Benchmark Electronics, Inc.

and webcast. At this time, all lines are in a listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on Wednesday, January 29, 2025. I would now like to turn the conference over to Paul Manske, Investor Relations and Corporate Development. Please go ahead.

Thank you, John, and thanks everyone for joining us today for Pinchmark's fourth quarter and fiscal year-end 2024 earnings call. Joining us today are Jeff Bank, our CEO and President, and Brian Shoemaker, our CFO. After the market closed, we issued an earnings release pertaining to our financial performance for the fourth quarter and fiscal year-end 2024, and have prepared a presentation which we'll reference on this call. Both the press release and presentation are available under the investor relations section of our website at bench.com. This call is being webcast live, and a replay will be available online after we conclude. The company has provided a reconciliation of our gap to non-gap measures in the earnings release, as well as the appendix to the presentation. Please take a moment to review the forward-looking statements disclosure on slide three in the presentation materials. During our call, we will discuss forward-looking information. As a reminder, any of today's remarks, which are not statements of historical fact, are forward-looking statements, which involve risks and uncertainties as described in our press releases and SEC filings. Actual results may differ materially from these statements. Benchmark undertakes no obligation to update any forward-looking statements. For today's call, Jeff will start with an overview, followed by Brian's deeper dive into the results and our first quarter guidance. We will conclude with Jeff sharing more insight into demand trends by sector, new business wins, and some final remarks. If you will, please turn to slide four, and I'll turn the call over to our CEO, Jeff Fagan.

Thank you, Paul. Good afternoon, and thanks to everyone for joining today's call. The fourth quarter and fiscal year 2024 continue to demonstrate our operational execution and reinforce the business model leverage we have as a company. This was exhibited by an outstanding year in margin expansion and free cash flow generation. Let me step through a few highlights. Fourth quarter revenue of $657 million was in line with guidance as semi-cap, A&D, and complex industrials delivered strong results, which were offset by anticipated weakness in medical and AC&C. Non-GAAP gross margin in the quarter of 10.4% continued our multiple quarter trend of year-on-year expansion. Non-GAAP operating margin was again over 5%, but down slightly sequentially due to variable compensation true-ups given our strong annual performance. Turning to slide five, on a full year basis, we grew non-GAAP gross and operating margins by 60 and 20 basis points respectively, which was quite an achievement in the face of mid single-digit revenue declines in 2024. This bodes well for our earnings leverage as we return to revenue growth in 2025. We also reduced inventory in the year by over $130 million, or 20%. This helped enable us to generate over $156 million in free cash flow in the year, even with our ongoing investment of capital to support future growth. I'd like to recognize the team for their efforts on inventory reductions, which helped enable these great results. Looking forward, we expect to see revenue growth across the majority of our sectors in 2025. We will continue to maintain our focus on controlling expenses, improving operational excellence in our factories, and direct working capital to support our customers' growth plans. In fact, as I mentioned in our release, This quarter, we intend to break ground on a fourth building in Penang, Malaysia, primarily in support of our semi-capital equipment customers' needs as we continue to gain share and win new programs. As we look forward to 2025, I'm encouraged about the growth opportunities in front of us, driven by the previous wins we secured, the anticipated demand recovery in our industrial and medical sectors, and a return on the investments we have made in our capacity and capabilities. Collectively, these dynamics position us well to deliver increased shareholder value in 2025 and beyond. I'd now like to pass the call over to Brian for a deeper dive into our results and outlook. Brian, over to you.