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TTM Technologies, Inc. Reports Strong Gains In The Third Quarter Of 2003 With Net Income Of $0.06 Per Share On Revenues Of $45.3 Million

for immediate release

SANTA ANA, CA - October 21, 2003 - TTM Technologies, Inc. (Nasdaq: TTMI), a leading manufacturer of time-critical and technologically advanced printed circuit boards, today reported results for the third quarter ended September 29, 2003.

Third-Quarter Results
Third quarter 2003 revenue increased 120 percent to $45.3 million, compared to $20.6 million for the third quarter of 2002, due to the acquisition of Advanced Circuits, Inc. (ACI) in the fourth quarter of 2002 and organic growth. Sequentially, from the second quarter to the third quarter of 2003, revenues increased $4.3 million, or 10.4 percent.

For the third quarter of 2003, quick-turn business decreased to 25 percent of total revenues compared to 45 percent for the third quarter of 2002 and 29 percent for the second quarter of 2003. This decrease was due primarily to the acquisition of ACI, which is focused on standard lead time, high technology PCBs. The remaining 75 percent of sales in the third quarter of 2003 represents standard lead time business.

Gross margins increased to 20.9 percent in the third quarter of 2003, compared to 15.1 percent for the third quarter of 2002 and 15.7 percent for the second quarter of 2003. This margin improvement reflects TTM's significant operating leverage, as well as its enhanced operating efficiency, higher labor productivity, and lower raw material costs.

Year-over-year, general and administrative expenses increased from $1.7 million to $2.7 million, due to the inclusion of ACI. Sequentially, general and administrative expenses for the third quarter of 2003 decreased 1.0 percent from $2.8 million in the second quarter of 2003.

TTM posted an operating profit of $3.7 million for the third quarter of 2003, compared to an operating loss of $446,000 for the third quarter of 2002 and an operating profit of $735,000 in the second quarter of 2003.

Net income for the third quarter of 2003 was $2.3 million, or $0.06 per diluted share, excluding an extraordinary gain of $218,000. This result compared favorably with a net loss of $369,000, or $0.01 per diluted share, for the third quarter of 2002 and net income of $432,000, or $0.01 per diluted share, for the second quarter of 2003.

Earnings before interest, taxes, depreciation and amortization (EBITDA) for the third quarter of 2003 was $5.9 million, up from $1.9 million for the third quarter of 2002 and $3.0 million for the second quarter of 2003.

"We have experienced an across the board strengthening in end market demand," said Kent Alder, President and CEO of TTM Technologies. "We've also captured market share and capitalized on cross-selling opportunities associated with the acquisition of ACI and our three specialized and integrated manufacturing facilities."

Financial Strength
"Our balance sheet remains strong," continued Alder. At the end of the third quarter, TTM had cash of $31.3 million, compared with $18.9 million at year-end 2002. Debt remained at $10.0 million. In addition, TTM's $25 million revolving credit facility remained undrawn at the end of the quarter.

Successful Secondary
On September 17, 2003, the company completed a secondary offering of 12.65 million shares, priced at $12 per share. The 12.45 million shares sold by selling shareholders increased the stock's public float by approximately 60 percent. The 200,000 remaining shares, sold by the company, yielded net proceeds of $1.7 million.

Mil-Spec
Qualification In October (see release dated October 14, 2003), TTM announced that its Redmond division qualified for military specification orders. This certification enables TTM to expand its current base of aerospace and defense business and capture a new, important source of growth.

Outlook
"Based on the improvement we have seen in the market and additional opportunities to capture market share, we look forward to further strengthening in revenues and earnings in the fourth quarter," concluded Alder.

For the fourth quarter of 2003, TTM is estimating revenues of $50 million to $52 million and earnings of $0.08 to $0.10 per share.

Conference Call/Webcast
TTM Technologies, Inc. is a leading supplier of time-critical and technologically advanced printed circuit boards to original equipment manufacturers and electronics 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.

The company will conduct a conference call to discuss its third-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 October 28, 2003, on the company's Web site, 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, which 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, the unpredictability of and potential fluctuation in future revenues and operating results, the company's ability to successfully integrate the ACI acquisition, increased competition from low-cost foreign manufacturers, and other "Risk Factors" set forth in the company's most recent Registration Statement on Form S-3.

- Tables Follow - (Please, Click on link below)
TTM Technologies, Inc. Earnings Release Schedule For Third Quarter 2003

"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:
10/21/2003

Contact

Stacey Peterson
Chief Financial Officer 714/241-0303