Menu
Skip Navigation Links
Print
TTM Technologies, Inc. Reports first Quarter 2005 Results

for immediate release

SANTA ANA, CA - May 2, 2005 - TTM Technologies, Inc. (Nasdaq: TTMI), a leading manufacturer of time-critical and technologically advanced printed circuit boards, today reported results for the first quarter of 2005.

First-Quarter Results
First quarter 2005 net sales increased 2 percent to $58.9 million, compared to $57.7 million for the first quarter of 2004. Sequentially, from the fourth quarter of 2004, net sales were roughly unchanged.

For the first quarter of 2005, quick-turn business represented 21 percent of net sales, compared to 21 percent for the first quarter of 2004 and 21 percent for the fourth quarter of 2004. While quick-turn volume increased, pricing declined.

Gross margin decreased to 23.0 percent for the first quarter of 2005, compared to 30.0 percent for the first quarter of 2004 and 24.6 percent for the fourth quarter of 2004. Start-up costs related to the Chippewa Falls expansion in the first quarter of 2005, and pricing pressure affected gross margins.

General and administrative expenses decreased from the year-ago period, but increased sequentially, primarily due to audit fees related to the implementation of Sarbanes Oxley Act Section 404.

TTM posted an operating profit of $6.8 million for the first quarter of 2005, down from $10.4 million for the first quarter of 2004 and $8.2 million for the fourth quarter of 2004. The decline in gross profit, as described above, was the primary cause.

Net income for the first quarter of 2005 was $4.5 million, or $0.11 per diluted share, compared with $6.8 million, or $0.16 per diluted share, for the fourth quarter of 2004, and $6.5 million, or $0.15 per diluted share, for the first quarter of 2004. The fourth quarter of 2004 included a $1.2 million, or $0.02 per share, benefit from the reduction of the deferred income tax asset valuation allowance.

EBITDA (earnings before interest, taxes, depreciation and amortization) for the first quarter of 2005 was $9.7 million, compared with $12.8 million for the first quarter of 2004 and $11.0 million for the fourth quarter of 2004.

In the first quarter of 2005, TTM generated cash flow from operations of $5.5 million, enabling it to fund net capital expenditures of $2.7 million, while expanding its cash and short-term investments to a total of $61.9 million.

"Market demand was relatively stable in the first quarter of 2005, albeit with slightly greater than expected pricing pressure," said Kent Alder, President and CEO of TTM Technologies. "Internally, we had two factors that temporarily increased costs, which were the start-up of our expansion at the Chippewa Falls facility and Sarbanes Oxley compliance. The expansion of Chippewa Falls is now running smoothly and has added capacity needed to satisfy customer demand. In addition, Sarbanes Oxley compliance costs should decline in the second quarter."

Outlook
For the second quarter of 2005, TTM is estimating revenues of $58 million to $61 million and earnings of $0.10 to $0.12 per diluted 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 first-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 May 9, 2005, 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 - (Click on below link)
TTM Technologies, Inc. Reports First Quarter 2005 Results

"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:
05/02/2005

Contact

Stacey Peterson
Chief Financial Officer 714/241-0303