TTM Technologies, Inc. Reports Third Quarter 2005 Results
SANTA ANA, CA - October 26, 2005 - TTM Technologies, Inc. (Nasdaq: TTMI),
a leading manufacturer of time-critical and technologically advanced printed circuit
boards, today reported results for the third quarter of 2005.
Third quarter 2005 net sales increased 7 percent to $61.0 million, compared to $57.2
million for the second quarter of 2005. Year over year, from the third quarter of
2004, net sales decreased $1.2 million, or 2 percent. The sequential increase from
the second quarter of 2005 resulted primarily from more favorable prices, driven
by the increased technological level of the product mix and firming demand.
Quick-turn business remained relatively stable in the third quarter of 2005 at 21
percent of net sales, compared to 22 percent for the second quarter of 2005 and
19 percent for the third quarter of 2004.
Gross margin expanded to 23.2 percent for the third quarter of 2005 compared to
19.3 percent for the second quarter of 2005. Gross margin decreased from 28.4 percent
for the third quarter of 2004. Gross margins improved sequentially, in the third
quarter of 2005, due to higher pricing and improved operating efficiency, as demand
and work flow were relatively stable during the quarter.
General and administrative expenses of $4.9 million in the third quarter of 2005
increased from $3.0 million in the second quarter of 2005 and $2.9 million in the
year-ago period. Included in the third quarter of 2005 expense was a $2.0 million
accrual related to an agreement in principle to resolve a customer dispute concerning
goods shipped in 2002 and 2003.
TTM posted an operating profit of $5.9 million for the third quarter of 2005, up
from $4.8 million for the second quarter of 2005 but down from $11.6 million for
the third quarter of 2004.
Net income for the third quarter of 2005 was $4.1 million, or $0.10 per diluted
share, compared with $3.3 million, or $0.08 per diluted share, for the second quarter
of 2005 and $8.0 million, or $0.19 per diluted share, for the third quarter of 2004.
Net income included the $1.2 million, or $0.03 per diluted share, after-tax impact
of the $2.0 million pre-tax accrual for resolution of the customer dispute.
EBITDA (earnings before interest, taxes, depreciation and amortization) for the
third quarter of 2005 was $9.1 million, compared with $7.9 million for the second
quarter of 2005 and $14.2 million for the third quarter of 2004.
In the third quarter of 2005, TTM generated cash flow from operations of $9.1 million,
enabling the company to fund net capital expenditures of $1.4 million, while expanding
its cash and short-term investments by $7.5 million, to a total of $71.1 million.
"We are very pleased with the results for the quarter," said Kent Alder, President
and CEO of TTM Technologies. "We experienced more favorable pricing and steady volume
in the period, which enhanced our operating efficiency and profitability. Our product
mix reflected a higher technological component, including increases in our sequentially
laminated, blind and buried via and high density interconnect (HDI) work. We have
resolved the customer dispute, and we do not expect it to impact results in future
For the fourth quarter of 2005, TTM is estimating revenues of $60 million to $63
million and earnings of $0.11 to $0.14 per diluted share. "To date, fourth quarter
order rates are steady, and we have a solid backlog," said Alder.
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, 2005, 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. Reports Third Quarter 2005
"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.