Benchmark Electronics (NYSE: BHE) reported Q2 EPS of $0.31, $0.01 worse than the analyst estimate of $0.32. Revenue for the quarter came in at $579 million versus the consensus estimate of $582.89 million.

"Second quarter revenues were $579 million, with non-GAAP EPS of $0.31," said Gayla Delly, Benchmark's President and CEO. "Our year-over-year revenue from higher-value markets increased from 53% to 63% for the first half of the year driven by the successful transformation of our customer portfolio and the Secure acquisition."

"We are encouraged by the progress of our initiatives to improve our cash conversion cycle from 99 to 83 days. We have transitioned a number of new programs to more efficient supply chain solutions over the last 18 months, primarily in our international locations and are on track to achieve 75 days as we exit the fourth quarter."

Ms. Delly concluded, "Our balance sheet remains strong, supporting continued investment in our business, strategic growth initiatives and our share repurchase program. Our results for the quarter show continued progress on our strategy to drive shareholder value, including diversifying our portfolio, executing on our lean and operational initiatives and managing our working capital. While our third quarter outlook reflects caution from customer forecasts, we remain committed to delivering higher returns on invested capital through better operating margins and working capital management."

GUIDANCE:

Benchmark Electronics sees Q3 2016 EPS of $0.33-$0.38, versus the consensus of $0.35.

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