Menu
Skip Navigation Links
Print
TTM Technologies, Inc. Reports Results For The Third Quarter Of 2004

for immediate release

SANTA ANA, CA - October 26, 2004 - 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 27, 2004.

Third-Quarter Results
"We maintained solid revenues and profitability in the third quarter of 2004," said Kent Alder, President and CEO of TTM Technologies. "Cash flow from operations of $17.8 million represented our seventeenth consecutive quarter of positive cash flow from operations. And we now have a debt-free balance sheet."

Third quarter 2004 revenue increased 37 percent to $62.2 million, compared to $45.3 million for the third quarter of 2003. Sequentially, from the second quarter of 2004, revenues increased $600,000, or 1 percent.

For the third quarter of 2004, quick-turn business represented 22 percent of total revenues, compared to 25 percent for the third quarter of 2003 and 22 percent for the second quarter of 2004. The percentage declined, year-over-year, due to higher growth in standard lead-time products.

Gross margin increased to 28.4 percent for the third quarter of 2004, compared to 20.9 percent for the third quarter of 2003. Sequentially, gross margin declined from 31.0 percent for the second quarter of 2004, primarily due to product mix changes and lower efficiency, particularly at the Redmond division.

TTM posted an operating profit of $11.6 million for the third quarter of 2004, compared to $3.7 million for the third quarter of 2003 and $11.0 million for the second quarter of 2004. Second quarter 2004 operating profit included a pretax restructuring charge of $855,000 to write down the value of the Burlington property, which was closed two years ago and has been sold in the fourth quarter of 2004.

Net income for the third quarter of 2004 was $8.0 million, or $0.19 per diluted share, compared with $6.9 million, or $0.17 per diluted share, for the second quarter of 2004, and $2.5 million, or $0.06 per diluted share, for the third quarter of 2003. A lower tax rate in the third quarter of 2004 added approximately $0.01 to diluted earnings per share. Second quarter 2004 net income included a non-cash restructuring charge that reduced after-tax earnings by $539,000, or $0.01 per diluted share.

Earnings before interest, taxes, depreciation and amortization (EBITDA) for the third quarter of 2004 was $14.2 million, up from $6.3 million for the third quarter of 2003 and $13.5 million for the second quarter of 2004.

"While business conditions were relatively stable overall, we have experienced some variability by customer and end market," stated Alder. "Our quick-turn business improved over the course of the third quarter compared to the softness experienced at the end of the second quarter. However, we still have not seen a pick up in the ramp-to-volume portion of our quick-turn business."

Financial Strength
"Due to our strong cash flow in the third quarter, we were able to fund net capital expenditures of $5.7 million, pay down the remaining outstanding debt of $6.7 million, and expand our cash and short-term investments by $5.5 million to $52.6 million," said Alder.

Outlook
For the fourth quarter of 2004, TTM is estimating revenues of $58 million to $62 million and earnings of $0.14 to $0.18 per diluted share. "While overall business remains relatively healthy, we continue to see mixed demand from individual customers and certain end markets," concluded Alder. "We anticipate slight pressure on pricing, and a raw material price increase that took place October 1, 2004, is expected to trim gross margins by one percentage point."

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 November 2, 2004, 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, increased competition from low-cost foreign manufacturers, and other "Risk Factors" set forth in the company's most recent SEC filings.

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

 

 

Company

TTM Technologies
(ticker: TTMI, exchange: NASDAQ)

Release Info

News Release:
10/26/2004

Contact

Stacey Peterson
Chief Financial Officer 714/241-0303