TTM Technologies, Inc. Reports Increased Revenues And Earnings In The Second Quarter
SANTA ANA, CA - July 29, 2004 - TTM Technologies, Inc. (Nasdaq: TTMI), a
leading manufacturer of time-critical and technologically advanced printed circuit
boards, today reported results for the second quarter ended June 28, 2004.
"We achieved yet another period of expanded revenues and earnings in the second
quarter of 2004," said Kent Alder, President and CEO of TTM Technologies. "Market
conditions remained favorable, and we continued to capture an increased share of
the market. Additionally, the second quarter's cash flow from operations of $14.1
million represented our sixteenth consecutive quarter of positive cash flow from
operations-every quarter since we have been a public company."
Second quarter 2004 revenue increased 50 percent to $61.6 million, compared to $41.0
million for the second quarter of 2003. Sequentially, from the first quarter of
2004 to the second quarter, revenues increased $3.9 million, or 7 percent.
For the second quarter of 2004, quick-turn business represented 22 percent of total
revenues, compared to 29 percent for the second quarter of 2003 and 24 percent for
the first quarter of 2004. The percentage declined due to higher growth in our standard
volume products and a lower ramp-to-volume portion of our quick-turn business, at
the end of the second quarter.
Gross margins increased to 31.0 percent for the second quarter of 2004, compared
to 15.7 percent for the second quarter of 2003 and 30.0 percent for the first quarter
of 2004. This margin improvement reflects TTM's significant operating leverage as
well as a favorable product mix, as reflected in our increased layer count,and strong
TTM posted an operating profit of $11.0 million for the second quarter of 2004,
compared to an operating profit of $735,000 for the second quarter of 2003 and an
operating profit of $10.4 million for the first quarter of 2004. The second quarter
of 2004 included a pretax restructuring charge of $855,000 to write down the value
of the Burlington property, which we closed two years ago and are holding for sale.
Net income for the second quarter of 2004 was $6.9 million, or $0.17 per diluted
share, compared with net income of $6.5 million, or $0.15 per diluted share, for
the first quarter of 2004, and net income of $432,000, or $0.01 per diluted share,
for the second quarter of 2003. The non-cash restructuring charge reduced second
quarter 2004 after-tax earnings by $539,000, or $0.01 per share.
Earnings before interest, taxes, depreciation and amortization (EBITDA) for the
second quarter of 2004 was $13.5 million, up from $3.1 million for the second quarter
of 2003 and $12.8 million for the first quarter of 2004.
"Our balance sheet continued to strengthen in the second quarter," continued Alder.
Compared to the first quarter of 2004, cash and short-term investments increased
$9.9 million, to $47.1 million at the end of the second quarter. Debt declined to
$6.7 million at the end of the second quarter from $7.8 million at the end of the
first period. TTM's $25 million revolving credit facility remained undrawn at the
end of the quarter.
"With healthy bookings and broad-based customer input confirming that market conditions
remain favorable, we expect solid revenue and earnings in the third quarter of 2004,"
concluded Alder. For the third quarter of 2004, TTM is estimating revenues of $62
million to $64 million and earnings of $0.18 to $0.20 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 second-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 August 5, 2004, on the company's Web site,
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, 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, and 10-K.
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TTM Technologies, Inc. Earnings
Release Schedule For Second Quarter 2004
"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.