In Q4, we delivered revenue of $521 million, which was at the midpoint of our guidance for the quarter.
With improving higher-value sector revenue mix and better operational efficiency, we achieved non-GAAP gross margins of 9.6%, which was above our target of 9%.
Even with slightly higher SG&A expenses in the quarter due to higher variable compensation and higher-than-anticipated COVID-related expenses at $1.6 million or about $0.04 per share, the resulting non-GAAP operating margin was 3.4%, and non-GAAP earnings were $0.34 per share.
Our team's effort to bring down inventory and better manage working capital are bearing fruit with cash conversion cycles coming in at 71 days, which enabled $84 million of free cash flow for the quarter.
When I joined the company, we set a goal of consistently achieving over $200 million of new bookings per quarter, and I'm proud to report that even in the face of the global pandemic, we achieved over $800 million in new bookings for the 2020 calendar year.
Our regrettable loss measure has improved significantly in the last 18 months.
To that end, we experienced annual revenue growth of more than 33% in semi-cap and 11% in medical sector.
Through improved processes, G&A centralization activities and investment prioritization, we managed our SG&A expense to $122 million for the year, which was lower than forecasted.
Total Benchmark revenue was $521 million in Q4, which was in line with the midpoint of our Q4 guidance and similar to our Q3 revenue of $526 million.
Semi-cap revenues were up 2% in the fourth quarter and up 24% year-over-year from continued strength for wafer fab equipment to support growth in DRAM and logic demand across our semi-cap customers.
A&D revenues for the fourth quarter increased 6% sequentially due to strong revenue from radar communications and land-based vehicle systems.
Conversely, commercial aerospace demand, which was about 25% of 2020 revenues, remained muted and continue to decline on certain platforms during the quarter.
Overall, the higher-value markets represented 81% of our fourth quarter revenue.
Our traditional markets represented 19% of fourth quarter revenues.
Our top 10 customers represented 38% of sales in the fourth quarter.
Our GAAP earnings per share for the quarter was $0.21.
Our GAAP results included restructuring and other onetime costs, totaling $4.4 million related to reduction in force and other restructuring activities around our network of sites.
Our Q4 -- for Q4, our non-GAAP gross margin was 9.6%, a 90 basis point sequential increase.
During the quarter, gross margin was positively impacted by overall sector mix, improved absorption and a number of customer recoveries, which represented 30 basis points of the 90 basis point increase.
We estimate that we incurred approximately $1.6 million or approximately $0.04 per share of COVID costs in the quarter versus $1.3 million in Q3.
Our SG&A was $32.4 million, an increase of $2.7 million sequentially and $8.2 million year-over-year.
Non-GAAP operating margin was 3.4%, an increase from 3% in Q3 due to the increased gross margin.
In Q4 2020, our non-GAAP effective tax rate was 17.5%, which was lower as a result of the mix of profits between the U.S. and foreign jurisdictions.
Non-GAAP earnings per share was $0.34 for the quarter, and non-GAAP ROIC was 6.2%.
Total Benchmark revenue for 2020 was $2.1 billion, a decrease from $2.3 billion in 2019 from lower demand from pandemic-impacted customers in commercial aerospace, oil and gas and elective medical subsectors.
For the full year, higher-value markets were up 3%, primarily from semi-cap and medical, which increased 33% and 11%, respectively, year-over-year.
As a reminder, for 2020, the A&D sector was approximately 75% defense and security related and 25% commercial aerospace.
Overall, medical revenues grew 11% from new and existing programs.
Industrial revenues were down 18% year-over-year, primarily from softness in the oil and gas industry, with additional impacts from the commercial and building infrastructure markets where investments in many large projects remain delayed.
Overall, the higher-value markets represented 81% of our 2020 revenue compared to 71% in 2019.
Revenues in the traditional markets were down 41% from 2019, primarily from our exit of the legacy computing contract in Q3 2019 and program transitions in telco.
Our traditional markets represented 19% of 2020 revenues compared to 29% in 2019.
Our top 10 customers represented 41% of sales for the full year 2020.
We have one customer, Applied Materials, that was greater than 10% of revenue for the full year.
Our GAAP earnings per share for fiscal year 2020 was $0.38.
Our GAAP results included restructuring and other onetime costs totaling approximately $19 million.
These costs included $13 million of costs related to site consolidation efforts, reduction in workforce activities and other restructuring-type activity around our network, approximately $7 million in asset impairment, offset by $1 million in net insurance proceeds.
Our 2020 non-GAAP gross margin was 8.4%, a 20 basis point sequential increase.
We estimate that we incurred approximately $7 million of net COVID costs in 2020.
Our non-GAAP SG&A for 2020 was $122 million, an increase of $3.8 million from 2019.
Non-GAAP operating margin for the year was 2.5%, a decrease from 3% in 2019, due primarily to the effects of the pandemic on our operational efficiencies and the incurrence of COVID-specific costs.
In 2020, our non-GAAP effective tax rate was 19.4%.
Non-GAAP earnings per share in 2020 was $0.95, and non-GAAP ROIC was 6.2%.
Our cash conversion cycle days were 71 in the fourth quarter, an improvement of 10 days from the third quarter.
Our cash balance was $396 million at December 31 with $189 million available in the U.S.
At December 31, 2020, we had $137 million outstanding on our term loan with no borrowings outstanding on our available revolver.
We generated $95 million in cash flow from operations in Q4 and generated $120 million for the full year 2020.
Our free cash flow was $84 million in Q4 and $81 million for the full year 2020.
In Q4, we paid cash dividends of $5.8 million and repurchased shares of $5.9 million.
In fiscal year 2020, we repurchased $25.2 million, which represented approximately one million shares.
As of December 31, 2020, we had approximately $204 million remaining on our share repurchase authorization.
From 2018 to 2020, we executed $359 million in share repurchases and paid $67 million in dividends to our shareholders.
We expect revenue to range from $480 million to $520 million, which reflects normal seasonality for some sectors.
We expect that our gross margins will be 8.1% to 8.3% for Q1, and SG&A will range between $29 million and $31 million.
We do expect that as we continue throughout fiscal year 2021, gross margins will increase, and we expect gross margins for the full year to be at least 9%.
Implied in our guidance is 2.2% to 2.4% non-GAAP operating margin range for modeling purposes.
We expect to incur restructuring and other nonrecurring costs in Q1 of approximately $1 million to $2 million.
Our non-GAAP diluted earnings per share is expected to be in the range of $0.18 to $0.22 or a midpoint of $0.20.
We estimate that we will generate approximately $60 million to $80 million of cash flow from operations for fiscal year 2021, and capex for the year will be approximately $45 million to $50 million as we prioritize investments to support new customers and expand our production capacity through revenue growth.
Other expenses, net, is expected to be $2.5 million, which is primarily interest expense related to our outstanding debt.
We expect that for Q1, our non-GAAP effective tax rate will be between 19% and 21% because of the distribution of income around our global network.
The expected weighted average shares for Q1 2021 are $36.3 million.
We remain well positioned in this sector with both our advanced precision machining and electronics manufacturing services and now expect revenues to grow greater than 10% over 2020 levels.
We expect the higher-value markets to again represent over 80% of our total annual revenue.
We are targeting gross margins for the full year to be at least 9% as we offset headwinds from continued COVID costs and a number of new program ramps with benefits from our operational excellence programs.
We are also targeting SG&A for the full year to be below 6% from effective expense management and continued progress with shared services consolidation.
For your information, we have been monitoring and tracking energy reduction programs for almost 10 years in support of the environment.
On the governance front, we have a diverse corporate Board with 22% of directors represented by women, but we can and will do more.

Summary:
In Q4, we delivered revenue of $521 million, which was at the midpoint of our guidance for the quarter.
Even with slightly higher SG&A expenses in the quarter due to higher variable compensation and higher-than-anticipated COVID-related expenses at $1.6 million or about $0.04 per share, the resulting non-GAAP operating margin was 3.4%, and non-GAAP earnings were $0.34 per share.
Total Benchmark revenue was $521 million in Q4, which was in line with the midpoint of our Q4 guidance and similar to our Q3 revenue of $526 million.
Our GAAP earnings per share for the quarter was $0.21.
Non-GAAP earnings per share was $0.34 for the quarter, and non-GAAP ROIC was 6.2%.
We expect revenue to range from $480 million to $520 million, which reflects normal seasonality for some sectors.
Our non-GAAP diluted earnings per share is expected to be in the range of $0.18 to $0.22 or a midpoint of $0.20.