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
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 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
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."
"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.
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.
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.
"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.
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
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.
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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.