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TTM Technologies, Inc. Reports First Quarter 2002 Results

for immediate release

TTM Technologies, Inc. Reports First Quarter 2002 Results

REDMOND, WA - April 29, 2002 - TTM Technologies, Inc. (Nasdaq: TTMI), a leading manufacturer of time-critical, technologically advanced printed circuit boards, today reported results for the first quarter ended April 1, 2002.

First-Quarter Results In the first quarter, revenue and profitability declined, year-over-year, due to continued weakness in the electronics industry. Net sales declined 48 percent to $23.7 million, compared to $46.0 million for the first quarter of 2001. Gross profit declined 87 percent to $2.3 million, as gross margins declined to 9.9 percent in the first quarter of 2002, compared to 39.8 percent for the same period in 2001.

As a result of lower volume and pricing and reduced absorption of fixed manufacturing overhead, the company reported an operating loss of $0.2 million in the first quarter of 2002, compared to operating income of $12.6 million for the first quarter of 2001. Prior period results included a quarterly goodwill amortization charge of $0.9 million, which was eliminated with the adoption of Statement of Financial Accounting Standards No. 142, in the first quarter of 2002.

For the first quarter of 2002, the net loss was $0.3 million, or $0.01 per diluted share, compared to net income of $7.6 million, or $0.19 per diluted share, for the same period in 2001. Cash earnings were $22,000, or breakeven on a per share basis, for the first quarter of 2002, compared to $8.8 million, or $0.23 per diluted share, for the same period in 2001.

Earnings before interest, taxes, depreciation and amortization (EBITDA) declined 85 percent to $2.4 million for the first quarter of 2002, compared to $15.9 million for the same period in 2001.

"Over the course of the quarter, we saw some strengthening of demand in our quick-turn business," said Kent Alder, President and CEO of TTM Technologies. For the first quarter of 2002, quick-turn business increased to 44 percent of total revenues, compared to 38 percent for the first quarter of 2001.

"In a challenging business environment, we remained near breakeven in the first quarter, due to the success of our sales efforts and effective cost controls," said Alder. "Not only did we add approximately 40 new customers during the quarter, we expanded existing customer relationships, which is reflected in two additions to our top-10 customer list. On the cost side, we continued to lower both material and labor costs."

"Our balance sheet remains among the strongest in the EMS industry as a result of continued positive cash flow from operations and our successful secondary offering completed in February," added Alder. "We believe our strong balance sheet provides us with the resources and flexibility to invest in technology and to position ourselves to capture market share in the future."

Return on Invested Capital
TTM's return on invested capital (ROIC), based on tax-affected EBITA, was 2.7 percent in the first quarter of 2002, compared with 23.4 percent in the year-ago period. On a trailing 12-month basis, TTM generated an ROIC of 6.7 percent.

In the first quarter, the company received net cash proceeds of $15.3 million from its secondary stock offering and generated cash from operations of $3.9 million. At the quarter's end, TTM had net cash of $10.6 million, compared with net debt of $8.1 million at year-end 2001.

Outlook
"Despite some encouraging improvements we experienced in the first quarter, predicting the timing and nature of a technology and capital spending recovery remains difficult," said Alder. For the second quarter of 2002, TTM anticipates revenues ranging from $22 to $24 million and cash earnings per share between a profit of $0.01 and a loss of $0.01.

"Looking ahead, we remain optimistic about our ability to capture additional market share," concluded Alder. "We also expect to remain one of the most profitable companies in the industry, based on our continued focus on sales and marketing efforts, as well as productivity improvements and cost control measures."

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 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 first quarter performance and outlook, today at 4:30 p.m. Eastern/1:30 p.m. Pacific time. The call will be simulcast, and available for replay until May 6, 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 Form 10-K for 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:
04/29/2002

Contact

Stacey Peterson
Chief Financial Officer 714/241-0303