(RTTNews) - Benchmark Electronics, Inc. (BHE: News ), a contract manufacturer,Tuesday, reported decline in third quarter profits, reflecting lower revenue. On an adjusted basis, earnings per share declined, yet beat Wall Street consensus. Further, the company provided outlook for the fourth quarter.

Benchmark's net income for the quarter decreased to $16 million or $0.25 per share from $24 million or $0.35 per share in the year-ago period. Excluding restructuring charges and a discrete tax benefit related to a previously closed facility, net income declined to $17 million or $0.27 per share from $20 million or $0.31 per share in the same quarter last year.

On average, seven analysts polled by Thomson-Reuters expected the company to earn $0.20 per share for the quarter. Analysts' estimates typically exclude one-time items.

Net sales for the quarter declined to $510 million from $642 million in the prior-year quarter. Analysts expected revenue of $493.55 million for the quarter.

Operating margin on a GAAP basis for the quarter was 2.3% and 3.0%, excluding restructuring charges.

GAAP Income from operations decreased to $11.67 million from $21.85 million while Non-GAAP income from operations was $15.42 million compared with $22.11 million last year.
Restructuring charges for the quarter was approximately $3.8 million compared with $0.25 million in the year-ago primarily due to capacity reduction and severance related costs in Europe.

Income tax benefit, including a $2.4 million discrete tax benefit related to a revaluation loss in Mexico, increased to $5.28 million from $1.26 million in the year-ago period.

For the nine months ended September 30, net income declined to $37.20 million or $0.57 per share, from $68.10 million or $1.00 per share last year. Net sales decreased to $1.49 million from $2.1 million in the comparable period last year.

Looking forward, the company expects fourth-quarter sales to be in the range of $520 million-$560 million. Earnings per share, excluding restructuring charges, are expected to be in the range of $0.22-$0.26. Analysts estimate earnings of $0.22 per share on revenue of $518.23 million.

Benchmark Electronics is currently trading at $18.00,up $0.55 or 3.15% on a volume of 0.39 million shares on the NYSE

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by RTT Staff Writer

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