Benchmark Electronics, Inc.

Good afternoon, and welcome to the Benchmark Electronics Incorporated third quarter 2019 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your telephone keypad. To withdraw your question, please press star, then two. Please note, this event is being recorded. I would now like to turn the conference over to Lisa Weeks, Vice President of Strategy and Investor Relations. Please go ahead.

Thank you, Operator, and thanks, everyone, for joining us today for Benchmark's third quarter 2019 earnings call. With me this afternoon, I have Jeff Banks, CEO and President, and Roop Lakharaju, CFO. Jeff will provide introductory comments, and Root will provide a detailed review of our third quarter 2019 results and outlook. We will conclude our call with a Q&A session. After the market closed today, we issued an earnings release highlighting our financial performance for the third quarter of 2019, and we have prepared a presentation that we will reference on this call. The press release and presentation are available online under the investor relations section of our website at www.bench.com. This call is being webcast live and a replay will be available online following the call. Please take a moment to review the forward-looking statements advice on slide two in the presentation. During our call, we will discuss forward-looking information. As a reminder, any of today's remarks that are not statements of historical fact are forward-looking statements. which involve risks and uncertainties described in our press releases and SEC filings. Actual results may differ materially from these statements, and Benchmark undertakes no obligation to update any forward-looking statements. The company has provided a reconciliation of our GAAP to non-GAAP measures in the earnings release, as well as in the appendix of the presentation. I will now turn the call over to our CEO, Jeff Banks.

Thanks, Lisa, and welcome to everyone joining us for this afternoon's call. During today's call, I will first provide a brief overview of our third quarter 2019 results and step through some meaningful new wins in the quarter. Group will then take you through the financial updates and I will close with a progress update on our key strategic initiatives. Please turn to slide four. In the quarter ending September 30th, 2019, we delivered revenue of 555 million, which was at the high end of our guidance and we achieved $0.36 of non-GAAP EPS, which was at the midpoint of our guidance range. Revenue was driven by year-over-year increases in the higher-value A&D and medical markets, along with higher-than-expected revenues from NPI builds in the semi-cap sector, which supported our sequential growth. Our non-GAAP gross margins improved 60 basis points sequentially to 9.5% on our higher-value market mix, and non-GAAP operating margins increased 10 basis points sequentially to 3.2%. We continue to deliver improved margins as we rotate our portfolio into higher-value vertical markets and take on more complex products from our customers. Rup will take you through the details on working capital and cash flow for the quarter and full year. So please turn to slide five. As we discussed in last quarter's call, we added the company's first chief revenue officer to integrate and lead our global go-to-market strategy. Rob Crawford is now fully up to speed, has put up much of his organization together, and has made progress in refining our go-to-market and sector strategy. Two further priorities in this area are to increase the funnel of the right opportunities aligned to our value proposition. and to accelerate bookings with new and existing customers. I'm very pleased with the early results from the team during the past quarter. Our bookings in 3Q grew sequentially, and we had some exciting new program wins, which I will share in more detail. In our medical sector, we were awarded a market-leading platform of therapeutic surgical devices with a new global customer to benchmark. Also, we were awarded a new program with an existing customer in the defibrillator market. In aerospace and defense, we received a complex integration award for a satellite communication device and production orders for microelectronics assemblies that ultimately will be deployed in space from our LARC-RS and high-speed design center. In industrial, we received an award from a communications company for a smart industrial IoT device supporting their initiatives in the transportation industry. In SEMICAP, we were awarded new precision machining programs for some of the most advanced machine components with one of our existing industry-leading SEMICAP customers. This award was the result of very close and collaborative early design engagement. Lastly, in computing and telco, we were awarded a new manufacturing services contract for state-of-the-art digital display OEM and family of programs for commercial printer modules for an existing OEM customer. These are all excellent wins for our teams across a broad set of valued customers. These representative customers from 3Q speak to the breadth and scale of the opportunities we are closing that will ultimately allow us to further grow our revenue. Now, if you please turn to slide six, I will turn the call over to Rube to discuss our financial results for the quarter.