TTM Technologies, Inc. Reports Results For The Third Quarter Of 2004
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.
"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."
"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,"
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."
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
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.
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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.