recent financial data and analyst insights from InvestingPro offer additional context to the company's current position and future prospects.
Benchmark's market capitalization stands at $1.58 billion, reflecting its significant presence in the global engineering and manufacturing services sector. The company's P/E ratio of 21.06 (adjusted for the last twelve months as of Q2 2024) suggests that investors are willing to pay a premium for its shares, possibly due to growth expectations or market position.
InvestingPro Tips highlight some positive aspects of Benchmark's financial health. The company operates with a moderate level of debt, which could provide financial flexibility as Schumaker takes on his new role. Additionally, Benchmark's liquid assets exceed its short-term obligations, indicating a strong short-term financial position.
However, the company faces challenges, as evidenced by a revenue decline of 6.7% over the last twelve months. Despite this, Benchmark has managed to maintain profitability, with analysts predicting continued profitability for the current year.
Investors have shown confidence in Benchmark's trajectory, with the stock experiencing a substantial 47.24% price increase over the past six months. This aligns with an InvestingPro Tip noting a "high return over the last year," which may have contributed to Benchmark's ability to attract top talent like Schumaker.
As Schumaker prepares to oversee Benchmark's financial operations, he'll be working with a company that has shown resilience in the face of revenue challenges. The gross profit margin of 10.01% for the last twelve months suggests there may be room for improvement in operational efficiency, an area where Schumaker's experience could prove valuable.
For investors and analysts seeking a more comprehensive understanding of Benchmark Electronics' financial position, InvestingPro offers 10 additional tips and a wealth of real-time financial metrics to inform investment decisions.
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