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TTM Technologies, Inc. Reports Fourth Quarter 2001 Cash Earnings of $0.04 and Full-Year Results of $0.41 Per Share

for immediate release

REDMOND, WA - January 31, 2002 - TTM Technologies, Inc. (Nasdaq: TTMI), a leading manufacturer of time-critical, technologically advanced printed circuit boards, today reported results for the fourth quarter and full year ended December 31, 2001.

First-Quarter Results

In the fourth quarter, revenue and profitability declined, year-over-year, due to general economic weakness and a continued downturn in the electronics industry. Net sales declined 58 percent to $25.4 million, compared to $60.5 million for the fourth quarter of 2000. Gross profit declined 83 percent to $4.8 million, as gross margins declined to 19.0 percent in the fourth quarter of 2001, compared to 45.9 percent for the same period in 2000.

As a result of lower volume and reduced absorption of fixed manufacturing overhead, operating income declined 96 percent to $0.9 million in the fourth quarter of 2001, compared to $20.5 million for the fourth quarter of 2000.

Net income was $0.3 million, or $0.01 per diluted share, for the fourth quarter of 2001, compared to net income of $12.7 million, or $0.33 per diluted share, for the same period in 2000. Diluted cash earnings per share were $0.04 for the fourth quarter of 2001, compared to $0.36 for the same period in 2000.

Earnings before interest, taxes, depreciation and amortization (EBITDA) declined 82 percent to $4.3 million for the fourth quarter of 2001, compared to $23.2 million for the year-ago period.

For the fourth quarter of 2001, quick-turn business increased to 39 percent of total revenues, compared to 37 percent for the fourth quarter of 2000. During the quarter, the company gained 40 new customers.

"Through a very challenging business environment, we remained profitable in the fourth quarter and for the year, due to effective cost control and capturing new customer accounts," said Kent Alder, President and CEO of TTM Technologies. "We acted quickly to adjust our cost structure as we approached the industry downturn-with lower material costs and a workforce reduction of more than one-third-while significantly expanding our sales and marketing efforts."

Full Year Results

Net sales for 2001 declined 37 percent to $129.0 million, compared to $203.7 million for 2000.

Gross profit declined 52 percent to $36.8 million, as gross margins declined to 28.5 percent for 2001, compared to 37.6 percent for 2000.

During 2001, operating income declined 62 percent to $19.2 million, compared to adjusted operating income (excluding costs associated with the buyout of compensation and management contracts) of $51.3 million in 2000.

Earnings before interest, taxes, depreciation and amortization (EBITDA) declined 48 percent to $33.0 million for 2001, compared to adjusted EBITDA of $63.2 million for 2000.

Return on Invested Capital

TTM's return on invested capital (ROIC), based on tax-affected EBITA, was 5.8 percent in the fourth quarter of 2001, compared with 35.2 percent in the year-ago period. For the year, TTM generated an ROIC of 11.8 percent.

The company's balance sheet strengthened further during the quarter. Through 2001, TTM reduced its net debt to $8.1 million, down $25.9 million since year-end 2000. As a result, TTM ended 2001 with a net debt-to-capital ratio of 5.1 percent, compared to 19.8 percent at year-end 2000.

Outlook

For the first quarter of 2002, TTM anticipates revenues of $22 to $25 million and approximately breakeven cash net income, with cash earnings per share between a profit of $0.02 and a loss of $0.02. "As the industry downturn continues into 2002, we will remain focused on securing new customers, proactive cost management, and strengthening our capital structure, thereby maximizing our financial performance," said Alder.

"Our long-term outlook remains optimistic, and we continue to build for the future," concluded Alder. "We have invested in additional quick-turn capacity and advanced our technological capabilities. Our focus on these attractive market niches, combined with our strong balance sheet, will provide us with new opportunities as the printed circuit board industry continues to consolidate."

TTM Technologies, Inc. is a leading supplier of time-critical, technologically advanced printed circuit boards to original equipment manufacturers and electronic manufacturing services companies. TTM stands for time-to-market, representing how the company's time-critical, one-stop shop manufacturing services enable customers to shorten the time required to develop new products and bring them to market.;

Conference Call/Webcast
The company will conduct a conference call to discuss its fourth quarter and full-year performance and outlook, today at 11:00 a.m. Eastern/8:00 a.m. Pacific time. The call will be simulcast, and available for replay until February 7, 2002, on the company's Web site at www.ttmtech.com .

This release contains forward-looking statements that relate to future events or performance. These statements reflect the company's current expectations, and the company does not undertake to update or revise these forward-looking statements, even if experience or future changes make it clear that any projected results expressed or implied in this or other company statements will not be realized. Furthermore, readers are cautioned that these statements involve risks and uncertainties, many of which are beyond the company's control, that could cause actual results to differ materially from the forward-looking statements. These risks and uncertainties include, but are not limited to, the company's dependence upon the electronics industry, the company's dependence upon a small number of customers, general economic conditions and specific conditions in the markets TTM addresses, including the recent significant slowdown in the technology sector and related excess capacity, the unpredictability of future revenues and expenses, potential fluctuations in revenues and operating results, and other "Risk Factors" set forth in the company's registration statement on Form S-3.

TTM Technologies, Inc. Earnings Release Schedule For Forth Quarter 2001

"Safe Harbor"; Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding TTM Technologies' business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.  

 

 

Company

TTM Technologies
(ticker: TTMI, exchange: NASDAQ)

Release Info

News Release:
01/13/2002

Contact

Stacey Peterson
Chief Financial Officer
714/241-0303