Benchmark Electronics CFO resigns to pursue outside 'opportunity'

Benchmark Electronics Inc. is searching for a new top financial executive after Roop Lakkaraju, the Tempe company's executive vice president and CFO, said this week that he intends to resign to "pursue another professional opportunity outside of Benchmark," according to a March 19 regulatory filing.

Lakkaraju, who joined the company in 2018, will remain in his current role until April 1.   

"It has been a privilege serving as Benchmark’s EVP and CFO for the last six years," Lakkaraju said in a statement. "I am immensely proud of what our team has accomplished together and am confident Benchmark has a bright future ahead."

In its regulatory filing with the U.S. Securities and Exchange Commission, Benchmark (NYSE: BHE) said Lakkaraju's departure is not the result of any disagreement with the company or its board of directors related to the company’s operations, policies or practices. 

With Lakkaraju's departure, Arvind Kamal, Benchmark’s vice president of finance, will assume the role of interim CFO. Kamal has been with Benchmark for more than four years and has a deep understanding of the EMS sector, along with "leadership capabilities across both finance and accounting [that] position him well to continue Benchmark’s ongoing pursuit of our financial objectives," the company's statement said. 

Prior to joining Benchmark, Kamal was vice president of financial planning and analysis at Scottsdale's Vixxo Corp. from September 2017 to December 2019. According to the regulatory filing, Benchmark's board has approved an additional cash stipend for Kamal of $10,500 per month. In addition, he will receive a one-time grant in connection to his appointment as interim CFO of $100,000 worth of restricted stock units that vest over 24 months.

Benchmark will conduct a formal executive search to determine Lakkaraju's permanent replacement, the company said.

"I want to thank Roop for his contributions to the company during his tenure," said Jeff Benck, Benchmark’s CEO, in a statement. "Roop is leaving us in a better position than when he joined, including building a stronger financial team that will help seamlessly bridge this transition."  

Benchmark reiterates guidance for Q1 financials

Along with this announcement, Benchmark issued a statement reiterating its prior expectations for its Q1 2024 fiscal quarter ending in March, including revenue within a range of $625 million to $665 million and non-GAAP EPS of between 42 cents and 48 cents per share. The company had issued those guidance numbers when it released its year-end 2023 financial results on Jan. 31.

The company reported a dip in revenue for Q4 2023 — still in line with analysts' estimates — and for the full year, but also reported an improvement in gross and operating margins. According to Yahoo Finance, analysts are expecting earnings of 46 cents per share in Q1 along with revenue of $645 million, in the mid-range of the company's estimates.

A year ago, the company opened a new precision technologies facility in Mesa that was expected to create 100 jobs.

Benchmark shares closed at $29.25 on Thursday, up 65 cents, or 2.3%.