Benchmark Electronics, Inc. reported a decline in revenue for the third quarter and the first nine months of 2024 compared to the same periods in 2023. For the three months ended September 30, 2024, total sales were $657.7 million, down 9% from $719.7 million in Q3 2023. The nine-month revenue also decreased to $1,999.2 million from $2,147.6 million in the prior year. The revenue drop was primarily attributed to reduced demand in the Medical and Advanced Computing & Communications (AC&C) sectors, despite a 13% increase in Semiconductor Capital Equipment (Semi-Cap) sales.
Gross profit for Q3 2024 was $66.7 million, representing a gross margin of 10.1%, an improvement from 9.6% in Q3 2023. For the nine months, gross profit increased slightly to $202.1 million from $200.1 million in the previous year. Income from operations for Q3 2024 was $28.1 million, a decrease from $30.3 million in Q3 2023, while for the nine months, it rose to $80.9 million from $77.6 million, driven by improved margins and cost reduction efforts.
Net income for Q3 2024 was $15.4 million, or $0.42 per diluted share, down from $20.4 million, or $0.57 per diluted share, in Q3 2023. For the nine months, net income was $44.9 million, compared to $46.8 million in the same period last year. The effective tax rate increased to 24.6% in Q3 2024 from 20.2% in Q3 2023.
The company reported significant changes in its balance sheet, with total assets decreasing to $2.15 billion as of September 30, 2024, from $2.27 billion at the end of 2023. Cash and cash equivalents increased to $324.4 million, up from $277.4 million at year-end 2023. Total current liabilities also decreased to $639.1 million from $713.5 million.
Benchmark Electronics recognized $5.6 million in restructuring charges during the nine months ended September 30, 2024, primarily related to capacity and workforce reductions in the Americas. This follows $5.2 million in restructuring charges in the same period of 2023, which were mainly due to the closure of its Moorpark, California site.
The company continues to focus on maintaining its dividend policy, having paid $17.8 million in dividends during the first nine months of 2024, slightly up from $17.6 million in the same period of 2023. Additionally, Benchmark has an expanded share repurchase authorization of up to $250 million, with $149.5 million remaining as of September 30, 2024.
About BENCHMARK ELECTRONICS INC
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